It's time for a new Tourism Minister
Premier Dr. Ewart Brown should hand over his Tourism portfolio to a colleague so that the Government can bring better focus to the challenges facing our number two industry.
Official statistics indicate that 2008 is on track to match the period from 2001 to 2005, the worst performing years since the start of mass tourism in the 1960s.
Dr. Brown has held the Tourism portfolio since 2004 – enough time to have a positive impact on the industry. He has used his years at the helm to promote the image of recovery through huge increases in cruise visitor numbers, statistical manipulations, special events promotions and new hotel announcements. The situation, however, remains depressed.
When compared to 2007, Bermuda Tourism figures for August 2008 show that
• Bermuda 'vacation' arrivals were down 9.2 in August, and down 11.2 per cent for the year to date (YTD).
l Cruise arrivals were down 31.26 per cent and 17.9 per cent down YTD.
l Air arrivals from core US markets were down 11.65 per cent YTD.
These disturbing results indicate significant ongoing failure in our once-proud industry. The performance can be largely attributed to decisions taken, or not taken, by Dr. Brown.
l For the first time since the start of the modern cruise ship era, the schedule for Hamilton did not have a dedicated ship, leaving retailers with fewer customers and the prospect of staff lay-offs. A more determined effort by the government could have brought ships to Hamilton, which remains the number one attraction for cruise ships coming to Bermuda.
l In the face of declining visitor arrivals – a 13 per cent slump during the first quarter of the year and hotelier forecasts of continuing business declines – the Minister ignored our repeated calls for emergency measures to increase arrivals from core markets.
• The Minister's decision to reorganise the North American sales operations in mid-summer was ill-timed and compromised the possibility of launching last-minute promotions to save the tourism season. We can only surmise from Tourism's failure to boost visitor numbers through additional marketing that the Minister did not understand what was happening in the markets or that he had decided 2008 was a write-off.
l The sales reorganisation was the latest development in a series of decisions by the PLP Government that has severely weakened Bermuda's presence in the marketplace. Bermuda once made concerted annual efforts to reach out to the market in distinctly Bermudian ways, particularly to travel agents who are used by the majority of serious travellers to book their holidays. The closure of Bermuda Tourism offices in North America, the termination of annual on-Island briefings for travel agents and the cancellation of Tourism's overseas road shows in key markets all point to an inexplicable retreat from the business of selling Bermuda as a vacation destination.
l Costly spending initiatives have done little to boost arrivals. While the Music Festival and the PGA Grand Slam are worthy attractions to have on the Island's annual calendar of events, they must be marketed to get "heads into beds". The millions spent by Bermuda this year on these two events have failed to hit their visitor targets. Hotel occupancies for the Music Festival and the Grand Slam are just over 50 per cent.
l We are distressed by the continuing erosion of the Island's tourism high-season, which once stretched from April to mid October. The arrivals decline this August indicates that our high-season, now just four months long, is further endangered.
l The failure of Dr. Brown's government to prepare for a widely expected economic downturn is deeply troubling. From the start of the year, the Government ignored the warnings and our repeated calls to adjust its spending plans. While this required belt tightening in most areas, in tourism it required additional spending in proven markets to attract more visitors. That the Government did not see the need for adjustments indicates a disconnect from the real world that should concern all Bermudians.
In revenue terms, we remain critical of the government's 40 per cent hike in the airport exit tax, a measure that added to the cost of a Bermuda vacation. As Mr. E.T. "Bob" Richards, our Shadow Finance Minister said in February: "We cannot afford to tilt the value for money balance any more against ourselves than it already is."
l Finally, we again register our objection to the Minister's language that prevents Bermudians from understanding the true health of the tourism industry. This week's description of the August arrivals as a "blockbuster" month is simply misleading and typical of the spin. We got a peak at the loose talk last week when unsold Music Festival tickets were returned from the US for local sales. How that squares with the Minister's statement in July that the festival was "sold out" remains to be seen. Bermuda needs a minister who is straight with the people.
We do not take lightly our call for the Premier to resign his portfolio. We appreciate the energy he has brought to the job, but Bermuda tourism remains in the doldrums. Our concerns on this point were heightened this year by the minister's complete misreading of the market and his failure to take action to rescue the season.
We take this opportunity to repeat our longstanding call for the creation of a Tourism Authority led by hospitality professionals and directed by a board chosen from the hospitality, financial, union and government sectors; with the mandate to develop business strategies and manage product development and marketing. The Authority's primary goal will be to make Bermuda competitive again as a tourism destination. The transition to a Tourism Authority should be a main focus for the new tourism minister.
In the absence of a Tourism Authority, Bermuda needs a full-time Tourism minister who is prepared to do the hard work, the hard marketing to get "heads into beds." Local businesses and jobs count on it. This has not been the case this year. Bermuda needs a minister with both hands on the wheel 24/7, now more than ever. It's time for a change.
