Report: Caribbean hotel plans will stall due to visitor drop

Report: Caribbean hotel plans will stall

SAN JUAN, Puerto Rico — A new report offers a bleak outlook for the Caribbean hotel industry.

PKF Hospitality Research says the region’s hotels had an average drop in profits of 16 percent in 2008 and there will be “further profit deterioration” this year.

The report finds steep discounts and special offers have not offset a 4 percent decline in visitors to the tourism-dependent area.

The report also predicts that about 50 planned hotel projects will likely be delayed because developers are struggling to get financing.

It noted a number of hotels have been forced to close, including the Four Seasons on Great Exuma in the Bahamas.