The largest cruise companies globally are investing significantly in private destinations tailored for their guests in response to increasing demand and the growing concern over overtourism in popular locations.
Carnival, the world’s largest cruise operator, is currently developing the Celebration Key on Grand Bahama Island, which is valued at $600 million. This destination, set to open next year, is described as the company’s “first-ever exclusive destination to be purpose-built.”
Similarly, Royal Caribbean is planning an investment of a comparable amount for the construction of the 200-acre Perfect Day Mexico resort on Mexico’s Caribbean coast in Mahahual. Scheduled to launch in 2027, this resort will feature beaches, water parks, and additional attractions.
Norwegian Cruise Line is also expanding its facilities, adding a two-ship pier to its private island, Great Stirrup Cay, to increase visitor capacity to 700,000 by 2026.
Christian Savelli, cruise analytics director at Tourism Economics, noted that by 2025, passenger capacity at privately-owned cruise company islands in the Caribbean is expected to more than double from 2019 levels.
The industry aims to replicate the success of Royal Caribbean’s Perfect Day CocoCay, which reopened in 2019 after a $250 million redevelopment. Barclays analysts linked a nearly 8% rise in the company’s net yield, a key profitability measure, to this relaunch.
Jason Liberty, Royal Caribbean’s chief executive, told the Financial Times that expanding these destinations helps distribute guests more broadly, alleviating congestion at popular tourist spots. Additionally, Royal Caribbean is developing two beach clubs in the Bahamas and Mexico, smaller than the Perfect Day resorts, expected to open by 2026.
Liberty mentioned that introducing new experiences at destinations where activities are otherwise limited helps ease the strain on traditional hotspots. He emphasized the financial returns of these exclusive destinations, noting that the experiences often drive higher passenger volumes and increased willingness to spend.
Harry Sommer, chief executive of Norwegian, recently highlighted that the new pier at Great Stirrup Cay is expected to enhance guest satisfaction and revenue, ultimately leading to a cycle of repeat visits.
Cruise operators are investing in their own resorts to balance growing demand since the pandemic against opposition to increasing cruise ship sizes in crowded areas. According to the Cruise Lines International Association, 31.7 million people worldwide engaged in cruise travel in 2023, a 7% increase from 2019, with projections of 39.7 million by 2027. Carnival, Royal Caribbean, and Norwegian have recently raised their profit forecasts for the year, spurred by an uptick in bookings.
Savelli further noted that passenger numbers in the Caribbean are rising more quickly than in other major regions, including the Mediterranean, aided by the appeal of private resorts.
Despite the growing interest in cruises, local opposition is growing against large ships bringing more tourists to already crowded destinations. Venice has banned large cruise ships and enacted a day-tripper entrance fee. In September, Ibiza announced a limit of two cruise ships at a time, and Alaska will cap the number of passengers visiting Juneau starting in 2026.
Royal Caribbean’s Liberty downplayed congestion from cruise ships, attributing issues to Airbnb and local population growth. However, Bob Levinstein, CEO of the cruise holiday marketplace CruiseCompete.com, noted that concerns over overtourism are prompting cruise lines to consider more controlled, privately-owned destinations as an effective solution.
