Ecuador’s hotel sector recorded its highest average occupancy rate in a decade during the New Year 2026 holiday period, according to an official government report.
The surge in hotel occupancy is tied to national tourism recovery efforts, including tax policy changes and extended public holidays aimed at stimulating domestic travel demand.
Strong hotel occupancy performance during new year holiday
The Ministry of Production, Foreign Trade and Investments reported that the national average hotel occupancy rate reached 53.09 % over the 2026 New Year holiday, outperforming the 44.36 % seen in the same period of 2025 and marking the highest level recorded for this festive period in a decade.
This improvement came despite the holiday being shorter than the previous year, indicating stronger tourist demand concentration.
Government measures cited in the report included a temporary reduction of the value-added tax (VAT) on tourism services from 15 % to 8 % and the designation of an unrecoverable public holiday on 2 January.
These steps were reported as contributors to increased hotel bookings and domestic mobility.
Regional demand patterns highlight diverse travel preferences
Hotel occupancy varied significantly by province, reflecting varied domestic travel trends.
The coastal province of Santa Elena recorded the highest rate at 93.84 %, followed by Napo (88.55 %) and Pastaza (84.87 %), regions known for nature-based and ecotourism attractions.
Other high-performing areas included Azuay (79.24 %) and Tungurahua (75.20 %). The distribution across provinces suggests that both coastal and inland destinations drew substantial visitor interest during the holiday period.
Industry analysts point out that Ecuador’s overall tourism recovery remains uneven compared with pre-pandemic levels, and projections show international arrivals could approach 2.8 million by 2026 based on market forecasts.
Government coordination and economic implications
The official release emphasised interagency cooperation involving security, transportation, and local authorities to support tourism activity and ensure traveller safety.
Local service providers were also referenced as essential to meeting increased demand during the holiday window.
The government framed the rise in hotel occupancy as part of broader economic objectives, framing tourism as a development lever for regional economies and employment.
Government planners are expected to continue initiatives aimed at strengthening both domestic tourism and future international visitor growth.
For global hotel operators and tourism sector stakeholders, Ecuador’s 2026 holiday results provide a benchmark for demand trends in emerging tourism markets and contribute to broader discussions about tourism recovery strategies in the Latin American region.
