The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MAJOR Nassau/Paradise Island hotels saw a “slight increase” in room occupancy rates during the first quarter of this year, the Bahamas Hotel and Tourism Association (BHTA) noting the the first quarter’s performance was affected by an “unusually large” number of flight cancellations and a reduction in room inventory.

Responding to Tribune Business questions, Stuart Bowe, the president said major Nassau/Paradise Island hotels were expecting a slight increase in room occupancy rates in April and in May as a result of Easter business. “The major Nassau/Paradise Island hotels experienced a slight increase in room occupancy rates during the first quarter of this year, rising to 68.4 per cent over 68.1 per cent in 2013. Earlier in the year we forecast occupancy to be just above what we realised but this was impacted by an unusually large number of flight cancellations in January and February due to weather-related airport closures in several of our top markets,” Mr Bowe said.

Mr Bowe further noted that the first quarter’s performance was also affected by a year-over-year reduction in room inventory. “We had 2.9 per cent fewer rooms with the former Nassau Palm being closed and Wyndham having reduced their room inventory,” Mr Bowe explained. He added: “The competitive constraints we are facing prevented most hotels from raising room rates during the first quarter, affecting overall revenue.”

“Looking ahead, for the major Nassau/Paradise Island hotels we expect a slight increase in room occupancy rates for April and May, boosted this month by Easter related business, “ said Mr Bowe.