Ambergris Caye Investment & Vacation Rental Data October 2023

Ambergris Caye Vacation Rentals

Ambergris Caye has been the epicenter of the Belize tourism surge and COVID recovery. This has led to growth in the Ambergris Caye Real Estate and investment in vacation rentals.

Ambergris Caye luckily has something we like to call “Island Economics.” When investing in an island, there is only so much land available. The limitations on available land create scarcity, not only scarcity of property but also a scarcity of land and completed resale homes. There is only so much land on an island. Island economics means that you see greater property appreciation on an island due to scarcity of property and limitations on how much can be built.

Tourism growth, increased awareness, offshore residency, and improved connectivity have all led to higher investment yields on vacation rental properties on Ambergris Caye. Ambergris Caye and San Pedro Town (the municipality on the island of Ambergris Caye) are by far the top destinations in Belize. Below, we look at the updated tourism data and vacation rental investment opportunities on Ambergris Caye!

 

Ambergris Caye Tourism

Ambergris Caye has seen tourism hitting all-time highs year-over-year as we become a globally recognized destination. From 2010 to 2023 (13 years), Ambergris Caye overnight tourism (people booking rental units) has grown at an annual compounded rate of 14.8% per year increase, with overnight tourism nearly doubling from 2010 to 2023 (+81.5% increase).

 

Belize Overnight Tourism

 

 

Belize Tourism Board Overnight Arrivals

 

Ambergris Caye Vacation Rental Inventory

Even though tourism is growing, the total rooms for rentals have stayed stagnant, with limited new losing inventory and often even a decline in inventory. Tourism is growing, and this usually correlates to added supply; that said, Ambergris Caye, Belize, is at the perfect time for investment as we have unique market conditions that have led to increased demand and a decrease in supply inventory.

Rental Inventory on Ambergris Caye has dropped by -4% from 2022 to 2023. Also dropped -13.9% over the last 3 years. This is largely due to the influx of people moving to Belize and the growing expat community and people who can work remotely.

 

Ambergris Caye Vacation Rental Lodging Inventory

 

For lodging, as a point of reference, Ambergris Caye saw -4% from last year. Lodging inventory for vacation rentals on Ambergris Caye has seen a -13.9% decrease over the last 3 years.

Ambergris Caye has had a compounded annual tourism growth over 12 years at an average of 14.8% per year.

As you can see, the 3-year trend has been consistent, with many quarters witnessing a dip in rental inventory (even with an increase in demand). This creates a unique opportunity for investors. With the shortage in supply and increase in demand, there is a need for more lodging and rentals.

 

Increase in Demand + Decrease in Supply = Increase in Price & Rent

 

 

 

 

 

Many industry experts predict Ambergris Caye real estate prices and nightly rental rates will continue to increase. This will lead to greater equity appreciation and a higher cash-flow yield.

Even though demand is on the rise, the supply has remained stagnant. With increased awareness comes increased demand, but the lodging and vacation rental inventory supply does not meet the demand growth.

 

Ambergris Caye Occupancy

 

 

In 2022, Ambergris Caye had an average vacation rental occupancy of 54.8%. In 2023, the average occupancy of vacation rentals has been at 61.3%. This is an increase of +11.9% year-over-year (2022 to 2023).

 

 

Ambergris Caye Nightly Rental Rates

 

In 2023, Ambergris Caye has seen ADR (Nightly Rental Rates) for vacation rentals increase by +15% from 2022. In 2023, the average nightly rental rate on Ambergris Caye has been $284 USD per night, which is up from $262 USD per night in 2022.

 

Ambergris Caye Investment Revenue

The increase in tourism with the lodging and vacation rental supply shrinking has led to higher occupancy and higher nightly rental rates (ADR). The increased occupancy and ADR have resulted in higher revenues. On Ambergris Caye, vacation rental gross revenue is up 30% in 2023 (from 2022).

 

Annual Average Rental Revenue

 

 

What is fascinating is the renal income for detached homes over condos (and the % annual growth).

 

Detached homes on Ambergris Caye have seen an average annual gross revenue of $88,850 US in 2023 (Airbnb income). Compared to condos, which saw an average gross yearly earnings of $44,300 US. Detached homes also saw a higher % growth at 23% annual revenue growth (condos with 14%) from 2022 to 2023.

For more information on investing in Belize and Ambergris Caye rental income investment opportunities, contact us at RE/MAX Belize!

 

New San Pedro & Ambergris Caye Hospital

San Pedro Town & Ambergris Caye Hospital

 

Residents of San Pedro Town and Ambergris Caye (along with all those who invest and travel to the island) are excited about the latest development announcement. Residents of Ambergris Caye are finally getting a state-of-the-art hospital and medical facility. Earlier this year, there was a memorandum of understanding between the governments of Belize and Taiwan for the construction of the San Pedro General Hospital. The $33 million needed to construct the hospital will be a grant and not a loan from the Government of Taiwan.

The unveiling of the design of the new healthcare facility for Ambergris Caye took place on Monday, April 3rd, 2023. The state-of-art medical facility in San Pedro will be possible through the people of Taiwan and the site preparation is underway.

This facility fulfills the need for accessible, comprehensive medical services both for residents and visitors to Belize’s most popular tourist destination (Ambergris Caye).

The Belizean Government has been working with a number of specialists on this ambitious project with the help of a team of experts; analyzing data, meeting with health teams/professionals on the ground, planning the execution, and collaborating with partners in order to ensure the construction of a first-rate hospital and medical facility.

David Kuan-Chou Chien, Ambassador of Taiwan to Belize stated “Taiwan has rich experience of building and management of medical facilities and is willing to share it with Belize to better the Belizean people. Therefore we are delighted to work with the Government of Belize to implement the construction project of the San Pedro Hospital. We hope that the hospital  can make a big difference for the residents and tourists of San Pedro Town.”

Presently, the San Pedro Poly Clinic is the primary medical facility on Ambergris Caye. The newly announced San Pedro General Hospital will be located across from Victoria House Resort, on the south side of the island, about 1.5 miles south of San Pedro Town; no start of construction date has been announced yet. That said, the land for the hospital is already being prepped for construction.

This new hospital location is very convenient for residents and investors in Mahogany Bay Village. The new medical facility and hospital are located just a few minutes from the community front gate.

 

Proposed Hospital Site

 

Hospital Location

 

Media

Taiwan Gifts $33 Million to Belize for Hospital

Model for San Pedro Hospital Revealed

 

Biggest Development Announcements & Updates

 

For more information on the new hospital and medical facility, contact us! We look forward to sharing the latest updates and developments coming to Belize.

Quick Facts on Ambergris Caye Belize

Ambergris Caye Belize

Belize is unique as it is both the Caribbean & Central America. Ambergris Caye is the largest island in Belize and the #1 destination in the country. The Belize island of Ambergris Caye is more of a peninsula with the northernmost channel being a divider between Belize and Mexico. Ambergris Caye is in the Caribbean Sea, having the Belize Barrier Reef (Mesoamerican Barrier Reef System) on the East Coast and calm beaches on the West Coast.

The island of Ambergris Caye is geographically contiguous to Mexico, but my stroke of providence and the Maya intervention in dredging and expanding the north canal end of the Caye brought it under Belize rule and territory. Ambergris Caye is also home to San Pedro Town which is the largest town of Ambergris Caye and the second-largest municipality in Belize.

Ambergris Caye gained mainstream popularity in early 1970 when it opens its doors to tourists, and in 1984 San Pedro was officially granted ‘town’ status. Many believe the town of San Pedro and Ambergris Caye was the inspiration behind the famous Madona song “la Isla Bonita”, which gave the island of Ambergris Caye its famous nickname “La Isla Bonita”. Ambergris Caye gained further popularity and notoriety when it played host to season one of the Fox show Temptation Island in 2000 and aired in 2001.

The main attraction to Ambergris is its gorgeous Belize Barrier Reef which extends the eastern shoreline and West Coast beaches which pull thousands of tourists annually. The Barrier Reef is considered the world’s second-largest reef coming after Australia’s Great Barrier Reef and the largest living reef in the world. The island is accessible through a small airstrip serviced by Maya Island Air and Tropic Air or reached by air directly from Belize City and many high-speed ferries.

Ambergris Caye is still a boutique tourist destination that is only starting to see mainstream notoriety, many attractions bring lots of visitors to the island of Ambergris Caye which you can see in some of the fun facts below;

  • English Speaking: Belize is the only country in Central America that has English as the official language and the English language is widely spoken.
  • Change its colonial name: Belize was formerly called British Honduras but changed to Belize in 1973.
  • Largest island: Belize is home to many islands but Ambergris Caye is the largest as it is roughly 25 miles long.
  • Protected National Park: The northern part of the island is a national park “Bacalar Chico National Park and Marine Reserve“.
  • Origin of the Name: The island got its name from the word “Ambergris” after large lumps of ambergris, the solid, flammable, and waxy substance from sperm whales’ digestive systems were found on the shore. Ambergris at the time was a popular commodity used for perfume.
  • Retirement Destination: Informed retirees find inspiration and a new start in Belize. Belize offers a warm climate, affordable living, and retirement incentives like the QRP.
  • Laidback Caribbean & Urban Lifestyle: Its foods and urban supermarkets are comparable to the US, Ambergris Caye parades American-style groceries conveniently present across the island which promotes native culture and makes tourists, especially from North America feel at home in Belize. Locally, there are fresh fruit and vegetables, you also have meat and poultry from the mainland. Belize is also the only net agricultural exporter in CARICOM.
  • Beautiful Celebrations: Belize is full of festivities; its nationwide culture and Ambergris Caye present four unique highly revered occasions – the Costa Maya Festival, San Pedro Day, Township Day, and Carnival. The annual Lobsterfest also draws in thousands of tourists every summer.
  • Entertainment & Nightlife: San Pedro is by far the hub for Belizean nightlife. From nightclubs to bars and great restaurants, every tourist must find something so cool to identify with and get busy on a daily basis. Between the downtown nightclubs, the beach clubs at Secret Beach, and the countless restaurants, there are always festivities to enjoy on Ambergris Caye.
  • Transportation: Only a few full-sized cars are on Ambergris Caye; the primary mode of transportation is golf carts or small vehicles. This adds to the island’s charm and appeal.
  • Unique community identities: Every part of Ambergris Caye has its unique characteristic just as you will find in the US; it is highly diverse. The locals have varying backgrounds which have created a naturally multicultural community. On Ambergris Caye you see Mayan Heritage, English/British Influence, Spanish influence from the region, the Garifuna people, and the Mennonites (who are responsible for most of the agriculture). All of these groups create and maintain the unique culture of Belize.

Ambergris Caye also has amazing geography with unique conditions. Overall, the island is a flat, coral Sand Island, a 25-mile-long location protected by a living reef extending over 185 miles down the coast of Belize; Ambergris is home to the unique peninsula of porous limestone. The bedrock below the surface makes the ground hard and less susceptible to land erosion. Its beautiful climate is often the primary draw to the island as sunseekers visit through the winter months, but the world-class diving and fishing bring people to the island year-round.

The consistent climate is what draws so many tourists to Ambergris Caye. The temperature is perfect and more accommodating than in most tropical climates. The plethora of Flora and Fauna in Ambergris Caye, much like in Mexico adds to the color of the Island. The water is turquoise blue, with picturesque views from almost every angle. Ambergris Caye is the perfect destination for investment or to call home.

If you are looking to buy Ambergris Caye real estate or investment properties in Belize contact the team at RE/MAX Belize.