Tourism: an update

Back near the end of June, I provided an example of what a fair and honest review of the state of our tourism industry should look like as seen from the perspective of this writer.  Political spin not included.

It was noted that

"Due to new US passport regulations introduced in January, seasonal tourism numbers for April took a slight decline and we expect this decline to continue in the following months as Americans adjust to the new requirements.  Thankfully, the US immigration office has recently reconsidered their passport policy and opted to delay the requirement until October, only requiring travelers to have photo ID and proof of a passport application."

For those in the know, this US passport regulation change is not new as it was originally introduced in the early part of this year.  The delay in October and less restricted requirements may have helped salvage our summer with regards to tourism.  However, when noting a recent Royal Gazette article, it is interesting to note a couple things.

A warning from Premier Brown with regards to the impact of the new restrictions.

New restrictions requiring US citizens must travel with passports could damage tourism, Premier Ewart Brown has warned.

Oddly, while hotel occupancy isn't as high as it was touted in may, it is up 6 percent while arrivals are down.  What this means is up for debate.

Tourism in Bermuda has had mixed results in the second quarter with hotel occupancy levels up to 84 percent, an increase of six percent compared to last year. However air arrivals for the second quarter were down by 1.5 percent to 99,594.

Here's a gem worth noting.

Cruise passengers are still exempt from the new laws until 2009.

For those eager for more info-porn, feel welcome to read the Caribbean Tourism Organization's Latest 2007 Tourism Statistics Tables (Sept. 17, 2007), for the full picture of tourism throughout the caribbean.    Here are some exerpts with relation to Bermuda.

 

Air arrivals

During Jan-Jul, overall arrivals were 182,892, an increase of 2.4% over last year.  Thus far, the winter yielded an increase of 8.7% while the summer is down 1.3%.

Arrivals for April were -3.9%, May -0.4%, June -0.8% and July -2.7

Cruise arrivals

Up 10.7% to 205,732

 

Questions which arise are whether the discount airlines have truly had the desired impact in comparison to the unknown amount of subsidizing which may have occurred.

Overall, things appear to have stuck along the earlier predicted trend and it shall be interesting to note the impacts that the full introduction of the US passport requirements in October have on air passengers as we progress into the off-season.

Comments

[Sal]

what do you know that someone as experienced as Bill Marriott didn't?

september 11, 2007

J.W. (BILL) Marriott, Jr. is chairman and chief executive officer of Marriott International, Inc., one of the world's largest hotel companies. Bill Marriott was born into the business founded by his father. His leadership of Marriott spans more than 50 years and during that time he has taken Marriott from a small family motel and restaurant business to a global company with more than 2,800 properties in 68 countries. Bill Marriott once famously said that if he had to live his life over again he would do everything exactly the same - except open a hotel in Bermuda.

I know ACE Ltd.'s Brian Duperreault (photo), the silent but clearly indispensible partner in the Southlands Resort project, is nominally a Bermudian.

But I don't believe Brian was living here when Marriott attempted to resusicate the old Castle Harbour property some 20 years ago.

They pumped millions of dollars into the hotel, restored it to its former glory, attracted quite a large number of guests - and lost their shirt.

The high costs of doing business in Bermuda made it impossible for a group as experienced as Marriott to make a go of a major resort property here.

Nothing's changed since Marriott pulled out - except that the cost of doing business in Bermuda is more exhorbitant than ever for those in the hospitality industry.

Now, Brian, you're an insurance salesman - one helluva good insurance salesman, based on your track record, but an insurance salesman nonetheless.

Your experience of hotels, I would imagine, boils down to having stayed in quite a number of them during the course of your career. Maybe you even insured some.

But the fact is while I may want to buy an insurance premium off you one day, I don't want an amateur tearing up one of the last sizeable greenbelt areas in Bermuda to play at being a hotelier during his dotage. And that, in a nutshell, is exactly what you propose to do.

You're an actuary, Brian. Have you even done a basic cost/benefit analysis for Southlands? Do you really expect the Southlands Resort to be profitable? Do you really expect it will still be in business (as a hotel) in five or ten years?

So what do you know that someone as experienced as Bill Marriott didn't? Do tell. I'm all ears.

NUMBER CRUNCHER