Woolridge says tourism making steady comeback
has been climbing steadily out of the doldrums with the news that revenue at the Island's major hotels was up some $5 million.
And on its present course Mr. Woolridge said:"Tourism is an industry in waiting'' for Bermudians who are interested in serving their fellow man.
His Opposition counterpart Mr. David Allen rejected this overview almost immediately, citing Government's wish to increase the head tax at the airport and the hotel occupancy tax as examples of their wish to look upon tourism as a "cash cow ... but the cow has been milked dry.'' Meantime the Minister underscored Government's attitude to the industry by meeting with the World Tourism and Travel Council, a group that comprises some of the top people in the tourist industry.
Furthermore Mr. Woolridge insisted that Government was not on any "lunatic fringe'' and by working closely with people in the industry, they had managed to cope successfully last year.
Mr. Woolridge said that tourism had created more jobs than any other industry and he encouraged Bermudians to recognise this.
Of the 33,427 people in the work force some 10,188 or 30 percent were in tourism.
He said that tourism and international business should work hand in hand but that tourism should be given a strategic priority because its health had a favourable spin over effect on international business.
"Tourism is not subservient,'' he said. "It is not proper to import people when Bermudians are unemployed.'' Mr. Woolridge said $50,000 had been spent on the monthly "Tourism in Focus'' programme with Charles Webbe to highlight the benefits of Tourism for Bermudians, as well as a new committee that backbencher Mr. Rick Spurling was chairing.
This committee was looking into ways to encourage greater appreciation for the industry as well as an expanded awareness of its importance.
Mr. Woolridge said the lack of Bermudians at the highest management levels in the larger hotels was worrisome, although a registry of Bermudians who are overseas with expertise in this area was being compiled and attempts will be made to entice these persons back home.
Bermuda he said will be up to 13 flights per day this year including a new carrier out of Frankfurt Germany, two flights out of Chicago and a charter out of Hartford Connecticut, since Northwestern airlines cut its Boston to Bermuda run.
Although Bermuda's head tax at the airport had been increased, this compared favourably to New York's which was $32.95.
Mr. Woolridge said it made sense for those locals and tourists who use the airport to pay for it.
Pointing to the cruise ships that saw the head tax on cruise ship visitors increased to $60, Mr. Woolridge said this tax did not deter the more than 20,000 visitors who came on cruise ships last year.
"As long as we can deliver quality infrastructure and safety, people don't mind paying.'' Mr. Woolridge said the demographics of the visitors coming to Bermuda were unchanged although Bermuda would never turn anyone away.
A survey of visitors last year revealed that 71 percent of American tourists said it was the best place for a vacation compared to 63 percent in 1993.
Moreover 73 percent say they were likely to return in the next three years and this was a healthy sign.
Mr. Woolridge said the $12 million the department spent world wide was only purchasing $8 million in value.
And the current budget was "a drop in the bucket compared to the department's need.'' Therefore Bermudians needed to "give a little more service and a little more value to visitors.'' Mr. Allen meanwhile lambasted Government's decision to increase the head tax at the airport and the occupancy tax as "ill advised and imprudent.'' He suggested that instead of increased taxation, the hotels should be given tax incentives.
Mr. Allen said the Minister should be an advocate for hotels in what was a "ruthlessly competitive industry,'' and that the increases in the head tax could be the difference between a business convention coming back to Bermuda or deciding to go to Mexico or the Bahamas.
"That's a loss of income for Government and jobs for Bermudians .. . this is disaster planning not forward planning.'' Mr. Allen said contrary to what the Minister stated, the $60 head tax on cruise ships sent a louder negative message that Bermuda was pricing itself out of the market.
When set against 1980, Mr. Allen said the tourist trade exhibited a tremendous softness.
In 1980 491,640 people arrive by air compared to 375,321 in 1992 and 416,990 in 1994.
"Fourteen years ago we were doing better than we are doing now,'' he said ... even with inflation the value has not increased. This is a serious and abiding concern for the PLP.
"Happy days are not here again. We have turned a slight corner but there is no room for complacency.'' Despite Tourism being the lifeblood of the country, Mr. Allen said the marketing budget was down two percent from last year's figure which illustrated a loss in buying power.
While the content of the recent advertising campaign was encouraging, Mr.
Allen said, its layout was not particularly exciting.
The emphasis on Afro-Americans was long overdue, but Bermuda had to be aware of the acute competition that existed in other countries especially Greece and the domestic USA.
Mr. Allen said Government's European campaign needed more flexibility and he was concerned the new flight out of Frankfurt would not get adequate support from the department.
"We need to spend more money on Europe, because they have a low level of knowledge about Bermuda and we can't afford to have this fail.
"Germans, the Swiss and Austrians like package deals and Condor is ideal for this. It is a reasonable goal to fill this plane every week.'' Mr. Allen warned that although Bermuda did not have the level of crime found in Florida, Bermuda's department of Tourism should not promote Bermuda's safety unduly because it could come back to haunt.
He said it was a mistake to cut the budget to the West Coast because "Californian yuppies'' like the outdoor life and made them ideal candidates for Bermuda because of the variety of sports found here.
Mr. Allen said he found it interesting that there was no mention made of the much vaunted South American market in Mr. Woolridge's address.
Despite the Minister's assurances, Mr. Allen said the PLP was monitoring the advancement of Bermudians within and without the department and urged that the policies that apply locally apply to those offices the Bermuda Government operates overseas.
He said the lack of Bermudians in the highest management positions in the large hotels was disturbing after all these years and that this outcome was the result of "terminal dry rot'' within the departments of tourism and immigration.
In the entertainment industry, Bermudian musicians were not getting the support they should have, but a possible solution would be to offer tax incentives to hotels.
This would increase the night life, and provide more jobs for Bermudians.
The report of the House proceedings, including debate of the Ministry of Labour and Home Affairs budget, will be concluded in tomorrow's paper.
Ministry of Tourism 1995/96 estimates Ministry responsibility: "To promote and control the tourist industry for the benefit of Bermuda.'' Budget estimate: $29,455,000 (last year $29,206,000) Budget allocation Administration $1,048,000 Marketing $16,565,000 Sales $8,718,000 Activities $2,699,000 Management Information $425,000
