The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Major Paradise Island resorts are eyeing 90 percent occupancy levels for the Christmas and New Year holiday, an industry executive said yesterday, with the sector closely watching March softness.

Carlton Russell, pictured, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business: “Rather than just looking at the Christmas and New Year’s period, let’s take in a big chunk. I think the proof is in the pudding, and the pudding is the year-to-date numbers.

“So, let’s just quickly go over 2018. We saw record-breaking results. We had 6.6m tourists and, as the minister (Dionisio D’Aguilar) was hoping that we would crack the 7m limit, that would have represented a 16.9 percent increase year-over-year.

“Coming into 2019 we were on track to even surpass 2018 with a 14.1 percent increase between January and June. Of course, well, you know, Dorian came, slowed us down and it was very much expected that it would have slowed down and the end of year would have been a little sluggish.”

Mr D’Aguilar last month said the Ministry of Tourism and Aviation was working to close the 11 percent forward visitor booking gap created by Hurricane Dorian, but Mr Russell said yesterday: “I think the industry has bounced back quite well, and we are looking forward to a very successful Christmas and New Year’s.

“Since then I think Thanksgiving was quite healthy for all large and medium-sized properties. There were one or two small properties that had some concerns, not only during Thanksgiving but also into the Christmas and the New Year’s. But I must say occupancy is moving quite nicely. It’s increasing quite nicely for the Christmas and New Year’s.

“As a matter of fact, on Paradise Island, the bigger hotels are experiencing very close to 90 percent - or over 90 percent - occupancies during the period, and what we see this year as well is that there is a good stretch of business. We have been seeing activity as early as December 21, and it is going all the way through to about January 3 and January 4, so you are talking about ten-plus days of very solid business.”

Mr Russell continued: “That takes us into 2020, which is the first quarter. Again, since Thanksgiving, we have been seeing the booking numbers climb. There are one or two months that we do have some concerns and we are monitoring rather closely, particularly March. April looks good and we will continue to monitor those months.”

Asked why March is looking a little softer than April, the BHTA chief replied: “It’s just that what we are seeing, particularly over the last few months, is that business is being booked last minute. I think that is the concern with March; we are still far out in March. Obviously as we get into January and February we will start making some decisions, but I think it is going to fill up quite nicely because the momentum is there.”

Mr Russell then reiterated the hotel industry’s long-held concerns that it is not competing on a taxation and regulatory “level playing field” with the rapidly-evolving Airbnb and vacation rental market.

“The question is second home rentals and what impact is that having,” he added. “Of course, as you know that’s always an area of concern for me for the mere reason that the playing field isn’t levelled and we need to ensure that that sector is regulated and they pay their taxes as well.

“Then, of course, there is also the qualification of those properties and what conditions are they in. Sometimes you drive down Carmichael Road, or you drive down West Bay Street, and you see some tourists coming from some really concerning areas and. It’s something we really need to be very much concerned of, because if anything happens we don’t need this industry to have a black eye for something that could have happened.”

As for expanding airlift into New Providence, Mr D’Aguilar said: “A lot of stuff is happening as it relates to airlift. Jet Blue in the first quarter of next year is adding a second daily flight from Boston to Nassau. We also have United as well adding from Denver to Nassau in March 2020.

“Silver (Airways) is adding a flight from Fort Lauderdale to Bimini, which is quite interesting, with its shared partners Jet Blue and United. Then, of course, what I really like is Air Canada. That’s a market we are very much interested in. They will increase their Montreal to Nassau non-stop flight from two to four flights per week this month, which started in December 2019. So along with the increase in airlift we do expect an increase in traffic and guests to our shores.”