Seaside villa earnings shrink a year after Melissa

Short-term rental earnings at villas and seaside properties along Jamaica’s north coast fell over the past year, even as earnings rose in most other markets.

Average annual earnings at coastal villas in Montego Bay dropped 17 per cent to US$57,000, about J$9 million, according to AirDNA, which tracks short-term rentals on platforms including Airbnb, Vrbo and Booking. Active listings in the segment fell 1.3 per cent to 231 over the 12 months. In Ocho Rios, earnings dipped 9.0 per cent to US$24,100.

Away from the coast, average earnings rose 8.0 per cent to US$25,500 across the other 865 listings in St James. In St Ann, earnings rose 2.3 per cent to US$31,000.

Hurricane Melissa, a Category 5 storm, struck the island on October 28, 2025, disrupting travel and tourism. The Montego Bay decline was expected, said realtor Keody Thompson of Jamaica Sotheby’s International Realty.

“There were several months where there was absolutely minimal activity based on the fallout from the hurricane, and so it is only natural to see that the figures are down over the year,” Thompson said. She called the loss of both visitors and attractions a “double whammy” for tourism.

Passenger traffic at Montego Bay’s Sangster International Airport, Jamaica’s main tourism gateway, fell 25.5 per cent to 2.87 million from January to September, according to Pacific Airport Group, which operates the island’s two main airports. Traffic at Kingston’s Norman Manley International Airport fell 1.8 per cent to 1.39 million.

Negril and other markets

Negril posted the biggest gain, up 26.2 per cent to US$25,409 per property. That was mainly due to Footprints, a 32-room boutique property that entered the market. St Elizabeth rose 3.0 per cent to US$24,000 per property, though AirDNA doesn’t break out earnings for the parish’s coast. Also, Kingston rose 8.0 per cent to US$21,000. Port Antonio, Mandeville and St Catherine each averaged less than US$17,000.

Recently, Airbnb began moving hosts to a single 15.5 per cent host-paid fee, replacing a split-fee system shared between host and guest. The fee applies to the nightly rate plus cleaning and other charges. Airbnb said the change creates simpler pricing and shows guests one all-in price instead of a visible service fee at checkout. Many hosts have raised prices in response.

Thompson said business in Montego Bay is improving, with attractions, festivals and shows back on track. “The city is alive and ready to welcome more guests, and so we should see an increase in Airbnb bookings as well as hotel bookings and arrivals in Montego Bay,” she told the Financial Gleaner.

About 3,500 hotel rooms are expected to remain unavailable next winter, leaving about 90 per cent of room stock operational.

business@gleanerjm.com