Why Blue Diamond Resorts' Double Rewards Signal a Caribbean Hospitality Opportunity

The Caribbean's post-pandemic tourism recovery has been nothing short of extraordinary. After a steep decline in 2020–2021, international arrivals surged to 34.2 million in 2024, surpassing pre-pandemic levels by 6.9%. Nowhere is this rebound more evident than in Saint Lucia, where Blue Diamond Resorts' introduction of double rewards for bookings at Royalton Saint Lucia highlights a strategic bet on the island's growing appeal—and an intriguing opportunity for investors.

The Caribbean's Resurgence: Data-Backed Growth

The Caribbean's tourism revival has been fueled by strong demand from key source markets like the U.S. and South America. In 2024, U.S. arrivals reached 16.8 million (+3.5% year-over-year), while South America's growth (17.8%) signaled a shift toward more diverse traveler bases. Cruise tourism, a lifeline for island economies, rebounded to 33.7 million passengers in 2024—a 10.9% jump over 2019 levels.

Saint Lucia itself has been a standout performer. The island's 2024 arrivals rose 14.4% to 435,659, driven by a 17.6% surge in cruise passengers and a 20% increase in U.S. visitors. Its tourism authority projects 2025 arrivals will exceed 2019 levels, fueled by new infrastructure like the upcoming Secrets St. Lucia and Sapphires Sands Luxury Villa Resort.

Safety and Appeal: Saint Lucia's Competitive Edge

Despite its moderate safety ranking (Safety Index: 37.5), Saint Lucia remains a tourist-friendly destination with strong governance and localized security measures. Key tourist areas like Rodney Bay and Soufrière are patrolled by a dedicated Tourism Police Unit, while resorts like Royalton Saint Lucia offer gated communities with 24/7 security.

The island's diverse offerings—from volcanic drives to luxury wellness retreats—also set it apart. The Saint Lucia Jazz & Arts Festival and Carnival events draw repeat visitors, while eco-tourism (e.g., the Pitons UNESCO site) attracts high-spending travelers. This mix of safety, natural beauty, and cultural vibrancy makes it a low-risk, high-potential market for hospitality investments.

Blue Diamond's Incentive: A Strategic Play for Growth

Blue Diamond Resorts' double rewards program for Royalton Saint Lucia bookings is a shrewd move to capitalize on pent-up demand. By doubling points for loyalty members, the resort targets both leisure travelers (seeking value) and corporate clients (rewarding employees with premium stays). This aligns with broader industry trends:

• Luxury resilience: While economy hotels saw RevPAR declines (-3.9% in April 2025), luxury properties like Royalton maintained pre-pandemic pricing power.
• Last-minute bookings: Travelers now book domestic trips 20 days in advance and international trips 30 days ahead, favoring resorts with flexible cancellation policies.

Investment Case: Caribbean Hospitality Stocks Are Undervalued

The Caribbean's moderate 2025 growth forecast (2–5%) belies its long-term potential. Saint Lucia's strategic investments—from infrastructure upgrades to sustainability initiatives—position it for steady demand. For investors, the key is to focus on **companies with:

1. Resorts in resilient markets: Saint Lucia's safety and luxury offerings make it a safer bet than higher-risk islands.
2. Strong loyalty programs: Blue Diamond's double rewards model can boost repeat bookings and occupancy.
3. Exposure to cruise growth: Resorts near cruise ports (e.g., Royalton's proximity to Castries) benefit from rising passenger numbers (+25.2% in BVI's Q2 2025).

Top picks: Blue Diamond Resorts, Carnival Corporation, and Marriott International (via its Caribbean properties) offer exposure to this trend.

Risks and Considerations

• Economic headwinds: Rising U.S. inflation (6.6% Y/Y) may slow discretionary spending.
• Crime in urban areas: Investors should prioritize resorts in safe zones and avoid overexposure to economy hotels.

Final Take: A Strategic Bet on Caribbean Recovery

Blue Diamond Resorts' incentives are more than a marketing ploy—they're a confidence vote in Saint Lucia's future. With strong demand from key markets, strategic investments in infrastructure, and a luxury segment that's weathered economic headwinds, the Caribbean's recovery is far from over. For investors willing to look beyond near-term volatility, this is a prime time to stake a position in resilient hospitality assets.

The islands' sunny skies aren't just for tourists—they're a beacon for investors ready to ride the next wave of tourism growth.