Published December 24, 2025
The 2025 holiday season will shatter all previous travel records. A staggering 122.4 million Americans are currently on the roads and in the skies. This massive surge in movement has changed the world leaderboards. Punta Cana currently ranks first as the city of choice internationally for North Americans. This tropical powerhouse outperforms legendary spots like Cozumel and San Jose. Travelers clearly crave the combination of warm weather and rich cultural depth. Many seek out Costa Rica’s vibrant “pura vida” energy. Some prefer the historic charm of San Juan or the spectacular sunsets of Puerto Vallarta. But the Dominican Republic’s blend of luxury and value has proven to be unbeatable this year. San Juan’s festivities offer the longest Christmas in the world, but sheer demand for the Caribbean region is reaching new heights. This report analyzes why these specific destinations are dominating the market and how they are reshaping the future of global vacation travel.
Punta Cana’s dominance in the 2025 rankings
Why did Punta Cana suddenly go gold standard? Figures from the Dominican Republic’s Ministry of Tourism show explosive growth. In the first eight months of 2025 alone, the country welcomed more than 8 million tourists. This is a significant increase of 49% compared to pre-pandemic levels.
For North Americans, Punta Cana offers something that competitors struggle to match. We offer a high-end, all-inclusive experience that is both exotic and familiar. Travelers still love Cozumel’s diving and San Juan’s history, but the Dominican Republic is changing in size with a plethora of new luxury resorts, including Zemi Miches and new Marriott properties. Punta Cana is no longer just a beach destination. It is a global hospitality powerhouse.
Cozumel and Mexico/Caribbean countries battle for second place
Despite the Dominican Republic’s rapid growth, Cozumel still plays an important role in the holiday market. As the Riviera Maya’s premier cruise hub, Cozumel continues to attract millions of people who prefer the sea to the sky. The island is currently in the midst of its official “Las Posadas” celebrations. These government-sanctioned cultural events bring a deep sense of community to the holiday season.
But AAA data suggests air travel has reached new heights, with more than 8 million domestic flights expected. This transition to airplanes favors destinations with large airport capacities. Cozumel is a popular cruise destination, but Punta Cana accounts for 58% of all flights arriving in the country. This logistical advantage is why Punta Cana is ahead of Cozumel in the year-end 2025 rankings.
Festival of Lights in San Jose and Costa Rica
Further south, San Jose is undergoing a major cultural push. The Costa Rica Tourism Institute (ICT) has transformed the capital into a shining beacon of holiday spirit. “Festival de la Luz” is the crown jewel of their season. This state-sponsored event brings illuminated floats and marching bands to downtown San Jose.
The city also hosts the “Fiesta de Zapote” and the huge horse parade “Topé Nacional.” This event offers a “Pura Vida” style Christmas that you won’t find in Punta Cana or Cozumel. San Jose has the edge in cultural depth, but it’s still a niche choice compared to the appeal of the larger resorts of the Dominican Republic. This year, travelers are choosing the convenience of the beach over the hustle and bustle of the city.
Storm surge in Puerto Vallarta and the Pacific Coast
Puerto Vallarta, on Mexico’s Pacific coast, is enjoying a record-breaking season. The city is currently celebrating “Fiesta Guadalupanas”. The 12-day festival has over 400 processions and is recognized as an “Intangible Heritage of Jalisco”.
Puerto Vallarta offers a unique combination of mountain and ocean views. It is a popular destination for people who find Cozumel too flat and San Jose too urban. But despite a massive pilgrimage procession of 20,000 believers, Puerto Vallarta ranks second to the Caribbean giant in the world rankings. This year, the Atlantic side of the continent has become even more “attractive” for East Coast and Midwest travelers.
San Juan and the longest Christmas in the world
If you want a never-ending vacation, San Juan is the answer. Puerto Rico officially claims to have the longest holiday season on earth. From the dawn masses of “Misa de Aguinaldo” to January’s “San Sebastian Street Festival,” San Juan is a nonstop party.
AAA’s forecast highlights that 4.9 million people are traveling by “other means”, including cruises. San Juan benefits greatly from this, serving as an important homeport in the Southern Caribbean. But even with its “coquito” (coconut eggnog) and lively “paranda,” San Juan faces stiff competition from Punta Cana’s newer, flashier developments. The “Enchanted Island” remains enchanting, but now the Dominican Republic is winning the marketing war.
Rhythm of Nassau and Junkanoo
In the Bahamas, Nassau is preparing for its most iconic event, Junkanoo. On Boxing Day and New Year’s morning, the streets of Nassau explode with the sound of goatskin drums and cowbells. This is more than just a parade. It is a national competition with government sponsored prizes.
The Bahamas Ministry of Tourism is also working to expand flight capacity, including adding new daily nonstop flights from hubs such as Detroit. This makes Nassau a top choice for the 2025 holiday season. However, Nassau often competes with Punta Cana and Cozumel for the same tourists. The price-to-luxury ratio in the Dominican Republic appears to be a determining factor in the migration of 122.4 million people this year.
Rome and Old World Charm
It’s unusual for a Caribbean beach town to outperform an “eternal city,” but the 2025 data shows a clear preference for warmer climates. Rome is a fascinating destination even in December. From the Vatican’s giant Presepe (Nativity Scene) to the bustling market of Piazza Navona, Rome has a spiritual and historical depth that cannot be replicated in Punta Cana.
The “Natale a Roma” program is a master class in planning a city vacation. But AAA points out that the average price for a round-trip domestic ticket is nearly $900. Add in the cost of a transatlantic flight to Rome, and many families opt for the relative value of the Caribbean. The tropical sun shines on the cobblestones of Rome this winter.
Oranjestad and the “Pagaras” tradition
Oranjestad on the island of Aruba offers a completely different New Year’s experience. The island is famous for its large number of firecrackers, “pagara”, which businesses light to ward off bad energy. It’s loud, smoky, and refreshing. Aruba also has a tradition of “dande”, where traveling musicians visit homes and sing blessings for the coming year.
Although Oranjestad is an upscale destination, it’s still a boutique experience compared to larger Punta Cana. The Dominican Republic has a statistical advantage that even “One Happy Island” cannot overcome, as it can host millions of tourists at hundreds of resorts.
Sydney and the world-famous fireworks stage
Finally, let’s take a look at Sydney. For those willing to travel long distances, Sydney hosts the world’s most famous New Year’s Eve fireworks display. The City of Sydney manages the event with military precision, offering thousands of spectators free vantage points such as Mrs Macquarie’s Point.
On Boxing Day, the Sydney to Hobart Yacht Race begins, and the city is buzzing with activity. However, Sydney is a summer destination in December. For many North Americans, a 15+ hour flight is a barrier compared to just hopping off to Punta Cana, Cozumel or San Juan. Convenience is key in the 2025 travel market.
Conclusion: A record-setting year for world travel
As 2025 draws to a close, the travel industry is healthier than ever. A record 122.4 million travelers identified by AAA are seeking connection, culture, and a break from the everyday. From the history of Rome to the rhythmic streets of Nassau, all the destinations on this list have something great to offer, but the Dominican Republic captures the zeitgeist.
By balancing tradition with modern luxury, Punta Cana has successfully established itself as one of the world’s best vacation destinations. Whether you’re looking for a “pura vida” in San Jose, a faith-based procession in Puerto Vallarta, or firecrackers in Oranjestad, this year proves the world is ready to explore.
