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Tourism Improvement Projected
By Tameka Lundy
May 1, 2006

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 signalled 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.

The Bahama Journal

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GB Tourism Expected To Show Improvement Over Summer
By Courtnee Romer
May 23, 2006

Grand Bahama tourism officials are expecting the 2006 summer season to be a busy one.

Even with the threat of an active hurricane season ahead, there has not been any significant falloff in business, according to James Turner, director of Strategic Planning and Marketing in the Ministry of Tourism’s Florida office.

In an interview with the Bahama Journal on Monday, Mr. Turner said that overall bookings for hotels in Grand Bahama are good so far and he forecasted that in the next two weeks there will be even stronger numbers for July and August.

"Sheraton [at Our Lucaya Resort] is projected to be in the mid 70 percent for June, [and in] July about 74 percent. [There is] some deviation in August. So far, we’re only at 60 percent, but these numbers are expected to increase in short order," Mr. Turner said.

"We look at what’s happening at the Westin [at Our Lucaya]. We see Westin so far projecting for the month of June at 65 percent, July, 62 percent, and in August the numbers get a little lower at 50 percent."

Also speaking about other hotel properties on the island, Mr. Turner said the forecast is similar as the Our Lucaya properties.

"At Pelican Bay they are in the high 70s for June and July, and in the low 60s for August. Club Viva Fortuna [for] June, they are at 93 per cent, July 98 percent and August they are already booked at 95 percent," Mr. Turner said.

Although he said he had not gotten any official figures of what cruise ship arrivals will look like for the summer, Mr. Turner said he has not seen "any true deviations as yet," but believes should there be a threat of a hurricane then there might be some panic among the consumers.

He said he expects to see bookings taper off in the latter part of August and September because that is usually when school starts and hurricanes are more active that time of year.

According to figures released recently by the Ministry of Tourism’s Research and Statistics Department, Grand Bahama recorded a 48 percent hike in cruise arrivals this February, despite the six percent overall decrease in arrivals to the entire country.

According to the industry report, 34,623 visitors chose Grand Bahama as a cruise ship destination.

In the case of Grand Bahama, the explanation was that the 48 percent increase in cruise arrivals to the island was primarily driven by Carnival Cruise Lines, which brought in "far more passengers" to the island in February 2006 than in the same month in 2005.

Mr. Turner admitted that Grand Bahama’s tourism product has faced some challenges in recent times, but said that hotel officials are being more aggressive in their marketing approach.

"We are always going to have a challenge until such time as we can get more of our hotel rooms available," said Mr. Turner, pointing out that the continued closure of the Royal Oasis Resort means that a third of the island’s rooms is out of circulation.

"We saw some reduced numbers, but I believe the hotels that are on the Lucaya strip [and] Club Viva Fortuna, they are going to do a whole lot better this year because they are getting a lot more aggressive," he said.

Mr. Turner said they are once again launching the American Express promotion on July 15, "which goes like hot-cakes in this region".

He said Grand Bahama Vacations has forged a partnership with worldchoice.com, an affiliate of Travelocity, which means increased business for the island.

"You can already see our hoteliers are getting a whole lot more aggressive in terms of what they promote out there," Mr. Turner said.

"Several of them already have stay-three-nights-get-one-night free to encourage bookings during the slower period. Despite the storms of the yesteryear, Grand Bahama Island is back, our hotels that we are presenting are fully operational, and really there is very little residual effect of the previous hurricanes now left on Grand Bahama."

Mr. Turner said he believes Grand Bahama will come out on top during after the summer tourist season.

"I find that a lot of our tour operators are saying that the mood, the general feeling that is coming from Grand Bahama is more positive," he said.

"When you speak to the island residents, there is just a renewed enthusiasm about tourism on Grand Bahama."

The Bahama Journal

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