HOTEL OCCUPANCY RATES LAG IN BELIZE Hotel occupancy rates in Belize lag those in other countries in the region and the world, studies show.

Occupancy rates vary significantly by area of the country. Over many years they have been highest in San Pedro (Ambergris Caye) and Belize District, which includes Belize City. They traditionally have been lowest in Toledo and Corozal districts, and remain that way.

Average annual hotel occupancy rates may be as low as 29%, according to one recent study.

Below are the reported occupancy rates for 2004, the latest official rates available. The Belize Tourism Board used to release occupancy stats regularly in news releases, but no longer does so.

Belize District 43.8%
Ambergris Caye 46.8
Caye Caulker 34.1
Cayo 33.5
Corozal 25.9
Orange Walk 46.5
Stann Creek 37.8
Placencia 41.2
Toledo 23.0
Offshore Islands 35.6
Average 40.7

Some analysts say that the actual occupancy rates in Belize are lower than the reported rates. One reason is that the BTB only samples about one-fourth of hotels in Belize for its statistics and does not monitor unregistered guesthouses and other hotels at all. Overall annual occupancy rate is actually about 27 to 29%, according to a 2006 report prepared for the Inter-American Development Bank. In other words, about three-fourths of hotel rooms are vacant on a given night. However, other observers say some hotel owners may not report all their guests, to avoid paying taxes, so that occupancy rates in some cases may actually be higher than reported.

Occupancy is less seasonal in some areas than other -- for example, occupancy rates drop significantly in late summer and fall in Stann Creek District, notably Placencia, while they stay higher in Caye Caulker and San Pedro.

To put these statistics in perspective, here are some annual occupancy rates (2005) for other countries and selected cities:

U.S. 69%
United Kingdom 73%
France 66%
Spain 66%
Italy 64%
Germany 60%
US Virgin Islands 67%
Barbados 73%
Bermuda 55%
Amsterdam 88%
New York City 87%
London 87%

Summer 2006 occupancy rates in the U.S. are projected at over 74%.

While operating costs vary greatly from hotel to hotel and area to area, in developed countries most hotel experts say that ideally hotels should achieve occupancy rates of 60 to 65% to operate efficiently and profitably.

Belize currently has about 5,500 hotel rooms. Most experts believe that, given that the country gets only a little over 230,000 overnight international visitors annually, the market is overbuilt and becoming more so, especially with the development of condotel projects and the opening of many small, sometimes unregistered hotels and guesthouses. (August 20, 2006)