Key West tourism slows in August amid regional hospitality dip

Major American tourism markets, including Key West, Las Vegas, New Orleans, and Hawaii, experienced a slowdown in August 2026. In Key West, hotel occupancy fell to 67.1% from 67.9% the previous year, while average daily room rates decreased by 1.6% to $238.72. Key West International Airport also saw its first monthly decline of the year, with passenger arrivals dropping 6.8% to 42,745.

Despite these regional dips, national hotel performance remained positive. According to CoStar, nationwide hotel occupancy rose 0.5% year-on-year to 66.4%, and average daily room rates increased 1.5% to $161.78.

Tourism officials in the Florida Keys suggest the August dip may be seasonal, noting that preliminary September figures and advance reservations indicate a stronger finish for the fourth quarter. Year-to-date results for Key West remain higher than the previous year, with average monthly occupancy from January through August at 83.2%, up from 81.1% in 2025.