The Bahamas should be “gravely concerned” by the reversal in the ratio of stopover visitors to cruise ship passengers, the Hotel Association’s president has warned, as the latter per capita spending amounts to just 10 per cent of that by tourists who stay in hotels.
Jeremy McVean, the Bahamas Hotel Association’s (BHA) president, said the Nassau/Paradise Island destination continued to face increasing pressure, with rising room rates failing to offset the decreasing level of stopover visitors, while Cuba’s presence on the tourism landscape could prove an additional competitive burden if the US travel embargo was lifted.
Between 1971 and 2002, Mr. McVean said the ratio of stopover visitors to cruise ship passengers had changed dramatically. In 1971, more than 66 per cent of arrivals to The Bahamas came by air, and a third by sea. Last year, that ratio had more than reversed, and The Bahamas saw less than a third – 31 per cent – of visitors come by air and well over two thirds – 68.2 per cent – arrive via sea ports of entry.
Mr. McVean told the Rotary Club of East Nassau, “Considering that cruise ship passengers spend about 10 per cent of the per capita spend of stopover visitors, this reversal of fortune has been of grave concern to the hotel sector.”
“Indeed, so it should be to the entire business community; more so when one considers that more and more cruise lines are opting for leasing their own private islands in The Bahamas at which to stage an ‘island call’, beach parties and the like. These activities minimise even more the contribution to the Bahamian economy.”
The government has consistently touted the record arrivals figures The Bahamas achieved in 2002, but this was not felt by the hotel industry – the country’s largest employment industry – because most were cruise ship passengers, who only stay for a day and spend less than stopover visitors.
In his address, Mr. McVean said that for January 2003, average hotel room occupancies were roughly at 59 per cent – a similar level to that experienced in 2002. But even with a 14.6 per cent increase in the daily average room rate, he added that the sector needed to experience significant growth in stopover visitors before it would receive any benefit from the rate increase rates.
Examining the country’s tourism sector from a long-term perspective, Mr. McVean said The Bahamas should view the growing presence of Cuba with some concern, and he questioned why greater efforts had not been placed on the development of innovative and unique tourism products.
He also raised the issue of the high cost of doing business in The Bahamas, and how that could impact this nation’s ability to attract investors, particularly in the hotel sector.
Mr. McVean said a review of the situation faced by hotels in Nassau and Paradise Island 14 months ago made for gloomy reading, but helped put in perspective the nation’s current tourism standing.
Room inventory was down by 1.9 per cent compared to 2001 and available rooms were down by 7.3 per cent due to Hurricane Michelle.
In January 2002, advance bookings were down by 16.4 per cent and occupancy levels were down by 9.8 per cent as a result of September 11. The average daily hotel room rate was down by 5.5 per cent, with revenue figures down by 21 per cent and revenue per available room down by 14.8 per cent.
Mr. McVean said it was reasonable to anticipate an immediate fall-off in business if war with Iraq was declared, particularly against the background of the September 11 terrorist attacks on New York.
The industry’s immediate challenge is not only to survive but also to maintain its lead in a particularly tough environment.
Mr. McVean added that to do this, the sector must first entice potential tourists to leave the security of their homes and travel abroad. Then it had to convince tourists to choose The Bahamas, ensuring their vacation stay was such that they wished not only to return but also to send others – achieving the invaluable ‘word of mouth’ promotion.
Source: Yolanda Deleveaux, The Tribune
