NASSAU, BAHAMAS, September 11, 2002 – While the Caribbean continues to benefit from natural tourism advantages, including close proximity to primary source markets, cultural diversity and widespread political stability, last year’s terrorist attacks on the United States still pose a challenge to the region’s economic growth, says Bahamas Hotel Association (BHA) president, Barbara Hanna-Cox.
Unofficial figures from the Caribbean Tourism Organization indicate that Caribbean tourist arrivals fell by 4 per cent in 2001. The Bahamas, with its heavy dependence on the United States market, was among the most adversely affected Caribbean destinations – an estimated 33 per cent decline in arrivals was recorded during the last four months of the year (2001). However, Hanna-Cox says, there is evidence that this trend, which was heightened by the terrorist activity on September 11, had actually begun to unfold with the contraction of some of the world’s major economies some time before.
Fortunately, the World Travel and Tourism Council (WTTC) has projected recovery in Caribbean tourism levels with a seven per cent growth in travel and tourism in 2003.
Anticipated economic fallout immediately following the disaster prompted the timely convening of two important meetings designed to discuss the future of tourism in The Caribbean and measures to assure its recovery and growth, Mrs Hanna-Cox noted. The deliberations, held at the CARICOM level by leading regional tourism officials and Caribbean heads of government, marked the beginning of an ongoing alliance between the two groups. Early government action to mitigate industry downfalls commenced with the allocation of increased funds to market destinations, hotel aid packages and some industry tax waivers.
And while this type of assistance comes as a welcome relief to the BHA and hotel associations across the region, Mrs Hanna-Cox admits that overall occupancy continued to fall to 78.7 per cent with negative revenue growth rates as of July 2002. This, despite an improving average rate due to better room rate performance for some hotels, including Sandals Royal Bahamian, Atlantis, Paradise Island and the Ocean Club.
The cooperative initiative between private and public sector officials also began talks of establishing an improved partnership for a regional marketing programme, based on models employed by competing tourist regions around the globe, which, instead of pitting individual islands one against the other, would promote the entire Caribbean region as a destination of choice.
President of the Caribbean Hotel Association (CHA), Ralph Taylor, noting that the Caribbean is four times more dependent on tourism than any other territory in the world, addressed the need to maximize development of Caribbean cruise tourism, which accounts for 13 per cent of all vacations in the region. Disparate views concerning this subsector range from its positive contribution to the industry, to its apparently unfair upper hand on land-based tourism, which, although it is a higher revenue producer, also has the comparative disadvantage of higher overhead costs.
According to Hanna-Cox, it has remained a continued endeavour of the CHA to increase the conversion of cruise passengers to stayover tourists in an effort to raise revenue and hotel occupancy, as well as encourage visitor recommendations. In this vein, the CHA, during last December’s regional tourism summit, agreed to establish a Caribbean Cruise Committee of private and public sector representatives to regulate and grow the industry.
The CHA, says Mrs Hanna-Cox, led by regional government leaders, will also heighten its concerted effort to remain competitive through product improvement. The primary focuses are to include recruiting a competent and professional workforce to meet the demand of a changing global culture, as well as to heighten security levels and ensure visitors’ sense of safety.
Cooperation between CARICOM leaders and tourism officials is an essential part of the post-9-11 recovery, she notes. A recently recorded, albeit modest, economic recovery in the Caribbean, suggests that the region has been able to benefit from diverted vacation traffic from the war-torn Middle East, Taylor says. Moreover, reluctant (American) tourists are likely to choose destinations in close proximity, namely the Caribbean, including The Bahamas.
