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Hoteliers push for bigger tourism budget

Funding plea: Nik Bhola, general manager at Coral Beach and Tennis Club, says an increased budget for the Bermuda Tourism Authority would help to market the island more effectively (File photograph)

Hoteliers have called on the Bermuda Government to increase funding for the Bermuda Tourism Authority in the 2016-17 Budget.

Managers at three hotels concurred with BTA chief executive Bill Hanbury, who said in The Royal Gazette yesterday that an increased budget would help to market the island more effectively.

Nik Bhola, general manager at Coral Beach and Tennis Club, said that he hoped government would continue to provide hotels with concessions, explaining they had been “very useful” for the South Shore destination.

“I would definitely push for more money for the BTA, provided it was used directly in marketing Bermuda or for improving airlift, and that any increases in spending will be recovered in tax revenue in multiples if arrivals increase and people stay longer,” he said of the Budget, which is expected to be delivered before the end of this month.

“I would emphasise that the hotel sector, while arguably more stable than a year ago, cannot afford any increases in payroll or other taxes as these would either erode margins even further or force hoteliers to raise prices at a time when Bermuda is already priced higher than many of its competitors.

“In general, I would suggest that the Budget should focus on measures that will expand the economy and encourage jobs creation as opposed to efforts to raise taxes to narrow the budget deficit. The patient may be stable, but is still critical and severe shocks could still result in death.”

Paul Telford, managing director at Rosewood Tucker’s Point, said he hoped to see continued and, ideally, increased financial support for the BTA.

“I am very interested in learning about the direction and extent to which there is a commitment to the activities of the BTA in 2016,” he said. “We know that the work being done by the BTA has been instrumental in staving the decline of tourism on the island and they are working to turn tourism around and get the industry headed in the right direction.

“In 2015, total taxes paid by cruise, air, and hotel visitors contributed $51.4 million towards Bermuda, and the tourism industry as a whole contributed $194 million in 2014. In 2016, vacation air arrivals are pacing ahead for the first time in a number of years and I believe this is a strong indication that the BTA’s strategy is working.

“Certainly we know the Pink Sale launched on January 8, 2016 has already contributed 15,000 room nights in the three weeks it has been running. This is why I would like to see a continued and increased support for the efforts of the BTA.”

Mr Telford, meanwhile, said that an increase in payroll tax would be a cause for concern for the tourism industry.

Clarence Hofheins of Cambridge Beaches also said he would support increased funding for the BTA, saying: “I would like to see them put more into it. I would like to see them get closer to that $30 million range.

“If they want to put stipulations on it, I would like to see it go more towards marketing Bermuda as a destination.”

On the other hand, he expressed concerns about the potential payroll or land-tax increases.

“I understand totally what the Government is doing and why they have been done but we still need that help going forward,” he said.