The annual SAHIC event was recently held in Cartagena, where industry leaders gathered to discuss the current state and future prospects of the hospitality industry in Latin America. As we look forward to the event being hosted in Peru next year, we reflect on the insights shared by experts at the event.
The world economy is expected to decelerate in 2023 as monetary policy tightens, leading to concerns about uncertainty and financial stability. Despite this, most countries in Latin America are well-positioned to withstand potential shocks due to their solid external positions. Inflation pressures are easing, but central banks are expected to maintain a restrictive monetary policy stance, which will demand a balance between protecting the vulnerable and restoring debt sustainability in the medium term.
The global occupancy levels have closed in on 2019 levels in most regions, with Central America leading the way with a 99% occupancy rate. While ADR has been ahead of 2019 levels in most regions, Asia is the only region where ADR has been lower. In January 2023, occupancy rates saw a strong start for the region, with most regions recording occupancy rates close to or above 50%.
The top-performing resort markets in CALA were Nassau, Belize, and Mazatian, among others. These markets saw real ADR growth, driven by leisure demand, and profitability was largely dependent on labor costs. Cancun emerged as a top bleisure destination, with consistent occupancy rates of above 60% throughout 2022. Interestingly, travelers preferred to plan their own stay rather than opting for all-inclusive packages.
Looking ahead, there is strong development for the region, with many new projects and rooms being planned. However, the challenge will be to manage this new supply while maintaining profitability. Brazil is leading the way in terms of development, with nearly 36,000 rooms being planned in the coming years.
A message from our CEO: “I Would like to extend a warm thank you to the organizer, Arturo, for putting together another successful SAHIC event this year. It was an honor to be able to share important insights with industry leaders at the annual event held in Cartagena.
As we look ahead to next year’s event, which will be hosted in Peru, I am excited to see what new developments and insights will be shared with attendees. It is a fantastic opportunity for industry professionals to come together, network, and discuss the latest trends and innovations in the hospitality industry.
I would also like to thank the sponsors who supported this year’s SAHIC event. Your contributions are instrumental in making this event possible and helping to foster growth and development in the Latin American hospitality industry. Thank you to
- IHG Hotels and Resorts
- BWH Hotel Group
- Marriott International
- Grupo Argos
- Wyndham Hotels and Resorts
- Aimbridge Latam
- Choice Hotels Latam
- Prom Peru
- GHL Hoteles
Your support is greatly appreciated, and I look forward to seeing the continued growth and success of the Latin American hospitality industry in the coming years.”