The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Family Island hotels must adapt to a visitor demographic profile that has been flipped upside down over the past decade if they want to “blow past” pre-COVID numbers, a top tourism official is warning.

Kerry Fountain, the Bahamas Out Island Promotion Board’s (BOIPB) executive director, told Tribune Business it was critical that resorts understand how visitor profiles have changed and target their desired market segment as he pointed to “discrepancies” between record-setting early 2024 air arrivals and the sector’s financial performance.

He added that stopover visitor profiles have switched from a demographic that, one decade ago, was led by the so-called ‘Baby Boomers’, referring to those born between 1946 and 1964, to one which is now headed by ‘Generation X’, who were born between the mid-1960s and late 1970s.

Millennials, or ‘Generation Y’, who were born between 1981 and 1996, have moved from third to second most-prevalent demographic among Family Island stopovers during those ten years, Mr Fountain added, while the youngest segment, ‘Generation Z’, has moved from fourth to third. ‘Baby Boomers’, the former leaders, are now in fourth and make-up the smallest visitor segment.

Asserting that all tourism operators, and not just resorts, need to be aware of their ever-shifting customer base, Mr Fountain said room nights sold and room revenue indicators for Promotion Board member properties during the first two months of 2024 had been skewed by five hotels - including two major ones who he did not identify - have yet to report their figures.

Using hotels that were also open in 2019 and 2023, thus ensuring a like-for-like comparison, he told this newspaper: “Our room nights sold for same member hotels for the January-February period were down 14 percent when compared to the same January-February period in 2023, and 33 percent down when compared to 2019.

“However, there are some key island performers like Abaco, Andros, Eleuthera and Long Island which all performed or out-performed the January-February 2023 period. This year, when we look at room revenue from the same member hotels for January-February when compared to the same period in 2023 and 2019, room revenues are down 9 percent against last year and 26 percent compared to 2019.”

Mr Fountain said he has “no doubt” those numbers will look much better when the performance of the five missing hotels is factored in, and added: “What we’re also seeing is positive hotel performance being driven by increased average daily room rates (ADRs) and room revenue.

“I can tell you how it looks now. We forecast that we will continue to see hotels perform above and beyond in terms of ADRs and room revenues through the end of June.” Mr Fountain said Family Island resorts, including the Promotion Board’s members, had experienced minimal impact from the fall-out created by saturation global media coverage of the US and Canadian crime advisories on The Bahamas.

“I don’t think so,” he replied, when asked about the impact. “We didn’t see a lot of cancellations when that advisory was first issued. What we don’t know is how many people didn’t book. That may have been a factor but we can’t say that with 100 percent certainty.”

Mr Fountain, though, told Tribune Business that “there’s some discrepancies” between the room nights sold performance of same Promotion Board member properties and the stopover air arrivals figures unveiled by the Ministry of Tourism, Investments and Aviation for the first two months of 2024.

“The air stopover numbers are now starting to match 2019 numbers, but we are not seeing it at our hotels in terms of room nights sold and room revenue,” he added. “I have to ask myself: Why are we as a Board relevant?”

Questioning if Family Island resorts have adapted to the changing profile, and tastes and demands, of their visitors, Mr Fountain said: “One of the things I have noticed is the demographic profile of the stopover visitor to the Out Islands has changed in the last ten years.

“Less than ten years ago Baby Boomers used to make up the majority. It’s very interesting that they have now dropped to number four after those other three groups. They all have different vacation expectations and needs for each generation type. Our Family Island hotels must adapt their product offering to the type they most want to appeal to.”

As an example, Mr Fountain said ‘Generation X’ was typically seeking family activities, and a mix of relaxation and adventure. Therefore. hotels need to offer a family-friendly package featuring outdoor activities and activities for children. ‘Generation Y’, though, want “unique experiences and social interaction”, so it was important technology is integrated into the vacation so they can share pictures with family and friends.

Technology amenities, local experiences and a social space is what this group is demanding, he added, noting that this explained why Family Island hotels have identified reliable Internet service as a key priority. Meanwhile, “digital savvy and eco-conscious” ‘Generation Z’ are seeking sustainable and authentic experiences, so social media spaces and Bahamian culture must be included in the product offering.

As for ‘Baby Boomers’, with a focus on comfort, service and relaxation, Mr Fountain said resorts must provide amenities such as spas as well as “attentive staff”. He added: “The business has changed. It’s not that people are not going to the Family Islands. They are, but they are looking for different types of accommodation and product offerings.

“Hotels need to adapt to blow past 2019 numbers. And it’s not just hotels that need to adapt their product offering to these changing customer profiles. We desperately need help with the Government and private sector working together to address the shortcomings that are negatively impacting the experience with Family Island vacations.”

Pointing to affordable, reliable and sustainable energy as another Family Island hotel priority, Mr Fountain added: “These things tie together. This is what the customer wants and we’re not delivering that. It doesn’t matter what the country does, what the Ministry of Tourism does, what the Bahama Out Island Promotion Board does to promote the country, what makes it possible is to have a good product.

“We have to start there. It’s why it’s so important hotels understand what the customer is looking for and make sure that is what we offer.”