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RESEARCH UPDATE: Passenger Arrivals and Lodging Demand Surge in April

Friday, May 23, 2025 Research

Tourism Mobility: Strong Air Traffic and Cruise Recovery Signs

The San Juan International Airport (SJU) continues to see record passenger arrivals. In April, SJU welcomed 574,000 passengers, representing a 13% increase from the previous year. Year-to-date through April, arrivals have reached 2.4 million, an 11% increase from 2024. Nearly nine in ten (87%) arrive from North America, 9% from the Caribbean, and the combined total from Europe, Central, and South America accounts for 4.5% of arrivals.

In comparison, Tourism Analytics reports that while Montego Bay Airport saw a 1.3% reduction in passenger movements during April, Los Cabos Airport handled 4.1% more international passenger movements this year than in April 2024.

The San Juan cruise port welcomed 116,000 visitors in April, a decrease of 11% compared to the previous month. However, homeporting passengers totaled 18,800, a year-over-year increase of 78%.

As of April, the port of San Juan has welcomed 604,000 passengers, -11% fewer than last year, with Pier 3 West expected to come back to full operation by October. Meanwhile, the Port of Ponce will continue welcoming the Icon of the Seas, with the next visit scheduled for June 11th.

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April Shows Solid Growth in Lodging and Rental Nights

The lodging sector continues its positive pace this year, with current April estimates showing a 14% increase in total accommodation demand compared to the same month last year. Overall hotel occupancy reached 74%, representing a -0.6% decrease from 2024, with an increase in booked hotel nights of 4%, thanks in part to the shift of the Holy Week holiday from March last year.

As a comparison, Aruba’s hotels achieved a 78% average room occupancy in April 2025, down 9.4 percentage points from the 87.4% achieved last year (Tourism Analytics), while rental booked nights increased 18%.

317,000 rental room nights were booked across Puerto Rico in April, an increase of 28%. This accounts for 46% of the total accommodation demand for this month.

Year-to-date, accommodation demand has increased by 10%, mostly attributed to the growth in demand for short-term rental accommodations. Accumulated year-to-date rental supply nights have increased by 15% compared to the same period last year, while hotel nights have increased by 2.6%.

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Lodging Revenue Hits $185M in April

Strong rental demand and steady rates pushed April lodging revenue estimates to record levels, totaling $185 million, a 14% year-over-year increase. Lodging revenue generated from hotels was $115 million, a 7% increase, while revenue from the rental market reached $70 million, a year-over-year increase of 29%.

April average rental rates increased slightly (+1%) to $221, while hotel ADR was $315 (+2%).

Year-to-date, the lodging industry has generated $820 million in revenue, a 12% increase from a year ago and 24% more than in 2023. While revenues have increased significantly, due to rental properties being taxed at a lower rate and the shift in demand towards the rental market, fiscal year-to-date room tax revenue has risen 2%, reaching $109 million through March.

Discover Puerto Rico continues to monitor the future lodging pace to maximize opportunities and adjust tactics to respond to market dynamics. As of May 4th,, hotel leisure reservations for May through June continue to outpace last year’s rate, while group and business travel segments are trending below last year. The Q2 hotel pace is currently -2.7% below last year, while rental nights booked continue to show healthy growth.

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Travel Sentiment Holds, But Outlook for Spending Declines

With regards to the current travel sentiment, the May issue of the “State of the American Traveler” by Future Partners reports that American travelers' assessments of their current financial situations remain relatively stable. However, expectations for their future finances have worsened again this month.

Three in ten (30.9%) American travelers reported feeling better off now compared to a year ago, a marginal decline of 1.6 points from last month. However, the share of those who anticipate their finances will be worse off in the next year has grown to 18.7 percent, an +8.3-point increase compared to the start of the year and the highest this metric has been since January 2022.

Amongst the two-thirds of American travelers who report having stock investments, 55.8% say recent volatility in the stock market has decreased their sense of financial security. Also, the number of travelers who expect the U.S. to enter an economic recession in the next six months continues to climb, coming in at 56.9% this month, a +4.8-point increase over last month and the third consecutive month that this metric has increased.

When asked if they are being careful with their money right now because they are concerned about an upcoming recession, over half (55.4%) agreed that this caution has increased. Negative financial sentiment and outlook, including impacts to discretionary income, likely play a significant role in the continued decline of the share of American travelers who feel that now is a good time to spend on travel: currently at 30.1%, down -4.1-points from last month.

Some destinations, like New York, that depend heavily on International visitors have decreased their 2025 forecast; however, data that Discover Puerto Rico monitors currently points to a steady summer.

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