In this article, we are going to discuss the top 20 most beautiful island countries in the world. You can skip our detailed analysis of the global tourism industry, the revival of the tourism sector, the importance of cruise tourism, and online travel booking platforms, and go directly to Top 5 Most Beautiful Island Countries in the World.
Exotic islands have been capturing our imagination in popular culture since Defoe’s novel Robinson Crusoe. Since the massification of leisure travel, the ‘unspoiled paradise’ of tropical islands has been a marketing meme promoting international tourism across the world – from the Caribbean to the Indian and Pacific Oceans. Although early tropical-island tourism was dominated by the so-called ‘snowbirds’ – the wealthy elite flocking to the Caribbean to escape the northern hemisphere’s winters – by the 1960s, rising disposable income and falling airfares led to waves of international tourists lapping at islands’ shores and the birth of the ‘pleasure periphery’ of the industrialized Global North.
Consequently, of the 57 Small Island Developing States (SIDS) recognized by the U.N. today, the majority are highly dependent on international tourism from the Global North to fund their economies.
The Global Tourism Industry:
Tourism has evolved into a massive industry with time, encompassing several other sectors, such as hospitality, transport, entertainment etc. In 1950, at the dawn of the jet age, just 25 million people took foreign trips, and by 2019, that number had reached 1.5 billion. As we mentioned in our article – 30 Most Magical Places in the World– the global Travel & Tourism (T&T) industry is expected to grow at a CAGR of 3.1% between 2021 and 2026, to be worth an estimated $8.9 trillion by the end of the forecast period.
The World Tourism and Travel Council has reported that the T&T sector contributed 7.6% to the global GDP in 2022, an increase of 22% from 2021 and only 23% below 2019 levels.
Revival of the Tourism Sector:
The T&T industry was among the hardest hit by the pandemic, as people could no longer move around and the world came to an abrupt halt. Estimates from the United Nations World Tourism Organization show that international travel shrank by 72% in 2020, leading to 1.1 billion fewer trips taken and setting the industry back massively.
However, 2022 witnessed a reversal in this trend as international borders began opening up, coupled with the disposable income people saved up during the lockdown, and their increasing longing to travel around. According to the WTO, more than 900 million tourists traveled internationally in 2022 - double the number recorded in 2021.
The Importance of Cruise Tourism:
For many destinations, in particular small Caribbean islands, cruises constitute more than 50% of the total of tourism arrivals generating important receipts through the services supplied by the port and expenditures of passengers and crew. In 2019, the global cruise industry welcomed 29.7 million passengers, created jobs for 1.8 million people around the world and contributed over $154 billion to the global economy.
When WHO declared the global pandemic, Cruise Lines International Association (CLIA) member cruise lines announced a voluntary suspension of operations worldwide, making the sector one of the first to do so. However, 2022 saw a resurgence of the sector and the global volume of cruise passengers totaled just over 20 million last year. The United States, with its long coastlines and access to many nearby ports in the tropical Caribbean Sea, is the world’s leader in cruise revenue.
The Miami-based Royal Caribbean Cruises Ltd. (NYSE:RCL) is an important player in the industry. The company welcomed over 4.6 million passengers in 2022 and also boasts five of the world’s largest cruise ships in its fleet. In fact, Royal Caribbean Cruises Ltd. (NYSE:RCL) has been making headlines recently because the cruise holding company is getting ready to launch the world’s largest cruise ship – Icon of the Seas – in January 2024. While some have labeled the colossal structure a ‘monstrosity’, citing its vast climate footprint, others are in awe of the sophisticated engineering integrated into this luxurious floating holiday destination and are flocking to buy tickets.
The company is also moving ahead with the development of the first Royal Beach Club in the Bahamas this year after receiving approval from the government. Crafted in close collaboration with the Bahamian government, the new project will feature a public-private partnership in which Bahamians will be invited to own up to 49% equity.
Ariel Investments, an investment management company, said the following in its Q2 2023 investor letter:
“Royal Caribbean Cruises Ltd. (NYSE:RCL), was one of the top 3 performers in the S&P 500 during the quarter. Shares surged following a significant top- and bottom-line earnings beat, as stronger than anticipated consumer demand is driving a record WAVE season. Forward booking trends are also ahead of historical ranges at record pricing. These factors combined with further improvement in onboard spend and solid cost containment led management to increase RCL’s full-year 2023 guidance. We believe the revised revenue and earnings outlook lays the foundation for RCL to exceed its’ three-year strategic imperative, the Trifecta Program.”
When the pandemic hit, the hospitality and tourism industry in the Caribbean wasn’t just hurt by the absence of visitors. It was faced with a larger conundrum – delayed payments from major international tour operators, such as TUI and Virgin Holidays, for services rendered in the first three months of 2020. By May 2020, 69% of hotels had reported being owed from $200,000 up to $15 million, according to the Caribbean Hotel and Tourism Association.
However, a solution has emerged out of Barbados that could point to a groundbreaking model for the rest of the Caribbean region. Launched at the close of 2021, BookBarbados.com, a Barbadian-owned and independently funded and operated online travel booking platform, allows users to buy hotel stays ranging from luxury to budget, local tours, Airbnb rentals, and long term stays all in one place. The site also taps into local influencer recommendations for a more authentic version of the island.
With a market cap of about $108.73 billion, Booking Holdings Inc. (NASDAQ:BKNG) holds the title of being the largest travel company in the world. Operating in over 220 countries and 40 different languages, there are more than 28 million global listings available between hotels, homes, and apartments under the Booking Holdings Inc. (NASDAQ:BKNG) travel sites. The platform can also help to book flights and cruise trips to your Favorite Island Destinations.
The online travel agency also strongly felt the shocks of the pandemic when its revenue fell by almost 55%, from $15.06 billion in 2019, to $6.8 billion in 2020. However, Booking Holdings Inc. (NASDAQ:BKNG) boasted a revenue of $17.09 billion in 2022 after the revival of international tourism, even higher than its pre-pandemic levels. Glen Fogel, the CEO and President of Booking, said the following in the company’s Q2 Earnings Call Transcript:
“I am pleased to report that in the second quarter we continue to see robust leisure travel demand which helped drive the strong results we are announcing today. The 268 million room nights booked in the second quarter increased by 9% year-over-year and gross bookings of $39.7 billion grew 15% year-over-year and was the highest quarterly gross bookings ever. Both room nights and gross bookings came in ahead of our previous expectations as a result of the favorable demand environment. Revenue growth of 27% in Q2 also nicely outperformed our expectations. The strong top line results in the quarter combined with better-than-expected marketing efficiency helped drive our Q2 adjusted EBITDA to about $1.8 billion which is an increase of 64% versus Q2 last year, and meaningfully exceeded our prior growth expectations of about 35%.”
With that said, here are the Best Island Countries to Visit.
Top 20 Most Beautiful Island Countries in the World
Methodology:
To collect data for this article, we have referred to a number of sources such as Islands Magazine, Travel + Leisure, Reddit etc, looking for the Most Beautiful Island Countries in 2023. We picked countries that appeared at least twice in these sources, assigned them a score based on their number of appearances, and ranked them accordingly. When two countries had the same score, we ranked them by the number of tourists they received in 2022.
Percentage Change in the No. of Tourists Post-Covid: -90.3%
Samoa fully reopened its borders on the 1st of August 2022 after two-and-a-half years of shutdown due to Covid-19. The country’s visitor arrivals have boosted its tourism sector recovery rate to 60% this year, but the Samoa Tourism Authority believes more time is needed for full recovery. Tourism is an important contributor to the Samoan economy. The sector accounted for 24.5% of the country’s GDP in 2019, and is second only to remittances as a source of foreign exchange earnings.
19. Madagascar
Insider Monkey Score: 2
No. of Tourists in 2022: 132.018
No. of Tourists in 2019: 486,000
Percentage Change in the No. of Tourists Post-Covid: -72.8%
With the reopening of borders in April 2022, after two years of isolation from the rest of the world, tourism in Madagascar is slowly but surely regaining momentum. Despite an undeniable attraction for Madagascar as a destination, renowned for its one of a kind biodiversity, heavenly beaches, and favorable weather, the island only welcomed 132,018 tourists last year, almost three times less than pre-pandemic. Reasons for this slow revival can be explained by a lack of services and the soaring prices of plane tickets, according to the Confederation of Tourism of Madagascar.
18. St. Kitts & Nevis
Insider Monkey Score: 2
No. of Tourists in 2022: 537,300
No. of Tourists in 2019: 1.18 million
Percentage Change in the No. of Tourists Post-Covid: -54.5%
St. Kitts and Nevis imposed strict Covid-related travel restrictions during the early phase of the pandemic, which may have shifted its tourist market share towards Caribbean peers with fewer restrictions. The restrictions were lifted in August 2022, and the country welcomed 537,300 tourists last year. The outlook for 2023 is positive but global conditions are getting in the way of a faster recovery. High inflation, tightening global financial conditions, and volatile commodity prices may negatively impact growth in the U.S., Canada, and the U.K. – the country’s main source markets.
17. Barbados
Insider Monkey Score: 2
No. of Tourists in 2022: 539,746
No. of Tourists in 2019: 966,000
Percentage Change in the No. of Tourists Post-Covid: -44.1%
The pandemic has had severe socioeconomic impacts in Barbados due to the heavy dependence on tourism, which accounts for about 40% of jobs, more than half of which belong to women. The economy contracted by an estimated 18% in 2020, and unemployment claims reached roughly one-third of the workforce during the year. The World Bank approved a $100 million COVID-19 Response and Recovery Development Policy Loan for Barbados in 2021.
Located in the southeastern Caribbean Sea, Barbados is one of the Most Beautiful Islands in the World.
16. Curaçao
Insider Monkey Score: 2
No. of Tourists in 2022: 1.03 million
No. of Tourists in 2019: 1.27 million
Percentage Change in the No. of Tourists Post-Covid: -18.9%
Curaçao welcomed 1,034,429 tourist arrivals altogether last year. The Curaçao Ports Authority recorded 533,831 cruise arrivals, while the Curaçao Tourist Board registered 489,559 stayover visitors who altogether spent 4.6 million nights in the island nation. The Ministry of Economic Development, together with Curaçao Tourist Board, calculated the total economic impact (direct + indirect) including cruise tourism at $1.4 billion in 2022.
15. Iceland
Insider Monkey Score: 2
No. of Tourists in 2022: 1.89 million
No. of Tourists in 2019: 2.2 million
Percentage Change in the No. of Tourists Post-Covid: -14.1%
Though receipts from tourism fell from $3.4 billion in 2019 to only $814 million in 2020, the Icelandic government invested heavily on marketing the destination during the pandemic. Opened to travel since June 2020, the country had a very low Covid case count, making it attractive for people who still wanted to travel amid the lockdowns. Another important factor has been the historic stopover strategy of its flagship carrier, Icelandair. The airline is connected to multiple European destinations and lets travelers add a 1 to 7 day stopover in Iceland at no extra charge on the way to their other destinations.
14. The Dominican Republic
Insider Monkey Score: 2
No. of Tourists in 2022: 8.5 million
No. of Tourists in 2019: 7.55 million
Percentage Change in the No. of Tourists Post-Covid: 12.6%
In 2022, the revenue generated by the tourism sector in the Dominican Republic amounted to approximately $8.4 billion, growing by roughly 48% compared to the previous year. In 2021, tourism revenue in the country had already started to recover from the impact of the coronavirus pandemic, having experienced an annual increase of more than 110%.
The Dominican Republic is home to some of the Best Islands in the World.
13. Faroe Islands
Insider Monkey Score: 3
No. of Tourists in 2022: 100,000
No. of Tourists in 2019: 140,000
Percentage Change in the No. of Tourists Post-Covid: -28.6%
One of the marketing initiatives that put the Danish autonomous territory on the international tourists’ map has been its ‘Closed for Maintenance’ initiative. Under the initiative, 100 applicants are chosen to provide maintenance work for some of the Faroe Islands’ popular tourist destinations. Since it first launched in 2019, Closed for Maintenance has become an annual program and continues to be popular. In the first year, applications totaled 3,500, grew to 10,000 in 2020, and 14,000 in 2021.
12. Malta
Insider Monkey Score: 3
No. of Tourists in 2022: 2.28 million
No. of Tourists in 2019: 3.54 million
Percentage Change in the No. of Tourists Post-Covid: -35.6%
Despite strong recovery, the tourism industry in Malta and across the E.U. still has a way to go. With the resurgence of international tourism and the steady increase in overnight stays, Malta’s tourism sector is on a positive trajectory. However, full recovery to pre-pandemic levels is not expected until 2024 or 2025.
Malta ranks among the Most Beautiful Island Destinations in Europe.
11. Cyprus
Insider Monkey Score: 3
No. of Tourists in 2022: 3.2 million
No. of Tourists in 2019: 4.11 million
Percentage Change in the No. of Tourists Post-Covid: -22.1%
Cyprus has proven its resilience in the face of crises like the coronavirus pandemic and the Russia-Ukraine war. Tourist arrivals hit 3.2 million last year, despite the spectacular island nation losing 800,000 Russian and Ukrainian tourists due to the war.
10. Aruba
Insider Monkey Score: 4
No. of Tourists in 2022: 1.1 million
No. of Tourists in 2019: 1.12 million
Percentage Change in the No. of Tourists Post-Covid: -1.8%
Aruba has made tourism a success story. Four out of five jobs in the country are in tourism-related activities, and for the business to be sustainable, Aruba is working to diversify the type of travelers it receives. Today, 85% of those who arrive are Americans and Canadians, so the island nation is making efforts to increase the number of visitors from Europe and Latin America.
Aruba is counted among the Top 10 Most Beautiful Island Countries in the World.
9. Jamaica
Insider Monkey Score: 4
No. of Tourists in 2022: 3.7 million
No. of Tourists in 2019: 4.3 million
Percentage Change in the No. of Tourists Post-Covid: -14%
The number of tourists flocking to Jamaica’s sun-drenched beaches soared nearly 100% in the first three months of 2023, causing long queues and hours-long waits for arriving passengers at the island's main airport. Prime Minister Andrew Holness said the problems at Sangster International Airport underscored the need to push through the $70 million modernization and expansion project that was already underway.
Jamaica boasts some of the Most Beautiful Islands in the Caribbean.
8. Mauritius
Insider Monkey Score: 5
No. of Tourists in 2022: 1 million
No. of Tourists in 2019: 1.38 million
Percentage Change in the No. of Tourists Post-Covid: -27.5%
Surmounting the travel industry’s recent challenges, the island nation attracted one million visitors between January 2022 and January 2023, according to the Mauritius Tourism Promotion Authority. With tourism accounting for some 24% of the nation’s GDP, this is an important milestone -- one it plans to surpass in 2023 with a target of 1.4 million visitors.
Mauritius rolled out several initiatives in 2022 that contributed to its success as a destination. To attract digital nomads, Mauritius has introduced the Premium Travel Visa, which allows foreign nationals to live and work remotely from Mauritius for a period of up to one year.
7. Cook Islands
Insider Monkey Score: 6
No. of Tourists in 2022: 121,000
No. of Tourists in 2019: 187,000
Percentage Change in the No. of Tourists Post-Covid: -35.3%
The South Pacific nation of Cook Islands registered significant growth in tourist arrivals last year when it received 121,000 visitors, compared to the Covid-19 border-closure affected years of 2020 and 2021, which both registered about 30,000 visitor arrivals. There are several encouraging signs that the 2023 season will be even busier – Hawaiian Airlines will be coming into Rarotonga, Air New Zealand will increase its flight numbers by 19% going into the winter season, and Jetstar is introducing direct flights from Sydney.
6. The Bahamas
Insider Monkey Score: 8
No. of Tourists in 2022: 7 million
No. of Tourists in 2019: 7.2 million
Percentage Change in the No. of Tourists Post-Covid: -2.8%
The Bahamas opened the borders for foreign tourists in July 2020 and since then have witnessed a wonderful recovery in the number of arrivals. In fact, December 2022 saw total arrivals eclipse 900,000 visitors, more than any month in the country’s history.
Tourism makes up 50% of the Scenic Island Nation’s GDP, rising as high as 70% when factoring in tourism-related services and construction, and is expected to be the lifeblood of the Bahamian economy going forward. The Bahamas comprise some of the Most Unique Islands in the World.
