Slowly, shakily, Cayman’s tourism recovery persists

Six months on from the reopening of Cayman’s borders, the islands are attracting around half the number of tourists that were visiting prior to the pandemic.

Just short of 100,000 people have flown into Grand Cayman since visitors began returning to the islands at the end of last year.

Numbers rose sharply in March, when vaccination and testing protocols were eased.

But the industry is still some way short of celebrating a full recovery.

April was the busiest month for Cayman’s hotels and restaurants since the outbreak of COVID-19 shut down the industry in March 2020.

But the 25,114 passengers that arrived at Owen Roberts International Airport during that month, which coincided with the Easter holidays, is little over half of the number that arrived in the same period in 2019 and is the lowest since 2005, when the island was still recovering from Hurricane Ivan.

Cayman Islands Tourism Association president Marc Langevin said most big hotels were running at around 50% occupancy. It’s a vast improvement on last year when they had no business at all, but not a situation that can last forever.

For The Ritz-Carlton, where Langevin is the general manager, the easing of regulations on public gatherings was just as pivotal as dropping the arduous testing regime. He said that decision had reopened the lucrative corporate group bookings for larger venues, helping them get back on their feet after the lockdowns.

He said upping the airlift and abandoning the remaining COVID restrictions will be key to a wider recovery.

“Nobody can swim here,” he said, “so there is a direct relationship between airlift and occupancy.”

Securing the return of regular flights from Texas could be critical, especially in the summer months, when Cayman’s customer base tends to shift from the eastern seaboard to the southern United States. Langevin believes lifting the requirement that all visitors over the age of 12 be vaccinated could also be important because of the lower uptake of the vaccine in these areas.

He is supportive of Cayman Airways new route from Los Angeles – a first for the Caribbean – and cautiously optimistic about the next high season. But he sees turbulence on the horizon in the airline staff shortages which have disrupted the travel industry in the US and the UK. 

“That’s not an issue that is under our control and it is one that will limit the amount of planes they can put in the air,” he said.

“All we can do is make sure they see us as the best place to send those planes.”

Lean period ahead

For others in the industry, the idea of a recovery remains a perilous concept.

Troy Leacock, vice president of CITA and a representative of the North Sound boat operators, said businesses that depended on cruise were at an earlier stage in the post-COVID recovery cycle.

Cruise arrivals peaked at just over 60,000 passenger arrivals in May – around 60% of the pre-pandemic numbers.

Many operators are currently doing brisk business. But he fears that few have had time, in the small recent window of opportunity, to build up a sufficient ‘cash cushion’ to survive the low season in September and October when Cayman’s tourism arrivals typically dip substantially.

Cost of living increases, particularly fuel for water sports and fishing businesses, have added to the challenge.

With government’s support stipends to both employers and their staff ending last month, Leacock warned there could be trouble ahead.

He said the ‘famine’ of low season could set businesses back to where they were before the reopening, and is appealing to government to continue supporting the industry to help keep staff employed through to November when things pick up.

Premium ships key to success

For the cruise-dependent sector, it is not just about numbers. ‘Premium ships’ like Disney bring fewer, but generally wealthier, passengers, for example.

With global post-pandemic scepticism around cruising forcing some of the major corporations to offer budget deals – the New York Times reporting a $50 per day offer for a Caribbean cruise earlier this summer – the ships moored off George Town are not always packed with big spenders.

Despite this dynamic, Leacock, who owns Crazy Crab boat charters, said the cruise ships are working with the vendors, and the prices Cayman operators are able to charge for tours are actually increasing in some cases.

He believes the key issue for the island and the government is to get through the lean late summer months and refocus on bringing in the best ships in the 2022/23 season.

Wendy Moore, a CITA board member and manager at the Renaissance Condominium complex, said there were similar concerns in the accommodations sector.

“While we are happy to be getting closer to being fully opened we are still a ways away from our pre-Covid occupancies,” she said.

“We had a late start with short notice of the borders re-opening, which meant our winter season was not busy. For many of our staff, this means they do not have the income they would normally have to get them through the upcoming slower months and they are going to need continued financial assistance.”