Tourism arrivals fall 27%
Visitor arrivals and spending plummeted by more than a quarter in the first three months of this year, according to figures released yesterday.
Announcing the Department of Tourism's 2009 First Quarter figures, Premier Ewart Brown said: "It should be abundantly clear to everyone that Bermuda Tourism is not immune to the regional and global trends of an economy in dramatic downturn."
Shadow Tourism Minister Michael Dunkley however, dismissed this as "spin".
"No amount of recession, no amount of words, aka 'spin', can cover over the fact that the Government's tourism woes are self-inflicted," he said.
Senator Dunkley said what was needed now was a Tourism Authority, to put "the management of tourism into the hands of hospitality professionals and out of the hands of politicians".
Dr. Brown, Tourism Minister, yesterday revealed air arrivals have dropped by more than a fifth and occupancy of hospitality properties declined 28 percent.
Government statistics for the first quarter of 2009 show visitor spending also fell. The figures show visitors spent between $734 and $922, compared to $1,013-$1,216 per person in January to March 2008.
Total visitor arrivals for the opening quarter of 2009 fell by 27.84 percent year over year, with 32,361 tourists during this period, compared to 44,845 last year.
Air arrivals fell 22.75 percent, with 32,235 visitors 9,500 less than the first quarter of 2008.
The statistics also point to a steady decline in 'all arrivals' as the year progresses, with 17.3 percent fewer arrivals in January, 26.1 percent less in February, and 33.4 percent <\!m> a third less in the total number of visitors for March.
The number of people travelling to Bermuda for a vacation dropped by 29.1 percent in the first quarter, year over year. Business visitors declined by 10.5 percent and convention visitors were down by more than half compared to 2008, with a 53.6 percent drop.
Yesterday however, Dr. Brown said he was optimistic things would pick up in the summer. Commenting on future hospitality bookings, he said: "The rest of May and going into June have been better than anticipated."
He added the opening of Tucker's Point had created "a buzz in the industry", and that hoteliers would succeed by showing "creativity".
But Dr. Brown added that for some visitors, the Island was perhaps too expensive. He said: "There is something about the Bermuda price point which didn't sit well with visitors. I don't know that it wasn't acceptable value for money but it didn't sit well with some."
Announcing a raft of measures to attract more tourists, he said: "I feel good about all the good things that are happening. In spite of the tendency of some of the media to paint a miserable picture, we believe there are some good things happening, but they must do what they do."
Dr. Brown said the opening of the new Heritage Pier in Dockyard would also buoy up cruise visitation figures.
He said that once global tourism recovered from the economic downturn, people "would start travelling again".
>"And when they travel again, we believe they will be more likely to visit or re-visit those destinations where the tourism product is fresh and buzz-worthy," said Dr. Brown.
"With the new Port Royal and the revitalised Dockyard, with the new Tucker's Point Hotel and the crowd-pleasing Newstead, with the soon-coming Park Hyatt, Four Seasons and Grand Atlantic <\!m> we think Bermuda Tourism is in a position to capitalise on the comeback.
"I trust all of our local Tourism partners will be ready."
Yesterday however, Sen. Dunkley said: "We need a new approach to tourism and new leadership. The best thing the Premier can do today to improve tourism is to begin the transition to a Tourism Authority."
The Opposition Senator said Government had failed to provide a "dedicated cruise ship for Hamilton this year" and "did not vote extra marketing dollars this winter to pump up Bermuda's market profile, as did our competitors to the south".
He added: "We don't have a working sales force in the United States as a result of the Minister's destruction last year of the New York sales office.
"The so-called 'reorganisation' fired its Bermudian sales force in favour of a US company that was dumped just a few weeks ago by the Minister. As we said last week in an editorial: The upshot is that Bermuda Tourism's marketing organisation is in a shambles; with the Minister supervising the meltdown of our North American operations.
"In the midst of a worldwide economic crisis, when Bermuda needs its strongest sales effort against intense competition, we are without a dedicated sales force in our most important market."
Last night Stephen Todd, President of the Bermuda Chamber of Commerce, said hoteliers and hospitality partners, retailers and restaurateurs had anticipated a fall in visitor numbers.
"They are concerned, as we all are, but also guardedly optimistic," he said.
"We are all looking at the manner in which we deliver our products and services, and the restaurant and retail sector are looking to provide value to their customers, and also the way they deliver those products and services.
<"While we can't control the ability to get people to come to Bermuda and to travel in this current global economic climate, we need to encourage visitors who do come here to return."
Mr. Todd said: "We've seen a number of initiatives the Department of Tourism has and will be moving forward, some of which the Premier indicated in his speech today, but the true test will be if we see an increase in visitor numbers in the coming months.
"This is really something we can't predict."
Tourism initiatives
Premier Dr. Ewart Brown outlined a number of initiatives to encourage visitors to the Island as the tourism industry is hit by recession and the global economic downturn.
The measures announced yesterday at a Ministry of Tourism and Transport press conference, include:
l Partnership with the Bermuda Hotel Association (BHA) in the 'Compliments of Bermuda' $200/$300/$400 promotion, from November 2008 to March. The Department of Tourism provided $650,000 in subsidised funding to hotels for the hotel package promotion.
l Government contributed a total $900,000 to hotels for joint promotions with Bermuda Tourism in the fall and winter of 2008-9. This resulted in 5,031 bookings, or 10,062 passengers.
l A 'Sizzling Summer 400 Program' to mark Bermuda's 400th anniversary of permanent settlement, will provide a credit of $400 to visitors spending four nights of more on the Island.
l The Department of Tourism executive team completed a 2009/2010 sales and marketing plan in mid-February. Dr. Brown, Tourism Minister, said this was "designed specifically to address the current challenges faced by Bermuda in the face of the current economic downturn".
This includes more emphasis on digital (Internet) marketing. The Royal Gazette reported in March $2.5 million has been allocated to digital and interactive marketing, with a revamped Bermuda Tourism website and more marketing on social networking sites.
Marketing efforts will also focus on the "core northeast market with secondary attention to the UK, Canada and Europe".
l The Premier, the Director of Tourism and the director of Global Operations, have given presentations to industry partners in Philadelphia, New York and Boston. Dr. Brown said: "Approximately 25 percent of Bermuda's business is attributed to retail travel agents and we will continue that commensurate level of support to this distribution channel."
l Speaking engagements. Dr. Brown said this was a means for Bermuda "to get word out on the street about our outstanding tourism product".
He cited a speech to the Young Presidents' Organisation at a regional function in Miami as an example, and said the aim was to get business leaders inspired to visit Bermuda for a retreat.
l New marketing partnerships with the Boston Red Sox and the Deutsche Bank Golf Championship. A Red Sox Bermuda Night is to take place at Fenway Park on June 19.
l The course renovations are now complete for the new Port Royal Golf Course and the Premier said Tourism has "big plans for Port Royal" in its strategy, with plans to focus on New England in marketing.
l The Bermuda International Love Festival. Dr. Brown said this year's sponsors included: Elle, W, and Departures magazines, Golf World, Robb Report, Veranda, Chopard Jewellers and JetBlue. The partnerships would lead to more "editorial coverage of Bermuda".
Dr. Brown said that while this year's Love Festival attracted 160 people, next year the target would be 300.
l Salsa dancing and street festivals could feature among the activities on offer this summer. The Department of Tourism is sponsoring free events around the Island, which include: an increased schedule for the 'St. George's Historical Reenactment; storytelling in Bob Burns Park; 'Gombey Saturdays' at Par-la-Ville Park; a 'Taste of Bermuda Calypso Sundays' at Royal Naval Dockyard; and the return of Movies on the Beach.
l Whenever cruise ships are berthed at Dockyard on a Saturday, the ferry service will operate to St. George's with four round trips a day. Dr. Brown said: "We are providing this service in response to input received from residents and businesses in St. George's."
To see the Premier full speech, see Thursday Royal Gazette web page