Tourism Led Growth Expected to Continue in 2025 SXM St Maarten
Strong Start to 2025 Builds on 2024 Gains
Sint Maarten’s economy is poised for another year of strong growth, with GDP projected to expand by 3.0% in 2025. Stayover tourism remains the main driver.
Tourism Led Growth Expected to Continue in 2025 SXM St Maarten
Expanded airlift capacity and a busy first quarter already signal a strong high season. More flights and increased hotel bookings are boosting economic confidence.
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Tourism infrastructure continues to evolve. The recently completed airport enhances access and improves visitor experience. New hotel projects, previously delayed,
Tourism Led Growth Expected to Continue in 2025 SXM St Maarten
are expected to break ground in the second half of 2025. These developments will increase the island’s tourism capacity and attract higher-spending visitors.
Transition from Public to Private Investment
As Trust Fund-financed projects begin winding down, private and government investments are expected to take the lead. Construction in real estate and infrastructure will fill the gap. However, permit backlogs and slow public investment execution still pose risks.
Delays in project approvals have been a bottleneck. If addressed quickly, these could unlock significant pent-up activity. The central government’s ability to execute investments efficiently after the Trust Fund ends in 2028 will be critical.
Moderating Over Time, But Risks Remain
Medium-term growth will likely settle near 2%, reflecting limits in tourism capacity. The island’s carrying capacity—in infrastructure and environment—could constrain further growth. This creates a clear need to shift from volume to value in tourism strategies.
Inflation is expected to decline slightly to 3.3% in 2025, easing pressures on households. However, new import tariffs could keep prices elevated temporarily.
Conclusion
Sint Maarten will likely enjoy another year of strong economic performance. But to sustain momentum, authorities must accelerate permit clearance, strengthen public investment capacity, and plan for a tourism strategy that focuses on quality, not just quantity