A leading international tourism organization is warning about specific threats to the tourism sector, while projecting that there will likely be a continued pattern of gradually slowing growth in 2006.
Tourism growth reached five percent in the Caribbean region, the United Nations World Tourism Organization [UNWTO] reported in its preliminary results for the World Tourism Barometer report.
According to the data, the number of international tourist arrivals in 2005 was an estimated 808 million, an increase from the 766 million that was reported for 2004.
But officials warned that terrorism will continue to be present, rising energy prices, inflation and interest rates might finally change the economic scenario and the spread of the avian flu could be a serious threat for the tourism sector.
Tourism is the main revenue generator for The Bahamas.
“Panic is always a bad advisor,” said Director General Francesco Frangialli. “What we can do is monitor the situation closely and prepare for it, should it happen. In spite of the current uncertainties, I am confident that world tourism and all its stakeholders will weather the storm – if it does come – in the best way possible.”
The Director General of the Ministry of Tourism Vernice Walkine said last week at the Bahamas Business Outlook seminar that The Bahamas will continue to lean heavily on the UNWTO as it explores the benefits and obligations of membership in the UN body.
Mr. Frangialli acknowledged that the tourism sector has gained substantially in resilience over the past years, but he said in spite of the turbulent environment, destinations worldwide have added some 100 million international arrivals between 2002 and 2005.
As for the prospects for growth, officials are projecting that international tourist arrivals worldwide are expected to grow between 4 and 5 percent in 2006, one percentage point lower than in 2005.
“This outlook is supported by the continued good shape of the world economy in most parts of the world and the improved prospects for the eurozone economies, in particular its most important source market Germany,” the preliminary report noted.
Africa lead the way in 2005 with growth estimated at 10 percent, followed by the Asia and the Pacific areas at 7 percent and the Americas at six percent.
The Ministry of Tourism has not yet released official figures on the total amount of visitor arrivals to The Bahamas last year. The year before, the amount surpassed the five million mark.
However, according to the latest figures released by the Central Bank of The Bahamas, there were more than 3.7 million visitor arrivals between January and September, a decrease of 3.1 percent.
Tourism officials have conceded that The Bahamas has failed to capitalize on a huge opportunity to attract mid-week tourists from the United States in particular.
As a priority area this year in the Ministry of Tourism’s business plan, the DG of Tourism has also acknowledged the need to restore the room stock in Grand Bahama to at least the levels they were at before hurricanes Frances and Jeanne pounded the island. The Royal Oasis Resort remained offline.
The Ministry of Tourism has also committed to planning for managed growth in the Family Islands, attracting investors to develop more moderately priced, mid-market hotels for Nassau/Paradise Island and setting standards and branding for small Bahamian hotels so they could be promoted as well.
Proper marketing is also a challenge.
“We believe we have a unique product in the sense that we have so many things to offer visitors. It’s hard to communicate all that to visitors, and it has been a challenge for us to properly position those islands,” Ms. Walkine said.
Economic growth for the Bahamian is expected to remain strong reinforced by continued investments in the tourism sector, according to Central Bank analysts.
By: Tameka Lundy, The Bahama Journal
