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.

How Do We Invigorate Our Tourism Product?

Adrian Loveridge – Owner of Peach & Quiet Hotel

I suppose you can put it down to my naivety, so long in coming, so many great expectations and then in hindsight, the reality of the situation. Almost 40 percent of the eligible electorate chose not to vote, the status quo re-elected for a second term by a precariously small majority and just microscopic adjustments made to the governance of an industry in crisis. At least, that seems to be the scenario, so far.

Clearly there are plus points. Senator Irene Sandiford-Garner, appointed as a Parliamentary Secretary in the reconfigured Ministry and Tourism and International Transport, when many of us years later are still puzzled why the two bodies were ever separated in the first place. The Senator brings her abilities in marketing to the table at a time when this discipline is needed more than ever.

Shadowing the Ministry is Member of Parliamant Santia Bradshaw and while I don’t want to diminish her abundant legal qualifications, I am far from convinced we need or want any more lawyers involved in tourism policymaking. But she is also an entrepreneur and after looking at her website, I was personally impressed with the high level of presentation. Hopefully she can add value and youthful objectivity to the sector from a constructive opposition stance.

Now is the time for solutions.

Toronto Breakfast in Barbados Promotion, Who Pays?

Submitted by Check-this-Out (CTO)

St. Lucia Westjet Ad

Both DLP and BLP manifestos included grand statements about what changes they will make to be more efficient and to stimulate tourism.

On February 18 BU family member Hants commented:

“Honourable mention. Every night for the past two weeks or so the BREAKFAST IN BARBADOS ad has been on prime time 6.30pm in Toronto. Nuff respect to the BTA.”

CTO has seen and heard the the TV and radio ads, and visited the 104.5 CHUM FM website. Same info is at Totally Barbados – The daily grand prize is return airfare for two to Barbados from Air Canada Vacations, One week at the gorgeous Tamarind by Elegant Hotels and $1,500 CDN spending money from CIBC Aerogold VISA Infinite.

Like Hants, CTO’s initial reaction was kudos to BTA – finally some Barbados promotion; particularly given the absence of BTA advertising in the Toronto media over the past several months. It is interesting to read the 2011 Totally Barbados article which includes the following

Winter Season Performance Lagging

Adrian Loveridge – Owner of Peach & Quiet Hotel

As we have now crossed the halfway stage of the winter tourism season, it is looking increasingly doubtful that any predictions of a strong performance in this sector will become a reality. The January long stay visitor arrivals figures are especially alarming. An overall fall of 8.2 per cent across all markets, but significantly of concern are the numbers from Canada, which saw a 18.4 per cent fall when compared with the same month in 2012. The USA was down 11.1 per cent, the UK down 2.4 per cent and Trinidad down a staggering 40.6 per cent.

Whoever, assumes the office of Government later this week will finally have to take a long and hard look at current marketing strategies, and even if this is deemed an imperative, there is very little likelihood that any measures implemented at this late stage will make an iota of difference before April 15. So the next challenge is the eight long softer summer months.

After five years in power the outgoing administration had seemingly abandoned any attempt to fulfil their previously stated 2008 manifesto objective, to restructure the Barbados Tourism Authority. This despite an overwhelming mandate to effect change, yet surprisingly, its popped up again in the 2013 manifesto.

Trying to Unravel Government’s Tourism Marketing Strategy

Adrian Loveridge – Owner of Peach & Quiet Hotel

Is the predicted 6 or 7 percent fall in long stay visitors during the month of January directly as a result of reduced promotional expenditure by the national marketing agency, and if so, has anyone put a dollar value on the consequential loss of tax revenue collected by Government?

Is this yet another example of a failed policy decision, as when Government increased the level of VAT, only to find the overall amount gathered, went down and not up? According to the Central Bank (CBB)  from $683.4 million in 2011 to $666.6 million in 2012.

A 6 percent decrease in arrivals when compared to January 2012 would represent 3,157 less people and 7 percent 3,683. Last January was already down over the previous year, albeit only by 0.8 per cent according to CTO figures.

What we should be asking is how much those missing thousands would have spent and is the current dearth of funds to the Barbados Tourism Authority actually costing the industry and the nation’s coffers more than we can imagine.

A Few Good People

Submitted by Brubaker

Richard Sealy, Minister of Tourism

A photo clip on CNN during the US elections showing a little girl crying because she was sick and tired of hearing the news associated with President Obama and GOP candidate Mitt Romney election campaigns has prompted this blog. Like the election vitriol, the incessant reactive rhetorical rantings emanating from Barbados’ sidewalk superintendents and armchair supervisors about their destination’s tourism industry have become inordinately objectionable and are turning off would be visitors.

The recent adverse comments posted by visitors in Trip Advisor about their ruined holiday experiences in the Gap also do not auger well for Barbados and further aggravate the situation. Both groups paint an unsavoury image – all is not well in Paradise, serious plant deterioration is occurring, and Barbados’ tourism continues to be like a ship in a tempus, floundering aimlessly without a rudder.

The reprehensible behaviour is causing irreparable damage to Barbados’ reputation as a holiday destination and in the long run will be extremely costly to repair. To get an impartial evaluation of the state of Barbados’ tourism industry, a consultant involved with the marketing and promotion of Caribbean tourism was interviewed and asked to give his thoughts and insight on the challenges Barbados faces for the future.

The following are his comments:

Waiting For Tourism Flight Plan to be Filed

Adrian Loveridge – Owner of Peach & Quiet Hotel

First in the interests of establishing impartiality, I think its important that I point out that I have never been a member of a political party during my sixty two years. I vote, whenever practical, because it is seemingly my only tiny contribution to maintaining anything close to a democratic system and consider it both a right and a civic obligation.

When the current administration swept into office just a month short of five year ago, while observing entirely from a tourism perspective, a number of stated objectives were contained within their manifesto. Included in these were to ‘restructure and strengthen the Barbados Tourism Authority’. At the time I remember asking the then Chairman, what was the time frame for this re-organisation. His reply still resonates in my ears. ‘Six months’ he confidently responded.

We all realise now that it wasn’t to be. And that has left me asking the same question over and over again. If a private sector entity, spent hundreds of million of dollars, employed upwards of 150 full and part time employees, consultants, contracted the services of advertising agencies, public relations companies etc., and didn’t produce any real growth for nearly five years, would it be deemed a failed business model?

Make or Break 2012 Winter Season

Adrian Loveridge – Owner of Peach & Quiet Hotel

Under the banner headline ‘BTA working on tourism plan, says Elcock’ and carried in 4^th November edition of the Sunday Sun, the chairman of that organisation was quoted as saying ‘that plans are in the works to boost tourism numbers for the remainder of the year’. If the quotation is accurate, it begs the question, what on earth could you possibly do at this late stage to dramatically improve 2012 arrivals, even if ‘plans’ were already in place.

The article also mentioned that the Minister of Tourism and BTA Chairman was part of a delegation attending the WTM (World Travel Market) in London last week. The United Kingdom, despite the fall-off in visitor arrivals, is still hanging on as our single largest source market, but numbers are just part of the equation. You also have to evaluate exactly how that business is generated and it remains predominately tour operator driven.

Before moving to Barbados, I owned and ran a tour operator business in England for twelve years, so have some intimate knowledge of how they function there. Planning is done way in advance for pretty obvious reasons. Even a small aircraft like a B737 can cost US$89 million, that’s before considering all the additional costs including maintenance, crewing, fuel, airport charges etc. So its simply not feasible to have it sitting around on the tarmac.

BTA Marketing Executive In Western Canada Cut Despite Potential Of Market

Adrian Loveridge – Hotel Owner

In a recent newspaper article entitled ‘Tourism Hope from Canada’ written by Gercine Carter, the outgoing Canadian High Commissioner for Barbados, Ruth Archibald, commented that she thought ‘there is lots of opportunity for continued growth’ out of that market. Many of us would agree with her, especially when she ‘suggested that there was even more room for expansion in Western Canada’. I immediately thought of my early travel industry years, almost four decades ago in Winnipeg, having been there partially during the pioneering days of Wardair.

In 1984, William Canning, directed what I consider a truly inspirational documentary for the National Film Board of Canada, called simply, Max Ward. Part of it was shot in Barbados and if you get the opportunity to view the programme, please note particularly the Merrymen, Plantation dancers and an interview with the late Sir Harold St. John. What it graphically brought back, was all that time ago, is that we had truly visionary leaders in this industry and how the decisions that they bravely took, changed our lives forever. Max, along with a rare breed of innovative aviation entrepreneurs like Sir Freddy Laker, fought long and hard for airline deregulation and when it finally came about, nothing would be quite the same in tourism ever again.

See related links to show tourism arrivals down 12% despite of Crop Over:

• July Tourism stats
• August Tourism stats

Barbados Tourism Authority Should Improve Quality Control By Responding to Social Media Sites

Adrian Loveridge – Hotel Owner

Every fibre in my body tells me that ‘we’ should be doing a great deal more in terms of creative marketing and product quality control, if there is any remote chance that our largely tired and lacklustre tourism industry is going to make any meaningful recovery in the short to medium term. And when I say that, I do not mean dramatically increasing the spend of the national marketing budget as clearly ‘we’ are already having difficultly paying the bills.

Apart from some rare exceptions, we seem to have largely lost touch with the most important group of people that sustains the entire industry, the customer or visitor. With the huge explosion of the social media sites, we can no longer think that if we ignore a problem, or try to sweep it under the carpet, that it will simply go away. You only have to spend a few minutes on one of the more popular social media sites to see that a high proportion of those posting observations and experiences have real worries in what direction ‘we’ are heading. This maybe dismissed as a worldwide phenomenon and shared with other tourism dependent nations, but it certainly doesn’t help fill hotel beds and keep our people employed.

Personally, I would like to see two or three of the existing BTA staff, form a quality control monitoring department whose primary or even sole function would be to track comments hourly that are made on the various travel websites, and after a thorough appraisal, respond accordingly in a timely manner. This should not be viewed just in a negative light, but could also be used to thank the many visitors who make positive comments and encourage them to return.

Working TOGETHER To Invigorate Tourism Numbers

Adrian Loveridge – Hotel Owner

From the media release following the launch of the 2012 Barbados Food, Wine and Rum Festival, it was heart warming to read the President of the Barbados Tourism Authority quote that the event had ‘attracted more than 1,800 tourists last year and 60 international journalists’. During the entire month of November 2011 a total of 47,208* long stay visitors, across all source markets were recorded, which represented an increase of 5.3 per cent* over the previous year.

So if you divide that number into an average stay of 7 nights, that means that nearly one in six of those visitors during the week of the festival, journeyed to Barbados specifically for this event. Basing the accommodation segment on two persons sharing one room, that’s over 6,300 occupied room nights during a month which is traditionally challenging. Again, it demonstrates the importance of niches and the value of destination coverage that those invited journalists can bring us.

A number of videos were also produced and a particular favourite of mine was made by the South African based company, Sand Castle Studios TV. Despite the video being posted on YouTube in March of this year, it hasn’t yet received the viewership volume that I believe it deserves. Perhaps the tourism policymakers can address that, as it certainly could be used as a powerful tool to help drive numbers.

Managing The Tourism Business SMART

Adrian Loveridge – Hotel Owner

A recent article in Business Insider entitled ‘The 25 Economies most Hooked on Tourism’ made interesting and in many ways, surprising reading and reinforced my firm believe that we must evaluate our industry product, and what it delivers much more. Taken from data compiled by the United Nations World Tourism Organisation (UNWTO) it listed the countries* followed by the tourism receipts per capita (TRPC) and average tourism spend (ATS) in US$.

Greece: $1,209 – $965; Egypt: $1,275 – $245; Hong Kong: $1,313 – $660, Switzerland: $1,417 – $1,405; Lebanon: $1,433 – $4,230; Croatia: $1,523 – $865; Austria: $1,876 – $790; St. Lucia: $1,985 – $1,090; Malta: $1,990 – $1,090; French Polynesia: $2,076 – $2,610; St. Kitts and Nevis: $2,652 – $875; Cyprus: $2,904 – $960; Cook Islands: $3,396 – $865; Palau: $4,842 – $1,020; Antigua and Barbuda: $4,947 – $1,375; Anguilla: $5,319 – $1,280; Bermuda: $5,451 – $1,305; Bahamas: $6,288 – $1,205; Luxembourg: $7,909 – $4,170; Cayman Islands $12,042 – $1,995; Turks and Caicos: $12,420 – $1,885; US Virgin Islands: $12,466 – $2,495; Aruba: $14,771 – $1,445; Macao: $16,797 – $900 and British Virgin Islands: $17,621 – $1,285.

As the most tourism dependent region in the world, it’s perhaps not unexpected that eleven of the twenty five states are within the Caribbean. But do some of the often firm beliefs on which ‘we’ base critical planning decisions, occasionally need to be questioned? Take the perceived attraction of sun, sea and sand for instance. Yet the tiny land-locked European country of Luxembourg, covering less than a thousand square miles, can boast an average visitor spend of US$4,170.

Lagan Construction Vs. Barbados Tourism Investment Inc And Attorney General Of Barbados Court Documents Revealed

Dr. Jerry Thorne resigned as Chairman of the BTII over the Barbados Pierhead Project

In the opinion of many the Pierhead Marina Project has NOT generated enough debate in Barbados. BU posted several blogs on the subject and the Leader of the Opposition Owen Arthur had promised to call the Public Accounts Committee to order to address concerns about said project. Regrettably Arthur has not followed through for reasons yet untold.

However, based on court documents filed in December 2012, in the matter – Lagan Vs. Barbados Tourism Authority – Arthur’s apparent delay maybe a strategy with an eye on the general election which must be called no later than April 2013. It is general knowledge that Lagan Construction, the company originally selected to build the Pierhead Marina in a BOLT arrangement,  was summarily replaced by SMI, a company registered in Barbados but incorporated in St. Lucia with its principal Gline Harrison. SMI was one of three companies which were contracted by VECO to build Dodds prison.The reply to the defence document (see below) makes for interesting reading by its justification of why the government awarded SMI the contract. – also see related BU blogs below.

BU takes this opportunity to thank the person responsible for enlightening the Barbadian public.

The Statement of Claim spells out the following:

1. Damages for breach of contract ion the amount of USD28,105,807.00.
2. Special damages in the amount USD346,444.
3. Interest pursuant to Section 35 (1) of the Supreme Court of Judicature Act
4. Costs;and
5. Further or other relief as the court deem just

See p:3/28