NASSAU, BAHAMAS — Bahamas Hotel and Tourism Association (BHTA) president Robert Sands has described the cost of doing business as “one of the most daunting obstacles” for the tourism industry despite the post-COVID rebound.
Sands made the remarks during as he addressed the BHTA’s annual general meeting on Friday.
“Many of us, not all, are now; approaching, even surpassing, pre-covid occupancy levels, we have held firm our ADR’s, we are benefiting from the power of pent up demand,” he said.
“We are seeing our stopover visitors stay longer, and spend more. We are seeing a robust resurgence of cruise passengers. We are seeing a surge in FDI and a significant level of new investments and developments in the pipeline. We are seeing a resurgence of group business.
“Our Marina industry, which was one of the first sectors of our tourism economy to recover – continues to excel. We continue to boast and benefit from our abundance of sun sea and sand, the isolation of our beautiful remote family island – All befitting ingredients to service pent-up demand driven by the health crisis, losses, and lockdowns.”
However, Sands cautioned there will be a balancing act as pent-up demand wanes and a US recession looms.
“We must be mindful of our need to remain competitive, as our competitors come back online in droves; who, like us; have empty coffers that need to be re-filled, who have bills amassing, shareholders to satisfy, debts to pay; team members to retain and guests to serve,” Sands continued.
“The cost of doing business in The Bahamas is one of the most daunting obstacles that lay in our path. It has a direct, immediate impact on the cost of goods and services in our country and the tourism industry is not immune to this reality.”
He added: “We are already a high-priced destination. It is expensive to get here, it is expensive to stay here, it is expensive to eat, drink and enjoy all The Bahamas has to offer. It is our reality and one that likely will not change. While pricing has not stymied our recovery, we cannot think for a moment, that people will pay any price to enjoy The Bahamas.
“Price is the predominant influencer for the majority of our market; when making travel decisions. Therefore, while we recognize there are forces outside of our control – and while we have made progress; we must advance, with heightened urgency; the deployment of initiatives designed to address long-standing issues that add to our cost of doing business, and adversely impact our price competitiveness.”
Sands further noted that the guest experience cannot be met with a disruption in basic services that are essential to their enjoyment of the destination.
“Our guests cannot come to The Bahamas, paying a high price to get and be here, and then experience a power outage, or have no water for a shower. It is inconceivable and unfathomably damaging to the guest experience and our reputation as a premier high-cost destination,” said Sands.
“We commend our government for the work they have done to encourage foreign investment in our country, the list of projects queued in “our pipeline” is admirable and exciting. However, we are poignantly aware, as existing tourism operators, that is imperative our infrastructure is able to aptly accommodate/service the influx of new developments throughout The Bahamas,” he said.
“Power, water & sewage disposal, connectivity to the internet, airports, hospitals, roadways, streetlights, police presence, all must be part of an overarching structural reform strategy designed to aptly welcome and accommodate new investment projects and to service our existing tourism economy.”
Sands also underscored the need to make visitors feel safe and tackle the country’s crime problem.
“Value for money means we need our guests to feel safe and secure and welcome in our destination, we want them to be able to interact with our people, explore our islands; and enjoy our beautiful environment with enthusiasm, not trepidation, without feeling hassled or unsafe,” he said.
