Business visitors key for tourism
With business arrivals accounting for nearly a third of tourists last fall Chamber of Commerce President Phil Barnett said the reliance on international business cannot be ignored.
The Department of Tourism provided The Royal Gazette portions of its September and October Air Arrival Exit Survey which examined the level of satisfaction among business travellers who flew to Bermuda during the period.
According to monthly Visitor Profile data business air arrivals increased by more than 2,000 during the period compared to 2006 and accounted for 29 percent of travellers in fall 2007 and 26 percent in fall 2006.
"We have concentrated on raising the profile of how much international business supports local businesses because we realise that most companies rely on that sector," Mr. Barnett said. "Hotels, restaurants and companies that provide various services benefit from international business. This includes the people who live here working for international businesses and those who visit the Island for business reasons.
"We need to make sure international business feels welcome not just for tax reasons but that while we protect the rights of Bermudians we have immigration policies that allow international businesses to be competitive."
The fall Exit Survey revealed that 33 percent of the 13,000 people who flew to Bermuda for business purposes brought a spouse or companion with them in September and October, while six percent of the business travellers also brought their family during that period.
"This fall, business visitors have added an average of 1.2 extra nights to their trip for leisure purposes, a significant increase over the same period last year (0.7 nights in fall 2006)," the report stated. "The increase is not unexpected given the higher incidence of those that decided to come accompanied by a spouse.
"That being said, as the average length of stay of business visitors has declined, this suggested that they shortened their business portion of their trip in favour of leisure."
"More than one-third of business visitors indicate there was nothing they disliked about doing business in Bermuda, a decline from nearly half during the same period last year."
However, the report also noted: "Cost remains the most commonly mentioned negative factor, with an increase in mention this year (41 percent this year versus 23 percent in 2006).
"Bermuda's friendly atmosphere has continued to decline in top-of-mind mentions, although it remains a significantly positive attribute.
"Satisfaction with the Island's weather is relatively consistent while, while Bermuda's business climate is liked considerably less this year than in the fall 2006."
For the first time in five years less than 50 percent of business travellers said the best thing about doing business in Bermuda was the "friendly atmosphere".
This year only 49 percent of people said that — compared to 54 percent in 2006, 58 percent in 2005, 64 percent in 2004 and 50 percent in 2003.
Only 30 percent of people said they liked the Island's business climate compared to 46 percent last year.
Mr. Barnett said he was not concerned that Bermuda's friendly nature and business climate had seen a drop because he said that Bermuda was reaching capacity when it comes to accommodating more companies.
"Bermuda is booming right now and reaching capacity," he said.
"Five years ago everyone was looking to Bermuda as ripe, ripe ripe. We are reaching the tipping point of how many businesses we can support.
"It could be that it's not quite as much business sense to come as it was five years ago."
He added that proposed developments of luxury hotels was exciting for the tourism industry, but that it was important to recognise that international businesses count for a large percentage of tourism air arrivals.
"We need international businesses to survive," he said. "Our local business rely heavily on them.
"I think it is close relations and both (tourism and international business) benefit from one another.
"It is exciting to see all the developments happening in tourism but let's be honest, it will be three years before we begin to see the fruits of the labour.
"It's very exciting that international developers are looking to invest in Bermuda."
Mr. Barnett added that he has met with key members of Government since the General Election and feels confident the international business sector will continue to flourish in Bermuda.
