The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

OCCUPANCY levels at Family Island resorts remain in the low 30 per cent range, the Out Island Promotion Board’s (OIPB) president said yesterday, adding that Value-Added Tax’s (VAT) potential impact on the ‘bottom line’ of small properties was a growing concern.

Speaking with Tribune Business outside a Promotion Board meeting, Shavonne Darville said Family Island resorts were still challenged on occupancy levels.

“There still is a challenge that there is room inventory available,” she said. “However, occupancy levels remain in the low 30 per cent range overall. That is an area of concern.

“Over a period of time there has been a marginal increase in average occupancy, but it still lags compared to figures for Nassau/Paradise Island. There is great room for improvement.”

Ms Darville added: “Major concerns on the horizon, particularly for the Out Islands, always continues to be airlift capacity and scheduling.

“A major concern to us right now is the possible implementation of VAT, particularly for smaller hotels, and the impact it would have on the bottom line. We are encouraged with improvements in the US global economy, which still remains our largest market.”

Ms Darville said air arrivals to the Family Islands were up 1.4 per cent for the period July-September. “There has been a significant increase in arrivals to Bimini. Their arrivals are up 9 per cent and we know the reasons behind that,” she said.

“The months of September-October are hurricane months, and a number of properties generally close. This is generally the softest time for us. For some, November business has not performed well compared to last year for certain islands. It’s still the case that for the holiday season everyone definitely has an improvement in business over last year.”