Tourism `heading in right direction'
The following is the conclusion to Friday night's debate on Tourism in the House of Assembly Tourism Minister David Allen criticised a comment made by Shadow Minister David Dodwell in which he said that air arrivals were on an incline and said: "If this is an incline rather than a decline, then I would say that the honourable member is practising the ultimate in voodoo economics.
Mr. Allen said it showed a poor level of research and said it was, "a blatant attempt to mislead the house and members of the country''.
Mr. Allen also explained how the huge loss of beds on the Island was one of the biggest obstacles to the rebirth of tourism and said: "We cannot fill beds that do not exist.'' He said Bermuda was serviced by more airlines than any other Island in the Caribbean , five from the US, one from Canada, and one from the UK.
He said: "Most Islands in the Caribbean would die to have so many.'' Mr. Allen said that the Tourism Ministry had set up the first hospitality scholarship in the history of the country, and asked how Mr. Dodwell could say they were not committed to tourism.
He said: "We have made a greater commitment than any Government I can remember.'' He also said that for 20 years there had been "growing deadwood'' and that for the first time in history, the Hotel Concessions Act had reinvented the Island's tourism in one fell swoop.
And he compared tourism to the Titanic and said that after 20 years of going in the wrong direction, the new Government had tried to apply the brakes, but the ship did not stop dead.
He said it had taken two years to stop the forward motion, but then listed off the pending investment in projects such as $250 million in the Tuckers Point Club at the old Mariott property, and he tabled the new hotels latest promotional material for other members to peruse.
Mr. Allen said: "I am proud of what we have done with tourism.'' He then referred to the PLP platform produced in the run up to the last election and outlined all of the goals set out for tourism, and which ones had come to fruition.
He said that in the platform the party promised to set up a National Tourism Action Group which he said had been done.
He said they would focus on new markets such as Europe, the Mid-west and Latin America, and that they had done this.
He said they would promote adventure sports such as scuba diving, fishing, and wind surfing, and they had done this.
And he said they would be holding the first ever Big Game Fishing Classic in July.
Mr. Allen also said that they had delivered on tax incentives in the Hotel Concessions Act.
He said: "We delivered and we delivered big.'' Mr. Allen said he had promised incentives for entertainment and had done this by providing duty free alcohol for hotels, as long as the profits were spent on entertainment.
Mr. Allen said Government had promised to create a Fringe Festival to run alongside the Bermuda Festival, and there were 16 local productions included in the last fringe festival.
He said the Government would be promoting eco-tourism and heritage tourism, and he pointed to the $12 million Daniel's Head development comprising 115 units, which is due to have a grand opening on April 27.
He also said his department had produced the first ever eco-tourism brochure which included half day tours to Nonsuch Island.
Mr. Allen said Government was also relaunching new spring break programmes with creative and visual arts and other activities for young adults on college breaks.
Mr. Allen said that all of these promises had been "signed and sealed'' and that in the last 27 months they had delivered on over half of Government's tourism platform promises which he said was a "remarkable achievement.'' Mr. Allen also touted a new Bermuda to Miami Air link which he said would not only increase tourism but also make it easier for Bermudians to get to the islands in the Caribbean.
And he pointed to the cooperation between the Ministry of Transport and Tourism in achievement of devolved charter regulations to Bermuda, meaning Government had greater autonomy over deciding what flights would serve the Island.
As for other tourism incentives, Mr. Allen mentioned the Horizon Card which gives each passenger off the Horizon Cruise Ship a $50 card to spend on shopping, restaurants or other services.
Mr. Allen said this provided $1.9 million a year, or over $9 million over the five year contract.
Mr. Allen said: "This is real money in the bank for shops, restaurants, beauty salons, and so on.'' And he shouted at the opposition; "Let it not be said that this Government has done nothing for the retail sector.'' Mr. Allen also said that businesses not involved in the scheme had been phoning the Ministry to find out how they could be included.
Mr. Allen also spoke about a "visitor frequency'' programme, currently in the planning stage, which he expected would "lift off'' in November.
He said it was a "complex programme'' and that his Ministry was working in partnership with hotels on the Island.
Mr. Allen also criticised the opposition for suggesting that the Tourism Ministry be dissolved and a public/private organisation run the ailing industry instead.
He said: "Government has a lot to lose if they are not involved.'' And made comments about the `rampant schizophrenia running amock with the Opposition'.
Mr. Allen said it was ludicrous for the Opposition to say it had waited two and a half years for a turn around in tourism.
And in response to questions from the Opposition about where the increased numbers were, he asked "where are the hotel beds?'', and said that when the number of beds increased, the numbers would also be up.
In response to a questionnaire which said that only 52 percent of visitors said they felt they got value for money, Mr. Allen said this was true, but to lay the blame at the door of the Government was factitious, and he said the country needed to help.
Mr. Allen also attacked Mr. Dodwell for reporting incorrect tourism figures and said: "he must have dyslexia'', prompting an objection from Mr. Dodwell who said such insults were "uncalled for''.
Mr. Allen spoke about the concessions act and said it had created a "monumental contribution to development''.
He said to date there was $450 million of proposed development in the works, and that there was more on the way.
He said the last major hotel development was $32 million in 1972 when the Southampton Princess was built.
And he said that the new act made provisions for tax incentives for training, entertainment, marketing, and an would create unprecedented delivery on product development.
And he pointed to the Nonsuch Island eco-tours and welcoming bands at the airport as examples of product development.
Allen defends tourism track record Mr. Allen then spoke about the Island's cruise ships and said the cruise ship policy was very successful.
He said: "Yes we did lose a weekend cruise ship -- but this is not the fault of Bermuda.'' And he said that before the ship was cancelled, bookings for the cruise and stay programme were running at double, with over 700 trips booked.
Mr. Allen also said it would be hard to find a replacement ship of "suitable quality'' on short notice and said there was "no quick fix''.
Mr. Allen said: "We want products that reflect well on Bermuda.'' Mr. Allen also spoke about entertainment on the Island, and said that he has avoided making statements about the Hawkins Island affair as he could be held in contempt of court.
He said it was yet to be seen if there would be any adjustments to the noise abatement laws, and then said that a new entertainment initiative was about to lift off.
Mr. Allen said there would be a "major entertainment feast this summer at Hamilton, Dockyard, and St. George's,'' and said that Government will commit $400,000 to support five different events.
"I think it will really reignite the look of entertainment in Bermuda this summer,'' said Mr. Allen.
And he said that two of the entertainment proposals had been very good and had a wonderful feel of Bermuda culture and entertainment, and that the two acts would be amalgamated into one product.
He said that visitors and locals would enjoy the new entertainment, and he was looking for hotels to support the initiative.
Mr. Allen then moved back to the concessions act and said that it would take between two and three years for the Act to come to fruition.
Mr. Allen said he had a meeting on Thursday with the Tuckers Point developers and he said they had to rid some of the buildings of asbestos before demolition could take place.
He said demolition would happen in the fall, and construction would start next year, and the resort was due to open in late summer 2003.
In response to questions from Mr. Dodwell concerning how concessions could be given to Aman Capital, the developers interested in re-opening the Club Med property, Mr. Allen said they had an agreement in principle, and they were working on a detailed development plan.
Concerning the planned Deville hotel on Par-La-Ville Road, Mr. Allen said the deal did not fall through due to lack of concessions.
He said the planned luxury apartments were not to be leased back to tourists, and the concessions were only for tourist residential units.
He said the Corporation of Hamilton was in negotiations for a year and a half, and they were "tearing their hair out'' by the end, and that Government could not force the Corporation to make a deal.
But Mr. Allen said there was another company interested in developing the site, but refused to divulge who they were.
Mr. Allen also said that there was and would be a boom in the construction industry due to the new development but he said he didn't want to "overheat the economy'' and that it was not a bad thing if projects fell back a year or two.
Mr. Allen also said the Sonesta Beach property was off the market, but owners Aetna Insurance were investing $2 million into a new sewage plant and room upgrades.
He also pointed to the recent Bridge tournament at the hotel and said that competitors had been delighted with the service.
Mr. Allen also said that although there were no large five star resorts on the Island, the Mandarin group who own the Elbow Beach property were at the four star stage, and aspiring for five stars.
He said they would be carrying out $53 million of upgrades this year, and he expected that the resort, as well as the Southampton Fairmont should have five star ratings once the upgrades were completed.
Mr. Allen also spoke to earlier criticisms over advertisements created for Bermuda and said that the ads had won five prestigious awards at a recent competition.
Allen defends track record He said: "Anyone who says these ads are a disgrace to Bermuda should hang themselves.'' Mr. Allen said he made no excuses for The Bermuda Alliance for Tourism report taking more than two years to come to fruition because he wanted to consult with businesses and the community before forging ahead.
And he said the new alliance partnership was a first in Bermuda and everyone involved should be praised.
He said: "This is the hymn book for the country in terms of tourism,'' he said.
"We are now all singing from the same hymn book. For the first time in the history of Bermuda we have one big umbrella. We can all do so much for tourism.
"This is why a Tourism Authority is redundant, is unnecessary. This alliance provides a win-win situation. We have got the benefits of a partnership alliance with none of the negatives, such as to the tax payer. We have committed ourselves to work together.'' And he urged Mr. Dodwell to join the partnership "for the greater good of Bermuda''.
He said the people who had worked on the report had put in so many extra hours and "had gone that extra mile'' because they could see what Government was trying to achieve.
"It's not just the same old, same old,'' he said.
But Mr. Allen said also for the first time, all of the ministries were working together for tourism.
He said the new plan also included the railway trails, which included Works and Engineering, and he said it also looked at transport and Island-wide clean up.
He said: "I can confidently say that all of Cabinet has been energised by this Bermuda Alliance.'' The minister told the House that Bermuda was only 22 square miles, so could not cope with two or even one million tourists every year, such as the numbers that go to Cancun in Mexico.
But he said what Bermuda needed to do was attract tourists who were prepared to spend money for good quality.
And he said he believed the PLP Government had done more in two years for tourism than the UBP did in the last 18, particularly with regards to hotel investment.
And in response to accusations that he travelled around the world too much, the Minister said he had to be "pro-active'' in order to entice people to Bermuda.
He said if he had not travelled overseas, many investors and tourists would not have come to Bermuda.
He added: "Is anyone naive to think that these people are beating a path to Bermuda? "If we had not done it, the Opposition would have been the first to say we should have been more pro-active. To say we were asleep at the wheel.
"We are putting Bermuda on the map and we are getting results.'' He said Bermuda did not need a tourism authority because the people had elected Government to lead the way on tourism, and "quangos'' were not elected bodies.
He said it was democratic to do it through Government.
However, he said in the last two years, Government, along with businesses, had come to realise that where Bermuda had "slipped up'' on tourism was on poor quality service and lack of investment in hotels.
However, he said both of those issues were being tackled, with the help of the Hotel Concessions Act.
And he said people already working in, or thinking of going into, the holiday industry on the Island had never had such great opportunities.
He said anyone who is lucky enough to work at the new Tuckers Point Club hotel, owned by Rosewood Hotels, would be able to work anywhere in the world afterwards.
And he said with the training schemes and internships that Government had arranged with cruise liners and hotels overseas for Bermudian workers and students, "this was an opportunity of a lifetime.'' And he said by offering tax relief on some things to hotels, and from next year, increasing the passenger tax for cruise ships, he hoped to level the playing field for hotels and cruise liners.
Hotels have greater overheads, but add more to Bermuda by way of jobs and spending, so they should be rewarded, he said.
Spending is `bringing results' PLP backbencher and guest house owner Delaey Robinson said in his 15 years working in the civil service never before had he seen ministries working together, as they have with the alliance on tourism.
And he said the opposition's criticism of Government's achievements with tourism seemed like "sour grapes''.
He said: "I can already feel the rubber of the Opposition spindoctors. They are already calling it the Bermuda Tourism Authority. It's pure spin doctoring -- this is not a tourism authority.'' And he added: "When we hear from the Opposition, tourism is in crisis. But when we hear from the Government benches, tourism is in transition.
"If, after 18 years of steady decline, the question arises when were they (UBP) going to jump to the wicket and actually do something and pull a finger out to get some radical changes and take some steps to reverse the horrible trends.
"They had 18 years to put a tourism authority in place. Why didn't they do it?'' Mr. Robinson also spoke on tourism, and said the Hotel Concessions Act addressed the product in a "big way''.
He said the money for redevelopment is real as deals have been signed.
Mr. Robinson said they had been branded the `People's Government' and this was apt as they were not afraid to spend money on people directly.
Mr. Robinson also said that players in the tourism industry needed to set their own standards and the "bar'' needed to be set at a level where everyone should be.
"If you can't reach the bar, you can't play,'' said Mr. Robinson.
Mr. Robinson said that he was pleased to hear that Mr. Dodwell was investing $7 million into his property, the Reefs, and asked how he could do this without having confidence in the future of Bermuda's tourism industry.
Mr. Robinson said that Mr. Allen had the support of the entire Cabinet and that Government spending on tourism was bringing results.
Shadow Minister of Development, Opportunity and Government Services, Allan Marshall said that the voters had sent the former Government packing because they believed that the PLP would rescue tourism.
Mr. Marshall said they had promised in their last election platform to do it with "existing resources'', and said voters were told they would not have to pay new taxes to pay for the revitalisation of tourism.
"The public have been duped,'' said Mr. Marshall, and said that the tourism budget had risen by 22 percent or $8 million.
"The PLP have broken their campaign pledge to fix tourism without increasing the budget,'' said Mr. Marshall.
So Mr. Marshall felt that it was important to "go back in time'' and take MP's on a "roller coaster ride'' through the last two and a half years to see what was written about tourism in local media.
He said that every time things look promising, a setback occurs that "hammers another nail in the tourism coffin.'' Mr. Marshall then referenced more than 50 articles in which tourism was on the turnaround with a bright future, as well as articles painting a picture of doom and gloom in a failing industry.
Mr. Marshall said it would be painful for the Government, and during his examination of tourism in the media, Finance Minister Eugene Cox stood up on more than one occasion and referred to rule 21 which said that members are allowed to read excerpts from news reports in reference to an argument, but said he heard no arguments.
Mr. Marshall said the process was necessary to understand why this matter was brought to the floor of the house.
He also said that three important points had some out of Government's two and a half year history in tourism.
He said that the minister has failed miserably, that he had to take responsibility, and the so called drastic steps that Delaey Robinson discussed were drastic steps backward.
Mr. Marshall said: "The Minister has run from pillar to post and taken a helter skelter approach to tourism that will kill us off for good.'' And Mr. Marshall suggested that Government should take $12 million from the tourism budget and subsidise airline seats, making it cheaper for visitors to get to the Island.
He suggested doing this for three years and see if air arrivals increase and he said: "what have we got to lose.'' A motion was then made by Mr. Allen to accept an amendment to change Mr.
Dodwell's motion, "That this house take note of the current state and future direction of Tourism in Bermuda and the Sound rationale for a Tourism Authority,'' by inserting the "Bermuda Alliance for Tourism'' in place of the Tourism Authority.
Opposition members voiced strong objections to passing an amendment that they had only seen that afternoon, and much discussion concerning the rules of the house took place before the matter was put to a vote, and the opposition soundly defeated.
Bermuda Industrial Union President, Derrick Burgess then took the floor, and said of Mr. Marshall: "If it wasn't for the newspapers he wouldn't have anything to say.'' Mr. Burgess also said that he has wanted all tourism ministers to succeed as if tourism fails, we all fail.
And he referred to Mr. Marshall's suggestion of a $12 million subsidy to airlines as "voodoo ec nomics.'' Mr. Burgess praised Tourism Minister David Allen and said he would not want his job for all the money in the world.
Coverage continues tomorrow David Allen Alan Marshall Delaey Robinson
