There are many different ways to track a destination's growth. Hotel revenue is just one factor, but it can often predict further growth, expansion, and value in a region.
In January 2019, hotels in Nassau saw a 48% increase in year-over-year revenue. That means that hotels generated 48% more income in January 2019 than they did in January 2018 and they have maintained that growth through the first quarter of this year.
This kind of tremendous growth can only mean one thing: Nassau is on the rise. And, that’s not just related to hotels. Property development is also going strong.
Hotel Industry's Most Robust Performance in Over a Decade
In a tropical destination like Nassau in The Bahamas, certain months are busier than others. That has to do with holiday calendars around the world and regional weather. As a result, it doesn't make sense to compare one month of hotel bookings to the next, because June bookings can look completely different when compared to December bookings.
To accurately track hotel revenue growth and rising tourism, the best option is to compare months one year to the next. That's exactly what resulted in the exceptional growth seen between January 2018 and January 2019. In Nassau, hotel revenue increased by a staggering 48%.
This is phenomenal for a number of reasons, and it is the most significant growth in more than a decade. In fact, it is the biggest year-to-year monthly increase in over 12 years.
More Than Just Occupancy - Room Rates Are Also on the Rise
When you see an increase in hotel revenue, it can represent a number of improvements. The most obvious is simply that in January 2019, there were more visitors in Nassau than there were in January 2018. That is certainly true, and the sheer number of visitors coming to Nassau is a great sign of a growing local economy and improving infrastructure.
However, an increase in hotel revenue in Nassau means more than just higher room occupancy. It also means that each room is being rented out at higher rates. This may be an even more exciting marker of success in Nassau. When rooms cost more each night, it is because there is an increase in demand and an increase in the value of each night's stay.
Visitors who come to Nassau are beginning to see the destination as more than just another tropical getaway. They are appreciating Nassau for all that it has to offer, and that is reflected in the room rental rate. Increasing room rates will boost hotel revenue, but it also showcases the luxury appeal of a hotspot like Nassau.
The Role of the U.S. Economy
Since 2008, many tourism destinations around the world have seen a decline in tourism numbers and revenue. This was largely due to the economic crisis of 2008, specifically with regard to the American economy. After all, many of the visitors who flock to Nassau, The Bahamas come from the United States.
When the U.S. economy dips, many people skip international vacations or take shorter trips. Now that the economy is once again on the rise, there are more and more Americans ready to restart their international trips.
There are also more Americans eager to invest in second or third homes in beautiful beachfront destinations. That means more trips, more international interest in Nassau, and more investment in the area. Clearly, the economy in the United States, as well as other nearby countries, play a fairly significant role in the hotel industry growth of Nassau.
Bringing High-Profile Brands to Nassau
Nassau is in and of itself a brand. Similarly, The Bahamas is a brand. When people go online to explore vacation home destinations or top travel spots, they might be drawn to Nassau because of its marketing or because of gorgeous photos that friends and families took while on vacation. In recent years, the brand image of Nassau has changed significantly.
Thanks to the relative proximity of Nassau to the United States, it was once thought of as a more affordable alternative to an international vacation. It was suitable for long weekend trips or for those who didn't want to spend a fortune on long, international flights around the world.
While the proximity to the United States is still a big draw for travelers, the brand of Nassau has changed.
High-profile and luxury brands are beginning to emerge in Nassau. There are more luxury retail brands, upscale restaurants, and high-end resorts. These establishments are catering to a different audience, and that audience demands perfection.
Fortunately, Nassau is more than able to comply with the request. Part of the reason that hotel revenue in Nassau is on the rise is because visitors are willing to pay more in order to experience a luxury stay in The Bahamas.
How Hotel Growth Improves Nassau as a Whole
It is easy to see why an increase in hotel revenue is great news for hotel owners in Nassau, but why should it matter to you? If you're someone who is interested in living or retiring overseas, making a valuable long-term investment in real estate, or simply someone in search of an attractive vacation home with great amenities, this hotel revenue increase should be a positive sign.
When hotel revenue is on the rise, it means the local area is in the middle of development, growth, and expansion. It means that there is no better time to make an investment because value and therefore prices will only increase in the future.
Increased hotel revenue is also a benefit for those who plan to vacation in Nassau or for those who already spend part of the year in The Bahamas. That's because hotel growth means infrastructure growth and amenity growth.
The more hotel visitors there are, the more great restaurants there will be. An increase in higher-budget travelers translates to an increase in luxury shops. More money being invested into Nassau means a higher quality of life for residents, visitors, and investors alike.
How to Invest in Nassau Before It's Too Late
As you track this hotel growth, you might be tempted to invest in Nassau, The Bahamas. Keep in mind that you won't be alone, as expansion is on the rise, as is investor interest. However, there is no better time to invest if you want to take advantage of the changing atmosphere and the high-end amenities and developments popping up in Nassau.
If you're ready to invest in high-end living in Nassau, then consider residences at One Particular Harbour by Margaritaville at The Pointe. With incredible amenities right onsite, this amazing community offers the best of casual beachfront living and a luxury lifestyle.
Contact us today for more information!