The Bahamas Hotel Association’s president yesterday told The Tribune the industry was extremely worried that a protracted war in the Middle East could damage capital investment in the hotel sector and reverse the moderate room rate and occupancy gains made in early 2003.
Jeremy MacVean said that in addition to the demand pressures on the hotel industry that may result from a reduction in global travel, increased oil prices have created a state of heightened unease in the airline sector, which could further impact travel outside of the US and could dramatically reduce the number of meetings and conventions in The Bahamas and elsewhere.
Mr. MacVean said informed opinion held that in times of uncertainty, US travellers restricted their leisure and vacation travel to domestic destinations, opting for land transportation where practical.
The use of Internet travel sites further exacerbated the situation, Mr. MacVean said, because holiday purchases on the web were generally price driven. There was concern that the Bahamian tourism industry, desperate to avoid discounting, would face stiff discounted competition from US domestic destinations and carriers.
“This puts the hotel sector between a rock and a hard place,” Mr. MacVean said.
Peter Yesawich, a consultant to the Caribbean Hotel Association, has warned that while a quick resolution of an Iraq war, coupled with an improvement in global economic condition, would help stabilise the Caribbean tourism industry, a lengthy conflict could mean that no real improvement in travel services demand would be experienced until well into 2004.
He added that in terms of pricing and hotel discounting, the September 11 aftermath had confirmed the demand elasticity facing the travel services industry. This theory promoted the view that the anxiety felt by travellers diminishes almost in direct proportion to the prices they pay for travel services.
“Getting a great deal on an airfare, hotel room or cruise can stimulate leisure travellers to overcome their concerns about travelling even in the most anxiety provoking times,” Mr. Yesawich said.
Mr. MacVean told The Tribune that increased security with greater co-ordination between police and individual resort security units, will mark the tourism sector’s response to worldwide fears and safety concerns in light of the imminent Middle east war.
“It is most important for guests to see that staff members are concerned, and that they are creating and projecting a positive image,” he said.
By Yolanda Deleveaux, The Tribune
