Introduction

In 2023, Saint Barthélemy welcomed a record 292,835 visitors—up 9.9% from 2022 and even surpassing pre-pandemic levels by 3.9%. A major factor behind this growth is the island’s significant shift toward luxury tourism, highlighted by the increase of five-star hotels, now making up 52% of the accommodations, nearly doubling from 27% in 2015.

Luxury as a Strategic Choice

Saint Barthélemy has deliberately chosen to position itself as a luxury destination. This strategy helps the island stand out in the highly competitive Caribbean tourism market and attracts affluent travelers, particularly from North America.

This luxury focus has clear financial benefits. In 2023, revenue from the island’s accommodation tax (Taxe de Séjour) grew 5.6% to 15.9 million euros, reflecting increased spending by high-end visitors.

Economic Benefits and Job Growth

Tourism continues to be the foundation of Saint Barthélemy’s economy, employing 35.3% of all salaried workers. After the significant disruption caused by COVID-19, employment numbers have strongly rebounded, rising by 40% from the reduced levels of 2021. This recovery highlights the essential role tourism plays in maintaining economic stability on the island.

However, it’s important to note that the sharp growth partly reflects a rebound from the particularly low employment numbers during the pandemic years.

Inflation and Housing—Challenges for Local Workers

Despite economic recovery, Saint Barthélemy faces challenges, particularly around inflation and housing. In 2023, the island saw its total payroll expenses rise by 36% compared to 2022. This large increase isn’t due solely to higher individual salaries; it also reflects the addition of new jobs created as tourism activity rebounded and new hotels opened. Combined with inflation, these factors have significantly increased overall employment costs.

A critical issue emerging from this growth is housing affordability for local hospitality workers. Rising property and rental costs have made it difficult for employees to find suitable housing, creating practical difficulties for hotels and other tourism businesses that rely on a stable workforce.

Balancing Luxury with Local Needs

Looking ahead, Saint Barthélemy’s leadership faces a key challenge: continuing to attract luxury tourism while managing the economic pressures that growth brings. Policies that ensure affordable housing and manage inflation effectively will be vital to sustaining the island’s long-term success as a premier destination.