The financial impact of the US travel advisory issued earlier this year has been clearly demonstrated in the latest financial statements of Playa Hotels & Resorts N.V. (Playa).
In a report released on Monday, Playa, one of the few publicly traded hotel operators with a presence in Jamaica, revealed a 19% decrease in revenue from its Jamaican operations during the second quarter. The revenue drop amounted to US$10.93 million (approximately $1.69 billion), which the company attributed to the travel advisory issued by the US State Department.
The advisory, updated on January 23 to a level-three warning, recommended that US citizens reconsider travel to Jamaica. Playa also forecasts an additional revenue decline of US$3.5 million (about $542.09 million) for the third quarter, partly due to the impact of Hurricane Beryl, which struck early last month.
Playa’s portfolio in Jamaica includes two Jewel resorts, two Hyatt resorts, and the Hilton Rose Hall Resort & Spa, all located on the island’s north coast. The company disclosed in February that it experienced a surge in cancellations following the advisory, which has adversely affected its earnings and staffing levels. Occupancy rates at its Jamaican resorts fell from 83.1% in March to 72.1% by the end of June, compared to 82.4% in June 2023.
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