Family Island hoteliers ‘wait and see’ on fuel hike impact

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

WITH local airlines warning of higher airfares due to rising global fuel prices driven by the Middle East conflict, some family-island hotel operators say they are taking a “wait and see” approach on how tourism numbers will be affected.

Molly McIntosh, general manager at the Bluff House Beach Resort and Marina in Green Turtle Cay, Abaco, told The Tribune yesterday that bookings are strong for now, but she worries there could be a slowdown just ahead of the summer season.

“In my opinion, it's going to definitely impact tourism,” she said. “It hasn't yet. No, I mean, my marine is full, my rooms are full, but it's going to probably be take a little longer here, as it does sometimes.”

She warned that rising costs for food and operations will likely force hotels to raise prices, adding: “It's going to definitely be a tough one to follow, especially when we're looking at the possibility of such a good season.”

Arlene Rolle, manager of Augusta Bay, a small boutique hotel in Andros, said officials are closely monitoring the situation but remain hopeful.

She added that the hotel is regularly frequented by locals visiting the island for festivals and other activities.

“We’re fully booked right now so I cannot give an honest answer on impact,” she said. “We're not feeling it at the moment because our local clientele is coming through with the bookings.”

Most Andros residents rely on small charter flights, as Western Air is the only commercial airline offering service to the island.

The airline’s chief has warned customers to brace for higher airfares after the carrier was told its fuel costs could surge by more than 40 percent due to the Middle East conflict’s impact on global oil prices.

When asked if she expected the higher fares to affect bookings, she said they hoped not but admitted, “no one never knows.”

“We are only 17 rooms so the impact may be very small to us. So our numbers are still the same anticipated to be the same throughout the end of the year but one never knows.”

Cindy Romer, assistant manager at Hideaways Resort in Georgetown, Exuma, said residents have already been complaining about the high airfares.

“I think it will impact locals especially coming into Exuma because bahamasair, the tickets are already pricey so it probably will hurt the locals,” she said.

She added that the resort expects to see some impact, though it is unclear to what extent. Nonetheless, she said she doubts it will affect their rates.

“As it stands right now, we hadn’t seen a decline or decrease run our bookings. Our guests are still coming in and so we’re hopeful that it remains,” she added.

Mrs McIntosh, meanwhile, said upcoming trips to the Palm Beach Boat Show will help gauge potential impacts on tourism, as much of their business comes from the Palm Beach area.

“We want to make sure that they vacation in The Bahamas particularly with us so we've got to make sure our product is top of the line, our service  and that they're getting the best value we can provide for them without us losing money,” she said.

Local economists have also warned that Middle East war could also threaten the nation’s tourism performance if it becomes a protracted conflict with no end in sight.

“If there is a prolonged impact, you can rest assured there will be an impact on tourism spending where you have these uncertainties and people perceive their jobs in the long-run may be threatened,” said Rupert Pinder, assistant professor of economics at the University of The Bahamas (UB)

“People will be more cautious on spending, particularly discretionary spending, and tourism is largely discretionary spending.”

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