Jagdeo way off the mark on The Bahamas’ hotel occupancy rate

Aug 03, 2010 News

Head of State Bharrat Jagdeo whilst speaking at the commissioning ceremony of the GT&T fibre optic cable recently, in reference to the proposed Marriott Hotel and seeking to justify its construction despite the low level of occupancy in Guyana, spoke of a new hotel proposed in the Bahamas and an occupancy rate in that territory of 40 per cent.
However, contrary to what the president said, the occupancy rate in the Bahamas is, as of the end of June, in excess of 70 per cent and projected to climb.
Leader of the Parliamentary Opposition, Robert Corbin, while not wanting to speak on specific figures said that it is ludicrous for the president to compare hotel occupancy rates in Guyana and the Bahamas.
Corbin said that the policies and corresponding pull factors are not in Guyana to attract tourists.
He said that the Bahamas is a well marketed and promoted tourist destination with proximity to the market.
According to an article carried in the Nassau Guardian by Scott Armstrong – the entity’s Business Editor – the hotel occupancy in The Bahamas continues to head slowly in the right direction with the latest figures showing an increase.
“According to preliminary statistics released by the Bahamas Hotel Association and the Bahamas Ministry of Tourism, the 14 major New Providence hotels recorded a 71.5% occupancy rate for June compared to 65.9% in 2009.This occupancy rate combined with an increase in average daily room rate (ADR) of $15.17 generated a 16.3% room revenue boost and an 8.5% increase in room nights sold. For June 2010, the ADR was $225.55 compared to $210.38 last year.”
The second quarter of 2010 ended with a 68.3% occupancy rate and a $236.73 ADR compared to 66.4% and $232.41 last year, and 67.2% and $260.60 in the first quarter of this year.
To the end of June, occupancy stood at 67.7%, ADR at $248.51 and room nights sold and room revenue 3.8% and 5.9% above 2009 levels. This compared to 65.2% and $243.47 in 2009. Air arrivals to Nassau to the end of April were up 2.4%.
Meanwhile, some hoteliers in Guyana have come out in support of Robert Badal, the Chief Executive Officer of the Pegasus Hotel, saying that he is correct when he says that at present a Marriott Hotel would be counter-productive to the industry.
One such owner told this newspaper that the corresponding development that was promised when there was the boom in the number of hotels built for Cricket World Cup 2007 never occurred.
As such, the hotel proprietor is of the opinion that the money that is proposed to be invested in the Marriott-branded hotel should instead be invested in building the necessary infrastructure, marketing Guyana and seeking to have more seats on planes available for Guyana at a cheaper cost.
Another hotelier said that while there are good products in Guyana to market, it is very expensive to come here.
As an example, it was pointed out by one of the hoteliers that his relatives had considered travelling to Guyana for a visit but had pointed out that it would be cheaper to travel to Portugal and have a complete vacation. They stressed that that would just be the cost to reach Guyana.
It was noted that one should analyze the fact that there are several hotels up for sale, and that there is the need for greater focus on getting people here.
It was also pointed out that that while there may be as many as 100,000 people traveling to Guyana annually, a marginal number are tourists.
One hotel owner, whilst emphasizing the need for marketing Guyana and reducing the cost of traveling, said that when a person checks the arrival of tourists in other Caribbean countries it ranges in the millions.
As it relates to jobs, it was said that compared to the optimistic Cricket World Cup 2007 period, many hotels have had to lay-off persons because the industry has gone through a testing period.
Whilst hotel owners are not afraid off competition as it relates to the quality of their accommodations and service, should the Marriott be built with the current arrival rates, then it would make their businesses unsustainable.
A leading hotelier said that whenever the Tourism Minister talks about a boom in arrivals, it can always be traced to a certain organised events such as high school reunions.

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Jagdeo way off the mark on The Bahamas’ hotel occupancy rate

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