The Cayman Islands’ tourism industry ended 2025 pulled in two very different directions. Air arrivals held their ground and even edged upward, supported by expanded airlift, new routes and a major global marketing push. Cruise tourism, by contrast, suffered one of its most difficult years on record, dragging down overall visitation figures and forcing a broader reckoning about the future shape of the sector.
Through October, total visitation was down 2.1% year-to-date, but that headline number masked a widening gap between the two pillars of the industry. Stayover arrivals rose 2.1% compared with the same period in 2024, while cruise arrivals fell 3.8%, reflecting fewer ship calls and sustained monthly declines.
New airline routes
Airlift sat at the heart of government’s tourism strategy, with a coordinated push by US carriers – Delta, United, American, JetBlue and Southwest – strengthening access to Cayman’s core markets. Porter Airlines launched non-stop services from Toronto and Ottawa, including the first-ever direct flight from the Canadian capital to Grand Cayman. Delta confirmed the return of Detroit – Grand Cayman flights and JetBlue and Spirit added thrice-weekly non-stop service from Fort Lauderdale.
Cayman Airways marked its 57th anniversary as Tourism Minister Gary Rutty confirmed the national carrier is exploring new gateway cities, including Austin, Seattle, San Francisco and Phoenix.
Challenges for cruise sector
Cruise tourism followed a more difficult path. The year began strongly, with gains in January, February and March. That early optimism evaporated quickly.
The sector’s challenges were amplified in May, when voters delivered a resounding ‘no’ to proposed cruise berthing piers, a decision that sent shockwaves through the industry. April, May, June and August all recorded double-digit declines, while October fell nearly 30% year-on-year, now standing as the weakest October ever recorded for cruise arrivals.
Hotel development
On land, hotel development continued. Major projects progressed, including the ONE | GT luxury hotel and residences in George Town, slated for a late-2026 opening and continued planning for the Grand Hyatt Grand Cayman Hotel and Residences. Developers confirmed ground had been broken on the Mandarin Oriental resort, targeting a 2028 opening.
Planning approval was granted for a revised 10-storey Hyatt Centric on West Bay Road, while Hotel Indigo Grand Cayman earned a AAA Four Diamond designation, the first in its brand portfolio. Paradise Villas in Little Cayman reopened in November under a new management company, Sunshine Hotel and Suites completed a US$30 million renovation, and the remains of Royal Palms were demolished to make way for a new beach bar.
Hoteliers also faced headwinds. A heavy mid-year influx of sargassum hit beachfront properties, while beach erosion intensified scrutiny of Seven Mile Beach. Coral Beach announced it would close its Seven Mile Beach operation in January.
Stayover tourism shows resilience
Despite some challenges, stayover tourism proved resilient. The first half of the year delivered solid growth, driven overwhelmingly by the US market, which accounted for nearly 83% of visitors.
January through April posted steady growth while arrivals softened later in the year, slipping 1.6% in May, nearly 9% in June and more than 10% in August, with smaller declines in September and October. The early gains kept the year in positive territory, even if 2025 ultimately fell short of the record-breaking highs of 2019.
Marketing momentum continued through the year. In October, the Department of Tourism rolled out its US$12 million ‘Welcome to vaCay’ campaign, positioning Cayman as an antidote to over-scheduled, high-stress travel while spotlighting its people.
The appointment of Kleber Group sharpened the destination’s reach in Central Europe and new security equipment at Owen Roberts International Airport aimed to reduce bottlenecks without compromising safety.
By year’s end, while cruise numbers faltered, airlift, hotel development and marketing all pointed to a long-term bet on stayover tourism as the engine of sustainable growth.
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Re: “ By year’s end, while cruise numbers faltered, airlift, hotel development and marketing all pointed to a long-term bet on stayover tourism as the engine of sustainable growth.”
Hurrah! Truly this would be in the best interests of the Islands economic growth as well as environmental & cultural survival.
Anne Evans
DOT wasted “$12 million” in marketing, trying to attract the European tourism. There has never been in 40 years any increase in European tourist wanting to come to Cayman. European’s have so many chooses at half the cost than crossing the Atlantic to the 2nd most expensive destination in the world, Cayman Islands.