A decade ago, Ocean Cay, a Bahamian island 65 miles from Miami’s coastline, stood abandoned, bearing the scars of its previous life as an industrial sand mining site.
These days, the 95-acre island looks less like an excavation facility and more like a slice of Caribbean paradise.
Gone are the debris and floating metal fragments. Now a vacation destination, Ocean Cay is home to seven pristine beaches, waterfront cabanas, and family-fun activities — all thanks to a $500 million investment from MSC Cruises.
In 2019, after three years of cleanup and development, MSC opened the island as Ocean Cay MSC Marine Reserve, a private retreat exclusively for its cruise passengers. It now sees thousands of travelers virtually every day of the year, many of whom are ready to spend big on a swim with stingrays and a beachside massage.
Cruise lines like MSC, Carnival, and Royal Caribbean collectively own 17 ports and resorts in the Caribbean. Some are still under development as these at-sea vacation companies increasingly build back onshore, transforming swaths of the warm-weathered landscape into unrecognizable but highly profitable exclusive vacation destinations.
The transformation of neighboring rivals
About 85 miles from Ocean Cay, Royal Caribbean Group and Norwegian Cruise Line Holdings have claimed two private islands separated only by a mile-long stretch of the Atlantic Ocean.
Norwegian was an early trendsetter, having been the first cruise line to acquire an island, now known as Great Stirrup Cay, for its guests in 1977.
The company has recently upgraded its 270-acre buildout, expanding the dining and walkways in 2017 and launching a luxurious hotel-like retreat in 2019.
Later this year, Great Stirrup Cay is also expected to debut a new pier that can concurrently accommodate two of Norwegian’s largest ships — a $150 million investment in an attempt to rival its successful neighbor, Royal Caribbean’s Perfect Day at CocoCay.
Like Ocean Cay, their locations are strategic. Perfect Day at CocoCay and Great Stirrup Cay are less than a day’s sail from Florida’s busy ports, allowing the companies to save on increasingly costly fuel expenses.
A closer look at CocoCay
CocoCay is as much a “perfect day” as it is a perfect investment, having opened in 2019 as a resort-like extension of Royal Caribbean’s splashy ships.
The more than 130-acre island has since become a massive hit, accommodating almost all of the company’s Caribbean cruise guests with its waterpark, lounge-lined beaches, and, as of last year, an adult-only beach club.
The cruise line has poured a cool $350 million into developing the property. Yet, amid strong guest demand, financial returns have been “exceptionally high and significantly above its target,” Naftali Holtz, the CFO of Royal Caribbean Group, told analysts in 2023.
It’s now hoping to replicate CocoCay’s success with a private resort 63 miles away on Paradise Island, located just offshore from Nassau, Bahamas, and near Atlantis’ sprawling resort.
Royal Caribbean began purchasing land on Paradise Island in early 2017. Seven years later, it started developing the 17-acre property into what would soon become its first Royal Beach Club, a sprawling exclusive resort.
Royal Beach Club Paradise Island is scheduled to open in December 2025.
Guests will have to pay to enter the all-inclusive property. Once inside, they can expect access to 10 bars, shopping, cabanas, and several pools and beaches, including some for families.
Another island, another resort
In addition to expanding its island — RelaxAway, Half Moon Cay — Carnival Corp is also following the private resort strategy with a mile-long getaway on Grand Bahama Island.
Celebration Key, as it’s been dubbed, is scheduled to begin welcoming Carnival cruisers in July.
The land is expected to be transformed into a vacation hub with beach clubs, a family lagoon, and plenty of dining options — “clearly following Royal Caribbean’s footsteps,” Patrick Scholes, lodging and leisure research analyst at Truist Securities, told Business Insider in 2024.
The resort is expected to accommodate 4 million visitors annually when Carnival builds two additional berths in 2028.
The $600 million project is set to be the company’s largest. Yet, Carnival Corp’s CFO, David Bernstein, told analysts in 2024 that Celebration Key is already expected to be a “smash hit and provide an excellent return on investment. “
