Bermuda’s Economic Renaissance: Tourism Rebounds as Financial Services Lead Growth

A Strategic Economic Evolution

Bermuda’s economy continues to be significantly influenced by tourism, though international business has become increasingly dominant in recent years. The tourism sector represents about 5% of the country’s GDP.

Tourism Sector Recovery

Recent data shows encouraging signs in Bermuda’s tourism industry, with significant growth in leisure air-visitor numbers, superyacht calls, and visitor spending. The hotel sector has demonstrated positive momentum, achieving a 4.5% year-over-year increase in occupancy rates and a 10.8% rise in Revenue per Available Room (RevPAR).

However, the industry faces challenges with limited hotel capacity, particularly during peak summer months. The temporary closure of major properties like the Fairmont Southampton and Elbow Beach hotels has reduced available inventory to approximately 75% of 2019 levels. For 2025, only modest increases in capacity are expected, including new rooms in the Nautilus wing of Azura and a new 14-room boutique hotel in St George’s.

Diversification and Innovation

Sports and maritime tourism have become central to Bermuda’s strategy for year-round visitor attraction. The island has successfully hosted major events such as the Chubb Triangle Challenge and the Butterfield Bermuda Championship PGATOUR event. The maritime sector has been particularly strong, with events like the Apex Bermuda SailGP and the Newport Bermuda Yacht Race contributing to increased arrivals.

Financial Services Leadership

International business, primarily consisting of insurance and other financial services, remains the bedrock of Bermuda’s economy, accounting for about 85% of the island’s GDP. The sector contributes over 60% of Bermuda’s economic output, and government priorities continue to focus on strengthening both the international financial sector and tourism.

Future Outlook

According to Tracy Berkeley, CEO of the Bermuda Tourism Authority, the island is moving in a positive direction with growth across key metrics. The focus remains on strengthening community partnerships and improving visitor experiences. The outlook appears promising, with expectations for increased visitor numbers in 2025 and 2026.