Hotelier Paints Bleak Outlook

Adrian Loveridge – Owner of Peach & Quiet Hotel

There is a very fine line, when writing a column like this. The risk of being branded as a pessimist is high. I only hope that readers will focus on the message that is trying to be conveyed and perhaps apply some of the content objectively to look at issues in a broader more holistic way.

When I heard the Minister of Tourism recently predict that he anticipated long stay visitor arrivals in 2013 should reach the same levels as last year, frankly I was surprised. Look at our largest single market, the United Kingdom has already experienced a decline of 15,631 visitors in 2012, when compared with 2011.

In the first week of May, Virgin Atlantic brought forward from October 27 their planned change of aircraft on the Gatwick/Barbados route by substituting the larger B747 aircraft with smaller A330 equipment on each day of the week, except for Thursdays. This immediately cuts up to 1,134 seats weekly and by the end of December this year I estimate to be almost 40,000 seats lost. Put another way, we will lose airline capacity for nearly 23 per cent or around one in four of all our British land based arrivals annually, which in 2012 totalled 173,519 persons. It is also not unreasonable to conclude that at least 50 per cent of those lost seats could have been used by the largest tour operator into Barbados, Virgin Holidays.

Smart Partnerships the Way to Go

Adrian Loveridge – Owner of Peach & Quiet Hotel

Short of a miracle and/or a radical change in the way we do business, it appears we have headed into one of the most challenging tourism summers’ in recent history, hot on the heels of a poor winter. With still no game changing strategies, other than one or two tinkering offerings on the horizon, is there more ‘we’ can do to avoid further widespread lay-offs and closures?

The answer has to be YES! And I think we can start by looking at further opportunities on our doorstep.

For ages, I have admired the work of the Barbados Association of Retired Persons. My wife and I have been members for a number of years and I cannot even begin to think of the savings it has brought us during that period, far outweighing any annual subscription fees. For a number of reasons, I only purchased my first public company shares just over half a decade ago, on the recommendation of our accountants. If we are lucky, our small capital investment will return to the level that we initially put into fund, by the end of 2013.

Working TOGETHER, You , You and Percy!

Adrian Loveridge – Owner of Peach & Quiet Hotel

Recently published online by Caribbean News Now, hotelier, Rob Barrett, the CEO and operator of three hotels on Antigua, St. James Club, Galley Bay and Verandah Resort and Spa, announced some very encouraging news.

‘The first quarter of 2013, January through March, has been the best quarter in terms of financial results I have experienced since coming to Antigua over 20 years ago, despite lingering and significant global economic challenges in both North America and the UK’.

Attributing some of the growth to, in his words’, ‘I believe some of the recent strength is the result of positive changes happening on island which affect visitors’ perceptions from their welcome with improved customs and immigration processing to the more efficient taxi operations. These together provide an overall better arrival experience for visitors’.

Government Needs to Protect Small Businesses

Adrian Loveridge – Owner of Peach & Quiet Hotel

Perhaps more than many, I can empathise with individuals who have recently seen their business either fail or brought dangerously close to insolvency. In 47 years it has happened to me twice and in both cases, they were largely external forces which caused near personal financial catastrophe.

Of course, it is easy to attribute the blame to others but in my case, I can unequivocally state that both near failures, which occurred years apart, were largely caused by strike action in the United Kingdom. Both involving the National Union of Seaman. Personally witnessing bus loads, of what can only be described as pickaxe wielding thugs, destroying property and intimidating ordinary people simply wanting to go about everyday work and operating their businesses.

More than a decade later, it was the same union, blockading the English channel ports, which prevented literally thousands of our booked holidaymakers taking their hard earned trips.

It Was a Poor Winter, What Next?

Adrian Loveridge – Owner of Peach & Quiet Hotel

Sometimes so many statistics and figures are bandied about in the tourism industry, it is easy to be distracted from any cause and effect that these may have. Take the recently announced long stay visitor arrival figures for January and February 2013 for instance. A 9 per cent fall for each month. While that may not appear devastating in numbers alone, you have to look past the percentage decline. These are two of our critical four peak winter months. Add the fall in arrivals during December 2012 and already the heady predictions of a strong winter are completely out the window. In January 2012 , we welcomed 52,619 stay-over visitors and in February 2012, some 54,162.

Many hoteliers rely on the winter for not only a high room occupancy level, but also the premium rates charged over this period. December 2012 welcomed 52,174 persons, which naturally includes what is probably the busiest time of the year, Christmas and New Year, for most properties. Compare arrivals with summer months and you can get a feel of the importance of winter volume and revenue. As examples, August 2012, which could have the benefit of Crop Over and visiting friends and relatives, 43,191 and June 2012, 36,656.

CHUM Breakfast in Barbados – Concert at Holders Hill

Submitted by Check This Out

Demi Lavato performed at CHUM breakfast, Holders Hill

Toronto radio station CHUM FM is hosting its 28th annual Breakfast in Barbados promotion in Barbados this week – April 13-20; highlighted by a concert on Sunday April 14 at Holders House. The link is to the the radio ads for the promotion. Note – no sound of Soca in the background music.

The following is from the Nation’s report on the concert:

THE HUNDREDS who went to Holders, St James, for the 28th CHUM FM 104.5 Breakfast In Barbados showcase last Sunday night truly got the best of both worlds.

Not only did they witness the performance of three young rising stars – Nikki Williams, Demi Lavato, and RaVaughn – with amazing voices and energy to match. They also were treated to a simple and unalloyed performance by three-time Grammy Award winner Ne-Yo, who wore not only his winning smile but his iconic trilby hatCHUM FM is entitled to include whatever performers it wishes if it is If, as I speculated in the earlier post . Barbados Today has a two page article “Star Studded Spectacle” Big Show-  four American artistes – zero Barbadian artistes.

See Related Link: Toronto Breakfast in Barbados Promotion, Who Pays?

Lifting the Veil

Adrian Loveridge – Owner of Peach & Quiet Hotel

I would like this week to stay on the subject of transparency and communication in the tourism industry, and the underlying speculation, misunderstanding and consequential harm that can result by not ensuring these virtues are carried out successfully. In both major newspapers last Sunday was the announcement of an auction, set to take place the following Saturday, of many ‘goods and chattels’ owned by Almond Beach Village which closed its doors two weeks short of a year ago.

Yet in another arm of the media, a few weeks ago, under the banner headline ‘Buying back’ we were told that of the four options on the table, ‘Prime Minister Freundel Stuart will sit with his Cabinet to agree to buy back Almond Beach Village and its brand for almost $110 million’. The article went on, ‘The plan, being piloted by Minister of Tourism Richard Sealy, calls for a US$10 million refurbishment project, after which the sprawling 400-room facility will be turned over to former staff, who have submitted a plan to operate it’.

The purported logic behind choosing this fourth option was justified based on the time the property would be out of service, citing the other three alternatives as taking too long to implement. Other verbatim quotes include ‘In view of the urgency of this need, it is now proposed that Government seek to immediately acquire Almond Beach Village’ and ‘with a view of reopening in an effort to supplement room stock for 2013 and beyond’.

We Are Sorry – To Philip and Ann Prior from Barbados with LOVE

Philip and Ann Prior, from Bedfield, near Framlingham, were shot last month during a visit to Bridgetown, Barbados

When we mess up we need to fix it. In this case it seems this is what we did. Good job to all and thanks to BU family Andrew Nehaul.

Attractive Hamburg Route Offers Possibilities

Adrian Loveridge – Owner of Peach & Quiet Hotel

According to recent media releases, European travel giant TUI will operate direct charter flights fortnightly from Hamburg, Germany’s second city and the sixth largest in the European Union commencing November 2013. This will give Barbados two routes from the most travelled per capita population in the world, adding northern Germany to the current Frankfurt flight.

The UNWTO World Tourism Barometer estimated that Germans spent US$80.8 billion outside their own country in 2009. The great circle distance of 4,661 miles will mean a flying time of just over 9 hours and the flights will be operated by a B767-300 of a TUI Dutch affiliate ARKEfly, with 265 seats in two classes. Hamburg, is currently the fifth largest airport in Germany, handling nearly 14 million passengers a year, served by 60 airlines to 115 domestic and international destinations.

Justifying, the move which includes other destinations in the region, Christian Clemens, CEO of TUI Deutschland Gmbh., stated ‘our choice of Hamburg as a departure airport was very deliberate. We have a unique selling proposition here, because there are, to date, no non-stop long haul flights from Hamburg to the Caribbean or Mexico’. Recent research by the company, revealed that one in four Germans wanted to undertake long-haul travel and market leader TUI is presently experiencing record 30 per cent booking growth in this segment for winter 2013/14. TUI is already Germany’s largest tour operator, with a market share of around 20 per cent.

Beware Lest Thou Violate the SANCTITY of the WHITE Person

Submitted by Ras Jahaziel

President of the BHTA, Patricia Affonso-Dass, at the Accra Beach Hotel where she proposed a special court to deal with crimes against tourists – photo credit: Sharon Harding

THE NEW COMMANDMENT OF WHORISM: All animals are equal, but some are more equal than others. Therefore:

“BEWARE LEST THOU VIOLATE THE SANCTITY OF THE CAUCASIAN, for his person is holy, and he has been put by God over us to be our great benefactor. If you have to rob and  kill somebody, rob and  kill your mother your father or you brother, but not the white man. If we should fall out of favour and lose his patronage we will all starve and suffer.”

Prime Minister Stuart a Pressing Matter Deserves Your Attention

Submitted by Peter Rabbi

An intriguing case – photo credit: BBC

I think that this sordid mess concerning the Derrick Crawford issue has more than gone far enough. It has now reach to a stage where it is before the British Parliament with a recommendation that a travel advisory be issued against Barbados. We can only wait and see but we can logically anticipate a fall in tourist arrivals from that market. In addition to that, if a civil suit results from that we the tax payers of this country will most likely have to compensate Derrick Crawford, a known criminal who has been a parasite preying on visitors for years.

I do think that this is a serious indictment on the AG who has either refused to or believes he is powerless to act on this issue.  I can only now call on the PM to do something. I was in total agreement with the way that you handle the Alexander issue, but certainly Mr PM if that industrial dispute that did not even meet national proportion attracted your attention; should it not be more compelling that this issue that has reach global proportion merit some attention?

Reconciling the Tourism Numbers in Fiscal 2013

Adrian Loveridge – Owner of Peach & Quiet Hotel

Government’s budget setting out the Estimates of Expenditure and Revenue for the financial year 2013/2014, lists that ‘a subvention of $101.7 million has been provided to the Barbados Tourism Authority to facilitate marketing and promotion’. At first, it seems, a simple enough stated intent, but what does it really mean?

‘Marketing and promotion’, what will ultimately be spent on these two critical functions after all other expenses are taken out? Salaries, per diem allowances, the much vaunted restructuring costs possibly including an allowance for severance, consultancy fees, lease payments on luxury SUV vehicles, recent office moving expenses, outstanding debts, overseas offices, depreciation, interest. The list goes on and on.

Perhaps even more pertinent, will the budgeted amount even actually be available to the organisation? Or will they become cash starved again, before the end of the next financial year contributing to another near devastating fall in arrival numbers. Bearing in mind the fragile state of the industry, wouldn’t it also be wise to ensure that the private sector is fully informed of any recovery plans to ensure limited available resources from them is not squandered by duplicating efforts.

A Pressing Need to Reengineer Our Tourism Structure

Adrian Loveridge – Owner of Peach & Quiet Hotel

Perhaps like many other people involved in the sector, I have wondered for a very long time exactly how financial data is collected and used to shape national tourism policy. As part of the arduous lead up to prepare all the required paperwork for the eventual sale of our small hotel, we have had to obtain many official documents. This includes a Certificate of Good Standing from the Corporate Affairs and Intellectual Property Office to state they have in their possession our last twenty something years of certified accounts.

Don’t get me wrong, I have absolutely no objection to them having every intimate detail of our financial trading over the previous two decades. But I just wonder, if any part of the information we voluntarily supply is passed on to Ministries, including tourism, or other institutions like the Central Bank so that it can be used to define policymaking.

What prompted these thoughts was looking through a real estate description of one of the many hotels that is on the market for sale and trying to fully understand all of the reasons, why such a large percentage of our accommodation providers desperately need to be upgraded. The hotel in question has 150 rooms, located on a 525 feet wide prime beachfront site. spread over about 5 acres on the south coast. According to the agent, the hotel has ‘generated significant annual gross revenue averaging more than BDS$10 million over the last four years’. At first, it looks an attractive acquisition prospect, but then consider this.