The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas received 1.8 million passengers over the first quarter of 2014, highlighted by a “slight rise” in air arrivals, according to the Central Bank. However the growth in sea arrivals “slowed” for the same period.

The Central Bank, in its latest Quarterly Economic Review, noted that preliminary indicators suggested “modest gains” in the nation’s tourism output. “The total number of arrivals firmed marginally by 0.8 per cent to 1.8 million over the first quarter of 2014, a reversal from a 3.3 per cent decline a year earlier,” the Central Bank reported.

“In terms of the components, the high-value added air segment rose slightly by 0.2 per cent to 345,338, vis-�-vis a 3.4 per cent contraction in 2013; however, growth in sea visitors slowed to 0.9 per cent from 5.0 per cent in the in the prior period, for a total of 1,413,332 passengers.”

When separated by port of entry, arrivals to New Providence rose by 2.4 per cent to one million, although below the 9.8 per cent growth in 2013. “This was primarily on account of a 2.4 per cent decrease in sea traffic, which outstripped the 4.1 per cent rise in air passengers,” the report said.

“Family Island tourists advanced by 6.5 per cent to 0.6 million, a turnaround from a 3.8 per cent reduction a year earlier, as gains in sea visitors, of 7.6 per cent, overshadowed a 2.5 per cent falloff in air passengers.”

The Central Bank added: “In contrast, the on-going weakness in the Grand Bahama market was evidenced in a more marked reduction in arrivals of 22 per cent relative to 5.8 per cent in 2013, as the 29.7 per cent contraction in the dominant sea component offset the 32.5 per cent rise in air traffic.”

Data provided on the hotel sector showed that total room revenue fell slightly by 0.4 per cent to $137.5 million during the first quarter, reversing the one per cent gain of 2013. “Underlying this out turn was an estimated 5.9 per cent contraction in the average daily room rate (ADR) to $220.3, which outstripped the 2.5 per cent rise in average occupancy levels to 58.6 per cent.

“In terms of the main markets, room revenue for New Providence properties contracted by 2.9 per cent, occasioned by a 3.8 per cent falloff in the ADR, although the average occupancy rate rose marginally by 0.5 per cent. For Grand Bahama, room revenues advanced by 20.2 per cent, as the 10.9 per cent gain in occupancy levels offset the 11.6 per cent decrease in ADRs.

“Similarly, a 4.3 per cent increase in ADRs, alongside higher occupancy levels (3.1 per cent), underpinned an 11.9 per cent boost in room revenues for the Family Islands,” the Central Bank said.