Published On:Thursday, September 02, 2010

By NEIL HARTNELL

Tribune Business Editor

TOTAL revenues earned by Nassau/Paradise Island hotels increased by 7.6 per cent to $250.6 million during the first seven months of 2010, the Central Bank of the Bahamas revealed yesterday, adding that the Bahamian tourism sector "expanded modestly" during the first half due to a "soft" recovery in its main US market.

Unveiling its report on monthly economic developments during July, the Central Bank said that the revenue increase enjoyed by a "sample" of New Providence resorts for the first seven months of 2010 contrasted with the 17.3 per cent plunge seen in 2009, as the recession bit deep into the hotel sector.

"The outcome benefited from an upturn in average occupancy by three percentage points to 69.2 per cent, and a more modest advance in average daily room rates of 2.7 per cent," the Central Bank said.

"Initial data suggests that the tourism sector expanded modestly over the first half of the year, as incentive programmes, alongside the soft economic recovery in the main source markets, supported improvements in the key stopover visitor segment."

The bank's findings are consistent with the data put out recently by the Bahamas Hotel Association/Ministry of Tourism following a joint survey of 14 Nassau/Paradise Island resorts. The findings showed that for July 2010, occupancy levels recorded by 14 New Providence hotels averaged 78.2 per cent, compared to 78.7 per cent in July 2008.

This was the highest recorded average occupancy since the latter month, and is significant given that July 2010 was just 0.5 per cent behind its 2008 comparative a reading taken just before the September Wall Street crash sparked by Lehman Brothers' collapse. The Bahamian hotel industry has targeted matching pre-September 2008 comparatives to confirm it is pulling out of the slump induced by the credit crunch and global recession.

The Central Bank yesterday said total arrivals to the Bahamas during the 2010 first half rose by 10.7 per cent year-over-year, compared to 2.9 per cent growth in 2009, a development produced by increases of 13.8 per cent and 3 per cent in sea and air arrivals respectively.

New Providence saw tourist arrivals increase by 5 per cent during the 2010 first half, with sea passengers up 6.2 per cent and air arrivals increasing by 2.8 per cent.

Grand Bahama's sea visitors, according to the Central Bank, increased by 52.7 per cent, aided by "the re-routing of one cruise line along with increased visits by other carriers". Air arrivals, though, were off by 7.1 per cent, taking the island's overall visitor increase to 37.8 per cent.

The Family Islands saw total visitor numbers increase by 11.4 per cent, driven by "double digit" rises of 10.9 per cent for air visitors and 11.5 per cent for sea passengers.

As previously reported by Tribune Business, the BHA/Ministry of Tourism survey generated further positive news in the year-over-year increase in average daily room rates (ADRs) for July, which increased by $18.33 compared to 2009, producing a 17.4 per cent room revenue boost and 8 per cent rise in room nights sold. For July 2010, the average ADR at the 14 New Providence hotels was $229.47, compared to $211.14 last year.

The BHA-Ministry of Tourism survey added that of the 14 properties, 12 reported room revenue increases, with 10 showing "double digit" growth.

Still, both the ADR and room revenue for July 2010 continued to lag behind pre-recession levels, as the ADR for July 2008 was $241.06 compared to $229.47 this time around, while room revenue was off by 8.4 per cent compared to two years ago.