Based on encouraging trends in the sector during 2005, analysts with the Central Bank of The Bahamas fully expect an improvement in tourism this year.
They even predicted as much in the Bank’s 2005 Annual Report and Statement of Accounts.
“The improvement underway in the tourism industry is anticipated to continue in 2006, supported by the positive outlook for growth in the US economy and ongoing investments in the industry which should help to offset the weakness in the Grand Bahama market,” the report noted.
Just last week, Tourism Minister Obie Wilchcombe said in 2005 records were set in tourist arrivals, visitor spending, and visitor nights.
According to the Ministry of Tourism, 5.050 million tourists visited the country last year, the second consecutive year that the figure exceed the 5 million mark. He also reported that visitor spending peaked at $2.05 billion for the first time last year. Minister Wilchcombe noted that that figure represents $630 million more than what was spent by visitors in 1997.
The Central Bank’s new report details how healthy growth in air arrivals supported by sustained expansion of the US economy and firming hotel revenue receipts contributed to a positive tourism outcome during 2005. This was despite the adverse impact of the hurricane season in the second half of 2004. In that year Hurricanes Frances and Jeanne delivered a wallop to Grand Bahama and parts of Abaco.
The overall output was buoyed by an intensification in air arrivals growth by 4.4 percent from 1.5 percent in 2004. Cruise arrivals weakened by .3 percent to 3.35 million to contrast with a 13.1 percent upturn in 2004.
The figures related to the major ports of entry show that air arrivals firmed by 11.6 percent but with the more dominant sea component contracting by 5.5 percent, overall growth was only marginally improved by .1 percent.
The 9.5 percent recovery in the Family Islands’ visitor count reflected gains in both air and sea visitors by 2.9 percent and 10.8 percent respectively.
According to the Central Bank report, hotel sector performance indicators signaled an increase in overall tourism output buttressed by price appreciation and increased room night sales.
Total hotel revenues firmed by 9.2 percent compared to a growth of 4.1 percent in 2004, occupied room nights improved by 4.6 percent and average nightly room rates strengthened by 4.4 to $156.
Hotel occupancy rates rose to 70 percent from 66 percent. In New Providence, room revenues increased by 9.1 percent as the 9.4 percent growth in hotel rooms sold countered the .3 percent fall in the average room rate to $166.
Minister Wilchcombe said the increase in the average room rates around The Bahamas also provides a good indication of the growth that is taking place in the tourism industry.
The tourism minister said these figures indicate that “The Bahamas is a hot destination”.
“The Bahamas must be convinced that we are on a good wicket. That is why we must do all that we possibly can to build on the opportunities that the tourism industry provides,” he said.
Minister Wilchcombe stated that “legislation, training, retraining, better education, exposure to new destinations and new ways of doing things is the way we must go” if the country is to experience continued growth in tourism.
By: Tameka Lundy, The Bahama Journal
