Hoteliers feel the pinch of US economic woes
Bermuda hoteliers are concerned by the drop-off in air visitors from the US, as North American tourists account for nearly three-quarters of their business.
And international business leader David Ezekiel has noticed a trend of more conference calls and less business trips, as companies and individuals tighten their belts during the US economic slowdown.
Newly released air arrival figures show 1,967 fewer visitors flew to the Island in the three-month period from December to February than in the same period a year earlier, as a result of a drop in numbers from the US.
The convention sector appears to be the hardest hit with the figure plummeting 69.5 percent in January, from 1,359 people in 2007 down to 414 in 2008.
February saw 201 fewer people flying in for conventions, a 23.6 percent drop. December was the only month of the period to see an increase with an additional four visitors flying in compared to 2007.
Business visitors increased strongly in most months of 2007, offsetting declines in leisure travellers. But December saw a four-percent decline and in January there was a 9.8-percent dip in the number of business travellers. However, there was a five-percent increase in February.
Bermuda Hotel Association president Franck Stocek said hoteliers had seen a fall in occupancy rates and convention bookings. He added: "We are concerned as the North American market represents over 70 percent of our business."
Hoteliers have been looking elsewhere to make up for the lost visitor numbers, he added.
"The UK and Europe have always been one of our main focuses, especially now since the pound and euro against the dollar is so attractive. Due to the current situation in the US economy this UK/European focus has increased."
Mr. Ezekiel, chairman of the Association of Bermuda International Companies (ABIC) said he has noticed clients were scheduling conference calls when they used to fly in for a meeting, but added that it was hard to gauge how long the trend would last.
"People tend to just hunker down," Mr. Ezekiel said in reference to the current US economic situation. "And that goes for businesses too. People are trimming their budgets and just waiting to see what happens. I've definitely noticed people seem to be scheduling more conference calls and postponing trips they had planned to the Island.
"We are seeing much less activity in terms of conferences and meetings, but it is hard to say if we will continue to see this or if it will pass."
On Monday, Premier and Tourism Minister Ewart Brown said the economic slowdown has his attention, but added that numbers arriving from countries apart from the US were promising.