Tourism authority’s $13m on contracts
The Bermuda Tourism Authority has disclosed $13 million in external contracts under public access to information legislation.
The deals include $3.6 million on sales, marketing and advertising and $589,000 on public relations, as well as $3.5 million in rent here and abroad.
One of the largest contracts is for $2 million to be paid to the America’s Cup Event Authority, which is holding its international yachting races on the island next year.
Sponsorship payments amount to $1.3 million, while the contract for the quango’s website for a year is more than $900,000.
The list of contracts was published in yesterday’s edition of The Royal Gazette, in compliance with section 6 of the Public Access to Information Act, which requires public authorities to regularly publish details of every contract worth $50,000 or more.
The largest single contract is for $2.4 million on rent for the BTA’s Third Avenue office in New York. The six-year contract, which runs between 2013 and 2019, is with Royal Realty Corporation.
A six-year contract for rent for the authority’s office on Church Street in Bermuda, with Washington Properties, is worth $1.1 million.
The BTA’s marketing and advertising deals are with four contractors:
• MMGY Global, which has offices in the United States and Spain, for $2 million for a 25-month-contract
• British-based Global Travel Marketing for $488,720 for a two-year contract
• American-based Expedia Media Solutions for $300,000 for a ten-month contract
• AB Golf Consulting for $192,000 for a 19-month golf sales and marketing consulting contract.
The BTA also has an 18-month contract with American-based Turner PR for public relations worth $589,000.
Sponsorship deals amount to $1.3 million and comprise $406,334 to the Bermuda Sloop Foundation for the Spirit of Bermuda; $185,000 to the Bonnier Corporation for fishing events; $160,000 to the Royal Bermuda Yacht Club for the Argo Gold Cup; $160,000 to Bermuda National Athletics Association for the Marathon Weekend; $150,000 to the RBYC for Newport to Bermuda sailing; $100,000 for the World Rugby Classic; $60,000 to the RBYC for Antigua to Bermuda sailing; and $50,000 each to BHW Ltd for the Bermuda Heroes Weekend and the Bermuda Underwater Exploration Institute for the America’s Cup Exhibit.
Other contracts listed include $234,000 to the Associated Luxury Hotels International for three-year membership of its global alliance and a $302,000 grant to the Bermuda Hospitality Institute.
The BTA was given a $1 million increase in its budget from the Bermuda Government this year, receiving $22.7 million for the fiscal year 2016-17.
It said yesterday that as its fiscal year runs from January 1, only three-quarters of that grant — or $750,000 — would affect its budget.
The Tourism Authority Fee, which is paid directly to the BTA by the island’s hotels, was to double to 5 per cent but the authority said it had now been set at 4.5 per cent. The increase will come into effect on May 1 and will only affect bookings made after that date.
Overall, the BTA said its budget would increase by $2.48 million to $27.8 million.
Glenn Jones, the director of public and stakeholder relations, said the increase was about half what finance minister Bob Richards projected in the annual Budget.
He added: “Rest assured, no matter the size of the BTA budget, or the headwinds we face, our goal every day is to stimulate growth and help our tourism economy reach the levels of greatness we all know it has the potential to achieve.”
The authority’s annual report, released in August, showed that chief executive officer Bill Hanbury took in a salary of between $225,000 and $295,000 last year with a “performance incentive payout” of between $31,000 and $88,000.
Salaries for directors ranged from $130,000 to $150,000 for Bermuda-based staff and $115,000 to $130,000 for out-of-island employees.
Bonuses in that department ranged from $14,000 to $16,000.