By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Hotel industry leaders yesterday disputed Moody’s assertion that the Bahamas had lost stopover visitor market share to Caribbean rivals, saying this nation “held or slightly increased” its share in 2012 - a year that 1.35 million air arrivals made the best since 2008.
Responding to Tribune Business’s questions, Stuart Bowe, the Bahamas Hotel and Tourism Association’s (BHTA) president, said the Wall Street credit rating agency would have “painted a different picture” had it factored in stopover visitors to the Bahamas for the first six months of 2012.
Mr Bowe said Moody’s drew on Caribbean Tourism Organisation (CTO) data from 2008-2011 for its report, a period that included the recession’s peak. This nation’s reliance on the US for over 80 per cent of its total stopover tourists, and “almost 100 per cent” of its lucrative group business, also exacerbated the results.
Noting that stopover arrivals to Nassau/Paradise Island alone were up 10.6 per cent year-over-year for the nine months to end-September 2012, Mr Bowe told Tribune Business that an estimated 110,000 land-based visitors had arrived in this nation during December.
Pointing to a more promising future, Mr Bowe said that of this target was achieved, the Bahamas would have attracted 1.35 million stopover visitors in 2012 - “the best year” since 1.393 million persons visited its shores in 2008, when the recession hit.
“We’re constantly challenging ourselves to do better,” Mr Bowe told Tribune Business. “Despite the challenges since the recession, since November 2011 we’ve seen steady growth, improving most months.
“Air arrivals to the Bahamas through September 2012 were up 9.3 per cent. Nassau/Paradise Island saw an even greater increase, growing 10.6 per cent.”
He conceded: “Sustaining this growth is our challenge. We’ve diversified our markets, with greater emphasis on Latin America, which has shown positive results.
“New airlift has opened up gateways in the US. The group, events, wedding, honeymoon and boating markets grew this past year.....
“We are also hopeful that efforts which are being put into sports, medical and religious tourism will yield better results, We know we’ve got a challenge to maintain and grow market share, but we’re confident in our future.”
Suggesting that 2012 “should show we’ve held or increased slightly our regional competitive share”, Mr Bowe told Tribune Business that the Bahamian resort industry was “optimistic” that this nation attracted 1.35 million stopover tourists in 2012.
“Through November we tallied 1,244,539,” the BHTA president said. “Anticipating 110,000 additional visitors in December, that should bring our total stopover arrivals to the 1.35 million figure. This would make 2012 the best year for stopover arrivals since 2008, when we had 1,392,552 arrivals.
“Without aggressive marketing by the hotels, Ministry of Tourism and private sector commitments to the Air Credit programme, events and niche marketing, this would not have been possible. We need to continue with the thrust which has already been underway, and tap more into the diversity of this destination.”
Acknowledging that “it is very difficult” for the Bahamas to compete on price with the likes of Cuba, the Dominican Republic and Cancun, as labour costs in those destinations were “at least one-third” of this nation’s, Mr Bowe said the ‘market share decline’ noted by Moody’s did not mean the Air Fare Credit and other promotional initiatives had failed.
The BHTA president said that when the Air Fare Credit was temporarily halted during the past few years, hotels “saw bookings plummet” both times.
“When the programme was reinstated, our numbers returned,” Mr Bowe added. “No matter the market one is pursuing, today’s consumer is looking for deals and we must respond to that. This is not just in the Bahamas; it’s a global trend.
“Unless we find better ways to tackle the high costs, we will continue to focus on the mid and high-end of the market. To be competitive in this mix, we must continue to offer exceptional service and value in all aspects of the visitor experience - from pre-arrival to departure.”
Confirming that the Air Fare Credit programme would continue through the 2013 first half, Mr Bowe said the Bahamas would pursue “niche markets”, while working with the airline industry to both protect its existing airlift and grow routes/source markets.
And, addressing Moody’s assertion that Baha Mar’s economic impact on the Bahamas was ‘ambiguous’, given concerns over whether it would grow or split the high -end visitor market with Atlantis, Mr Bowe said: “We heard similar arguments when Atlantis launched their phases.
“In each case, the operational and marketing strategies addressed the occupancy concerns. Already, Atlantis, Baha Mar and other hotels are working on marketing, airlift and product improvement initiatives. We expect that, in the spirit of co-operation, the destination will continue to grow.”
Turning to directly address Moody’s assertion that the Bahamas had lost market share to other Caribbean countries, Mr Bowe said it had drawn on CTO data taken at the depth of the US recession.
Given the Bahamas’ greater reliance on the US as a tourist source market, when compared to other Caribbean countries, he indicated it was not surprising that this nation’s market share dipped between 2008-2010.
“Given that over 80 per cent of our visitor base is from the US, and nearly 100 per cent of the group business is, the impact on arrivals was greater than those destinations who increased market share and were already tapped into Latin America and other markets,” the BHTA president told Tribune Business.
“They quickly adjusted their marketing strategies. Looking at comparative arrivals data during this period, the Bahamas is at the mid-point of countries listed.”
Mr Bowe acknowledged, though, that the Bahamas did lose market share in 2011 to Cuba, the Dominican Republic and Puerto Rico, saying this was not helped by Sandals Royal Bahamian and SuperClubs Breezes taking room inventory off-line post Hurricane Irene and subsequent refurbishments.
“If Moody’s had factored in the first six months of Caribbean stopover arrivals for 2012, it would have painted a different picture,” the BHTA president said. “During that period our growth passed most Caribbean destinations.”
Comments
Use the comment form below to begin a discussion about this content.
Sign in to comment
OpenID