Mar 2010 Financial News

Tourism sector 'lost $180m'

Mar 03, 2010

ONE HUNDRED AND EIGHTY MILLION DOLLARS, and still counting.

That's the amount of money this island's tourism sector lost last year. And according to Sue Springer, executive vice-president of the Barbados Hotel and Tourism Association (BHTA), Barbados is unlikely to recoup those losses even though the 2009 to 2010 winter season has shown an increase in arrivals.

Springer disclosed the dire situation the industry was facing on Monday, during a pin-point presentation at the one-day economic consultation held between Government, the private and public sector, and the social partnership, held at the Lloyd Erskine Sandiford Centre.

She said the hotel sector had lost $120 million, and the wider sector $60 million.

"We don't expect to get this money back, as consumer spending is down so we know the revenues will stay down too. We are now in a position this week where the British Pound dipped to under $3," Springer added.

According to her, even Barbados' best customer, Britain, is seeing a dip in visitors, with one tour operator reporting to her last week that his business was down by 1 200 passengers when compared to February last year.

In addition, she said, accommodation members of the BHTA were forced to offer serious discounts in an effort to fill rooms last year.

That notwithstanding, a BHTA survey showed they were also forced to spend $45.5 million on advertising, promotion and marketing, just to remain competitive.

But Springer believed there was still some light at the end of the tunnel.

"It is now imperative for us to take these funds and work closely with the Barbados Tourism Authority to maximise the effectiveness of our tourism product," Springer told the consultation.

Springer said that even though numbers were up, accommodation members had kept their discounted rates in place for all of 2010, in an effort to fill rooms.

In response, the BHTA has formed a new marketing committee in an effort to come up with a 2010 to 2011 marketing plan.

Springer revealed the BHTA was also in the process of setting up a proposal seeking more relief from Government's Tourism Industry Relief Fund.

To enhance Barbados' product, the BHTA has also decided to attend more trade shows, bring out a water-sports DVD for distribution at those overseas shows, and increase the attractiveness of particular areas at both Grantley Adams International Airport, and the Bridgetown Port.

The executive vice-president noted that the association's Tourism Fund, which receives money from its membership, as well as volunteer donations from visitors to the island, had so far reached $4.83 million.

"There is a great need for the tourism fund in the current global economy," Springer said.

The money would be used for a number of projects, including road signage ($200 000), expansion of the Gun Jill Signal Station ($10 000), the Chelsea Flower Show ($30 000), production of a high-definition TV programme for worldwide distribution ($50 000), and donation of two segways for increased patrols along the south coast boardwalk ($24 000).

In addition, the "staycation" venture has been retained, and the BHTA intends to spend $160 000 over two phases to keep the project moving.


Source:
Barry Alleyne
barryalleyne@ nationnews.com
Nation News
Wenesday March 3, 2010

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