Oct 2016 Financial News

Challenging year ahead, but Caribbean tourism poised for more growth

Oct 31, 2016

MIAMI, Florida — Caribbean Hotel and Tourism Association (CHTA’s) director general and chief executive officer, Frank J Comito, says despite the challenges negatively impacting the tourism industry in the region, the sector is poised to continue on a path of growth.

“This year has been a mixed bag. But our stopover arrivals are on pace to top a record 30 million in 2016. Twenty-one destinations out of 32 are up [increase in arrivals] for the year, and the CTO [Caribbean Tourism Organisation] is projecting anywhere between a 4.5 per cent and six per cent increase in arrivals in 2016,” Comito told hundreds of delegates at the 18th Annual International Shared Ownership Investment Conference at the Eden Roc Miami Beach Resort and Spa in Miami, Florida, last week.

He noted that last year, the Caribbean welcomed 29 million stopover visitors, who spent US$30 billion — a 4.2 per cent increase over the year 2015.

“We had a great year last year, 2015. In fact, it was our best year, in terms of arrivals. We had 29 million stopover arrivals... it was our sixth consecutive year of growth. We saw upticks, for example, from Canada and the UK,” Comito disclosed.

He attributed the increase in tourism arrivals in the Caribbean last year, “other than one of the best places in the world for vacation,” to a number of factors, including improvements in the global economy, fall in oil prices, additional airlifts and additional marketing focus.

Comito said, however, that up to July of this year, there was a 2.7 per cent fall-off in occupancy at “traditional hotels.”

He cautioned that next year could prove to be very challenging for the industry, due to a number of factors.

“Zika [virus] will have an impact — especially in places like Puerto Rico and US Virgin Islands, [so] we can’t discount that; we are seeing some exchange rate challenges, the Canadian exchange rate and the UK rate, and that will have an impact; the mild US winter; the US elections, and Cuba, because even with the [US] embargo not being lifted yet, there are 12 reasons why you can travel to Cuba……,” Comito argued.

He pointed out however, that his association is mulling the rolling out of a marketing programme, in a bid to counter the factors negatively impacting the industry.

“We have a need for a regional marketing programme. That is something that we are seriously rubbing our elbows on right now, and working with stakeholders to counter some of these things that are going on,” Comito explained.

Jamaica’s Tourism Minister Edmund Bartlett was among several other Caribbean speakers at the three-day conference, which ends today.

He spoke on the economic impact of the timeshare industry on destination markets.

Other Caribbean speakers include Prime Minister William Marlin of St Maarten, and Secretary General and CEO of Caribbean Tourism Organisation, Hugh Riley.

Source:
BY MARK CUMMINGS
cummings@jamaicaobserver.com
Editor-at-Large
Jamaica Observer
Sunday October 30, 2016    

http://www.jamaicaobserver.com/business/Challenging-year-ahead--but-Caribbean-tourism-poised-for-more-growth_78748