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Experts are not sold on Tourism's partnership with discount retailer

MARKETING, PR and travel experts in Bermuda and internationally have this week questioned the Department of Tourism's latest initiative: a partnership with discount retailer Wal-Mart.

The Progressive Labour Party announced on its web site this week that, as "part of the Bermuda Musical Festival marketing plan", the island would feature on a video shown in Wal-Mart retail locations and on the store's web site.

On this video, recent Bermuda Music Festival performer and hit artist Beyoncé extols the virtues of the island while promoting her third album.

Her endorsement, and clips of Bermuda as a background to her performance, will be shown at 3,500 Wal-Mart stores across the US until the end of November.

Local PR and marketing executives have called the campaign "misguided" and "an ill-considered investment", targeting a demographic that may not be best equipped to afford a Bermuda vacation, especially during the current US recession.

"The median Wal-Mart consumer cannot afford a trip to Bermuda ¿ not this year or for many to come," said a local marketing executive with hospitality clients.

"Neither are they the demographic our Ministry of Tourism should be pursuing. Bermuda needs to be marketing itself to the wealthy East Coast.

"It would be interesting to know whether this fell within the Bermuda Music Festival budget or not. Either way, it's an ill-considered investment."

According to a September report by US business title BNET Industries called 'Taking a look at the Wal-Mart shopper', 42 per cent of Wal-Mart sales are to customers making less than $40,000 a year. Twelve per cent of these sales are to customers on less than a $20,000 annual salary. In a panel held earlier this year by an arm of research giant Nielsen, Wal-Mart shoppers reported that they are "buying less expensive brands, using more coupons, and shopping at 'supercenters' to save on gasoline".

According to Bill Rouse of Neilsen's HomeScan, Wal-Mart's marketing strategy has this year "returned to a focus on low prices for the price-value consumer".

A Bermudian PR manager with tourism clients criticised the decision to partner with the low-end discount retail chain, wondering whether the Department of Tourism's marketing budget could have been better spent targeting a high-end demographic who might be better equipped to pay for a trip to Bermuda, where a basic hotel room can cost upwards of $400 per night.

"This campaign is very misguided," she said.

"It would have cost much less, and produced a far more substantial return, if Bermuda had sponsored a Christmas window at an upscale New York department store, for example, or at least played those videos where there are people who still have disposable income."

One of the UK's most respected PR and travel commentators has weighed in on the Wal-Mart partnership, adding his advice for future marketing campaigns.

Danny Rogers, editor of communications magazine PR Week and long-time columnist for Travel Weekly magazine, described the Wal-Mart video of Beyoncé praising Bermuda as "nice", but called on the Department of Tourism to tailor its messages to the right demographic.

"While the Beyonce endorsement is nice to have, tourism marketing should always be a strategic and joined up process," he said.

"Bermuda must identify its specific target demographic and work out how to reach these people. It must also tailor its messages accordingly, drilling down to exactly what it is that Bermuda offers, that they will like."

Mr. Rogers believes that marketing Bermuda strategically is only the first step in re-establishing the island's reputation as a first-class destination in the face of declining air and cruise arrivals.

"The tourism authorities need to work carefully on the logistics of getting this demographic to the island, via partnership programmes with appropriate airlines for example.

"Finally, they must work in conjunction with hotels and attractions to ensure that the tourism experience is superlative when they arrive.

"It should be an end-to-end marketing strategy, from tourist acquisition right through to tourist loyalty in the longer term."

Government did not respond to calls by press time last night.