Hotel occupancies fall `concerns' Minister
Tourism Minister the Hon. C.V. (Jim) Woolridge said he was "deeply concerned'' by news yesterday that hotel occupancy figures dropped last month.
Bermuda Hotel Association figures showd occupancies for April fell 0.7 percent compared with April, 1994. And projected figures for May, June and July were also down -- with June lower by as much as four percent.
But Mr. Woolridge said the Tourism Department was working on a new advertising and promotional campaign to inject new life into the flagging tourist season.
While he would not speculate on the reasons for the projected soft summer season, he claimed the Oklahoma bombing could be to blame for keeping people at home.
He also expressed fears that Caribbean destinations, which are suffering a similar fate, would be repeating a policy of massive discounting that successfully lured visitors last year.
Many of them are pouring millions of dollars into advertising campaigns in a bid to reverse the trend. And Florida has set aside $40 million to boost business.
"Our early projections were very healthy,'' he said. "But they suddenly went soft.'' Yesterday, the beginning of a series of specially constructed advertisements appeared in the New York Times and other national newspapers. Families, who normally take longer vacations, are being targeted in particular.
On a brighter note, average length of stay increased to 4.8 days from 4.6 in April 1994 -- a trend Mr. Woolridge hoped to see continue with increased numbers of European visitors.
Bermuda Hotel Association president Mr. Stephen Barker also predicted a soft summer season this year.
"This season will not be strong,'' he said, commenting on the latest BHA figures that showed a 67.1 percent occupancy level in April compared with 67.5 percent in 1994.
Mr. Barker said he was also worried by the absence of substantial 1996 group bookings.
"I am more concerned about 1996,'' he said "With the passing of time it becomes more difficult to secure group bookings.'' Companies traditionally make reservations up to four years in advance, he said.
However last month's drop in hotel occupancy levels was not seen across the board.
Vigorous self-promotion stimulated business for some hotels -- boosting April occupancy figures to match or surpass last year's.
Elbow Beach Hotel and Cambridge Beaches reported occupancy levels last month were as good or better than in April, 1994.
"Hotels must be pro-active,'' said Elbow Beach manager Mr. Patrick Lupsha.
"We went out and we got it.'' But the general trend was downward, putting hoteliers in a despondent mood for the rest of the season.
Those who saw dips in bookings blamed costly air fares and fierce competition from US domestic and Caribbean destinations.
"It is not a happy picture,'' said Ariel Sands general manager Ms Leslie Hayward. "April was down and so is May. There seems to be a general downturn.'' Mr. Graham Jack, controller of the Mermaid Beach Club, said that while occupancy in April was one percent up, May was "one of the worst for a long time''.
"June is not looking good either.'' He pointed to a slowing recovery in the US, discounting by larger hotels, prohibitive operating costs and tough competition from the south for the downturn.
"1995 looks pretty disappointing,'' he said. "It is not looking good.'' But all those surveyed praised the Department of Tourism for doing a good job in promoting the Island.
"Tourism is doing the best it can,'' said Mr. Jack.
