Luxury Tourism & Luxury Market
Belize tourism and Belize real estate is expanding the luxury market. The luxury travel industry has grown unprecedentedly in recent years due to rising spending power, an expanding middle-class population, emerging luxury trends, and the expansion of luxury hotels.
The definition of luxury travel has evolved dramatically in recent years, and people are now far more adventurous. They are more interested in experiencing local customs and cuisine.
Earlier this year, a survey from GlobalData.com found that luxury tourism has recovered quicker then budget tourism.
The global luxury travel market is expected to grow at a compound annual growth rate of 7.8% to 8.9% from 2022 to 2032, reaching a market size of USD 2.32 trillion to 2.76 trillion by 2032.
Caribbean & Central America Luxury Tourism
The Belize Region, with the Caribbean & Central America as a whole, outperforms the average recovery trends of the Americas, Europe, and Asia Pacific in the Luxury Tourism sector. This is shown in the revenue and profit trends.
The Caribbean & Central America Region (including Belize) has a higher ADR and Occupancy than other Western Hemisphere markets like Mexico, Canada & USA for luxury tourism.
The Caribbean & Central America Region is expected to have an annual tourism GDP growth rate of 5.5% to 6.7% between now and 2030.
Belize Tourism & Luxury Market
The Caribbean & Latin American (Belize) luxury tourism industry will likely be one of the fastest growing between now and 2032, with the most opportunity.
Belize, with the BTB (Belize Tourism Board), has taken steps in advancing and growing the Belize Luxury Tourism Industry.
Luxury travel services cover the most desirable and premium experiences in terms of luxury accommodations, convenient transport facilities, and authentic and exclusive travel experiences.
The Luxury Tourism program aims to provide outstanding, exclusive, and convenient tourism services and experiences to tourists and locals. In Belize, some of the recent announcements around luxury tourism include;
- Four Seasons on Caye Chapel
- Six Senses on Ambergris Caye
- FBO & Private Aviation
- Yacht & Nautical Tourism
- Filling Luxury Tourism Market Gaps
- Fine Dining & Restaurant Facilities
Regional Data on Luxury Tourism
What we have learned during every economic turn is that luxury tourism is still a driver. At CHRIS & HOLA (Caribbean Investment Summit & Hotel Operators of Latin America Summit), the data on luxury tourism was shared and how it performed in the market.
Even though luxury tourism appeals to a smaller demographic (unlike cruises and all-inclusive), they are more consistent, yield higher returns, is surprisingly not susceptible to market fluctuations, have better occupancy, and better clientele. The most interesting take is that if there are slower periods, the luxury market can lower prices and push out the “non-luxury” market.
Belize as a whole is pushing luxury tourism, making it easier for yachts, allowing FBO and private planes, creating direct flight routes from high net-worth locations, etc. With all this push, Belize is working on becoming a Cayman Islands, Maldives, Turks & Caicos, Bahamas, or St Martin, instead of a budget destination like Mexico or the Dominican Republic.
Belize is also seeing far more celebrities and high net-worth travelers visiting Belize and Ambergris Caye. But what is interesting is the fact we do not have many of the luxury villas in our lodging inventory to accommodate these travelers.
Luxury Tourism
If you build a luxury house/villa with outdoor space and amenities (even 2, 3 or 4 bedrooms), you will capture the luxury tourism market. The house or unit does not need to be large; just provide fixtures, touches, service, etc.
With luxury tourism and luxury travelers, owners/investors are able to charge any nightly rental rate you want. Example: Rolex does not compromise the price of new watches even during an economic downturn, and every store you visit is always sold out.
Earlier this year, a survey from GlobalData.com found that luxury tourism has recovered quicker then budget tourism.
The global luxury travel market is expected to grow at a compound annual growth rate of 7.8% to 8.9% from 2022 to 2032, reaching a market size of USD 2.32 trillion to 2.76 trillion by 2032.
The 2022 Global Travel Trends Report of American Express Travel study found that 58% of respondents opt for solo travel to visit their dream destination, strengthening the demand for luxury travel.
The Caribbean & Latin American luxury tourism industry is likely to be one of the fastest growing between now and 2032, with the most opportunity.
Regional Luxury Market
The luxury segment in the region (Belize) is ahead of the all-inclusive and full-service properties in profit margin growth and opportunity.
Luxury Tourism has a Higher ADR (Average Daily Rate & Nightly Rental Rate) and Better Occupancy than full-service or all-inclusive.
Luxury Tourism sees year-round bookings with better ADR and occupancy in high and low seasons. Luxury tourism has less volatility and seasonality. There is no low season in the luxury market segment in the region. Luxury has seen heightened off-season months.
Profit margins are higher in luxury tourism, with annual and quarterly revenue and profits rising due to more substantial rate increases. Luxury tourism has a much higher revenue per room or unit.
Belize Luxury Tourism Announcements
Luxury travel services cover the most desirable and premium experiences in terms of luxury accommodations, convenient transport facilities, and authentic and exclusive travel experiences. The overall aim of the Luxury Tourism program is to provide outstanding, exclusive, and convenient tourism services and experiences to tourists and locals.
- Four Seasons on Caye Chapel
- Six Senses on Ambergris Caye
- FBO & Private Aviation
- Yacht & Nautical Tourism
- Filling Luxury Tourism Market Gaps
- Fine Dining & Restaurant Facilities
Belize Travel & Facilities
Belize has a range of initiatives and infrastructure programs coming in to enhance and increase tourism. With additional flights (including New York JFK), improved transportation, etc. You can see some of the tourism enhancements and initiatives below;
- 3 million anticipated passenger movements at PGIA (Belize International Airport BZE) in 2045.
- PGIA (BZE Airport) Facility Extensive Upgrade underway and expected completion in 2040.
- Enhanced Border Facilities.
- Increased – Ground Transportation Connections.
- Domestic Airlines with expanded international routes.
- Interregional connectivity.
- Renovations at Municipal Airports to expand Private Aviation.
- Addition of FBO facilities at national and domestic airports.
Learn more about traveling to Belize internationally.
To learn more about Belize real estate and investing in Belize contact RE/MAX Belize. We look forward to sharing more information on Belize and opportunities in the luxury tourism market!
