The sun is shining again on Cancun tourism.

After racking up a record year in 2004, being socked by Hurricane Wilma in October 2005 and having many resorts out of commission in 2006, the No. 1 Caribbean destination for Americans is reporting hotel occupancy approaching that of pre-Wilma days and record airport arrivals. The requirement that Americans arriving by air need passports, new this year, hasn't put a big chill on tourism.

The Caribbean Tourism Organization (CTO) reports that about 869,000 Americans registered at Cancun's renovated and ever-more-upscale hotels from January through June, up 37 percent from the same period in 2006, when many lodgings were out of service.

The Cancun Convention & Visitors Bureau says hotel occupancy is averaging 80 percent and counts 26,202 rooms at the end of June, about 1,600 fewer than before Wilma hit.

The CTO says Cancun recorded the biggest increase in U.S. visitors of all Caribbean destinations, while hotspots such as the Dominican Republic, Jamaica and the U.S. Virgin Islands drew fewer Americans last winter and spring.

Cancun "is building more upscale properties and is changing its image" as a spring-break party spot, says Caribbean specialist Margie Hand of All Seasons Travel/American Express in Montgomery, Ala. Fewer hotels now accept groups of young people, she says.

Among resorts going more upscale is Club Med Cancun Yucatan, a former singles mecca that reopened last November as a family resort after a $24 million face lift. Rooms were enlarged and gussied up; a Jade Villa concierge wing with extra amenities was added.

It is now the star of Club Med's U.S., Caribbean and Mexican portfolio, a spokeswoman says - with the highest occupancy (averaging 80 percent-85 percent this year) and rates (an average $150 a person per night, including meals and activities).

Marriott spent $100 million to redo its CasaMagna and JW Marriott resorts, says Christopher Calabrese, general manager of both. He says $20 million went toward improvements "above and beyond" hurricane damage, including cushy beds and flat-screen TVs.

Calabrese is seeing "a lot of pent-up demand" for Cancun, adding that "our rates are above (what they were) pre-Wilma." Lowest published rates at the JW Marriott are $190 this time of year; $130 at CasaMagna.

Newer, upscale properties include Sol Meli2/3's ME Cancun and the all-inclusive ...lan Resort & Spa.

Meanwhile, a new terminal for international visitors opened in May at the airport. Arrivals from January through June increased 21 percent over the same period in 2006 and were up 8 percent over 2005, the visitors bureau says.