Monthly Economic and Financial Developments (MEFD) April 2025
Published: Monday June 2nd, 2025
Domestic Economic Developments
Overview
Indications are that the domestic economy’s growth momentum through April slowed in comparison to the same period in the previous year, with economic indicators still normalizing closer to their expected medium-term potential. Tourism output, while at healthy levels, grew at an estimated tempered pace, as a result of the capacity constraints within the high value-added stopover segment. Monetary trends in April were marked by a decline in the narrow measure of banking sector liquidity, as the expansion in domestic credit outpaced the rise in the deposit base. Similarly, the growth in external reserves narrowed, owing to reduced net foreign currency inflows through the private sector.
Real Sector
Tourism
Monthly data revealed that estimated gains in tourism output continued to be paced by more tempered activity in the stopover segment, as a result of capacity constraints. However, the healthy expansion in the cruise segment was sustained.
Official data from the Ministry of Tourism revealed that total arrivals grew by 7.1% to 1.2 million visitors in March 2025, compared to 1.1 million in the comparative 2024 period. Driving this outcome, sea arrivals increased by 9.2% to 1.0 million. However, air arrivals declined by 2.5% to 0.2 million.
Disaggregated by major port of entry, total visitors to New Providence advanced by 12.5% to 0.6 million, vis-à-vis the same period in 2024, as the 18.8% boost in sea passengers to 0.5 million, outweighed the 3.6% decrease in air traffic to 0.1 million. In the Family Islands, total arrivals increased by 4.1% to 0.6 million, relative to the previous year, with sea visitors higher by 4.6% at 0.5 million, in contrast to the 1.2% falloff in air arrivals to 45,275. Conversely, total visitors to Grand Bahama reduced to 46,504, from 55,606 last year. Contrbuting, sea arrivals contracted by 20.2% to 38,895, outstripping the 11.2% gain in air passengers to 7,609.
On a year-to-date basis, total arrivals expanded by 9.0% to 3.3 million visitors, owing largely to an 11.4% rise in sea passengers to 2.8 million. However, air traffic fell by 3.3% to 0.5 million.
The most recent data provided by the Nassau Airport Development Company Limited (NAD) showed that total departures—net of domestic passengers—increased by 2.5% to 0.2 million in April, compared to the same period of last year. Specifically, US departures grew by 1.1% to 132,980. Likewise, non-US international departures advanced by 12.0% to 22,432. On a year-to-date basis, total outbound traffic declined by 2.0% to 0.6 million. Notably, US departures fell by 2.6% to 0.5 million; although non-US international departures rose by 1.0% to 0.1 million.
In the short-term vacation rental market, data provided by AirDNA indicated that in April, total room nights sold expanded by 23.2% to 78,193, relative to the comparative 2024 period. The average daily room rate (ADR) for entire place listings grew by 8.9% to $580.21 vis-à-vis the preceding year, and by 3.1% to $193.30 for hotel comparable listings. In addition, occupancy rates for entire place listings increased to 52.0% from 46.3% a year earlier. Similarly, hotel comparable listings firmed to 48.9% from 45.4% in the preceding year. On a year-to-date basis, total room night sales improved by 12.0% and the average daily rates on entire place and hotel comparable listings by 8.2% and 4.2%, respectively.
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