NASSAU, BAHAMAS: Tourism continues to anchor economic growth in The Bahamas, with visitor arrivals surging 14.2 percent to 6.1 million in the first five months of 2026 as a rebound in high-value stopover travel and continued cruise expansion drive stronger activity across the sector.
The Central Bank said economic growth is continuing to normalize toward its medium-term potential, with tourism remaining the primary engine of activity. The sector benefited from a rebound in higher-spending stopover visitors alongside continued expansion in the cruise industry, helping to support broader economic activity despite ongoing hotel room capacity constraints.
Official Ministry of Tourism data showed total visitor arrivals increased by 15.3 percent to 1.1 million in May compared with the same month last year. Cruise arrivals led the gains, rising 16.8 percent to approximately 900,000 passengers, while air arrivals increased 7.1 percent to roughly 200,000 visitors.
Year-to-date, The Bahamas welcomed 6.1 million visitors, a 14.2 percent increase over the same period in 2025. Cruise passenger arrivals rose 15.9 percent to 5.2 million, while stopover arrivals rebounded 4.8 percent to 900,000, reversing last year’s decline.
Grand Bahama recorded one of the strongest performances, with total arrivals climbing to 127,050 in May from just over 30,000 a year earlier, largely reflecting a sharp increase in cruise traffic. The Family Islands also posted solid gains, with arrivals increasing 7.3 percent, while New Providence experienced more moderate growth of 3.2 percent.
The Central Bank also pointed to continued strength in the vacation rental market. Room nights sold increased 7.8 percent in June to 64,017, while occupancy rates and average daily room rates improved across both entire-home and hotel-comparable listings, indicating sustained demand and stronger pricing power for accommodation providers.
Airport data also reflected improving travel demand. Nassau Airport Development Company reported outbound passenger traffic increased 3.9 percent in June, with international departures rising 8.1 percent and U.S. departures increasing 3.4 percent.
Beyond tourism, the report noted that the country’s unemployment rate declined during the fourth quarter of 2025 compared with both the previous quarter and the same period a year earlier, supported by increased labour force participation.
However, the Central Bank said inflation accelerated over the 12 months to April, driven largely by higher imported fuel costs and increased prices for other goods and services.
Meanwhile, banking sector liquidity remained broadly stable during June as deposit growth kept pace with expanding domestic credit. Growth in external reserves, however, slowed significantly due to a sharp decline in net foreign currency inflows through the public sector, highlighting an area the Central Bank said will continue to monitor.
