The Tribune

By KEILE CAMPBELL

Tribune Staff Reporter

kcampbell@tribunemedia.net

TOURISM officials say shifting airline capacity, rising competition and uneven demand made 2025 a difficult year for the Family Islands, as Bahamas Out Islands Promotion Board executive director Kerry Fountain outlined the pressures shaping what he described as a “tumultuous” period for the sector.

Speaking at the Bahamas Hotel & Tourism Association’s 73rd Annual General Meeting, Mr Fountain said the year began on a “steady footing,” boosted by a post-US election surge that lifted room revenue in November and December last year. However, he said the sector soon entered a “little wobbly” stretch tied to tariffs and intensifying competition from cruise activity in Nassau, which he stressed must be considered.

“Last year, in November after the elections, just like the stock market, our business went up. November, December compared to 2023 numbers were up healthfully,” he said.

The collapse of Silver Airways in June compounded difficulties. Mr Fountain said the industry “lost one of our biggest airline partners,” noting that signs of trouble were visible as early as last December when it appeared the airline was “not going to make it.” He said Makers Air and Aztec Air tried to “make it up,” but their smaller aircraft could not replace Silver’s 40-to-72-seat planes. Bahamasair has assisted, he said, but a gap remains.

He said islands with reliable air service performed better than those hit by schedule disruptions. Abaco, Andros, Bimini, San Salvador, Eleuthera and Long Island were “up,” while Exuma, Acklins and Cat Island were down. He linked Exuma’s decline directly to the loss of Silver Airways.

From January to October, room nights sold increased in Abaco, Bimini, Eleuthera and San Salvador, while Andros was “basically flat.” Room nights fell in Acklins, Cat Island and Exuma. Room revenue climbed in Abaco, Andros, Bimini, Eleuthera, Long Island and San Salvador but slipped in Acklins, Cat Island and Exuma.

Reviewing the broader picture, Mr Fountain said outer-island room nights were up 0.5 percent. Choosing to emphasise the positive, he said “point five percent up is better than point five percent down.” He added that room revenue is significantly ahead of year-to-date 2024.

He said he avoids presenting occupancy figures for the out islands because “that would be a bit depressing,” arguing that room nights and room revenue are more meaningful measures.

Mr Fountain said “over-tourism” in New Providence represents an opening for the Family Islands. “I think of the foot traffic that I see every day, walking from Downtown Nassau to Junkanoo Beach. Tourists don't want to see that,” he said. Travellers seeking to avoid crowds are increasingly willing to travel during the off-season, he added, calling it a further opportunity.

The BOIPB website OutIslands.com attracted 300,000 visitors this year, up four percent from 2024, while hotel lead conversions rose 102 percent. He said this indicator is crucial because it is “not how many people visit the website, but how many hotel leads we generate.”

Looking ahead, Mr Fountain pointed to data showing inbound demand strengthening: 84 percent of travellers plan to travel more in 2026, and they expect to spend more on accommodations.

He likened today’s competitive environment to the chaotic croquet scene in Alice in Wonderland, where “nothing remains stable for very long.” He compared technology to Alice’s flamingo mallet, customers and employees to the hedgehog that “gets up and moves to another part of the court,” and regulators to the card soldiers shifting at the Queen of Hearts’ command. He said this mirrors the reality for tourism operators contending with fluctuating markets, rising costs, changing consumer habits and evolving regulation.