Tourism chiefs pin hopes on strong mark
this season, Tourism Director Mr. Gary Phillips said yesterday.
But Mr. Phillips was also hoping the weakness of the Canadian dollar would not keep Canadian visitors away from the Island.
The US greenback -- and therefore the Bermuda dollar -- has plunged to record lows recently against the German mark and other European currencies. The change comes just as the Department of Tourism is sharply increasing its marketing in Europe and Condor is to begin weekly charter flights from Frankfurt, Germany on May 2.
Recently quoted at 1.36 marks before recovering slightly, the US dollar has shrunk to a third of its value in marks since 1970.
"With some good messages out there, we can take advantage of this in the short term,'' Mr. Phillips told The Royal Gazette yesterday. "We're gong to try to get the message out there that now is the time to really book Bermuda.'' Since many summer travel decisions were made in January and Februry, German visitors would not necessarily get the full benefit on their air fares. But they would benefit from the favourable exchange rate while on the Island.
Tourism Minister the Hon. C.V. (Jim) Woolridge recently visited Germany to drum up business. And the department was talking to major tour operators "to determine the extent to which we might be able to take advantage if you will of this opportunity.'' The recent sharp drop of the US dollar against the mark continued a long-term trend. The dollar began its float in 1971 at four marks, then sank steadily to just under two marks in 1980. After a steady climb to above three marks in 1985, the dollar dropped sharply to below two marks in 1987 and has been dropping at a slower rate almost ever since. Its previous record low was 1.370 marks in September of 1992. While the Canadian dollar was trading much more weakly against the American dollar than it was a year ago, "the Canadian market has taken on quite an extraordinary resilience as far as Bermuda is concerned,'' Mr. Phillips said.
More than 36,000 Canadians visited the Island last year -- a record, he said.
"Notwithstanding the exchange rate, there are a wide range of properties with a wide range of prices to suit everyone's pocketbook,'' he said.
Canadians "seem to be the backbone of the November to March period,'' with nearly 60 percent of Canadian visitors arriving in the off-season, Mr.
Phillips said.
Although the Canadian dollar was now worth only about 70 cents against the American dollar, he was not expecting a decrease this year.
