Réunion Island is moving upmarket. According to the latest CEROM note published on July 16, 2026, overall hotel occupancy grew by 5% in 2025 after near-stagnation the previous year (-0.6%). But it is the premium segment driving the headline: 4 and 5-star establishments recorded a remarkable 14% surge.
A broad rebound, led by the West
Growth is visible across the island, but the western region — home to the major beach hotels and premium resorts — recorded the strongest momentum at +8%. A performance reflecting both the rise of high-spending clientele and hotel investments made in recent years.
French visitors continue to represent 92% of overnight stays, up 5%. Foreign clientele — rarer but higher value — grew by 9%.
One shadow: a disrupted first quarter
The annual performance could have been even stronger without early 2025 turbulence. Cyclone Garance in late February, followed by a chikungunya epidemic, weighed on March figures. The CEROM notes: occupancy grew throughout 2025, except in March.
Encouraging signals for 2026
This shift toward premium aligns with the long-term strategy of Reunion tourism sector. Advance booking signals at luxury hotels are reportedly favourable for the austral winter season (June-September) 2026.
Why it matters
Reunion push into premium tourism is a direct response to the regional competitiveness challenge. Against Mauritius, the Maldives, and Seychelles, the island must differentiate through quality rather than price. Every point of growth in luxury generates more value added and tax revenue than ten points in the budget segment — a structural priority for an island where unemployment remains at 19.6%.