Central Bank: Domestic tourism demand drives short-term vacation rental market boost

Central Bank: Domestic tourism demand drives short-term vacation rental market boost
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NASSAU, BAHAMAS — The short-term vacation rental market reported positive signs for the months of October, driven in large part to domestic tourism demand, according to the Central Bank, with total room nights sold rising by nearly 20 percent.

The regulator in its Monthly Economic and Financial Developments (MEFD) report for October noted that data provided by AirDNA revealed “positive movements” in the short-term vacation rental market for the month of October. This, it noted, was favored by domestic tourism demand.

“In particular, total room nights sold rose by 19.6 percent, a turnaround from the 19.9 percent decline during the same period in 2019, supported by improvements in entire place listings (21.6 percent) and hotel comparable accommodations (14.7 percent). Similarly, the average daily room rate (ADR) for both entire place listings and hotel comparable listings increased by 3.9 percent and one percent, to $369.13 and $143.63, respectively,” the regulator reported.

Regardless, tourism activity for the month of October was significantly down due to the impact of internationally imposed travel restrictions related to the COVID-19 pandemic which affected both air and sea arrivals.

“The most recent data provided by the Ministry of Tourism (MOT) revealed that total foreign arrivals by first port of entry were 98.6 percent less than in September 2019, extending the 12.2 percent decrease in the same period last year when Hurricane Dorian impacted. Specifically, the virtual absence of air and sea visitors compared with hurricane-induced losses of 14.7 percent and 11.8 percent last year,” the Central Bank reported.

It added, “In terms of traffic through the country’s main gateway, data provided by the Nassau Airport Development Company Limited (NAD) revealed that total international departures fell to 4,794 passengers, during the month of October, overturning the 1.7 percent uptick to 91,115 a year earlier. On a year-to-date basis, total foreign departures declined significantly by 71.7 percent, a reversal from the 14.2 percent expansion in the prior year. By region, the US component, which is higher by volume, reduced by 72.7 percent, a turnaround from the 15.5 percent growth recorded in 2019. Similarly, the non-US international component contracted by 64.8 percent, contrasting with a 6.2 percent increase a year earlier.”