Declining tourism figures mean $200 million in lost revenue – Michael Dunkley
Bermuda has lost out on approximately $200 million in visitor spending in just two years, according to the Department of Statistics Quarterly Bulletin.
Opposition spokesman for tourism Michael Dunkley believes the poor spending figures and the drop in 2009 air arrivals illustrate that Bermuda has not been in the 'Platinum Period' Premier Ewart Brown has previously suggested.
According to Senator Dunkley, residents have become numb to declining air arrival statistics but when dollar amounts were compared, the drop was dramatic.
Total visitor spending for the first three quarters of 2007 — January through September — was approximately $414 million; for 2008 it dropped to $328 million and for 2009 it dropped even further to approximately $276 million, according to the Department of Statistics. This resulted in a $76 million reduction in spending in 2008 and a $128 million drop in 2009, when compared to 2007.
"Using the 2007 figure as the benchmark, that amounts to more than $200 million fewer dollars being spent in our economy — dollars that could have gone into the pockets of Bermudians, whether they be in the hotel industry, driving taxis, selling beachwear or serving meals; or indeed to the bottom line of hotel operations to be used to upgrade the product we offer our customers.
"Please note that the numbers I've used are only for the first three quarters of these years. The reduction in the dollars spent by our visitors will be even greater when we get total expenditure figures for all of 2009."
Last week Dr. Brown, who is also Minister of Tourism, released detailed figures that revealed 235,860 visitors flew to Bermuda in 2009 — a 10.53 percent drop compared to 2008.
"This is particularly troubling given that the 2009 results were measured against 2008, which itself was a poor year for air visitor arrivals," Sen. Dunkley said. "However it is clear that 2009 was the worse year on record for air arrivals going back decades. This occurred during the 'Platinum period' of the Premier and Minister of Tourism!"
And Sen. Dunkley does not believe the Government's advertising campaign is responsible for bringing in many of the Island's visitors.
Last year 18 percent of air arrivals came to do business, an additional 18 percent came to see family and friends and four percent came for a convention.
"These are people who have nothing to do with Tourism's marketing efforts to attract vacationers," he claimed. "They are add-ons who have been used to pump up tourism's numbers and to cover the reality that the results are significantly worse than the Premier lets on.
"To underline my point, one could argue that reporting the number of business travellers and family visitors to the Island should be the responsibility of the Immigration Department not Tourism."
The Senator said he believed people have become desensitised to declining air arrivals.
"I cited these figures in the hope that people will understand tourism's decline is not something that only happens in the pages of The Royal Gazette," he said. "It is real. It is costing jobs, it is shrinking paychecks and hurting the operator and investor."
Sen. Dunkley said the United Bermuda Party would be offering suggestions on how to improve the tourism industry in the coming days.
The Bermuda Democratic Alliance also believes more should be done to improve the industry.
Founding member Shawn Crockwell said: ""Our biggest criticism of the Government is its apparent lack of a rejuvenation plan for tourism. The Government cannot continue to blame unforeseen factors. It has blamed its poor tourism results on the 2001 attacks on the world trade centre, to Hurricane Fabian in 2003, and now the global economic downturn.
"If Government had a focused and sustained plan to rejuvenate tourism we would see stability and improvements no matter what external factors confront us."
And he said the Alliance was "very concerned" with falling air arrivals and a heavy reliance on cruise ship passengers. He added that it was common knowledge cruise ship passengers spend less than air visitors.
In 2009 total visitor arrivals gained over the previous year. Fuelled by cruises, 559,000 visitors arrived — an increase of one percent over 2008. More than half of the Island's total visitors arrived on a cruise ship.
"The Alliance supports and encourages all visitors who comes to the Island, but there must be a focused and strategic effort at encouraging more traditional air passengers to our shores," Mr. Crockwell said. "Our hotels depend on it, our restaurants depend on it and our retailers depend on it."
