The Tribune

By NATARIO McKENZIE

Tribune Business Reporter​

nmckenzie@tribunemedia.net​

TOTAL visitor arrivals to The Bahamas firmed by 18.8 per cent in June, according to the Central Bank of the Bahamas.​

According to the bank’s monthly economic and financial development report for July 2019: “The latest official data from the Ministry of Tourism (MOT), showed that total visitor arrivals firmed by 18.8 per cent in June, extending the 9.6 per cent growth recorded in the prior year.

In the underlying developments, the high volume, sea traffic segment expanded by 22.9 per cent, outpacing the 7.3 per cent uptick in the prior year, while the increase in the high value-added air component slowed to 8.7 per cent, from 15.7 per cent in 2018.”​

According to the Central Bank, the improvement in aggregate arrivals was anchored by a rebound in the New Providence market, to a 20.5 per cent increase, vis-a-vis the previous year’s 2.4 per cent contraction, attributed to gains in both air and sea arrivals by 14.3 per cent and 24.6 per cent, respectively.

“In contrast, the growth in visitors to the Family Islands slowed to 20.1 per cent, from 28.1 per cent in the prior period, amid a deceleration in gains in sea traffic to 24.9 per cent and a 1.3 per cent falloff in air arrivals. Similarly, the increase in total arrivals to Grand Bahama narrowed to 7.4 per cent from 19.8 per cent a year ago, as the 23.4 per cent decline in air traffic, eclipsed an 11.7 per cent improvement in sea visitors.”​

The bank added: “On a year-to-date to basis, total arrivals rose by 14.1 per cent outstripping the 4.1 per cent growth last year, as gains in air and sea visitors quickened to 15.9 per cent and 13.5 per cent, from 15.2 per cent and 0.8 per cent, respectively. A breakdown by market revealed a 22.9 per cent increase in arrivals to New Providence, as the completion of the phased opening of a major foreign investment project, contributed to the rise in air arrivals, while the sea segment also strengthened. A smaller gain of 8.7 per cent was reported for the Family Islands, owing to reduced growth in both the air and cruise segments.

Meanwhile, Grand Bahama traffic contracted by 12.6 per cent, on account of a weakening in both market segments.”​

Data from The Bahamas Hotel and Tourism Association (BHTA) and the MOT for the month of June, showed positive indicators for the hotel sector, as the average daily room rate (ADR) increased by 4.3 per cent to $243.32, while the number of room nights sold firmed by 13.4 per cent.

“As a consequence, the average hotel occupancy rate advanced by 6.9 percentage points to 75 per cent, while total room revenue rose by 18 per cent.

On a year-to-date basis, the average occupancy rate climbed by 10.6 percentage points to 76.5 per cent, and the number of room nights sold strengthened by 20 per cent. Further, a 9.2 per cent increase in the ADR to $280.83, contributed to the modest three per cent expansion in room revenue over the six-month period,” the Central Bank said.​

The latest data from the Nassau Airport Development Company Ltd (NAD), showed that total departures - net of domestic traffic - firmed by 10.3 per cent, outpacing the 8.8 per cent increase recorded in the prior period.

“Specifically, the growth in the dominant US segment quickened to 11.4 per cent from 8.5 per cent, while gains in non-US departures slowed notably from 11.9 per cent to a mere 1.1 per cent. Similarly, during the seven-month period, total departures expanded by 17.8 per cent, extending the 11.8 per cent growth recorded over the same period of 2018. In particular, US departures rose by 19.3 per cent, vis-a-vis an 11 per cent advance a year earlier; however, the growth in the non-US component slowed to 8.9 per cent, decelerating from 16.5 per cent in the prior period,” the Central Bank reported.​

The short-term rental market also benefitted from gains in the stopover visitor segment, as the latest data from AirDNA showed that the total number of room nights sold rose by approximately 29.3 per cent in July over the same period last year, as bookings for hotel comparable and entire place listings firmed by 45.3 per cent and 28.per cent, respectively.

“In terms of pricing, the ADRs for both hotel comparable and entire place listings contracted by 12.8 per cent to $154.42 and by 8.9 per cent to $404.67, respectively, reflecting broad-based decreases in most of the major markets.”​