Despite an exuberant report by the Minister of Tourism Obie Wilchcombe at the 47th Annual Progressive Liberal Party Convention two weeks ago about the tourism industry, The Bahamas Hotel Association (BHA) charges that hotel sector continues to lag behind in the global market.
The hotel sector remains depressed said President of the BHA Mrs. Barbara Hanna-Cox, adding that any increase in the total number of visitors over 2001, need to be put in context.
“It’s a very serious situation. Our focus at this time is on managing our costs, and we hope to keep shortened work weeks and lay offs to a minimum,” said Mrs. Hanna Cox.
Further, she said predicted that according to the latest industry forecast, revenue challenges could continue through 2003 and into 2004.
The continued downward trend in overnight visitors she said has forced many hotels to institute these cost-cutting measures, including layoffs and shortened work weeks.
She said that the tourism sector was staggering in the aftermath of September 11, 2001 and the softening US economy, so it is no surprise that more visitors visited The Bahamas this year.
“What’s troubling is that the amount of air visitors who stayed for even a night decreased.
This means a decrease in revenue for the hotel sector at a time when we are facing increased competition from other Caribbean and US destinations, as well as the cruise line industry,” she said.
She said that in light of the weakened economy, increased competition, reduced hotel occupancy rates, and declining revenue, the BHA is unsettled about its member hotels’ ability to stay competitive and preserve jobs.
Sea visitors, she said, who only spend one day in The Bahamas before returning to their cruise ships, and contribute no revenue to the hotel sector, increased by some nine per cent and accounted for the increase in overall visitors.
Mrs. Hanna-Cox noted that the number of air visitors decreased since last year, up to September 2002, air arrivals at the Nassau International Airport were 57,000 fewer than they were for the same period two years ago.
Hotel occupancy decreased by 5.7 percent during that same period she said, adding that air visitors account for almost all of the revenue earned by the “ailing” hotel sector, as well as much of the revenue collected by the restaurant and shopping sectors.
“Give the increasing competition that we face, we need to continually improve the quality of the product that we offer. The only way to get around all of these external factors – a soft economy, increased competition, it to offer visitors the best value and experience for their money,” she said.
By Vanessa Rolle, The Nassau Guardian
