Cancun, Quintana Roo — Vacation rentals in the Mexican Caribbean are experiencing a significant downturn, with occupancy rates declining for five consecutive months, according to the Association of Professional Vacation Rental Administrators (APAR).
The drop has hit the three largest markets — Cancun, Tulum and Playa del Carmen — with an average decline of 8.3 percentage points, the association reported.
APAR President Manuel Lozano said the trend reflects a national phenomenon. During the recent Easter holiday period, average occupancy across Mexico stood at 43%, down from 45% the previous year.
In Cancun, occupancy fell from 60% in January of the previous year to 55% this January, and dropped further to 38% in May — six points below the 44% recorded in May 2025.
Playa del Carmen saw a sharper decline in the second two-month period. January occupancy was 44%, compared to 48% a year earlier, but by April it had fallen to 31%, and in May it reached just 22% — a 10-point drop from 32% in May 2025.
Tulum maintained a steady decline of eight percentage points, with January occupancy falling from 48% to 40%, and May occupancy dropping to 17% from 25% the previous year.
Despite lower demand, average nightly rates have risen across the region. In Cancun, the average rate increased from $195 to $240; in Playa del Carmen it averaged $186, and in Tulum $239.
At the same time, the supply of properties on platforms continues to grow. The national inventory rose from 274,000 to nearly 298,000 units, with Quintana Roo accounting for 45,853 active listings.
The only positive indicator, according to APAR, was that the average length of stay in the state increased from three to four nights.
The association ruled out a boost from the upcoming World Cup, noting that bookings are concentrated exclusively in host cities.
For the summer vacation period, the outlook remains cautious, with estimated occupancy between 16% and 25% for June and July, down from the 19% to 31% range recorded last year.
Lozano attributed the contraction to multiple factors, including sargassum seaweed arrivals, security perceptions, exchange rate conditions that make the destination more expensive, and the economic situation in source markets — particularly changes in disposable income among U.S. travelers.
He called for a united front among organized hotels, rental administrators and government agencies to boost tourism promotion.
“I think right now both the hotel industry and ours need to work together with the authorities to attract more tourists,” Lozano said. “There are fewer tourists, that’s a fact, but we have to keep working on what we can. Fortunately there is a tourism promotion fund; hopefully it will continue to operate and function. Without a doubt, every investor and businessperson here has to work in favor of what puts food on our table.”
