The Cayman Islands are entering a new era of growth in tourism, with forecasts showing stronger performance than many other Caribbean destinations. According to research from BMI, part of Fitch Solutions, stayover visitor arrivals are expected to increase by an average of 6.4% per year between 2025 and 2029, one of the fastest sustained growth rates in the region.

How the Cayman Islands Compare

By 2029, Cayman is projected to welcome around 594,460 air arrivals each year. In comparison, the wider Caribbean region is expected to grow by roughly 3% annually, led by large destinations such as the Dominican Republic, the Bahamas, and Puerto Rico.

This positive outlook reflects the unique combination of strengths that continue to make the Cayman Islands stand out among its regional peers.

What’s Driving the Growth

Recovery Momentum and Consistent Demand

By August 2025, the Cayman Islands had already received more than 325,000 stayover visitors, a 2.6% rise compared with the same period in 2024. Although still below the pre-pandemic peak of 2019, this rebound shows strong and steady recovery.

Full-year projections suggest that arrivals could reach about 507,900 in 2025, bringing the islands back to—and possibly above—pre-pandemic levels. While external factors such as changes in the U.S. economy may play a role, the long-term trajectory remains firmly positive.

Expansion of Hotels and Premium Experiences

To meet future demand, Cayman’s accommodation sector is expected to expand steadily. Between 2025 and 2029, the number of hotel rooms is forecast to grow to around 4,170, averaging between 5% and 7% annual growth.

Many of the new developments will focus on high-end offerings, reflecting the islands’ reputation as a luxury destination. The arrival of additional international hotel brands will further enhance the visitor experience and broaden Cayman’s global appeal.

Strong U.S. Market and Global Promotion

Travellers from the United States currently account for around 83% of stayover arrivals, and this is likely to remain the dominant source market. Strengthened air connectivity and new airline partnerships are helping to maintain that momentum.

The Department of Tourism’s global “Welcome to vaCay” campaign has also played a key role in positioning the Cayman Islands as one of the Caribbean’s most desirable warm-weather destinations.

What This Growth Means for Cayman

Opportunities for Landowners and Developers

As tourism grows, so does the demand for residential, hospitality, and mixed-use developments. For landowners and developers, the coming years present ideal conditions to create projects that serve this expanding market. Freehold land across Grand Cayman and Cayman Brac continues to attract strong interest from those looking to take part in the islands’ future growth.

Benefits for Travellers

Visitors can look forward to more variety, higher standards of service, and an ever-expanding range of experiences. Cayman’s mix of natural beauty, modern comfort, and secure environment ensures that it remains one of the most attractive destinations in the region.

Looking Ahead

With solid growth forecasts, a wave of premium hotel developments, and renewed international visibility, the Cayman Islands are set to lead the Caribbean tourism recovery. For those considering real estate investment opportunities, the next few years promise exceptional potential as Cayman’s global profile continues to rise.