2009 - Business Barbados

Transcription

2009 “A Study on the Competitive Tourism Environment which Barbados Faces: Its Challenges and Solutions”
Tourism Study Prepared for: The Barbados Hotel & Tourism Association Prepared by: Property Consultancy Services Inc. Additional Contributions: Charles Tibbits & Judith Wilcox December 2009 Table of Contents 1.0 INTRODUCTION 1.2 Study Objectives & Scope of Works.......................................................................................................................................................... 2 1.3 Definition of Competitiveness ................................................................................................................................................................... 2 1.4 Need For & Uses of the Study .................................................................................................................................................................... 3 2.0 DEFINITIONS & ACRONYMS 2.1 Acronyms ......................................................................................................................................................................................................... 4 2.2 Definitions ....................................................................................................................................................................................................... 7 3.0 EXECUTIVE SUMMARY 3.1 The Human Factor ......................................................................................................................................................................................... 9 3.2 Attracting Business ..................................................................................................................................................................................... 11 3.3 Financial Performance ................................................................................................................................................................................ 14 3.4 The Enabling Environment ........................................................................................................................................................................ 16 4.0 STUDY METHODOLOGY 22 5.0 THE BARBADOS COMPETITIVE ENVIRONMENT 5.1 The History of Tourism in Barbados ....................................................................................................................................................... 25 5.2 The Regulatory Environment .................................................................................................................................................................... 25 5.2.1 Tourism Organisations ...........................................................................................................................................................................25 5.2.2 Acts relating to Tourism Accommodation ....................................................................................................................................26 5.2.3 Health & Environmental Legislation ................................................................................................................................................26 5.2.4 Travel & Travel Services .........................................................................................................................................................................27 5.3 Current Marketing & Promotion of the Barbados Tourism Sector ................................................................................................ 28 5.4 The Barbados Brand .................................................................................................................................................................................... 30 5.5 Contribution of the Sector to the Economy ......................................................................................................................................... 30 5.5.1 The Importance of Tourism .................................................................................................................................................................30 5.5.2 Economic contribution ..........................................................................................................................................................................31 5.5.3 Visitor Expenditure ..................................................................................................................................................................................32 5.6 The Barbados Visitor Demographic ......................................................................................................................................................... 34 Property Consultancy Services Inc. | Tourism Study December 2009
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Table of Contents 6.0 OBJECTIVE 1: IMPROVING PROFITABILITY & RETURN ON INVESTMENT 6.1 Current Performance .................................................................................................................................................................................. 36 6.2 Drivers of Performance .............................................................................................................................................................................. 36 6.3 Access to Financing ..................................................................................................................................................................................... 38 7.0 OBJECTIVE 2: CHANGES TO THE TAX COST THE INDUSTRY FACES 7.1 Overview of the Applicable Taxes ............................................................................................................................................................ 40 7.1.1 Corporation tax ........................................................................................................................................................................................40 7.1.2 Land Tax .......................................................................................................................................................................................................40 7.1.3 Property Transfer Tax .............................................................................................................................................................................41 7.1.4 Value Added Tax .......................................................................................................................................................................................41 7.1.5 Customs Duty ............................................................................................................................................................................................41 7.1.6 Environmental Levy ................................................................................................................................................................................42 7.2 Incentives: Credits & Allowances ............................................................................................................................................................ 42 7.2.1 Foreign currency earnings credit ......................................................................................................................................................42 7.2.2 Market research and development allowance .............................................................................................................................42 7.2.3 Incentives for expenditure incurred in the tourist industry ..................................................................................................42 7.3 Incentives Available to the Tourism Sector .......................................................................................................................................... 43 7.3.1 Incentives available under the Barbados Tourism Development Act .................................................................................43 7.3.2 Incentives available under the Barbados Special Development Areas Act ......................................................................46 7.3.3 Incentives available under the Small Business Development Act .......................................................................................47 7.3.4 Duties Taxes and Other payments (Exemption) Act ..................................................................................................................48 7.3.5 Incentives available under the shipping incentives act ...........................................................................................................49 7.3.6 Incentives available under the Land Tax Act ................................................................................................................................49 8.0 OBJECTIVE 3: NEW TOURISM PRODUCTS TO BE INTRODUCED 8.1 The Current Tourism Product Inventory ................................................................................................................................................ 55 8.2 Identified Demand for New Products .................................................................................................................................................... 56 8.3 Niche Ideas .................................................................................................................................................................................................... 58 8.4 Improving the Use of Technology in Tourism ...................................................................................................................................... 61 9.0 NEW MARKETING INITIATIVES TO BE INTRODUCED 9.1 Effectiveness of Current Marketing Initiatives ................................................................................................................................... 63 9.1.1 Variation in Marketing by Target Region .......................................................................................................................................64 9.1.2 Trade Partnerships & Programmes ...................................................................................................................................................65 Property Consultancy Services Inc. | Tourism Study December 2009
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Table of Contents 9.1.3 Trade Shows ...............................................................................................................................................................................................66 9.1.4 Public Relations ........................................................................................................................................................................................66 9.1.5 Marketing Media: The Wave of the “Net” ......................................................................................................................................66 9.1.6 Best Practice Sharing .............................................................................................................................................................................68 9.2 The Caribbean Market and the Cruise Visitor ...................................................................................................................................... 68 9.3 Niche Market Segments and ‘Product Owners’ ................................................................................................................................... 69 9.4 A Critique of the Brand & Its Market Presence ................................................................................................................................... 69 9.5 Lessons From Competitors on Branding ............................................................................................................................................... 70 10.0 OBJECTIVE 5: SUPPORT REQUIRED TO FACILITATE CONTROLLED SUPPLY GROWTH 10.1 Introduction ................................................................................................................................................................................................ 79 10.2 A Review of the Green Paper 2001 & Sustainable Development ................................................................................................. 79 10.3 Government Policy Streamlining .......................................................................................................................................................... 81 10.4 Airlift ............................................................................................................................................................................................................. 83 10.4.1 Factors affecting Airlift ......................................................................................................................................................................84 10.4.2 Additional Capacity ..............................................................................................................................................................................85 10.4.3 Airport Fees and Taxes ........................................................................................................................................................................86 10.4.4 Load Factors and Revenue Sharing Guarantees.......................................................................................................................87 10.4.5 Airport........................................................................................................................................................................................................88 10.5 Cruise & Sea Access .................................................................................................................................................................................. 91 10.5.1 Cruise Development .............................................................................................................................................................................91 10.5.2 Home Porting .........................................................................................................................................................................................93 10.5.3 Ferry Services ..........................................................................................................................................................................................94 10.5.4 Barbados as a Yachting Destination .............................................................................................................................................95 10.6 Human Resource Development ............................................................................................................................................................. 98 10.7 Safety & Security .................................................................................................................................................................................... 100 10.8 Environmental Awareness & Health .................................................................................................................................................. 102 11.0 APPROPRIATE MIX OF ACCOMODATION STOCK 11.1 Current Accommodation Stock .......................................................................................................................................................... 104 11.2 The Barbados Hotel Plant ..................................................................................................................................................................... 104 11.2.1 The Importance of Hotels in Tourism ........................................................................................................................................ 104 11.2.2 The Current Inventory & Hotel Product .................................................................................................................................... 104 11.2.3 The Importance of Major Hotel Brands .................................................................................................................................... 105 11.3 The Villa Sector ....................................................................................................................................................................................... 106 Property Consultancy Services Inc. | Tourism Study December 2009
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Table of Contents 11.3.1 Overview of the Industry ................................................................................................................................................................ 106 11.3.2 Luxury Villa Rental Inventory ........................................................................................................................................................ 106 11.3.3 Comparative Room Rates ............................................................................................................................................................... 107 11.3.4 Hotels Converted to Condominiums.......................................................................................................................................... 108 11.3.5 Trends in Accommodation & Villa Amenity ............................................................................................................................ 108 11.3.6 Economic Contribution of the Villa Sector .............................................................................................................................. 109 11.4 Apartments & Guesthouses ................................................................................................................................................................. 111 11.5 Planned Inventory .................................................................................................................................................................................. 111 11.6 Worldwide Accommodation Trends .................................................................................................................................................. 112 11.6.1 Increasing presence of International Luxury Brands in the Caribbean ....................................................................... 112 11.6.2 Room Configuration for Revenue Optimization ................................................................................................................... 114 11.6.3 Going Green ......................................................................................................................................................................................... 115 11.7 The Competitiveness of the Barbados Accommodation Product .............................................................................................. 115 11.7.1 Competitiveness of the Hotel Product ...................................................................................................................................... 115 11.7.2 Competitiveness of the Villa Product ........................................................................................................................................ 116 11.7.3 Competitiveness of the Apartments & Guesthouses .......................................................................................................... 117 11.8 Demand vs. Supply ................................................................................................................................................................................. 118 12.0 BIBLIOGRAPHY Appendix A: Questionnaire
Appendix B: Key Findings of the Questionnaire
Appendix C: Attractions Inventory
Appendix D: Hotel Inventory
Appendix E: Villa Statistics
Property Consultancy Services Inc. | Tourism Study December 2009
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1. Introduction Tourism is the world’s largest industry. In 2008 it produced
9.4 % of the world’s GDP, employed 7.6% of its labor force
and contributed 10.9% of foreign currency earnings. In
2008, there were 922m tourist arrivals which produced
US$944 billion dollars in revenue.
Barbados is a mature and highly successful tourist
destination. In a recent survey by the World Economic
Forum, Barbados ranked 30th out of 133 countries on a
competitiveness index. Some of the areas of highest ranking
were:
Affinity for Travel & Tourism – 2nd
Government prioritization of travel & tourism – 2nd
Quality of educational system – 15th
Attitude of population toward foreign visitors – 1st
Less well ranked were:
Purchasing power parity – 83rd
Ease of hiring foreign labour – 119th
Price Competitiveness – 83rd
Some of the areas of success worth mentioning are:
Stable and growing cruise tourism arrivals
Growth in foreign currency earnings from tourism
Excellent safety and security reputation
High level of sophistication of its tourism products
Key services work, including utilities, public
transportation, banking, legal
Excellent modern airport by Caribbean standards
The island’s marketing and promotion resources
have increased and are adequate
But there is a feeling that Barbados tourism product does
not operate at optimal efficiency. In many areas Barbados’
tourism product has stood still. In the last ten years volume
growth in tourism capacity and demand has grown only
modestly. Targets set in 2001 for growth in room stock,
cruise arrivals and long stay arrivals have not been met, at a
time when there has been significant growth in many of the
other Caribbean territories. For example, an additional
100,000 rooms have been developed in the wider region
since 1990. However, there has been significant growth in
villa room stock. During that time the quality of the island’s
assets, particularly hotels, has declined. A number of large
hotels have closed and Barbados has only a handful of 5 star
properties even though it is perceived as a luxury, high cost
destination. Many hotels operate on marginal returns. Three
years ago 7 major international hotels brands had signed
agreements to operate future hotels in Barbados. Only one
of the hotels is currently under construction, and during that
period Fairmont has sold its assets in Barbados. The hotel
brands are critical to improving the service standards in
hotels, which fall short of many clients expectations. Also,
Barbados is reporting declining cruise passenger average
expenditure.
Although the sector contributes half of foreign currency
receipts, its record as a taxpayer is poor. As the most
important industry its contribution to the public purse is
critical to the government’s ability to pay for essential pubic
services.
Barbados has become a net importer and therefore has run a
Balance of Payments current account deficit for many years
and can only protect its currency and foreign reserves by
generating foreign direct investment and foreign borrowings.
This is a tenuous position to be in.
The Central Bank review of the economy for the first nine
months of 2009 made the following related comments:
“unfavourable international conditions caused a
slump in net private capital flows and would have
lead to foreign reserve losses were it not for the
receipt of the proceeds from a government bond
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1. Introduction issued earlier in the year as well as the allocation of
additional SDR’s to all member countries of the IMF”
Government deficit “reached around $525.3m”
“4.4% decline in real GDP”
Tourism arrivals down 11%
Although the offshore financial services sector grew during
the last 15 years it has stagnated recently and is potentially
under threat from the USA and UK which have taken a very
aggressive approach to low tax jurisdictions. Exports from
the manufacturing and agricultural sectors have declined.
So a country with few resources needs a vibrant growing
tourism sector. It is the strong belief of the BHTA and
industry leaders that the sector is under threat because it has
failed to compete effectively with a growing warm weather
vacation supply side.
The solutions lie in a sound enabling environment, excellent
service standards, innovation and differentiation.
This report identifies the issues and recommends changes to
address them but secondly identifies new ideas which can
widen reach as a tourist destination.
1.2 STUDY OBJECTIVES & SCOPE OF WORKS PCS has been engaged by the BHTA to conduct a study on the
“Competitive Tourism Environment which Barbados Faces – Its
Challenges and Solutions”.
The primary objectives of the study are as follows:
Solutions to improving profitability and return on
investment;
Changes to the tax cost which the industry faces;
New tourism products that need to be introduced;
New marketing initiatives;
Support required to facilitate controlled supply
growth;
The appropriate mix of rooms, condominiums,
townhouses, timeshares and other forms of
accommodation that Barbados should have.
1.3 DEFINITION OF COMPETITIVENESS The focus of this study is on competitiveness, so it is
important to clearly define how we intend to address the term
in the context of this report.
The World Tourism Organization measures competitiveness by
evaluating quality, investment, trade, health, safety and
security. Their emphasis is on the provision of high quality
investments in infrastructure which focuses on the ability to
generate trade in a healthy and safe environment.
Nearer to home, the 2001 Green Paper on the Sustainable
Development on Tourism in Barbados identified 19 key
objectives on which sustainable tourism could be developed.
Each of these had measurable targets which can be applied to
competitiveness as they were to sustainability.
We define competitiveness on three bases:
1. At organization level:
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1. Introduction The ability of a company or business to efficiently use
scarce resources in order to compete effectively and to
generate optimal levels of investor return.
2. At sectoral level:
The ability of the sector and its subsectors to compete
with its competitors in other warm weather island
destinations, and to drive efficient linkages with other
sectors within the economy.
3. At the country Level:
The extent to which the national environment creates and
facilitates the effective competition of its participants,
against those in competing destinations.
In each of these measures, it is important to assess the service
ethic which prevails in the country. The Green Paper saw the
tourism industry in Barbados as the main catalyst for
economic development and the primary vehicle for ensuring
that Barbados is transformed into a “high quality export
service economy”.
In evaluating and measuring competitiveness, we will be
commenting on the quality of the investments in the sector
and the degree of innovation which is achieved. The focus of
this report will be to identify the key issues affecting
competitiveness and the changes and innovations which will
stimulate the growth of the sector in the future.
1.4 NEED FOR & USES OF THE STUDY The primary benefit of this report is to bring clarity on the
major issues to the industry participants. In discussions with
Tourism practitioners there is always difference of emphasis.
The industry is so intertwined with the economic success of
the country that everyone has an opinion. The key to a clear
focus is to underpin those opinions with facts and to
aggregate them and prioritize them. In doing so minority
opinions are minimized and the end result is consensus on the
major items. The BHTA can then use the report as a tool for
advocacy with the government, keys stakeholders and the
public.
The BHTA states its primary roles as:
Lobbying
Labor relations and human resource development
Public relations and public education
Information dissemination
Product development and marketing facilitation
This study will assist the BHTA in all of these primary roles.
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2. Definitions & Acronyms 2.1 ACRONYMS AAA
ARC
ASM
BAC
BCC
BCSI
BHTA
BIDC
BIF
BIMAP
BITA
BOP
BTA
BTII
BWA
CARICOM
CAST
CBB
CDB
CEDA
CIF
CFSC
CHTA
CLIA
CRSTDP
CTO
CWO
CZMU
DEM
American Automobile Association
Atlantic Rally for Cruisers
Available Seat Miles
Barbados Advisory Council
Barbados Community College
Barbados Coalition of Service Industries
Barbados Hotel & Tourism Association
Barbados Investment Development Corporation
Barbados Investment Fund
Barbados Institute of Management and Productivity
Barbados Income Tax Act
Balance of Payments
Barbados Tourism Authority
Barbados Tourism Investment Inc
Barbados Water Authority
Caribbean Community and Common Market
Caribbean Alliance for Sustainable Tourism
Central Bank of Barbados
Caribbean Development Bank
Caribbean Export Development Agency
Carriage Insurance and Freight
Caribbean Financial Services Corporation
Caribbean Hotel & Tourism Association
Cruise Lines International Association
Caribbean Regional Sustainable Tourism Development Programme
Caribbean Tourism Organisation
Cricket World Cup
Coastal Zone Management Unit
Department of Emergency Management
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2. Definitions & Acronyms EGFL
ETA
ETD
FCCA
FIDS
FLIFO
FMH
GAIA
GATT
GDP
GoB
HAA
HNWI
IADB
IATA
ICF
IDB
IMF
IMG
KPI
LIBOR
LTA
MICE
MIDT
MoEC
MoF
MoT
MUCH
NCC
NGO
Enterprise Growth Fund Limited
Estimated Time of Arrival
Estimated Time of Departure
Florida-Caribbean Cruise Association
Flight Information Display Screens
Flight Information
FMH Emergency Medical Clinic
Grantley Adams International Airport
General Agreement on Tariffs & Trade
Gross Domestic Product
Government of Barbados
Hotel Aids Act
High Net Worth Individuals
Inter-American Development Bank
International Air Transport Association
Industrial Credit Fund
International Development Bank
International Monetary Fund
International Management Group
Key Performance Indicator
London Inter-Bank Offer Rate
Land Tax Act
Meetings Incentives Conferences Exhibitions
Marketing Information Data Transfer
Ministry of Economic Affairs and Empowerment, Innovation, Trade, Industry and Commerce
Ministry of Finance, Investment, Telecommunications and Energy
Ministry of Tourism
MUCH Music
National Conservation Commission
Non Governmental Organisation
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2. Definitions & Acronyms NISE
OAG
PA
PCS
PDA
PKF
PTT
PWC
REITs
RPM
ROI
SBA
SDA
SDR
SHBI
SHIF
SME
SWOT
TAAB
TAC
TCDPO
TDA
TDC
TGI
TIRF
TLF
TTCR
UDC
UNESCO
USP
National Initiative for Service Excellence
Official Airline Guide
PA Consulting
Property Consultancy Services Inc
Personal Digital Assistant
PKF Consulting Inc
Property Transfer Tax
Price Waterhouse Coopers
Real Estate Investment Trusts
Revenue Passenger Miles
Return on Investment
Barbados Small Business Association
Special Development Areas Act
Special Drawing Rights
Small Hotels of Barbados Inc
Small Hotels Investment Fund
Small and Medium Sized Enterprises
Strengths Weaknesses Opportunities and Threats
Travel Agents Association of Barbados
Tourism Advisory Council
Town & Country Development Planning Office
Tourism Development Act
Tourism Development Council
Tourism Global Inc
Tourism Industry Relief Fund
Tourism Loan Fund
Travel & Tourism Competitiveness Report
Urban Development Commission
United Nations Educational Scientific and Cultural Organization
Unique Selling Points
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2. Definitions & Acronyms UWI
VAT
VFR
WEF
WTO
WTTC
University of the West Indies
Value Added Tax
Visiting Friends & Relatives
World Economic Forum
World Trade Organisation
World Travel & Tourism Council
2.2 DEFINITIONS The Accommodation Sector: The accommodation sector of the tourism industry is considered to comprise any touristic
accommodation inclusive of hotels, holiday villas, and vacation apartments.
Tourism Attractions: Tourism attractions includes all activities and sights targeted at tourists including entertainment venues,
museums, landmarks, historical areas, sightseeing tours on land and at sea, amusement parks, restaurants, etc.
Direct Tourism Services: Direct tourism services comprises all direct support related tourism services including retail, tour
operators, travel agencies, information services, service stations, food service products, destination management, and suppliers.
The Villa Sector: The villa sector is defined as the component of the accommodation sector which is comprised of vacation
homes owned by expatriates including townhouses, condominiums and single family homes.
Load Factor: Generally refers to the percentage of occupied seats on an aircraft and can also be expressed as the ratio of
revenue passenger miles (RPM) to available seat miles (ASM). Throughout this piece it has been identified as the former.
Tourism Product: A tourism product is an asset through which goods and services are supplied to tourists; examples being
hotels, attractions, bars, restaurants, and nightclubs.
Product Club: An informal or formal affiliation between multiple owners of tourism products to improve the performance of
each by collaborative marketing and operations. The products in the club are either symbiotic, very similar or achieve vertical
integration and economies of scale.
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3. Executive Summary Tourism – The way forward to a sustainable competitive
sector
Before starting this report we were asked to focus on
creating for the sector, a road map for success. We are of
the view that Barbados needs a National Tourism Policy
focused on development of new tourism products, the
creation of a service centric economy, and a commitment to
excellence in all tourism endeavours. The policy should
inform national tourism strategic planning which should be
focused on setting achievable targets for growth, driven by
the necessary resources. Finally there is a need for “buy in” at
all levels of society which can only be achieved by a
continuous process of educational PR.
We have identified 18 key areas in four overarching
classifications, which are major issues for the sector and
made recommendations for each. These issues are:
High operating costs
Enabling Environment
Imposition of taxes
Negative impact of bureaucracy
Poor knowledge base
Safety and Security
Airlift & Airport Capacity
Cruise & Sea Access & Port Capacity
Insufficient focus on villa sector
In addition to these issues and recommendation we have
identified a number of new ideas and tourism products.
More specifically key areas of focus include
Heritage and historical tourism
The “Human Factor”
Poor service ethic
Quality of the shopping experience
Poor training
Sports tourism
Poor productivity
Health & wellness tourism
Festivals
Attracting Business
Lack of innovation & variety in the Barbados
experience
Dilapidated assets
Inconsistent branding of the island
Ineffective marketing
Financial performance
Access to finance
Information
&
Many of these new ideas represent “easy wins” because they
do not require significant investment of resources, merely
the marshalling of resources which already exist. In our view
the road map for tourism competitiveness needs to focus
initially on a few key areas:
1. Strategic direction
Silo approach of marketing entities
Poor use of
technology
Use of technology in tourism
communication
2. Service delivery and commitment
3. Innovation of industry participants
4. Brand alignment and rigorous compliance to the
brand
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3. Executive Summary 5. Environment, island cleanliness and improvement of
the built environment
6. Vertically integrating tourism businesses to leverage
their synergies
The remainder of this executive summary focuses on more
detailed explanations of the issues and solutions. In this
section we summarize the key issues and recommendations
which flow from the succeeding sections of the report. In
some instances the brevity used here is expanded elsewhere.
Many of the issues we have identified are common to
various sectors of the industry and it is therefore better to
classify them by their characteristics. We have identified four
key areas with common characteristics. These are:
The Human Factor
Financial Performance
Attracting
Business
The Enabling
Environment
3.1 THE HUMAN FACTOR ISSUE #1: POOR SERVICE ETHIC IN TOURIST CONTACT
GROUPS
The Barbados tourism experience is impacted by every
human interface a customer has prior to and during their
stay in Barbados. The “human factor” is perhaps the most
critical of all to improvement and sustainability of the
sector’s competitiveness. The major issues and causes are:
Entry level workforce is comparatively uneducated
in service;
Inadequate
training;
emphasis
on
customer
handling
Lack of emphasis on training the wider contact
group such as taxi drivers, immigrations and
customs officials, etc;
RECOMMENDATIONS There is an urgent need for a concerted strategy to take
Tourism to the population like never before. To explain
it, educate it, and to achieve personal ownership of the
concept of a singularity of purpose towards tourism
success, by every resident, whether working in the
industry or not. The common goal must infuse every
day actions and interfaces with an objective of
excellence in personal service.
Design PR programs for use in the workplace and in the
public domain to emphasize positives, and dispel
inaccurate myths. Examples:
o
Contribution of the sector
o
Inter-sectoral linkages
Inadequate exposure of the wider community to the
sector, particularly by continuous educational PR
from government;
o
Trickle down and multiplier effect on economy
o
“Tourism is only for the wealthy”
Lack of adequate training and certification programs
for tourism workers;
o
Tourism stakeholders have benefited personally
at others expense
Insufficient educational
language skills.
o
Opportunity for participation in the industry is
limited because of high entry costs and barriers
to entry
emphasis
on
foreign
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3. Executive Summary The concepts need to be refined into a series of tangible
goals which govern customer interface so that there are
few reasons for a complaint of poor service.
Training programs should be expanded to include
mandatory training of all persons licensed in any way to
interact with tourists
Much closer attention at managerial level to “floor
walking” during key service times
Tourism education must be extended into the secondary
school curriculum.
Service standards can be improved by the deployment of
interactive technology based devices which allow more
immediate and tailored information and services to be
accessed.
In a region where sun, sea, and sand are common place
the thing that will set Barbados apart from the rest and
facilitate the continual growth of repeat business to the
island is service.
ISSUE #2: POOR LEVEL OF HOSPITALITY SECTOR TRAINING
From top to bottom there is a lack of quality formal tourism
education in the sector. Although there is a hotel school and
the UWI now offers a bachelors degree in Hospitality
management, few at line, supervisory and middle
management levels have been through these education
programs. Barbados hotels do not typically have standard
operating procedures; for example few focus on improving
revenues by yield management or reducing costs by sharing
procurement. Lack of rigorous training and management
structures which require strict adherence to procedures
make it difficult to optimise employee performance and to
deal effectively with performance below optimal levels.
RECOMMENDATIONS
BHTA to partner with tertiary institutions to offer
subsidised training and process re-engineering for
businesses within the sector
Create opportunities for staff secondment overseas
through elevator programs and employee swaps
Immigration department to create fast track permits for
inward bound foreign staff participating in swaps
Urgent need to attract international hotel brands to
Barbados. The by product would be a cadre of more
professional, well rounded industry professionals which
will benefit the sector
A license program should be encouraged for all
management personnel, with an attendant requirement
for continuing professional education
There is a need for industry entities to participate in the
vocational development of the academically trained
human resource. There is little point in tertiary
institutions turning out trained hotel personnel if they
cannot find work.
ISSUE #3: POOR PRODUCTIVITY
Poor productivity in the tourism sector is a major issue
which needs to be seriously addressed with the unions which
operate in the sector. The major contributing factors are:
High
absenteeism,
accommodation sector.
in
the
Lack of incentives for the tourism workforce.
Lack of continuous skills training, cross-training and
customer handling training
Lack of a formal agreement on productivity
improvements with the unions.
We are aware that the BHTA and the BWU are currently
operating a pilot program under which performance
appraisal and bonus systems are geared to measuring
productivity based on four criteria: performance, cost
savings, absenteeism, and quality service.
particularly
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3. Executive Summary RECOMMENDATIONS The creation of compensation systems that are directly
tied to employee and organizational performance ie.
individual targets and bonuses for “floor sales staff”
The creation of incentives for organizations establishing
employee-share option schemes, so as to encourage the
economic enfranchisement of the workforce.
Strategic agreement with the unions to combat
absenteeism
Industry-wide continuing professional education for
middle and senior management employees.
Need for a more flexible roster and lay off procedure
The establishment of financial incentives for crosstrained employees in the agreements between BWU and
BHTA
NOTE: This section relates only to employee productivity.
Some of the following sections deal with issues related to
service ethic and ownership of the “Tourism Team Barbados
Approach” by the wider community.
The introduction of the productivity bonus scheme to
the wider sector group
3.2 ATTRACTING BUSINESS ISSUE #4: THE BARBADOS EXPERIENCE – LACK OF
INNOVATION & VARIETY
Worldwide competition for a limited number of travelers
demands amenities and attractions which satisfy
vacationers’ needs. Whilst this has improved dramatically in
recent years there is a need to “skate ahead of the puck” in
order to have a sustainable industry. The issues which have
been observed are:
Lack of variety of attractions
Few organised, themed entertainment areas
Poor promotion of attractions within the hotels
Insufficient attention to packaging multiple tourism
products together to enhance the collective
experience
Gaps in the “Calendar of events” targeted at filling
the low periods
Inadequate focus on niches
Lack of use of technology in tourism, particularly for
entertainment (see Issue#15)
Lack of authentic cultural, historical and military
shows and pageantry
RECOMMENDATIONS BTA to focus more on researching industry trends and to
engage sector participants in workshops on how to
innovate
Collaboration between BTA and BHTA to address low
period activities so as to create events of significance,
particularly recurring ones
The attractions must form better linkages with the
hotels and accommodation sector in order to improve
promotion and visibility of the available tourism product
Need for entrepreneurial seed and venture capital for
tourism business start ups
Facilitation desk for assistance in packaging (backward
and forward linkages)
BTA to formulate plans for niches to collaborate with
interested parties in designing products suited to the
niches (see section 9.3 on niches)
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3. Executive Summary Identification of an internationally branded theme park
concept suitable for Barbados
Involvement of key non tourism participants in the
creation of a series of shows aimed at involving tourists
in authentic “Barbadiana”
ISSUE #5: DILAPIDATED ASSETS
The sustainability of Barbados’ tourism product is
inextricably linked not only to the quality of the experience
but also to the collective condition of all plant in use in the
tourism sector. Lack of adequately funded maintenance
programs and expensive renovation and construction costs
are the major reasons for the poor quality of assets. Market
participants are generally agreed that Barbados should
continue to position itself as a high quality destination, and
can only do so with high quality assets.
The accessibility of finance and the terms of that finance are
critical to this equation. The section of this report which
deals with access to finance presents some options.
RECOMMENDATIONS Duty-free incentives need to be extended to those
businesses within the sector which currently do not
qualify (ie. DTS)
Encourage the implementation of a fast-track
framework for investment in the tourism sector by
establishing a cohesive business facilitation structure
which is investor-friendly and transparent.
Create a series of incentives for public ownership of
tourism assets, including an inexpensive fast-track for
initial public offerings.
Create financial inducements
programs (200% tax write off)
for
beautification
Ensure that recourse for non-registration of tourism
products with the BTA is actively enforced in order to
ensure that all assets are continually monitored for
quality.
Reform regulations regarding planning approval to
mandate BTA registration prior to commencement of
construction
ISSUE #6: BRANDING OF THE ISLAND IS INCONSISTENT
The key elements of branding which are essential to create
recognition and loyalty are often missing. By way of
example:
The Barbados brand is not clearly defined in a
document which identifies the brand values and
attributes and which mandates strict adherence in
all marketing
The entities responsible for marketing Barbados do
not share the same language, font types, icons and
imagery because they have not been required to do
so.
The notion of “Team Barbados” only has immediacy
if strict adherence to brand is regulated.
Adopt an aggressive approach to the availability of nontraditional sources of finance such as: venture capital,
angel funds, development finance.
In the words of Alex Pratt, a branding expert “country
branding is more about aligning behaviours...than it is about
strap lines”. A successful brand requires buy in at all levels.
Accelerate the work of BTI in promoting public-private
sector partnerships for the redevelopment of dilapidated
government-owned assets in tourism areas.
It would be impossible to find an example of a major
international brand which would allow its brand to be
diluted by its family of entities all creating their own
marketing tools.
12
3. Executive Summary RECOMMENDATIONS private sector industry participants and this is founded in
lack of communication.
A “brand bible” must be created and the multitude of
organisations which market Barbados must be regularly
educated on it, so that they commit to being consistent
in all their marketing efforts
“Barbados” is a word which has incredible cache and the
brand which is created must be slick and recognisable.
The flying fish and swirly “B” seem dated and project
limited positive imagery
The BTA budget is of the order of 4% of tourism receipts,
which is adequate, and in line with international standards.
When taken together with the marketing efforts of the
multiple entities within the sector the figure becomes much
higher. So there is no lack of budget. The way the budget is
spent is less clear. This should be a matter of public record.
RECOMMENDATION Government should mandate adherence to the brand
and check compliance (see also Issue #7)
The MoT should urgently set out a “National Tourism
Policy”
Elimination and rationalization of multiple marketing
agencies is essential
The BTA should be required to prepare a strategic plan
periodically. We recommend every three years. This
document should be consistent with the National
Tourism Policy. Targets set out in the strategic plan
should form the basis for an annual plan of which a
marketing plan should form a major component. The
budget set out in the marketing plan should be adhered
to by the BTA unless the board directs otherwise. These
are the tenets of a successful corporate approach to
building a business, and are no less relevant to a country
than a corporation.
Creation of a single marketing agency which either has
oversight on all marketing or executes all marketing on
behalf of the various public and private sector agencies
which currently market the island.
ISSUE #7: INEFFECTIVE MARKETING OF BARBADOS
TOURISM PRODUCT
The major agency for marketing Barbados tourism at a
macro level does not clearly publish or enunciate its vision or
strategies for marketing the island other than in a series of
seemingly disconnected public statements, and ad hoc
stakeholder meetings. The observer is left with the
impression that there is a different focus every week.
One of the issues mentioned elsewhere is the lack of
understanding and commitment of the population to the
tourism vision. Clear publication of vision would help to
dispel this not only amongst the island population but also
amongst the private sector industry participants. In our
interview process we encountered a high degree of cynicism
about the efforts of the BTA. Whether this is warranted is
unclear but there is a disconnect between the public and
The BHTA should have input on the marketing plan
All of these documents must be made public and
explained to industry participants at regular workshops.
The result would be a unified approach to macro level
marketing with all interests aligned
ISSUE #8: SILO APPROACH OF MARKETING ENTITIES
The list of organisations responsible for marketing the island
is too long to mention but in the tourism sector the list of
public sector agencies includes:
BTA
13
3. Executive Summary BTII
MoT
ISSUE #9: POOR USE OF INFORMATION &
COMMUNICATIONS TECHNOLOGY
BCSI
Invest Barbados
In the private sector the BHTA and TDC add to the list.
The result is a “silo” approach to marketing with too little
communication and lack of “joined up thinking”. Retaining
the theme mentioned above in branding there is little
commonality of language, imagery, and themes.
It is true to say that there are a number of industry
participants on the board of the BTA, but there is still too
little cohesion of effort.
The mandates of Invest Barbados, BIDC and BCSI are too
similar and should not be pursued by separate entities.
RECOMMENDATION There is little evidence of the need for so many
organisations. It is recommended that some
consolidation take place.
Oversight of all marketing efforts should be undertaken
by one entity comprised of marketing professionals, with
authority to coordinate, approve and/or create all
marketing efforts. The analogy would be of a marketing
agency employed by all of the various bodies to create
and execute their marketing efforts.
Leading edge use of information and communications
technology is no longer optional for competitive tourism
destinations. A few recommendations on the use of
technology are as follows:
RECOMMENDATIONS Use intelligent information systems for client
recognition. This can start with immigration officials at
ports of entry – Imagine how impressed clients would be
if they were greeted warmly with a comment about their
last trip, or their family
BTA to host a facilitation desk to assist industry
participants to train in and make best use of technology
changes
Create a Barbados activities loyalty card which can be
swiped at all major attractions, providing instant
feedback on visitor experience and expenditure patterns
Engage an ongoing process of familiarization with
technology changes so that there is continuous feedback
to industry participants
Engage continuous high level advice on changes in
technology and the implications for the industry
As indicated in issue #7 all public and private sector
agencies need to be educated in the brand doctrine
3.3 FINANCIAL PERFORMANCE ISSUE #10: TERMS OF DEBT FUNDING OFTEN
UNSUITABLE FOR TOURISM BUSINESSES
Sources of debt finance from the major commercial banks
are often on terms which cannot be serviced from normal
trading operations. For example hotels take more than 15
years to pay back initial investment. Traditional debt finance
usually has shorter terms and requires the full amortisation
of the principal during that term. For example $10m
borrowed on a ten year loan at 7.5% p.a. interest requires
14
3. Executive Summary annual blended payments of $140,000 or more than 14% of
the principal
There is little opportunity to borrow on interest only terms
or with a balloon payment at end of term. Alternative
structures such as debt/equity blends, venture capital, angel
funds, are generally unavailable in Barbados. The three
funds available through Enterprise Growth Fund are
inadequately capitalised for projects large enough to make a
significant economic contribution to the sector.
Development funding agencies such as CDB do not generally
provide finance to private entities for development of
tourism products.
RECOMMENDATIONS The sector needs to lobby the commercial banks to
change terms of debt structures
Government needs to create an inexpensive route to
capital markets
For projects of strategic importance, government should
see its role in tourism development as that of a
guarantor of private sector finance. This would serve to
facilitate the loan approval process from commercial
lenders by reducing the perceived risk of project
funding. This would negate the need for government to
commit its own funds
Launching of a publicly traded National Tourism fund
which gives the wider public the opportunity to invest
in the most important industry in the island
Government should encourage fast track active finance
opportunities through CDB and IDB
Entrepreneurial venture capital
encouraged with fiscal incentives
funds
must
be
Stakeholder organisations should sponsor workshops on
alternative capital sources for an industry audience
ISSUE #11: HIGH OPERATING COSTS
High operating costs have been the most compelling issue
for most of the tourism sector for many years. The costs
which are most dramatically out of line with competing
destinations are:
a) Food and beverage
b) Utilities
c) Insurance
d) Property taxes
e) Payroll costs
The 2008 PKF Study on Caribbean Trends in the Hotel
Industry demonstrated that if Caribbean resorts were able to
achieve North-American resort costs for food and beverage,
utilities and insurance, their net operating income would
improve by 55%. This is true in many segments or
subsectors of the tourism sector including restaurants, bars
and some attractions; notably offshore cruising.
RECOMMENDATIONS a) High Food & Beverage Costs
Reduced bound rate of duty
Reduced VAT on a basket of food items
b) Utility Costs
The government should encourage a sliding scale of
utility rates based on the volume of usage i.e. volume
discounts.
Government needs to pursue renewable energy sources
and the right of private enterprise to create and store
their own energy or sell that energy into the national
grid at the same rates those businesses pay for it
Government should consider subsidising electricity
costs by reducing imposts for the tourism sector
15
3. Executive Summary c) High Insurance Costs
d) High Payroll Costs
There is an urgent need for stake-holder action and
intervention to purchase insurance on a Caribbean-wide
basis in bulk at the best possible rates. This could
possibly be achieved by the creation of a captive
insurance company with built in self or co-insurance at
a Caribbean wide level. By sharing risks across the
Caribbean, the catastrophe insurance would become
cheaper because of reduced risks across a wide
geographic territory.
Income tax rates are generally competitive compared to
other tourism destinations but national insurance costs
are partially borne by the employer and these costs are
now above international norms. The imposition of such
high levels needs to be urgently addressed for the
tourism section.
3.4 THE ENABLING ENVIRONMENT ISSUE #12: CURRENT TAX INCENTIVES NEED REFORM
The current tax incentive structure for the tourism industry
requires reform. While there are a significant number of
concessions and incentives available under various acts, the
changes made throughout the years have resulted in a
relatively cumbersome overall structure of legislation. The
cumbersome application process has often acted as a
deterrent to the tourism sector to participate. In some cases
the existing tax legislation or the lack of legislation is
counter-productive resulting in higher costs, and poor
efficiency. We are aware that a consultant has been
employed to revise the TDA, which should address some of
the concerns expressed below. The recommendations
outlined in this report in Section 7 are summarized as
follows:
RECOMMENDATIONS consistent with International Valuation Standards or
charge land tax on a percentage of revenue
Reinsert a cap of $60,000 on land tax from Subsection
2A of section 6 of the Land Tax Act where a dwelling
house is used exclusively as a residence
The period for revaluing commercial properties should
be annually instead of in 3 year intervals in order to
ensure taxes fluctuate with income level each year.
Alternatively, owners of commercial properties should be
allowed to object to their values annually.
VAT Related Reforms:
Allow zero-rating of goods imported for tourism to
extend to the refurbishment of tourism product or
projects
Accommodation supplied to the person who directly
owns the accommodation should be treated as an
exempt supply
Reforms to Land Tax:
Allow the tourism sector to pay their land tax bills in
quarterly installments to ease the cash flow positions
Consider changes to the method of assessing land tax
values for hotels to reflect an income based model
Zero rating of supplies of goods and services to persons
approved by the MoT to establish an approved tourism
project or product.
16
3. Executive Summary Reform to the TDA & SDA
All stakeholders in the tourism sector should be given
the opportunity to access concessions available under
the TDA including those engaged in ground
transportation, water sports and attractions
Make the incentives under the SDA and TDA consistent
so that a developer under one of these Acts would not
be denied claiming incentives that may be available
under the other Act.
Greater use is being seen of orders being issued under
the Duties Taxes and Other payments (Exemption) Act
which grants concessions to resort developments not
available under the TDA. This would indicate that the
TDA requires revision to include these concessions and
encourage more participation from the sector.
Other Tax Issues
Reduce or eliminate remittance taxes on insurances
overseas that are unavailable to the tourism sector
locally
The Government needs to seek agreement from
counterparties to various tax treaties to continue to
honour the provisions made in the HAA that were
repealed and replaced by the TDA
Enable persons who provide services to the tourism
sector to claim foreign currency earnings tax credits in
order to incent sector participants to reduce the
expropriation of foreign currency earnings outside
Barbados.
The proposed Land Development Duty rate should be
reduced to not more than 25%
In order to help develop the film industry the
Government should consider an appropriate set of tax
incentives to encourage international filmmakers to
utilize Barbados as a destination of choice
A legislative framework governing timeshare activities is
urgently needed as more timeshare developments come
on stream and the industry as a whole continues to
grow.
ISSUE #13: NEGATIVE IMPACT OF BUREAUCRACY
This is an issue of major concern to many of the industry
participants. The departments and the issues are too many
to list here but the major issues can be categorised as
follows:
High level bureaucracy creates slow turnaround for
approvals
Some requirements for license permitting are seen
as unnecessary
The process for employing foreign labour is
unwieldy and time consuming. This is borne out by
the recent report of the World Economic Forum on
tourism competitiveness which ranked Barbados
poorly in this regard
New business
cumbersome
facilitation
is
unnecessarily
In order to minimize payroll costs related to inflation to
the sector, the government should adopt a policy
whereby personal allowances are indexed to inflation
Need to address some negative attitudes and
mistrust of tourism businesses and players in some
government departments
Give the proposed Central Revenue Authority
responsibility for the issuance of Liquor Licenses in order
to streamline the process and reduce delays
The process for approval of projects in the built and physical
environment needs to be driven by evaluation of economic
impact provided that normal planning guidelines are met.
17
3. Executive Summary The TCDPO, BTII, and UDC should be seen as economic
planning agencies and facilitators.
RECOMMENDATIONS Need for a one stop shop for business facilitation. This
is an old but much overdue reform. The MoT should be
given wide ranging powers to require short time frame
approvals or denials for approval from other ministries
and departments. Invest Barbados has been granted
these powers for the International Business sector.
Urgent requirement for a paradigm shift in public sector
productivity and processes in order to simplify, eliminate
and consolidate unnecessary requirements. In short
“public sector reform”
Training for public servants on tourism awareness
TCDPO must be required to consider the economic
impact of all major tourism projects.
ISSUE #14: POOR KNOWLEDGE BASE ABOUT THE SECTOR
There is a very serious lack of research to generate an
adequate and dynamic industry knowledge base. Research is
critical to planning. Without it the stakeholders in the sector
and the government are reactive rather than proactive and
unable to adequately respond to changes in the marketplace.
The following are examples:
Visitor research and demographics are studied but
the data is not compiled in a timely manner and not
shared with the industry. Without visitor feedback,
industry participants have difficulty assessing the
strengths and weaknesses of the Barbados product
The relationship of the tourism sector to other
sectors of the economy has not been studied (intersectoral linkages). Because of this the government
cannot model the impact of changes in tourism
volumes or revenues on the economy as a whole
There has been no adequate study of the economic
impact of the villa sector on the economy. Because
of this the villa sector is misunderstood and
mistrusted.
Trends in international tourism and lifestyle are not
adequately studied. As a result, the investment
planning process cannot be targeted effectively to
meet future demand
Measurement of inflows of foreign currency are not
sufficiently well analysed even though the
information sources are available
Visitor arrival statistics are a wholly inadequate
measure of success.
Prime data sources such as the immigration card are
not compiled and analysed
One of the key uses of a knowledge base is to educate the
public in order to broaden the widespread support for the
needs of the industry. Also tourism planners & policy makers
need to base their decisions on accurate, timely information.
RECOMMENDATION The BTA research capability needs to be substantially
upgraded
Research capability of NGO’s can be used to add to
government capability
The BHTA needs to become a prime collator and analyser
of industry performance data and the membership must
be encouraged to participate in the provision of data.. If
the industry cannot help itself who will?
The CHTA and CTO should be encouraged to broaden
their research capability so Barbados can benchmark
itself against its competitors
Tertiary institutions can play an active role in creating
the knowledge base and industry stakeholders should be
18
3. Executive Summary encouraged to assist with funding research programs in
those institutions. UWI in particular could carry out
major research programs, funded by international
funding agencies. The BHTA could enable the creation of
that research capability with very little cost
ISSUE #15: SAFETY AND SECURITY
Crime is a worldwide issue. Barbados has a competitive edge
as a relatively safe destination. Not far from its shores, in
Trinidad, Jamaica, Guyana and St Lucia, the problems are
much greater, and there is a need for constant vigilance to
prevent the spread of the types of crime which exist in those
territories.
Crimes prevalent against tourists tend to be petty crimes, but
the recent murder of a tourist in an isolated beach location
rings alarm bells.
Harassment, illegal beach vending and drugs remain
significant problems which must be effectively tackled.
RECOMMENDATION Policing of popular tourist areas must be improved. Foot
patrols need to be increased in Bridgetown, on beaches
and in popular nightspots, in order to eliminate
unnecessary harassment.
Isolated beach areas need to be periodically cleaned up
and vagrants moved on.
Illegal vending must be stamped out
Beach harassment and the drug culture must be more
effectively policed
ISSUE #16: AIRLIFT
Underpinned by high fuel costs and suppressed demand due
to declining levels of travel, the economic crisis continues to
be a key factor impacting airline profitability. As a result,
airline ticket prices have been on the rise and there is an
increased risk of a major carrier being forced into bankruptcy
thereby having a significant impact on air traffic to the
region.
There is a serious capacity problem particularly in peak
periods from the UK.
The capacity for cruise liner home porting in Barbados is
limited by both airport capacity and high cost of flights to
Barbados relative to other home porting destinations.
RECOMMENDATIONS Significant increases in accommodation capacity would
require further capacity increases in the airport. The
emphasis, however, should be on increasing quality
accommodation and not simply volume.
Foster relationships with airlines that provide
competition for routes of high demand to ensure no
monopoly exists and price competition is facilitated
Implement initiatives to improve load factors during
slow periods through the coordination of new events to
coincide with these periods to drive traffic to the island.
This is particularly important for the continued success
of the U.S. services.
Reduce arrival/departure fees
Key parties must frequently review economic forecasts
in view of taking preventative action to avoid airlines
withdrawing from a route
Study the relationship between lift and accommodation
so as to model the impact of increased lift from different
markets on the accommodation sector
Ensure there is a clear ROI evaluation in all revenue
sharing deals with airlines weighted with longevity
factors and the strategic value of the routes to the
tourism industry.
19
3. Executive Summary Enhance the airport experience for visitors to take
advantage of Barbados being a regional hub with
excellent exposure to transit passengers for marketing
ISSUE #17: CRUISE & SEA ACCESS
The cruise industry has continued to be resilient even in the
harsh economic climate. With arrivals from cruise nearly
matching the level of stay-over arrivals, there is vast
potential for increasing their contribution to the economy
through increasing their visitor expenditure and conversion
rates from cruise to long stay.
However, while the industry has continued to grow and ships
have gotten larger, the facilities of the current Cruise
Terminal and port have resulted in a lower quality visitor
experience on arrival. Cruise can be seen as the best
opportunity for marketing Barbados to a large, captive
audience; it is therefore important that the experience at the
port on arrival is enjoyable and encourages visitors to return
for a longer stay.
We understand that initiatives are underway for the creation
of new cruise berths away from the cargo areas of the port.
The following issues have been highlighted:
Port facilities cannot cope with the volume of
passengers during peak periods
The combination of the cruise terminal and cargo
terminal makes for a poor aesthetic experience for
visitors
Barbados’ ability to expand its home porting may be
limited by capacity at the port and airport
There is little emphasis on cruise conversion
The process of getting to and from Bridgetown is
not pleasant
There is a perceived problem that insufficient
numbers of cruise passengers disembark in Barbados
leading to reduced visitor spend patterns which are
down 44% since 2004.
RECOMMENDATIONS In order to capitalise on this market and optimize its
contribution to the economy, there needs to be a
department focused entirely on the development of
cruise tourism in Barbados.
Encourage home porting as a way to increase cruise
visitor spending patterns, and onshore provisioning.
Research shows home porting delivers 20 times revenue
per head than regular cruising.
Introduce (family and friends) incentives for cruise
passengers to make accommodation bookings for
subsequent stays in order to encourage cruise
conversion
Investigate an opportunity for a port to Bridgetown
water taxi
Enhance the Bridgetown shopping experience including
the introduction of controlled street theatre, better
policing and pedestrianisation of Broad St.
Increase berthing capacity and cruise terminal capacity
based on the arrivals being forecast at over 1 million
passengers per annum
ISSUE #18: INSUFFICIENT FOCUS ON GROWING THE VILLA
SECTOR AND ITS OPERATION
The villa sector has been underestimated, misunderstood and
mistrusted for too long. Villa accommodation capacity now
exceeds over 25% of total accommodation stock and is
growing far faster than any other accommodation
component. The villa purchaser is perhaps the most loyal of
all Barbados tourists because they have made a major
investment here. Yet villa occupancy remains poor because
few developers concern themselves with ongoing returns for
buyers. Many buyers are left to market their units on their
own. The villa product, unless in a complex, is generally not
20
3. Executive Summary homogenous enough to be managed effectively as pooled
accommodation.
The economic contribution of the sector to both current
account foreign currency earnings and foreign direct
investment has been under-calculated and underestimated,
but in some recent years, the combined contribution may
have exceeded $1bn.
RECOMMENDATIONS Villa rental and management companies need to
collaborate to lobby for a series of incentives specific to
the sub sector
Private sector interests to create a retail tour operation
entity which packages flight, accommodation and other
components, and markets Barbados villas as one brand
Government to create specific concessions related to the
“condo hotel” concept ie. waiver of PTT and Stamp duty,
elimination of VAT on owners stays, reduced land tax
Government to work with stakeholders to launch a
research capability for the sub sector so that policy
formulation can take into account the research
21
4. Study Methodology In preparing this report we have researched the sector using
the following sources
The survey comprised twelve parts:
1. Background Information
Surveys of industry participants
2. Your Customers
Researching past studies on the sector
3. Financial Performance
Gathering statistical and other data collated by
government departments, agencies, and nongovernmental organizations
4. The Enabling Environment
Anecdotal data collected from industry participants
6. Education and Training
Meetings with senior government officials in the
sector
7. Barbados in the Competitive Landscape
Observation and research of competing destinations
and businesses
Collation of opinions expressed publicly by industry
stakeholders
The findings have been refined and benchmarked against
available models, data and opinion, and weighted in terms of
importance. A series of recommendations have been made to
address the findings and these have been categorized based on
degree of importance, timeline for achievement and cost of
implementation.
5. Labour, Employment
8. Accessibility of the Island
9. Marketing
10. Interaction with the Local Community
11. The Vision for Barbados Tourism
12. Accommodation Stock and
13. Information Sharing
Participants were asked to either rank, select or give their
views on questions within each part of the survey.
Table 1: Survey Participation vs. Membership Surveys
The BHTA has a membership of 308. A questionnaire was put
together and 35 participants were chosen representing a cross
section of the membership. The questionnaire which appears
in Appendix A was designed to collate both opinions and a
numerical analysis of key issues. This allowed for statistical
analysis of the results. The survey population is sufficiently
large to be a good sample which reduces the statistical error
to within normal ranges of dispersion. Thus the results are
representative of the industry population as a whole. A
summary of the key findings of the questionnaire are
presented in Appendix B.
#
#
%
%
Category
Members Surveyed Members Surveyed
Accommodation
82
8
38%
53%
Attraction / Activities
24
1
11%
7%
Tour Companies
11
1
5%
7%
Food Services Products
12
2
6%
13%
Airlines
4
1
2%
7%
Cruise Services
6
1
3%
7%
Car / Limousine Rental
10
1
5%
7%
Consultants / Marketing
19
0
9%
0%
Media / Publishing
10
0
5%
0%
Restaurants
27
0
13%
0%
Retail
10
0
5%
0%
TOTAL
215
15
100%
100%
22
4. Study Methodology Distribution and Return Rates
Meetings with senior officials
A list of 35 members was created as the target group to be
surveyed. From those selected, 13 participated in the survey.
Interviews started on the 4th August and continued until 13th
August. When unable to execute the list in totality, an
additional 10 members were selected; this email survey was
done between 28th August and the 2nd September. From those
contacted, 2 responses were received. As shown in Table 1,
there were 15 completed surveys and the return rates varied
by category.
Meetings were conducted with the CEO and the Chairman of
the BTA and the CEO of BTII. Also meetings were held with a
number of senior tourism and business figures. Their opinions
and areas of focus are included in this report.
Aside from those who participated in the survey, informal
discussions were held with many other industry participants
for benchmarking and verification.
We consider the competition for Barbados in the global
landscape to be all major warm weather islands. However
given the time frame available for this study we have limited
our review to other Caribbean destinations.
Past studies
Studies undertaken in the last twelve years which were
available from BHTA, BTA, CHTA and CTO and CBB were used
as source material in preparing this report. They are identified
in the bibliography section.
Statistical data
Many statistical data sources are available. One source used
was visitor exit surveys. As these are customer focused they
have been very important in determining customer
satisfaction, issues affecting the quality of the stay and areas
of additional need or desire. It should be noted that the
collation of and reporting on the data collected is not being
processed with as much priority as the execution of the
surveys.
Anecdotal data
At the beginning of the assignment we met with a cross
section of tourism sector participants in group format, and
subsequently whilst conducting the interviews we asked
respondents to identify their major concerns. The responses
have been collated in order to determine the issues which
were repeated many times and the priority of those issues.
Each major issue raised is addressed in this report.
Observations of competing destinations
Competing destinations were examined through evaluation of
data in past studies which are often Caribbean wide. Also
through sources available on web sites and news reports.
Public expressions
There is an enormous volume of continuous press reporting on
Tourism particularly those reports of speeches, interviews and
pronouncements of industry leaders. Many deal with the
competitiveness issue, particularly during this period of
recession when tourism revenues are declining across the
Caribbean. These pronouncements have informed the content
of this report.
Methodology
Most of the factors affecting the competitiveness of the
tourism sector are common across the subsectors and can be
broadly classified rather than repeated in each section which
describes a subsector. It is true to say that some factors are
more pronounced in certain subsectors e.g. fuel and food and
beverage costs are more of an issue for offshore cruising than
they are for retail. These broad classifications include:
Human Behavioral issues – “The Human Factor”
The success of the marketing of the island and its
products – “Attracting Business”
Quality of the tourism assets
Financial performance
23
4. Study Methodology This report will focus on the impact of these broad
classifications because they are overarching and will describe
issues which are common to each, their impact on
competitiveness, solutions to the problems and
recommendations for change.
The structure of the recommendations contained in the
executive summary will be as follows:
Figure 1: Report Structure Competitiveness Factor
Definition
Issue
Causal Factors
Recommendations & Action Plan
The action plan from each classification will then be distilled
into one broad spectrum action plan which will provide the
road map for improving competitiveness.
General comments
This report is not intended to be an exhaustive review of each
subsector, its issues and their history. The intention is to
address the observed factors which impact on
competitiveness. The observations will not always be based on
empirical evidence but also on perceptions, opinions, and
anecdotes of the professionals in the sector. The observations
may not always be supportable, because there is a serious lack
of data on the sector in Barbados. But where the observations
are manifest in practices within the sector and widely held, we
will report on them, and make our own judgments on their
validity and importance.
By definition this report will identify weaknesses and
inefficiencies, because the implication of the title and the
belief of the BHTA is that the sector is not competing at an
optimal level. Those observed weaknesses and inefficiencies
are, in many cases, contributed by failures of individuals,
departments and organizations working within the sector. We
are aware that the identification of them may prove to be
controversial but we have a clear mandate to identify them
nonetheless.
24
5. The Barbados Competitive Environment 5.1 THE HISTORY OF TOURISM IN BARBADOS The first hotels were developed on the east coast of Barbados
in the late 1800’s. These included The Crane Resort. In the
early 1960’s Ronald Tree developed the Sandy Lane
subdivision and critically the coast road was brought inland to
facilitate the development of the hotel and homeowners
beach facility. The Sandy Lane hotel opened in 1961shortly
after Coral reef had opened in the mid 1950’s and Colony
Club opened in the early 1960’s and the west coast was under
way as a tourist destination.
The 1970’s saw a major expansion in the room stock with
entrepreneurs like Tom Mugleston and Budge O’Hara leading
the way.
Barbados' ability to attract large numbers of tourists was
enhanced by the construction of the Grantley Adams
International Airport in 1976 and the duty free cruise terminal
in 1994. In between multi property chains such as St James
Beach Hotels, Almond Resorts, and Pemberton Resorts
enhanced Barbados reputation. The transformation of the
Sandy Lane hotel in 1997 together with the development of
new golf courses and successful resort communities such as
Royal Westmoreland and Port St Charles in the mid 1990’s
and the introduction of a scheduled Concorde service from
London put Barbados on the map as a high quality luxury
destination.
The government of Barbados also took notice and created the
Hotel Aids Act in 1956 to help sustain the industry. Barbados
became independent in 1966 and successive governments
sought to regulate the sector. The Ministry of Tourism was
created and in 1985 the Barbados Tourism Authority was
formed and mandated to build the profile of the island. The
creation of duty free shopping arrangements and the Special
Development Areas Act 2001 were also catalysts to tourism
growth. The Hotel Aids Act was replaced by the Tourism
Development Act 2002 which recognised that tourism
extended beyond hotels and it granted concessions to a wide
range of businesses which contribute to the sector.
The Barbados Hotel Association was formed in 1952 (changed
in 1994 to the Barbados Hotel and Tourism Association) to
represent the interests of the hotel owners. Since that time it
has become lobbyist for the industry, bargaining agent,
educator, marketing facilitator and the voice for the industry.
Sub committee’s to represent a number of sub sectors have
been added. It now has over 200 members representing all
spheres of interest in the tourism sector.
5.2 THE REGULATORY ENVIRONMENT The regulatory environment consists of laws and regulations
that have been developed by the government to exert control
over business practices within the growing sector. The main
legislations which can be classified as Development Incentives
are the Tourism Development Act (TDA) and the Special
Development Areas Act (SDA). These acts provide incentives
and assist with the development of the tourism industry.
Additional legislations and regulations for the tourism sector
mainly describe the institutional framework of organizations
within the sector, create control over the establishment of
tourism accommodations, regulate and control the tourism
sector, protect the environment and nature, and establish
control on travel and tour services, sports, entertainment and
air and sea transportation.
5.2.1 Tourism Organisations
The three acts that deal with the institutional framework of
businesses that control the development of various
organizations in the industry are:
the Barbados Tourism Authority Act, 1995;
25
5. The Barbados Competitive Environment the National Conservation Commission Act, 1982;
The National Conservation Commission (NCC)
the Barbados Investment Development Corporation
Act;
The National Conservation Commission Act bestows the
responsibility for maintenance, public access, security and
informal commercial activity to public parks and beaches to
the NCC and it also makes provision for the conservation of
sites and buildings of national interest.
Barbados Tourism Authority (BTA)
The Barbados Tourism Authority (BTA) was established as an
institution within the sector under the Barbados Tourism
Authority Act - CAP 342, the BTA functions are:
to promote, assist and facilitate the efficient
development of tourism;
to design and implement suitable marketing
strategies for the effective promotion of the tourism
industry;
to make provision for adequate and suitable air and
sea passenger transport services to and from
Barbados;
to encourage the establishment of amenities and
facilities necessary for the proper enjoyment of
Barbados as a tourist destination;
to carry out market intelligence in order to inform
the needs of the tourism industry;
to register, license and classify tourist
accommodation according to the standard of
amenities provided;
to register and classify restaurants catering primarily
to tourists; according to the standard of cuisine and
amenities provided;
to register and regulate such forms of service for
tourists as the Minister determines;
and to do such other things that in the opinion of the
Authority would facilitate the proper discharge of its
functions or would be incidental or conducive
thereto.
The Barbados Investment Development Corporation (BIDC)
The Barbados Investment Development Corporation Act is an
act to provide for the establishment of a corporation for the
purpose of developing Barbados’ industrial, off-shore
financial, export and other business development activities.
5.2.2 Acts relating to Tourism Accommodation
The following were implemented to create control over the
tourism accommodation establishments in Barbados:
the Hotel Proprietors Act,1975;
the Condominium Act, 1971;
the Hotels Apartments and Guest Houses
(Registration and Classification) Regulation, 1982.
The Hotel Proprietors Act was designed to regulate the liability
of hotel owners for the damages to the property of hotel
guest while the Condominium Act facilitates the division of
properties and the management of such properties. The Hotels
Apartments and Guest Houses (Registration and
Classification) Regulation was later implemented in 1982 to
guide the accommodation sector of the industry.
It is to be noted that some of these pieces of legislation need
updating. Additionally, there is a need for time share
legislation to protect and encourage time share buyers.
5.2.3 Health & Environmental Legislation
The relevant legislation relating to the health and
environment includes:
the Health Services Act, 1969;
the Health Services (Hotels) Regulations,
26
5. The Barbados Competitive Environment the Health Services (Restaurants) Regulations;
the Health Services (Building) Regulations;
the Health Services (Lodging Houses and Barracks)
Regulations;
the Health Services (Swimming Pools) Regulations;
the Health Services (Food Hygiene) Regulation;
feathers of the declared protected birds. Only for the purpose
of natural history are wild birds killed and this is done only
under license.
5.2.4 Travel & Travel Services
Legislation governing the areas of travel and travel services
including aviation, port services, tour operator licensing,
business registration and road traffic include:
the Beach Protection Act, 1890;
the Travel Services Act, 1983;
the Cultivation of Trees Act, 1951;
the Travel Services Regulations;
the Marine Areas (Preservation and Enhancement)
Act, 1976.
the Minor Offences Act, 1998-1;
The Health Services Act, 1969 gives the Minister of Health the
authority to inspect the sanitary conditions of beaches,
swimming pools, tourist accommodations and restaurants, he
is also responsible for regulations with respect to sewage
disposals works and sewers through the Health Services
(Hotels) Regulations, Health Services (Restaurants)
Regulations, Health Services (Building) Regulations, Health
Services (Lodging Houses and Barracks) Regulations, Health
Services (Swimming Pools) Regulations and the food and
hygiene practices is regulated through the Health Services
(Food Hygiene) Regulation.
In order to sustain the natural environment the Beach
Protection Act, 1890, Cultivation of Trees Act, 1951 and the
Marine Areas (Preservation and Enhancement) Act, 1976 were
formulated. The Beach Protection Act prohibits the removal of
beach sediment from the foreshore by boat or vehicle, the
Cultivation of Trees Act prohibits the cultivation of trees for
any purpose unless licensed to and the Marine Areas
Preservation and Enhancement Act makes provision for
declared areas to be marine reserves in order to protect the
marine life. The Wild Birds Protection Act, 1907 is an act
relating to the protection of certain wild birds. Under the Wild
Birds Protection Act – wild birds are protected from being
killed or wounded; persons are prohibited and fined for
having in their possession and for exporting the skins and
the Registration of Business Names Act;
the Profession, Trade and Business Registration Act;
the Road Traffic Regulations, 1984;
the Civil Aviation (Air Navigation) Regulations, 1984;
the Barbados Port Authority (Tariff Book Of Dues and
Charges) Regulations, 1987; and
the Barbados Port
Regulations, 1990.
Authority
(Water
Sports)
The Travel Services Act, 1983 were created to police those
persons providing travel services and to provide for the
registration of such services through the Travel Services
Regulations which deals with the licensing of travel agents
and tour operators. The Minor Offences Act, 1998-1, the
Registration of Business Names Act, the Profession, Trade and
Business Registration Act, 197 and the Road Traffic
Regulations, 1984 do not solely pertain to the tourism sector
but elements within these bills help to regulate and exert
control on industry.
The Minor Offences Act is an act to revise the law in relation
to certain minor offences and it deals among other things
with harassment. The Registration of Business Names Act is a
law to provide for the registration of firms and persons
27
5. The Barbados Competitive Environment carrying on business under business names and for related
matters. The Profession, Trade and Business Registration Act is
a decree to make provision for the registration of persons
exercising or engaging in any profession, trade, business or
calling and to provide for matters relating to the registration
of businesses. The Road Traffic Regulations as it pertains to
the tourism industry provides for matters relating to hackney
carriages, taxis, maxi-taxis, hired cars and contract carriages
and it also standardises taxi fares.
The Civil Aviation (Air Navigation) Regulations, 1984, the
Barbados Port Authority (Tariff Book Of Dues and Charges)
Regulations, 1987 and the Barbados Port Authority (Water
Sports) Regulations, 1990 are the policies to control air and
sea transport in Barbados.
Fiscal incentives legislation is dealt with in the section on
taxation.
5.3 CURRENT MARKETING & PROMOTION OF THE BARBADOS TOURISM SECTOR Current marketing and promotional efforts for the overall
Barbados Tourism sector are done through a collaborative,
yet independent, effort of the BTA and other tourism
stakeholders such as BHTA, Airlines, Cruise Ships, Tour
Operators, Dive Shops, and Surf Schools. Despite numerous
areas for improvement, their efforts have been successful in
terms of continuing to grow both visitor numbers and spend.
Exact figures were not provided for this report but the
annual budget of the BTA is estimated to be some $90M for
2009. This is understood to represent 4% of revenues
generated which is within the norm as a benchmark ratio.
The World Economic Forum also ranks Barbados as 6th best in
rankings for Marketing and Branding effectiveness. It is
believed that the Budget outlined for 2010 will be
approximately $100M; using the current benchmark this
should stimulate approximately $2,666M. Note, BHTA
members’ annual marketing spend is estimated at $45.5M.
Clearly then, there is a track record of achievement and there
is a foundation of successful and effective work undertaken
principally by the BTA, but also by linked and associated
entities, both private and public, all of whom ‘market’ for
Barbados in some shape or form and contribute to the cause.
The BHTA are the main ‘collective’ representatives of the
private sector although hotels such as Sandy Lane, Royal
Westmoreland, Almond Resorts and The Crane (amongst
others) have a strong web presence and their own marketing
operations which undertake the usual gamut of above and
below the line activities in support of their brands alongside
the marketing of Brand Barbados. There is also the Intimate
Hotels of Barbados Brand which seeks to give voice and
represent
the
smaller
properties’
“affordable
accommodation” on the island – an example of niche
accommodation segmentation as well as of the value
proposition which is an essential element of the product mix.
The BHTA membership and its Executive Team are also
aligned around product segmentation, championing and
promoting their memberships products in the following
principal niches:
MICE (Meetings Incentives Conferences Exhibitions)
Epicurean (Gourmet/Gastronomy)
Small Hotels (Intimate Hotels brand)
Cruise
Romance (Weddings and Honeymoons)
Water Sports
Golf
Staycation
28
5. The Barbados Competitive Environment Sports (but differentiation between professional
sporting tourism and leisure sporting tourism is
necessary)
Marketing to the Market Segments
The various source markets have their own idiosyncrasies as
well as being at different states of maturity and
development. The UK and Canada are the most developed
and mature (but with significant competitive destinations
threatening market share) with the US and the Caribbean at
an earlier stage of the marketing life cycle. The new and
emerging markets represent potential new sources of
business, but are largely untapped and not actively marketed.
The major responsibility for each area has been assigned to
an in-country team of the BTA based overseas, led by a
Regional Vice President who has a large degree of autonomy
over how each market is developed to produce sales. The
majority of tourism marketing spend is driven by the BTA
which is funded by Government. Approximately 70% of the
funding is used in marketing programmes with the balance
being used for the BTA Overhead. The split between each
market was not revealed by the BTA. A new VP is being
appointed for Europe to support an increase in activity as
airlift increases, a move that indicates future initiatives to be
developed to attract this market to a larger extent.
function of a number of factors viz. airlift, awareness, supply
and demand.
Thus, fundamental to the efforts applied to each of these
markets is the issue of airlift. The supply of seats from each
market is the primary driver in fuelling or constraining
growth from the market. The recent gain from Canada (YTD
Aug 09 versus Aug 08) is 65.6% which is almost all directly
attributable to the additional four Westjet services per week
from Toronto. The linkage of the service from Westjet also
provides Canadian visitors from outside of Ontario better
access to the island through the attached regional Westjet
services which are considered more affordable than those of
Air Canada’s regional service. This seasonal charter was the
result of almost 4 years of discussion by the Canadian
representatives of the BTA with the airline and has been a
key weapon in growing the market which was constrained by
seat availability rather than demand.
In the UK this year, the effect of reduced services, flight
cancelations, combined flights with other islands and a flight
configuration switch resulted in seat capacity being down
35% compared to the previous period. The UK BTA team thus
was forced to adopt a protectionist strategy in terms of
marketing which resulted in actual arrivals being down just
10%.
The Importance of Airlift
Perhaps the most significant outcome of this situation is
that the reduced supply was outstripped by demand and the
yield for the airlines actually improved! The significance of
this should not be underestimated. At a time when all of the
world’s airlines are risk averse and financially ‘shaky’ this will
not go unnoticed by the airline’s Commercial and Planning
teams. It speaks to the delicate balance of adding large
gauge aircraft in line with demand – exacerbated by the
seasonal nature of the industry in this region.
The current visitor arrival numbers by source market
correlate directly to the availability of airline and are a
The specific challenges and numbers relating to Airlift for
Winter 2009/10 are further detailed in the Airlift Section.
In smaller markets there are representation agencies who
perform similar tasks under the direction of either the
nearest geographical BTA office or from BTA headquarters in
Barbados.
Cruise ship relationships are ‘pioneered’ from Barbados and
the Caribbean market is also ‘managed’ from Bridgetown.
29
5. The Barbados Competitive Environment 5.4 THE BARBADOS BRAND One of the most interesting observations that emerged
during the discussions with Barbados’ Tourism custodians
was the lack of common terminology around Brand
Barbados. There is a plethora of legacy ‘brand’ associations
of:
Just Beyond your imagination –the enduring
tagline to the Barbados Logo
Experience the authentic Caribbean
It doesn’t get better
Never a dull moment
…all the above variously deployed in the overseas markets.
The brand as a ‘product’ was most frequently expressed as
‘The/iconic premier year round warm weather
destination’ –fundamentally sound but in need of
‘expansion’. The most commonly mentioned brand value
was ‘expensive’! Then there was always a ‘justification’ –
‘but we don’t compete on price’ –however there was never
any mention of quality in order to explain or justify the
perception. ‘Aspirational’ was the ‘softer’ version of this,
which is considered to be more palatable and easier to work
with for marketers.
The other brand reference that emerged for Barbados was
‘up-market’; yet the BTA website (www.visitbarbados.org)
simply does not support or reflect these tenets of Brand
Barbados. There is a disconnect between what the
custodians of the brand are saying and what is being
reflected by the main window into Barbados.
That said, it has to be acknowledged that Barbados as a
destination ‘enjoys’ an up market reputation and the VP’s in
all the markets were cognizant of the ramifications of this.
In many respects this can be considered a strength of the
brand; just as an airline espouses its premium cabins and
products (which only a small percentage of its customers
can purchase and enjoy), it uses this to build brand equity
and fill the back of the aircraft by promoting value in that
part of the cabin; at the same time it implies good taste and
choice in the consumer by association with an up market
brand. This is not unlike the challenge and opportunity
faced by Barbados where every bed is not in a 5 star
property but where every visitor/passenger feels like they
have had a taste of the good life despite the differentiation
in product selection.
The Logo
The logo is classic, bordering old fashioned (a subjective
view but not an uncommon one); however the flying fish
image is a potential icon that is also to a large degree a USP
as it does not occupy the same legendary status in other
Caribbean islands. This allows Barbados to ‘own’ the Flying
Fish image; think Nike’s ‘swoosh’ –effectively a trademark.
5.5 CONTRIBUTION OF THE SECTOR TO THE ECONOMY 5.5.1 The Importance of Tourism
As the main driver of the economy
The importance of Tourism to Barbados cannot be overestimated. The economic contribution is only one measure of
its importance. The industry can and has in the past been
referred to:
As a contributor of 50% of the island’s foreign
exchange
As a tool for social and cultural development
30
5. The Barbados Competitive Environment As a stimulus for other sectors
As a mechanism for economic development
As an engine for environmental conservation
Perhaps the most compelling need at the present time is for
the sector to contribute to the transformation of the nation
to a leading export service economy. It is in this light that the
economic contribution is measured below.
5.5.2 Economic contribution
In order to review the contribution of the tourism sector we
have analyzed statistical reports published by the CBB and the
government statistical department. Much of the data
collected relies on a narrow description of the tourism sector
which takes account of accommodation, cruise tourism and
restaurants and bars, but is not representative of the overall
tourism sector as defined by the BHTA to include attractions,
direct tourism services, the villa sector, airlines, car rentals etc.
There is little doubt that the contribution of the sector is
underestimated and the knock on effect of an
underperforming sector impacts most other sectors of the
economy.
The contribution of the sector to the economy can be
measured in many ways:
Contribution to GDP
Contribution to foreign currency earnings
Employment
Contribution to government tax revenues
Similarly, we have collected data on the accommodations
sector generally including the villa sector which is described in
section 11. As can be seen from Figure 2, these contributions
have been remarkably static over recent years, but by far the
most important is the sector’s power to generate foreign
currency. Barbados is a net importer and has run a deficit on
the current account of its Balance of Payments for many
years. This has hitherto been supported by Foreign Direct
Investment, notably for real estate development, but if this
dwindles the government will have no alternative but to
borrow foreign currency in order to protect both foreign
currency reserves and the exchange rate of the dollar.
The following are the key metrics of economic contribution of
the sector:
Tourism contributes approximately 14.5% of GDP
Tourism receipts represent approximately 46% of all
foreign currency earnings
Tourism employs 14,000 direct jobs, or 10.3% of the
labour force
The contribution to the tax revenues of the government are
discussed in section 7 but the contribution of the sector is not
separately identified
There is an urgent need to measure the economic impact and
the multiplier effect and trickle down in a more inclusive way
so that the economic implications of changes in levels of
activity can be measured. Additionally the inter-sectoral
linkages need to be studied and modeled so that scenario
planning can be used to predict the impacts of a variety of
scenarios on employment, earnings, foreign currency reserves,
taxes, social unrest, crime etc
We have been unable to ascertain the level of contribution
that the sector makes, to government tax revenues. However,
the biggest contribution would be in the area of employment
taxes and value added tax (VAT). The sector is not a large
contributor of corporation tax because of the tax holidays
granted in respect of tourism investment.
It is of note that the sector represents a large level of
delinquency in payment of taxes.
A study carried out by PA Consulting in 2006, identified that
Barbados’ taxation regime was very similar to other countries
within the region.
In compiling the economic contribution, we have relied
heavily on reports produced by the Central Bank of Barbados,
31
5. The Barbados Competitive Environment Table 2 on the next page show some key metrics in evaluation
the importance of Tourism to the economy.
5.5.3 Visitor Expenditure
majority of Caribbean visitors staying with friends or family.
Figure 2 below shows the average daily expenditure by
category for 2007 and 2008:
Figure 2: Daily Stayover Visitor Expenditure BDS$ Visitor Expenditure
2007
2008
300
250
BDS$ per day
and the Barbados Statistical Department. As indicated above
the definition of tourism used by these departments is limited
and underestimates the contribution of the sector. By way of
example, the Central Bank reports to indicate that 10.3% is
employed in the sector, whereas the World Economic Forum,
indicated that the extended tourism labor force accounted for
45% of the total labor force, whilst the PA consulting report
indicated a figure of 33%.
200
150
100
50
Visitor expenditure can be broken down into the following
categories:
0
Accommodation
Meals & Drinks
Transportation
Entertainment/Recreation
Souvenirs
Shopping
Other Spending
Caribbean visitors also have a tendency to spend significantly
less than visitors outside the Caribbean at US$167.13 per day
versus US$226.43 per day of others. This is mostly attributed
to lower accommodation and meal spending due to the
The FCCA has estimated that average cruise passenger
spending is US$98.01 per port of call; this translates to
average foreign exchange earnings from cruise tourism of
approximately US$58.5 million per annum. That said, based on
the spend recorded by the Barbados Central Bank, cruise
passenger spending has amounted to approximately half of
this amount at BDS$111 per passenger in 2008, which has
followed a declining trend since 2004 when cruise passenger
spending was almost double current levels.
32
5. The Barbados Competitive Environment Table 2: Key Metrics in Tourism Performance 2002
2003
2004
2005
2006
2007
2008
ARRIVALS
Long stay arrivals
507,078
497,899
531,211
551,502
547,534
562,558
573,874
563,118
Cruise arrivals
527,597
523,253
559,119
721,270
563,588
539,092
616,354
597,523
1,268.5
104.9
1373.4
1,189.9
105.6
1295.5
1,390.3
103.4
1493.7
1,382.1
144.3
1526.4
1,698.1
72.5
1770.6
2,028.4
63.9
2092.3
2,398.2
68.9
2467.1
2,383.4
n/a
2383.4
2,501.6
198.8
2,389.8
201.8
2,617.2
184.9
2,506.1
200.1
3,101.4
128.6
3,605.7
118.5
4,179.0
111.8
4,232.5
n/a
EXPENDITURE & FOREIGN CURRENCY
Foriegn currency receipts ($m)
- Long Stay
- Cruise
Average spend per long stay visitor ($)
Average spend per cruise visitor ($)
Foreign currency receipts as % of
total current account earnings
50.92%
49.64%
52.13%
50.41%
49.46%
52.41%
52.95%
n/a
% of GDP
11.13%
10.92%
11.81%
11.39%
11.43%
11.39%
14.48%
14.71%
LABOUR FORCE
Labour force (thousands)
Total workforce (thousands)
% of labour force
13.9
130.8
10.63%
14.2
128.6
11.04%
14.0
129.5
10.81%
12.2
131.9
9.25%
12.9
132.6
9.73%
13.5
130.7
10.33%
14.0
135.6
10.32%
14.0
129.6
10.80%
CURRENT & CAPITAL ACCOUNT
Total credits to current account excl. transfers
B of P - current account balance $m
B of P - capital account balance $m
*NOTE: n/a = not applicable
2,697.1
2,609.9
2,865.5
3,027.9
3,580.1
3,992.2
4,658.9
- 207.3 - 318.3 - 334.8 - 678.6 - 785.7 - 539.6 - 337.0
579.9
461.9
644.3
350.6
629.6
647.4
889.6
n/a
n/a
n/a
33
5. The Barbados Competitive Environment 5.6 THE BARBADOS VISITOR DEMOGRAPHIC To adequately serve our customers in any business, it is
important to have a solid understanding of their
characteristics and behaviors. Utilising 2008 data on tourism
arrivals, aided by the most recently available exit survey
results (January-March 2008), the following presents the
characteristics of the typical stay over visitor.
The majority of visitors travel with their spouse or
partner (44.6%) with family travel being second at
28.8%. This trend is even more evident for those
stay-over visitors whose purpose of visit was
Vacation with 51.2% traveling with a spouse and
31.7% in a family. This has important implications
for the accommodation sector which will be
discussed later in the report.
least four times. This rate has increased since 2007
by approximately 2% which is evidence of a
continuing trend of repeat business.
The Barbados visitor is believed to be affluent and
less budget conscious than the typical Latin
Caribbean tourist, more interested in a cultural
experience, with high expectations of Barbados as a
high quality “aspirational” destination.
The majority of visitors also fall in the 26 to 55 age
range:
Figure 4: Age Mix of Visitors 2008/2009 Age Mix of Visitors
25.0%
The major visitor source markets are the United
Kingdom, Canada, USA and the Caribbean, with the
greatest growth being shown in the Canadian
market in the past year due to increased airlift and a
cheaper alternative with the introduction of
WestJet.
2008
15.0%
10.0%
5.0%
0.0%
0‐12
13‐17 18‐25 26‐35 36‐45 46‐55 56‐65
Figure 3: Long Stay Visitors by Source Market 1960‐2008 Long Stay Arrivals by Country of Origin
U.S.A
CANADA
U.K
EUROPE
C'BEAN
OTHER
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008 (P)
700,000 600,000 500,000 400,000 300,000 200,000 100,000 ‐
The majority of stay-over visitors stay for at least 4
nights, with 77.6% of them staying between 4 and
14 days.
Barbados has a high incidence of repeat visitors
with 33.2% of visitors in 2008 visiting Barbados at
2009
20.0%
66+
NOT STATED
The current stay-over visitor survey does not include any
information on the psychographic profiling of visitors. While
the immigration forms request information on visitor
occupation, this information is not widely communicated to
the public or the tourism sector. Income level can only be
speculated on based on visitor expenditure.
It is notable that minimal information is kept to identify the
key behavioral attributes of the cruise or transient markets in
Barbados; with annual cruise arrivals exceeding stay over
arrivals, this market presents a significant opportunity for
local business if properly understood in order to effectively
target their wants and needs while on island and an urgent
need to understand and meet their demands is evident by
the declining levels of expenditure by cruise passengers. We
did not receive the Cruise Visitor Exit survey results in order
34
5. The Barbados Competitive Environment to further analyze the source of the decline in cruise visitor
expenditure. According to the FCCA the key characteristics of
the cruise passenger demographic is as follows:
25 years or older target market
$40,000+ household income per annum (43% of US
population)
Average age of 50 with household income of
$109,000 per annum
While data is collected on tourists, the release of this data
has historically been delayed by months. The most recent
stay-over visitor survey released was the first quarter of
2008. If Barbados is serious about maximizing arrivals, and
ensuring that visitor needs are met, the dissemination of
data and arrivals figures should be as close to real time as
possible. With bookings being made by vacationers three
months in advance or longer, a partnership with the airlines
and hotels in order to closely monitor bookings with enough
lead time to effect change and improve these figures.
Planning for the future based on data that is over a year old
is not adequate in order to be an industry leader in this
industry.
35
Improving Profitability 6. Objective 1: & Return on Investment 6.1 CURRENT PERFORMANCE The current performance of the tourism industry is
underpinned by the declining levels of tourism arrivals as a
result of the Global Financial Crisis. Despite increases in the
marketing budget and new initiatives to increase the volume
of business, tourism value added during the first six months of
2009 declined 8.2% compared to the same period in 2008.
Reasons cited for the decline include reduced airlift from the
US and UK markets because of airlines reducing the size of
their aircraft to improve load factors, and tourism arrivals
falling 8.5% in the January to May period. Despite increased
cruise ship calls, actual arrivals also declined by 5.4%
The tourism product is in danger: four major restaurants have
closed in the past twelve months, a number of development
projects have been put on hold, one of the most recently
added attractions has closed due to financial difficulties, and
rising costs of operation due to rising fuel costs. Of those
businesses surveyed, over 50% of respondents declared that
the economic crisis has resulted in a 40 to 50% decline in
profitability. Based on the occupancy report from the BHTA,
which included statistics from 34 member hotels, occupancy
recorded to November 2009 (as reported at August 2009)
shows a 21% decline when compared to 2008.
6.2 DRIVERS OF PERFORMANCE Performance in the industry is driven primarily by volume,
limited by the constraints of high input costs relative to other
Caribbean countries, making Barbados unable to compete on a
price competitive basis. On the basis of both our survey,
analysis of limited financial information from various industry
players (primarily accommodation), and other studies
including the 2008 report on Caribbean Trends in the Hotel
Industry produced by PKF Hospitality Research, the primary
drivers of performance for the industry by sector have been
identified as follows:
Input costs
Quality of built assets
Product differentiation
Taxes
Airlift and cost of air travel
Sea Access and facilities
Occupancy/Participation Rate
Service standards
Efficiency of operations
Productivity of the labour force
The main operational weaknesses identified by survey
respondents were (in order) Poor Labour Productivity,
Expensive Inputs, and Insufficient Scale to Gain Economies.
Poor Labour Productivity is not only a function of culture and
availability of training, but of the ineffectiveness of
management.
Looking Inward for Performance Improvement
While the typical complaints from players in the tourism
industry relate to the government imposed taxes and their
effect on input costs and performance, it is important to look
for inward improvement by management at the same time.
The following is a summary of the debate over tourism
incentive schemes and financial performance taken from
recent headlines:
High water rates affect many sectors
Hotels appeal for more state funds
High operating costs a major deterrent
Enabling environment
High duties impending tourism during downtime
36
Improving Profitability 6. Objective 1: & Return on Investment Survey results showed that only 15% of respondents were
satisfied with their financial performance. At the same time, all
respondents believed that there was a lot they could do to
increase profitability internally with some responses including:
in the section on changes to the tax cost faced by the tourism
sector.
Table 3: US vs. Caribbean Resort Input Costs Learn to be more efficient, reduce input costs
Streamline procedures and cost management
Trim the labour budget
With responses generally focusing on streamlining of
operations, it suggests that there is a lack of initiative on the
part of management to ensure that operations are as efficient
as possible and that strict cost controls are in place. To
succeed in an industry driven entirely on service, it is
important for businesses to have a clear understanding of the
characteristics of their customer base to ensure that marketing
efforts are targeted appropriately and market share is
maintained. Furthermore, companies must ensure that their
people are adequately incentivized to help reduce input costs
and improve sales.
Reducing Input Costs to be Competitive
Based on pro-forma income statements of Caribbean resorts
compared to US resorts, Caribbean resorts showed that food &
beverage costs, utilities and insurance, comprise a significantly
higher percentage of revenue despite average daily rate and
revenue per room being 8.5% and 11.4% higher than the US,
respectively.
Demonstrated in Table 4, reducing just food and beverage
costs, administrative and general expenses, utilities and
insurance to US levels would result in increased profitability of
the hotel sector in the Caribbean by 55%. Furthermore, based
on studies of relative food and beverage costs in Barbados
versus the rest of the Caribbean, Barbados is significantly
higher than its neighbours. On this basis, the increased
profitability of 55% is likely to represent a minimum measure
of improvement for Barbados. Proposed solutions to reducing
food and beverage costs, insurance and utilities are discussed
Food & Beverage
Utilities
Insurance
ADR
RevPAR
Net Operating Income
US Resorts
18.9%
3.6%
1.5%
$218.87
$154.90
26.3%
Caribbean
Resorts
20.0%
7.3%
4.5%
$267.52
$172.51
19.6%
Table 4: Effect of Reduced Expenses on Profitability CURRENT REDUCED % CHG
Revenue
Rooms
Food & Beverage
Other Operated Deparments
Rentals and Other Income
TOTAL
Departmental Expenses
Rooms
Food & Beverage
Other Operated Deparments
Total Departmental Expenses
TOTAL DEPARTMENTAL INCOME
54.9
26.5
13.2
5.4
100.0
54.9
26.5
13.2
5.4
100.0
12.0
20.0
11.0
43.0
57.0
12.0
18.9
11.0
41.8
58.2
Undistributed Operating Expenses
Administrative and General
Sales and Marketing
Property Operation and Maintenance
Utilities
Total Undistributed Expenses
9.4
6.0
5.6
7.3
28.3
7.4
6.0
5.6
3.6
22.6
Gross Operating Profit
Management Fees
Income Before Fixed Charges
28.7
3.8
24.9
35.6
3.0
32.6
0.9
4.5
5.4
0.9
1.5
2.4
19.5
30.2
Fixed Charges
Property & Other Taxes
Insurance
Total Fixed Charges
NET OPERATING INCOME
2%
31%
55%
37
Improving Profitability 6. Objective 1: & Return on Investment 6.3 ACCESS TO FINANCING Many of the respondents identified access to finance as a
major issue to competitiveness. This was also clearly
identified in the studies carried out by TGI and PA, as one of
the most potent issues affecting profitability, capital
investment, and product maintenance and improvement.
Constructing and refurbishing tourism plant is expensive in
Barbados. The main contributors to the higher cost are:
Limited buying power of small organization
High duties and taxes
Shipping costs of imported construction materials
Many respondents identified poorly constructed and
maintained buildings as being a major factor affecting
occupancy and guest satisfaction. There is consensus that
Barbados is an expensive destination, both in terms of travel
costs and on island costs. If Barbados is to be competitive as
a luxury destination it cannot do it with decaying buildings.
The two issues raised in relation to finance are the cost and
the term. Most tourism entities are able to borrow in foreign
currency because they earn foreign currency but most limit
themselves to US dollars because the Barbados dollar is fixed
to the US dollar so the cross currency risk is limited to
possible devaluation. The borrowing rates generally float at a
margin over LIBOR.
Tourism is the most important industry across the Caribbean
and is the area where greatest focus should be placed by the
development banks. IADB is active, as are CDB but the
onerous process of borrowing from the CDB is seen as a major
obstacle by businesses in the sector.
The Barbados Development Bank which closed down several
years ago was a major lender to the Tourism sector but bad
lending practices and poor management contributed to its
downfall. This does not mean that such an entity cannot be a
success in the future.
Caribbean Financial Services Corporation has also been a
major lender to the sector but its lending limits are too small
to be an effective partner in development and redevelopment.
It is vital that development bank lending on long terms and at
subsidised rates becomes a major part in the improvement of
the competitiveness of the Barbados Tourism sector.
Other potential sources of finance include:
1. Capital markets/ public listing
2. Venture capital/angel funds
3. Government enterprise funds
During the recession LIBOR rates have fallen as central banks
have reduced rates to encourage lending. However banks have
priced in greater risk in to the margin over LIBOR. LIBOR plus
2.5% has become plus 5%. In addition many banks have
hardened up other terms on which they will lend. As a
consequence the deal flow has reduced and tourism
participants are finding it very difficult to borrow for any
projects.
Capital markets, particularly the Barbados Stock Exchange are
seen as a good but initially expensive source of funding.
Traditionally the tourism sector has not looked to this source
although Almond Resorts is listed, and in the 1990’s St James
Beach Hotels became the first Caribbean company listed on
the London Stock Exchange. The primary advantage of a
public listing is access to a cheap source of capital. Provided
the business is well run it is relatively easy to raise new capital
for expansion and improvement through new issues or rights
issues.
Commercial banks are unlikely lengthen the term of tourism
loans beyond the existing levels and therefore there is an
urgent need for Development banks to play a more active role.
Venture capital or Angel Funds are an excellent source of
start-up capital. They often provide seed capital or mezzanine
funding, with a take-out provision which ratchets up as the
38
Improving Profitability 6. Objective 1: & Return on Investment project becomes more successful. They are common in very
risky projects which are capable of earning very high returns
if successful. They are probably more suitable to the
entertainment sector than the accommodation sector for
example.
Recently the Barbados Entrepreneurial venture Capital Fund
was launched which is an excellent example of what needs to
be done to enable businesses to access capital which do not
fit normal lending criteria.
With regard to government funds, the EGFL
and
Central Bank are mandated to administer capital set aside for
the tourism sector. It currently manages three such funds:
The Tourism Loan Fund - $30m
The Small Hotels Investment Fund -$20m
The Industrial Credit Fund - $65m
Tourism Industry Relief Fund - $15m
These funds replicate the work which was previously
undertaken by the Barbados Development Bank. However, the
sums which can be borrowed by private sector entities are too
small to make a meaningful contribution to a project of major
economic importance.
6.4 RECOMMENDATIONS Debt Financing Reform:
The sector needs to lobby the commercial banks to change terms of debt structures
Government should encourage fast track active finance opportunities through CDB and IDB
Equity Financing Facilitation:
Government needs to create an inexpensive route to capital markets by simplifying the requirements for small cap
organisations. By way of example, the Alternative Investment Market is an inexpensive route for small cap companies.
Creating a public fund through structures similar to REITs to provide the public with opportunities to participate in tourism
developments thereby increasing the access to capital funds of the tourism industry
Encourage Alternative Financing:
Entrepreneurial venture capital funds must be encouraged through fiscal incentives
Stakeholder organisations to sponsor workshops on alternative capital sources: Tourism organisations should host
workshops with financial institutions to educate industry participants on innovative alternatives for capital sourcing.
39
Changes to the Tax 7. Objective 2: Cost the Industry Faces 7.1 OVERVIEW OF THE APPLICABLE TAXES 7.1.1 Corporation tax
The following is a summary of the tax rates which companies
are subjected to in Barbados depending on the activity which
they are conducting:
From income year 2006, corporate entities doing
business in Barbados, except those listed below, are
subject to corporate tax at a rate of 25%.
Small companies corporate tax rate - 15%.
Manufacturers corporate tax rate - 15%
Suppliers of residential accommodation-15%
Approved developers in a special development area 15%.
Life insurance companies - 5% (computed on gross
investment income).
International business companies, international banks
and international societies with restricted liabilities 2.5% to 1%.
In determining its taxable income, a company may claim a
variety of allowances. One common allowance is that of a
capital allowance which is a measure of the depreciation
which the Commissioner determines is appropriate for the tax
payer to claim based on the assets utilized in deriving the
assessable income of the taxpayer.
Tax losses may be carried forward for nine years after the
income year in which they are incurred, and may be applied in
full against future taxable profits.
Group relief is available under the provisions of the Barbados
Income Tax Act (“BITA”). This is relief that allows the current
trading losses (tax loss for the year excluding capital
allowances) of a surrendering company to be set off, by way
of relief from corporation tax, against the profits of a
claimant company whether in whole or in part, if, throughout
their respective accounting periods both companies satisfy
the provisions of the group test. However a company that is
eligible for tax incentives cannot claim group relief.
Group relief is available where a surrendering company and a
claimant company are members of the same group. Two
companies are regarded as being members of the same group
where (a) one company is a 75 per cent subsidiary of the
other company; or (b) both companies are 75 per cent
subsidiaries of a third company. Every company engaged in
group relief must be resident in Barbados.
7.1.2 Land Tax
This is a tax on land that is either developed or undeveloped.
The following rates apply.
Table 5: Land Tax Rates IMPROVED PROPERTY
On which there is a dwelling house that is
occupied by the owner or his immediate family:
0.00%
On first $150,000
0.10%
On amounts between $150,000 and $400,000
On amounts between $400,001 and $1,000,000 0.45%
0.75%
On amounts greater than $1,000,000
On the improved value of each parcel of land
on which there is a building other than a
0.65%
residence
There is a cap on land tax charged on residential and villa
properties of BDS$60,000
UNIMPROVED LAND
On the site value of each parcel of unimproved
0.60%
land
40
Changes to the Tax 7. Objective 2: Cost the Industry Faces The following concessions have been granted for land taxes:
for villas as defined, land tax is calculated and
payable on only 75% of the improved value of the
property;
for hotels, as defined by the Tourism Development
Act, land tax is calculated and payable on only 50%
of the improved value of the property;
for pensioners occupying their own homes, land tax
is calculated and payable on only 50% of the
improved value of the property in excess of
$150,000; and
for land used for agricultural purposes, a rebate of
50% of the land tax paid is granted
7.1.3 Property Transfer Tax
This is a tax that is charged, in respect of every transfer of
property in Barbados. The tax is charged on the following
transfers:
Table 6: Property Transfer Taxes PROPERTY
Land with a building
TAX
2.5% of the gross
consideration above
$150,000
Land with no building
2.5% of the gross
consideration
Leases of 25 years or more or
short term leases that are
continuously renewed for a
period equal to 25 years or
more
2.5% of the gross
consideration
Shares of companies listed on
the Barbados Stock Exchange
Exempt
Shares of private companies
2.5% of the gross
consideration above
$50,000
7.1.4 Value Added Tax
Persons making more than BDS $60,000 annually in taxable
supplies, (i.e. sales that are not exempt for VAT purposes) must
register and charge VAT on their sales under the provisions of
the Value Added Tax Act.
VAT is levied at the rate of 15% on the value of a wide range
of goods and services imported or supplied in Barbados by
VAT registered persons. A number of services, including
financial services, real estate, medical services, and education,
are exempt.
Certain supplies are zero-rated, including exports, basic food
items, prescription drugs, crude oil, and the supply of certain
items to the international financial services sector, e.g. legal
and accounting fees.
There is a concessionary rate of 7.5% applicable to the supply
of accommodation by guest houses, hotels, inns, or any
similar place, including a dwelling house normally let or
rented for use as a vacation or holiday home.
Registered persons may deduct input tax from their output
tax in calculating the tax payable for that VAT accounting
period. Where input tax exceeds output tax, the registrant will
be entitled to a refund of VAT.
7.1.5 Customs Duty
Customs duty is levied on a wide range of imported goods at
rates specified in Part 1 of the First Schedule of the Customs
Act. Barbados’ Customs Tariff is based on the Common
External Tariff of the Caribbean Common Market (Caricom)
with special derogations for certain items, e.g. spirituous
beverages. Customs duty is calculated on either an “ad
valorem” basis or at specific quantitative rates.
The ad valorem rates for most items vary between 0% and
20%, but certain goods regarded as luxury items are subject
to higher rates (e.g. jewellery 60%). In addition, a select group
of items that are produced within Barbados and Caricom
(including some agricultural products) are subject to a duty
41
Changes to the Tax 7. Objective 2: Cost the Industry Faces rate of 60% when imported from outside the region. The
legislation also provides exemptions to certain groups of
persons.
7.1.6 Environmental Levy
An environmental levy is in force in Barbados and its main
purpose is to defray the cost of the disposal of refuse
generated by the use of goods imported into Barbados. The
general rate is 3% of the CIF value of imported goods but
some items are subject to specific rates, e.g. motor vehicles
$1,500 per vehicle. There are exemptions from the payment of
this levy group to certain entities and other persons.
Excise taxes existed in Barbados prior to the introduction of
VAT in 1997, but these were confined to products of the rum
industry. From January 1, 1997, four categories of goods (both
locally manufactured as well as imported) became subject to
excise taxes. These are motor vehicles, spirituous beverages,
tobacco products and petroleum products. Most excisable
goods are subject to the tax at a specific rate, with the
exception of motor vehicles, which are subject to ad valorem
rates.
7.2 INCENTIVES: CREDITS & ALLOWANCES 7.2.1 Foreign currency earnings credit
Persons carrying on business in Barbados may claim a tax
credit of up to 93% of corporation or income tax on net
profits from foreign currency earnings derived from certain
prescribed activities. Such earnings must be derived from
sources outside of the CARICOM region.
7.2.2 Market research and development allowance
Manufacturing and tourism industries are granted an
allowance equivalent to 150% of certain expenditure
incurred to develop markets outside of the CARICOM
region1.
7.2.3 Incentives for expenditure incurred in the tourist
industry
purpose of encouraging tourists to visit Barbados,
expenditure for the purposes specified in BITA he can claim
a deduction from his assessable income an amount equal to
150 per cent of the actual expenditure incurred.
The incentive described above may only be granted on the
certificate of the Director of the Barbados Tourism Authority
to the effect that the person claiming the benefit is engaged
in the tourist sector.
This deduction is similar to that which is offered in the TDA
and gives persons who do not qualify under TDA but who
are engaged in the tourism sector the opportunity to claim
this incentive.
The expenditure qualifying for this incentive is as follows:
The Barbados Income Tax Act (“BITA”) provides that where a
person who is engaged in the tourist industry has in an
income year incurred, primarily and principally for the
Fares, accommodation and subsistence of the
taxpayer or his employee travelling from Barbados
overseas on tourist promotion, exclusive of the cost
of a holiday trip.
1
The Caricom region includes, Antigua, Barbados, Belize,
Dominica, Grenada, Guyana, Jamaica, St. Lucia, St. Vincent,
Trinidad and Tobago,
Salaries and wages paid to employees during their
travel overseas to promote tourism, calculated
proportionately in accordance with the duration of
the trip.
42
Changes to the Tax 7. Objective 2: Cost the Industry Faces Payments to an agent in Barbados engaged in
tourist promotion, to undertake promotion work
overseas on behalf of the taxpayer. Commissions on
sales are not allowable.
Costs of supplying brochures or pamphlets for
distribution abroad.
Expenditure incurred at fairs, exhibitions and travel
marts, for tourist promotion.
Costs (other than capital costs) of establishing and
maintaining a permanent overseas sales
representative as an employee to engage primarily
and principally in tourist promotion for the benefit
of the taxpayer.
Expenditure on overseas market research or on the
obtaining of overseas market information.
Contributions to joint tourist promotion
arrangements to be carried out abroad.
Costs of advertising or other means of soliciting
business or publicity outside Barbados.
Costs of bringing to Barbados tour operators for
briefing where the promotion of tourist services is
the sole objective.
7.3 INCENTIVES AVAILABLE TO THE TOURISM SECTOR 7.3.1 Incentives available under the Barbados Tourism
2
Development Act
Tourism Products/Products that can benefit under
the TDA
The Tourism Development Act 2002 (“TDA”), which replaced
the Hotel Aids Act of 1956, significantly expands incentives
for investment in the Tourism and Hospitality sector in
Barbados beyond the traditional accommodations sector.
Incentives are offered in the new Act to restaurants,
recreational facilities and services, development of attractions
which emphasise the island’s natural, historic and cultural
heritage and for the construction of properties in non-coastal
areas. Provision is made in the TDA for investors in tourism
projects to benefit from write off of capital expenditure and
150% of interest; there is also exemption from import duty,
value added tax and environmental levy in respect of
furniture, fixtures and equipment as well as building
materials, supplies and equity financing.
To be eligible for incentives/concessions under the TDA, a
project must fit into one of the following categories:
Construction of a new hotel, the alteration or
renovation of an existing hotel or the conversion of a
building into a hotel;
Furnishing and equipping of a building to be utilised
as a hotel;
Provision of tourist recreational facilities and tourism
related services;
Construction and equipping of a new restaurant or
the alteration or renovation of an existing restaurant;
Construction of a new attraction or alteration or
renovation of an existing attraction;
2
Barbados Tourism Investment Inc. online information.
Viewed at: http://barbadostourism investment.com.
Restoration, preservation and conservation of natural
sites;
43
Changes to the Tax 7. Objective 2: Cost the Industry Faces Construction and furnishing of villas and timeshare
properties;
Addition to a tourism product of facilities or services
intended to increase or improve the amenities that
the tourism product provides.
Application & Approval Process
Application
The application must be submitted with a business plan and
evidence of all necessary permissions for the tourism product
to be developed.
Approval Process
The Minister of Tourism, on receipt of an application to
develop or operate a tourism product, must, within 90 days of
the receipt of the application, either notifies the applicant, in
writing, of its approval or refusal or request that additional
information be submitted.
Where it is determined that a tourism project is practical and
that it would assist with the development of tourism,
approval of the tourism project may be granted in a three
stage authorisation procedure which includes:
An Interim Approval based on the information
submitted with the application or in response to a
request for additional information;
A Final Approval based on the completed product
that incorporates any changes that may have taken
place during the construction of the project;
A License issued to the Applicant when the Minister is
satisfied that all relevant procedures, requisitions and
statutes have been complied with, and that the
tourism product is in a suitable form and is of a
standard to commence operation.
The Scope of Concessions: Customs Duty or Income Tax concessions may be granted
under the TDA in respect of:
Duty-free importation (including waivers of Value
Added Tax (VAT) and Environmental Levy) of building
materials and equipment during construction and
rehabilitation;
Duty-free importation (including waivers of VAT and
Environmental Levy) of supplies for refurbishment of
hotels, restaurants, villas and sports and recreation
facilities for tourism purposes;
Extended tax holidays/write-off of capital
expenditure and accelerated write-off of interest;
Training of employees;
Marketing.
A project which is approved under the TDA cannot claim
concessions at the same time under the Shipping Incentives
Act or the Special Development Areas Act (“SDA”).
Customs Duty Concessions The Minister may issue to the owner or operator of a tourism
project or product which has been granted an Interim
Approval, a permit for the importation of building materials
and supplies without payment of customs duty. These items
are to be used exclusively for the construction and
development of the tourism project and they may be
purchased from a bonded warehouse, imported or locally
manufactured or produced.
The owner or operator of a tourism project or product for
which Interim Approval has been granted is exempt from the
payment of customs duties on specified supplies to be used
for equipping that project. Concessions for refurbishing a
tourism product are also made available provided that the
owner or operator of such a product has a valid license or is
registered with the Barbados Tourism Authority.
If the holder of a permit can satisfy the Comptroller of
Customs that the building materials and supplies purchased
44
Changes to the Tax 7. Objective 2: Cost the Industry Faces for a tourism product have been purchased in Barbados, or in
the case of importation that the customs duty was paid by
the holder of the permit, provisions are made for the grant of
a refund of customs duty (including VAT and Environmental
Levy). Such items may not be sold, rented, exchanged or given
away, exported or applied for any other purpose except under
exceptional circumstances.
Income Tax Concessions
Income Tax concessions in respect of write-off of
interest, accelerated deduction of expenditure, interest
rate subsidy, equity financing, training and marketing are
extended to hotels, restaurants and other tourism
products. These concessions are outlined in further detail
below:
7.3.1.1 Write-off of Interest
The owner or operator of a hotel or restaurant, which
is valued at not less than BDS$1.75 million, who
borrows funds from a private sector lending
institution to upgrade the hotel or restaurant, and
incurs expenditure for this purpose in an income
year, can deduct 150 per cent of the interest paid on
the loan from his taxable income in respect of loan
funds not exceeding BDS$7.5 million.
An investor who obtains a loan to construct a new
hotel with not less than 250 rooms and with
conference facilities for not less than 500 persons,
may deduct in any income year, 150 per cent of the
interest paid on loan funds not exceeding BDS$40
million.
An owner or operator of a new hotel being
constructed in an inland location, can deduct for
income tax purposes, 150 per cent of interest paid on
a loan up to BDS$20 million obtained for the
construction of the hotel.
An investor who secures a loan to buy two or more
hotels, each with 50 rooms or less, in order to own,
manage and market them as a group, can deduct for
income tax purposes in any income year, 150 per cent
of the interest paid on a loan not exceeding BDS$15
million.
An investor who obtains a loan to construct, upgrade
or refurbish a tourist attraction based on the natural
or cultural heritage of Barbados will be allowed to
deduct, for tax purposes, 150 per cent of the interest
paid on loan funds not exceeding BDS$3 million. This
investor will be allowed an income tax credit of 30
per cent on the purchase of plant and equipment
costing over BDS$100,000 used to refurbish, upgrade
or construct the attraction. If the tax credit cannot all
be written off in one year, the excess may be carried
forward for a period not exceeding fifteen (15) years.
7.3.1.2 Training
An owner or operator of a tourism project or product who, in
an income year incurs expenditure on training staff of that
project or product, may deduct 150 per cent of that
expenditure from his income for tax purposes. The expenses
that may be claimed include fees payable to a training
institution or trainer approved or recognised by the Barbados
Ministry of Tourism or the Barbados Ministry of Education,
cost of accommodation and subsistence. If the tourism
project or product has an employee share ownership scheme
approved by the Ministry of Tourism, the deduction will be
200 per cent of the training expenditure.
7.3.1.3 Marketing
The owner or operator of a tourism product who incurs
expenditure for marketing in an income year can deduct 150
per cent of this expenditure for income tax purposes.
Marketing expenditure includes the cost of travel to trade
shows, conventions and meetings, the printing of brochures
and other literature for distribution overseas, the cost of
electronic marketing and the hiring of short-term marketing
consultancy services.
45
Changes to the Tax 7. Objective 2: Cost the Industry Faces 7.3.1.4 Tourism Product Development/Research etc.
The owner or operator of a tourism product who incurs
expenditure for an approved tourism product development,
tourism research, provision of an apprenticeship scheme, the
organisation and hosting of tourism exhibitions and trade
fairs or development of nature trails and community tourism
is allowed to deduct an amount equal to 150 percent of the
expenditure in calculating assessable income for an income
year.
7.3.1.5 Wastewater Disposal Systems
An operator of a tourism product who incurs expenditure in
improving the wastewater disposal system of a tourism
product is eligible to claim a tax credit of 20 per cent of the
capital cost of fittings, pipes and pumps used in the
improvement of the wastewater system. If the credit cannot
be written off in one (1) year, it may be carried forward to a
period not exceeding fifteen (15) years.
7.3.1.6 Set-off of Approved Capital Expenditure
The owner of a qualifying tourism project, which has a value
of up to $200 million, will be entitled to duty free concessions
and can set off approved capital expenditure against revenues
for a period of fifteen (15) years. Hotels with capital
expenditure over $200 million are allowed one additional year
to write off expenditure, for each additional $20 million up to
a maximum of twenty (20) years.
Refinancing of Loans
7.3.2 Incentives available under the Barbados Special
Development Areas Act 3
The Special Development Areas Act of Barbados provides
various concessions to approved developers for carrying on
specific activities in defined geographical areas within
Barbados
Defined Areas
The areas which are currently defined as development areas
include:
Carlisle Bay Redevelopment area in St. Michael;
Speightstown in St. Peter;
St. Lawrence Gap in Christ Church; and
The Scotland District Conservation Area.
Eligible Activities
The activities that an approved developer may carry out are:
Hotels including conference areas;
Residential complexes;
Commercial or industrial buildings including office
complexes;
Other tourism facilities;
Water-based activities;
In the case of any loan for which an investor, owner or
operator is allowed, a 150 per cent write-off of interest, no
more than half of that loan may be used to refinance existing
debt.
Tourism projects highlighting heritage and natural
environment;
Arts and cultural investments; and
3
Barbados Tourism Investment Inc. online information.
Viewed at: http://barbadostourism investment.com.
46
Changes to the Tax 7. Objective 2: Cost the Industry Faces Agricultural-based activities.
Tax Concessions
Approved developers and certain investors, other than
commercial banks, may be granted the following tax
concessions:
Exemption from income tax on interest earned on a
loan made to an approved developer to finance any
development work during the development period;
The Act allows the Minister to grant Approved Small Business
Status to incorporated small businesses that carry on an
activity which is of significant or substantial socio-economic
benefit to Barbados.
List of activities of small business enterprises qualifying for
incentives:
Agriculture, forestry and related service activities.
Arts and cultural activities.
Income tax at a reduced rate of 15%;
Construction services.
Initial and annual allowances on an industrial
building at 40% and 6% respectively;
Entertainment services.
Initial and annual allowances on a commercial
building at 20% and 4% respectively;
Exemption from import duties and value added tax
on inputs for the construction of new buildings or
the refurbishment of existing buildings;
Exemption from charges on the repatriation of
interest or capital for a period of ten years;
Exemption from land tax on the improved value of
the land;
Exemption from property transfer tax payable by
vendors on the initial purchase of the property,
whether by national or non-nationals.
Financial services.
Fishing, operation of fish hatcheries and fish farms
and service activities incidental to fishing.
Health care services.
Hotel, restaurant and other tourism related services.
Manufacturing.
Personal care services.
Real estate, renting and other related business
services.
Repair of personal and household goods and vehicles.
Sanitation, sewage and refuse disposal services.
Sporting and recreational services.
7.3.3 Incentives available under the Small Business
Development Act
Transport, storage and communication services.
The Government of Barbados, in its effort to position the
small business sector as one of the leading sectors of the
modern Barbadian economy while promoting a culture of
international competitiveness among Small and Medium sized
enterprises (“SMEs”), enacted the Small Business Development
Act, 1999-23 in December 1999.
Wholesale and retail trade
Benefits under the Act
The benefits which may accrue to an approved Small Business
are:
1. The payment of corporation tax at the rate of 15% on
the profits of the business
47
Changes to the Tax 7. Objective 2: Cost the Industry Faces 2. Exemption from duty on raw materials, plant and
equipment imported for use in the business
3. Technical assistance as it relates to:
a. the development of product design;
b. the development of package and label
design;
c. the provision of assistance in the
development and maintenance of quality
control;
d. the provision of marketing assistance for the
local and export market;
e. the provision of assistance to businesses
seeking to participate in overseas trade
shows;
f. the preparation of business plans to
facilitate the initial financing and
management of the business;
g. the financing of feasibility studies relating to
the development of new businesses or
products;
h. the provision of assistance in managerial
accounting or budgetary analysis; or
i. the provision of assistance in general or
production management.
Financing, Technical Assistance and Other Incentives for
SMEs
1. Exemption from withholding tax on dividends and
interest earned on investment in an approved small
business or in any fund approved for investment in small
businesses;
2. Exemption from payment of stamp duty under the stamp
duty act on all documents related to the business where
the registration of those documents is required by law;
and
3. A deduction of corporation tax of an amount equal to
20% of the actual expenditure incurred in respect of the
use of technology, market research and any other activity
that is in the opinion of the Commissioner of Inland
Revenue, directly related to the development of the
business.
Eligibility
Companies must satisfy the following criteria to be eligible for
Approved Small Business Status. They must be incorporated
under the Barbados Companies Act; and have satisfied any
two of the following criteria:
1. have 25 or less employees
2. earn less than BDS$2 million gross sales annually
3. has not more than BDS$1 million as stated or paid up
capital
7.3.4 Duties Taxes and Other payments (Exemption) Act
This is an Act that allows the Government to make certain
provisions respecting the exemption from the payment of
taxes and duties and other moneys by persons, businesses or
undertakings. It was created in 1981 to allow the Government
to grant tax concessions where no other piece of legislation
may have given the Government permission to do so.
In this Act, the Minister of Finance may by order (a) grant an
exemption to or (b) remit or refund any payment made by any
person, business or undertaking in respect of the payment of
any duty, tax or other money.
An order made under this Act:
a) is subject to any condition specified in the order;
b) is subject to negative resolution; and
c)
may be made retrospective to any date specified in
the order.
"duty" or "tax" includes import duty, consumption tax, income
tax, national insurance contribution or any other tax, duty or
payment.
48
Changes to the Tax 7. Objective 2: Cost the Industry Faces In the past, concessions of the following nature have been
awarded under this Act:
The following concessions are available to approved shipping
companies who carry out these shipping activities
1. Income tax exemptions, generally for a defined
period;
2. Exemption from duties on imported vehicles used
exclusively for the project or for use by non-resident
employees used exclusively in connection with the
project;
3. Exemption of duties on imported personal and
household effects of non-resident employees who
work on the project;
4. Exemption from property transfer tax on an initial
transfer of property for the project or, on the first
sale of a villa, in the case of a villa development;
5. Exemption from the payment of duties and taxes on
specific items not listed under TDA;
6. Exemption from National Insurance contributions for
non-resident employees;
7. Waiver of withholding taxes on payments to nonresidents, particularly interest on non-resident
borrowings;
8. Waiver of withholding taxes on fees paid to nonresidents performing services with respect to the
project;
9. Waiver of duties and VAT on construction equipment
imported for use in construction;
10. Exemption from filing tax returns for certain nonresidents;
The write off of expenditure of up to $200 million
incurred in respect of capital expenditure incurred
against income arising over a period of 15 years.
7.3.5 Incentives available under the shipping incentives
act
Companies involved in the following shipping activities are
eligible for concessions under this Act
(a) The operation of ships for the carriage of
passengers or cargo
(b) Commercial shipping and boating in the tourist
industry
(c) the leasing of ships
(d) Shipbuilding, including the reconstruction,
alteration, refitting, equipping, maintenance, or
repair of ships
Exemption from income tax on interest or dividends
derived by a person other than a commercial bank
who has provided funding for an approved shipping
activity.
The carry forward of losses that were incurred during
the concession period and not previously written off,
for the first 9 years of assessment after the expiration
of the concession period.
The deduction of 150% of prescribed marketing
expenditure.
If the company approved shipping company operates
restaurant on board a ship, it is entitled to exemption
from customs duty and excise tax on a number of
prescribed items. This exemption applies (a) only if
the items are not being made or manufactured in
Barbados and (b) applies on the importation of some
of these items annually and on some items once
every 5 years.
Exemption from the payment of customs duty on a
number of specified items to be used by the approved
shipping company. This is provided the Minister of
Finance is satisfied that the items concerned are not
being made or manufactured in Barbados.
7.3.6 Incentives available under the Land Tax Act
The proprietor of a villa pays land tax that is calculated on
75% of the improved value of the land. For the purposes of
the land tax legislation, “proprietor” means the owner of a
villa and any person not being the owner, who for the time
being has immediate control over the management of the
villa.
49
Changes to the Tax 7. Objective 2: Cost the Industry Faces “Villa” for the purposes of this concession means a house
that:
(a) Has at least three bedrooms and is valued at not less
than $525,000
(b) Is managed by a company or real estate agent and
employs no less than 3 persons
(c) Is registered with the Barbados Tourism authority
(d) Is available for the accommodation of guests for
reward for at least 9 months in every year.
However if the investor in property in Barbados owns land on
which a dwelling house is erected and the dwelling house is
used exclusively as a residence, that person shall pay land tax
computed in the normal way for property owners but the tax
cannot exceed $60,000. This cap was originally enacted in
2004 but amendment was made in 2007 that deleted this
provision. As far as we are aware the Commissioner of Land
Tax has continued to honour this cap on the amount of land
tax payable by house owners who do not have villas that are
rented out.
7.4 RECOMMENDATIONS FOR CHANGES Personal Allowances
One of the most significant costs that is incurred by persons in the tourism sector is that of payroll costs. One way of minimizing
the cost to the sector is for Government to continue to gradually increase the personal allowance which each individual
employee is eligible to claim.
Recommendation: To minimize the cost of inflation we recommend that the present government adopt the policy announced by
the Minister of Finance in his 2007 presentation of financial and economic policies with regards to the indexation of the
personal allowance. The Minister stated: “For income year 2007 the individual allowance will be $25,000, and thereafter this
allowance will be adjusted every three years in accordance with the average wage increases over the preceding three year
period.”
Land Tax payments
This tax is assessed on one of two components. Site Value is unimproved land or in most cases vacant land. Improved Value
signifies land and buildings. Where there is no improved value on the bill, the taxes are calculated on the site value. In those
cases where both appear on the bill, the improved value takes precedence.
The financial year of the Government runs from April 1 to March 31 of the following year and taxes are due and payable for the
current year anytime during that period. However, tax bills are usually issued in the last quarter of the calendar year i.e. in the
months October to December.
If the tax bill is paid within thirty days of the issue date of the bill, property owners are entitled to a 10% discount. If the bill is
paid after 30 days have expired but before 60 days, they are then entitled to a 5% discount.
Recommendation: It is recommended that to ease the cash flow position of persons engaged in the tourism sector that they are
allowed to pay their land tax bills in quarterly installments during the year.
50
Changes to the Tax 7. Objective 2: Cost the Industry Faces Land Tax assessments
The improved values, on which most properties with buildings are assessed land tax have been increasing dramatically in recent
times. Much of this increase has been attributed to the increased values at which properties on the west coast have been
transferred at. For hotels this has resulted in an increase in their cost of operations that is beyond their control.
Recommendation: The Government should consider changing the method which applies to how hotels are assessed land tax to
one which is based on the net income of the properties on whose value the tax is assessed.
Cap on land tax
The Barbados Government introduced a cap in 2004 on the land tax charged to owners of properties on which a dwelling house
was erected and used exclusively as a residence. This provision was removed in 2007 and as far as we understand is still being
honoured administratively.
Recommendation: Subsection 2A of section 6 of the Land Tax Act, Cap 78A (“LTA”) Land Tax (Amendment) Act, 2007 should be
reinserted in the LTA. Subsection 2A of section 6 of the LTA provided that “Where a person owns land on which a dwelling
house is erected and the dwelling house is used exclusively as a residence, that person shall pay tax in accordance with
subsection (1) but the actual amount payable shall not exceed $60,000”.
Land Valuation Cycle
The Land Valuation Act currently provides that the Minister responsible for the land tax department can instruct the
Commissioner of Land Tax as to the periods for which a valuation of properties on the island should take place. This period is
currently set at 3 year intervals.
Recommendation: We recommend that the period for revaluing commercial properties be done annually or if not owners of
such properties should be allowed to object to their values annually.
VAT refunds
When a tourism project is being developed there may be sometime before it makes taxable supplies from which any input VAT
can be offset. As a result of this, the owners of such projects suffer severe cash flow problems with a buildup of VAT refunds in
the initial stages of the project’s development.
The VAT legislation currently provides for the zero-rating of goods imported for the purposes of a tourism product or a tourism
project approved under the Tourism Development Act (“TDA”) for the purposes of purpose of the refurbishment of that tourism
product or tourism project and where the goods are contained in a list of goods approved by the Minister for such purposes.
Recommendation: We recommend that supplies of goods and services to persons, who have approval from the Ministry of
Tourism to establish an approved tourism project or product, be zero rated. This would put the local suppliers of such goods and
services to such persons on par with the entities who are permitted to import goods under the TDA and SDA.
51
Changes to the Tax 7. Objective 2: Cost the Industry Faces VAT issues on the supply of accommodation to connected persons
Some persons who own villas that are let out on a short term basis and who are registered under the provisions of the VAT
legislation do in fact occupy their villas either to oversee the maintenance on the property or to have a holiday.
Where the supply of such accommodation is considered to be between connected persons, the VAT legislation provides that the
supply is to be valued at the market value. Where the supply is made to an officer or employee of the registrant, the VAT is
chargeable on greater of the amount actually charged or the cost of goods or services to the registrant.
Recommendation: We recommend that the accommodation supplied to the person who directly owns the accommodation to be
treated as an exempt supply.
Tax on remittances Act
This is an Act which provides for the imposition of a tax on certain remittances from Barbados and for related purposes. It
applies to persons who desire to
a) enter into an insurance contract with a non-registered insurer;
b) to remit insurance premiums under a contract of insurance with a non-registered insurer;
c) to remit pension contributions to persons administering pension funds outside Barbados; or
d)
to remit surplus funds to a foreign company,
The rate of tax which applies on funds to be remitted to a non-resident insurer carrying on general insurance business other
than health plans is 20%. The tax does not apply if the remittances are made to the association of underwriters known as Lloyds
of London.
There are a number of participants in the tourism sector who cannot obtain insurance for certain risks in Barbados and have to
seek such cover from non-resident insurers who may not be a Lloyds underwriter and find themselves burdened by this
additional cost.
Recommendation: We recommend that this tax be reduced or eliminated.
Tax sparing provisions in our tax treaties
In the agreements which the Government of Barbados has with the Governments of Finland, Norway, Sweden, Canada and the
United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes in income and
capital gains reference is made of persons resident in those countries being eligible for a credit in their home territory equivalent
to the tax they would have been liable to pay had it not been for an exemption provided for by the Hotel Aids Act (“HAA”).
Recommendation: In view of the fact that the HAA has been repealed and replaced by the Tourism Development Act (“TDA”), we
recommend that the Government seek agreement from the counterparties to these various agreements that they will honour
such provisions.
52
Changes to the Tax 7. Objective 2: Cost the Industry Faces The activities covered by the tourism development act
Although the activities which qualify for concessions under the TDA cover most of the accommodation sector, it does not
adequately cover those persons who supply support services to the sector such as those engaged in such as ground
transportation, watersports and attractions.
Recommendation: We recommend that all stakeholders in the tourism sector be given the opportunity to access concessions
available under the TDA.
Foreign currency earnings tax credit
From income year 1986 a person carrying on business in Barbados who derives assessable income from fees, payments or
rewards in respect of the undertaking of qualifying overseas construction projects or in respect of qualifying overseas
professional services was eligible to claim a foreign currency earnings tax credit provided they could show that an amount of
net foreign currency earnings from sources outside of the Caricom region relating to the fees, payments or rewards has been
transferred to the credit of that person. The list of qualifying services has gradually expanded since the credit was first
introduced.
Recommendation: The Government should consider enabling persons who provide services in the tourism sector to claim this
credit. This would go some way in minimizing those structures where as an example rooms are wholesaled through a corporate
entity resident outside of Barbados.
Liquor Licenses
A person who is engaged in the sale of liquor must obtain an annual licence to do so. As part of the renewal process, the
applicant must furnish to the licensing authority certificates from the Commissioner of Inland Revenue, the Commissioner of
Land Tax, the Comptroller of Customs and the Director of National Insurance stating that all liabilities for the payment of tax
and national insurance contributions in respect of the business or trade to which the application for the renewal of the licence
relates have been discharged. This process is cumbersome and can result in significant delays with the issuance of the licence
which if not obtained could result in the business which is engaged in the sale of liquor having to close.
Recommendation: We recommend that the Central Revenue Authority which the Government is proposing to establish be given
the responsibility for the issuance of such certificates since it is envisaged that such an authority would have access to a
database containing all such information.
Concessions Under SDA & TDA
Currently, developers of certain tourism projects in the areas designated as special development areas can claim a variety of tax
incentives under the SDA. Some of these incentives are different from those available under the TDA. However such developers
are not eligible for incentives under the TDA and likewise an approved developer under the TDA cannot claim incentives under
the SDA.
Recommendation: We recommend that the incentives under the SDA and TDA be made consistent so that a developer under one
of these Acts would not be denied claiming incentives that may be available under the other Act.
53
Changes to the Tax 7. Objective 2: Cost the Industry Faces Land Development Duty
If a person disposes of property situated in a specially designated development area within 15 years of the date specified by
statute, duty may be charged. This may be at rates of up to 50% on the excess of the proceeds over the value at the specified
base date.
Recommendation: The duty rate should be reduced to not more than 25%.
Bound Rates
A “bound rate” is the most-favored-nation tariff rate resulting from negotiations under the General Agreement on Tariffs and
Trade (GATT) and incorporated as an integral component of a country’s schedule of concessions or commitments to other World
Trade Organization members. If a country raises a tariff to a higher level than its bound rate, those adversely affected can seek
remedy through the dispute settlement process and may obtain the right to retaliate against an equivalent value of the
offending country’s exports or the right to receive compensation, usually in the form of reduced tariffs on other products they
export to the offending country.
Barbados has a number of items which carry significant “bound” rates that affect the cost base in the hotel sector especially in
the food and beverage area.
Recommendation: We recommend that these “bound” rates be revisited with the aim of reducing them in order for the food and
beverage cost to the tourism sector.
Development of a Film Industry
International filmmakers have been moving more projects to worldwide locations based on available incentives. Barbados does
not currently have an incentive regime that would make it attractive for international filmmakers to set up operations here.
Recommendation: We recommend that Government consider an appropriate set of tax incentives that would encourage
international filmmakers to utilize Barbados as a destination of choice when making films.
Timeshare Activities
Barbados currently does not have a legislative framework governing timeshare activities. Such a framework is urgently needed
as more timeshare developments come on stream.
Revised Tourism Development Act
Recently we have seen a greater use of orders being issued under the Duties Taxes and Other payments (Exemption) Act granting
concessions to resort developments which are not available under the TDA. This indicates that the TDA, which was only enacted
in 2002, is in need for some changes to enhance the incentives which are currently available under the Act and to encompass
more participants in the sector.
54
New Tourism 8. Objective 3: Products To be Introduced 8.1 THE CURRENT TOURISM PRODUCT INVENTORY Tourism products can be categorised as tangible (you can see
and touch them) or intangible (an experience), nonetheless a
tourism product can be defined as a visitor service, activity,
attraction or an experience (a collection of services,
activities and attractions). The current tourism product
inventory as provided by the tourism sector marketed to
satisfy the need or want of potential / intended visitors are
specifically segmented under the list below:
Table 7: Tourism Product Categories Accommodations
Apartments
Guesthouses
Hotels
Villas
Food & Beverage
Services
Nightclubs
Restaurants
Recreation & Entertainment
Art Galleries
Helicopter Rides
Aventure/Hiking
Historic Sites
Beaches
Local Food/Rum Shops
Churches
Craft
Distilleries
Museums
Diving
Nature Reserves
Events/Festivals
Sailing
Fishing
Sightseeing
Gardens
Sports Facilities
Golf Courses
Water Sports/Surfing
Tour operators from the United States visited various
attractions and it was consistently stated that they were
impressed by the wide variety of activities available. St.
Nicholas Abbey and the restaurants of Barbados received
particularly high praise. The cultural aspect of the island,
while it has room for improvement, is considered to be
excellent. It was felt that the wilder side of the island, the east
coast, should be promoted more as it presents a completely
different impression of the island to the more developed
south and west coasts. The idea of creating hiking trails for
Accommodation
Type
Hotels
Villas
Apartments
Guesthouses
Transportation
Airlines
Car Rentals
Cruise Services
Taxicabs
tourists was seen as extremely promising addition to the
tourism product of the island. To understand where to go
from here, we have to understand where we are and what we
offer as a total tourism product offering. The table below
provides a snapshot of the current products offered and their
most likely targets, a full inventory of the tourism attractions
is included in Appendix C. We then can discuss what niches
are not serviced and where the product offering does not
match the current and potential visitor demographic:
Recreation & Entertainment
Bedrooms Art Galleries
#
5,506 Beaches
73
2,340 Culture
814
1,526 Distilleries
120
169 Events
28
Golf Courses
Travel Services
Retail Sales
Tour Operations
Travel Agencies
14
43
10
4
20
6
Museums/History
Nature Attractions
Other Sports
Polo
Sightseeing
Watersports
40
23
13
4
15
38
Transportation
Airlines
13
Car Rentals
79
Taxi Services
66
Cruise Berths
6
Restaurants
Restaurants
233
Bars/Nightclubs
47
55
New Tourism 8. Objective 3: Products To be Introduced 8.2 IDENTIFIED DEMAND FOR NEW PRODUCTS Identified Demand for New Products by Survey
The Barbadian tourism product is constantly mentioned as a
diverse product, but in the effort to increase the tourist
arrivals new products need to be introduced to meet the
needs of other niches and markets, or the current products
must be refurbished and marketed along with other
attractions as a package. The nature reserve product offering
has been reduced by the closure of the sole aquarium on the
island along with the Graeme Hall Nature Sanctuary. We
should look at closing the gap which was left by the cessation
of the two attractions.
The stakeholders who were questioned via the survey were
asked their opinion on what additional attractions can be
added to the tourism product as a way of identifying the
demand for new products and on improving the quality of the
current product. Listed below are samples of the responses
given:
a ‘real’ water park / aqua city;
maximizing on the history of the Garrison – creating
a historic theme park (historic theatre with its natural
history with walking tours);
an interactive museum – display the history and
culture via technology;
the use of Sam's Lord Castle as a period piece;
“swim with the dolphins” program;
the creation of occasions / festivals: food festival,
music festival, hockey festival;
improve on eco-tourism, community tourism (Oistins,
Six Mens, Speightstown) and sports;
the use of theatre as a way to boost or improve
Culture / Heritage tourism .
According to the 2006 (last available) exit survey results the
most commonly visited attractions were Harrison’s cave and
Gun Hill. Yet, Harrison’s Cave is closed for continued
exploration during high tourism season. Following the
catastrophic event of the Brittons Hill apartment building
collapsing into a cave, there has been new attention given to
the number of caves in Barbados, their history, their effect on
the safety of our environment, but also on their potential as
attractions. The March 2007/2008 cruise visitor survey
indicated that tours to Plantation Great Houses were the most
popular activities (15%), followed by Gun Hill Signal Station
(10%). It is interesting to note that after since its reopening,
Harrison’s Cave had not yet achieved the levels of visits
witnessed in the past.
Shopping & Retail
Looking at the actual participation of activities by visitors,
over 50% of respondents participated in shopping, with no
other category of attraction receiving participation of more
than 22%. Shopping is seen as a primary attraction by
tourists, yet when asked to rate their shopping experience,
Barbados received a 6.3 out of ten, indicating significant room
for improvement. Two new shopping centre projects are
already underway, with a third in the planning stages. The
first is Limegrove Lifestyle Centre located in Holetown.
Limegrove is set to change the shopping experience for
tourists and locals as an entertainment centre on ten acres of
land with over 100,000 square feet of retail space, a new
multi-story car park, cinema, restaurants and shops.
Limegrove promises to be anything but another shopping
centre, with the developer adamant that the retail side of the
project should not be mistaken for a mall. Limegrove will
consist of over 100 operators, bringing some of the most
prestigious international brands to Barbados for the first time
including Louis Vuitton, Cartier, Hugo Boss, Polo Ralph Lauren,
Agent Provocateur, and Calvin Klein. On the south coast, The
Lanterns shopping complex is currently under construction.
This two storey shopping complex is to include approximately
56
New Tourism 8. Objective 3: Products To be Introduced 23,000 square feet of retail space comprising 24 shops and
eateries. Finally, Trinidadian Christian Mouttet in coordination
with Sir Charles Williams, is planning for the development of
Limegrove Lifestyle Centre
attractions (18%), transportation (19%), duty free shopping
and local handicraft (45%). This figure has fallen consistently
since 2004 and now averages $111.80 (2007) per passenger.
Whilst it is true to say that this is in part due to budget cruise
deals which attract cruise vacationers with less disposable
income it is hard to dispute the evidence that the shopping
experience in Barbados is not as good as that in some other
destinations. Cruise expenditure studies show that
expenditure is higher in some other cruise destinations. New
shopping experiences in St Barths, St Thomas and Aruba,
provide a much more immediate and pleasant shopping
experience.
In our discussions with participants in the duty free retail
subsector the flowing points were made:
The Lanterns at Hastings
Tourist harassment in Bridgetown is prevalent and
not adequately policed
Access to Bridgetown is badly impacted by licensed
taxi operators who are not interested in the short trip
to Bridgetown and turn tourists away
Many buildings are decaying and the city is dirty
The shopping experience in Bridgetown is poor
Many major international luxury brands are not
present in Barbados
a mega mall in Welches. In Mouttet’s opinion, the mall will go
far towards transforming Barbados into the shopping hub of
the Caribbean.
The cruise terminal is a warehouse type structure
which is not aesthetically pleasing
Duty Free Shopping
In our discussions it was noted that the Pierhead and Lime
Grove project can be instrumental in turning this trend
around.
Research has shown that shopping is amongst the five most
popular activities for vacationers. In Barbados it is estimated
that approximately 9.8% of daily tourist expenditure is on
shopping. For cruise visitors, duty free purchases account for
approximately 25% of their total expenditure. In 2008 this
would have equated to $315 million from long stay visitors.
Cruise passengers generate approximately $68m p.a. in
expenditure. This is spent on food and beverage (11%),
On a positive note the recent changes in the duty regime for
retailers are very welcome. The drawback scheme has been
eliminated in favour of an in bond scheme and the quantum
of the bonds are being reduced over the next few years.
However, the processes involved in duty free shopping were
seen to be very unwieldy, complex and annoying to tourists.
The system seems to have been designed to stop Barbadians
57
New Tourism 8. Objective 3: Products To be Introduced from shopping duty free rather than to encourage tourists to
shop. These are the wrong reasons.
RECOMMENDATIONS Government should introduce a simpler duty free
shopping system. Suggest a smart card which tourists
are given to encourage them to shop
Pedestrianize Broad Street
More active police patrols in Bridgetown. Use of Segways
for speed
Attractive incentives for beautification programs
More active street and building cleaning in active tourist
zones
Government to enable the establishment of vehicle or
water shuttles from the Port into Bridgetown
8.3 NICHE IDEAS One key way to improve the competitiveness of tourism is to
add variety and open up new markets. A focus on niches is a
critical component of this. However individual businesses find
focusing on niches expensive and risky so the role often falls
to the government to put together the initiative and help to
create an enabling environment for niche tourism to flourish.
Some examples we believe are pivotal to tourism
sustainability are:
Sports Tourism
The BTA recently held a symposium on sports tourism. At that
meeting they noted that they do not know the full extent of
Sports Tourism but they estimated sports tourist arrivals at
just over 6,600 last year, in other words just over 1% of stay
over arrivals. It would appear that this is an underestimate
but there are no adequate mechanisms for collating the data.
There are specific events planned for large numbers of
arrivals, such as the August Hockey festival and the Sir
Garfield Sobers International Youth Cricket tournament held
in May. These bring in hundreds of competitors, but there is a
sense that these events are too seasonal for hotels to make an
adequate return focusing on this niche year round. Hence
there are no hotels which are designed to accommodate
sports teams specifically. Rostrevor and Europa are the two
which are most often associated with this niche. Barbados has
a year-round warm weather climate, which is ideal for
developing sports tourism.
There is no clear sense of a cohesive plan amongst the
stakeholders to target this niche. Such a plan would include:
A year long, week by week, calendar of sports events
set in conjunction with the sports associations
The creation of new events targeted at filling low
periods
Collaboration with sports tourism specialists and
marketers in the key source markets
Creation of flight, hotel, and event packages to be
marketed in the source markets
It is noticeable that few associations package hotel
accommodation with their events and how few sports
complexes focus on the huge gains that can be made by
selling sports vacations. As an example Barbados Golf Club,
has rental accommodation on its doorstep at El Sol Sureño
and has not created a package with the owners of those units
to package in room, golf and meals. There are many other
similar examples.
The coincidental juxtaposition of the Gymnasium, Tennis
Centre, Aquatic Centre, Hockey pitch, and Lime cricket creates
a multi sport environment suitable for a Sports Academy. A
58
New Tourism 8. Objective 3: Products To be Introduced football pitch and new cricket ground are to be added to this
area. If the owners of these facilities collaborated to market
themselves as the “Barbados Sports Academy” and packaged
week long tuition with nearby accommodation those facilities
could be much more profitable and the island would benefit
from increased arrivals.
Taken a step further dormitory accommodation could be
created on site to provide affordable vacation packages to
visiting teams. Barbados could become a successful training
camp for multiple sports disciplines. The dormitory
accommodation could also be used for inter island touring
teams and may be supplemented by offering Barbadians
health and wellness programs when availability permits.
Barbados own “Boot camp”
Another area of focus could be on non-traditional sports. The
World Games have just concluded in China and attracted
40,000 athletes competing in fringe sports such as Ultimate
Frisbee, beach handball, dragon boats, canoe polo and other
similar events. Barbados has just won the World Segway Polo
championships and will host the tournament next time.
Producing world class competitors in events with fewer
competitors is, by definition, easier. A location like Brighton
would be perfect for hosting beach and water based events
such as these.
Barbados water-sports are much admired worldwide because
of the quality of the beach and sea experience, but yet they
produce few organized events, which create profile for the
island and fill the low season available accommodation. One
idea is to create a sea based theme park, where multiple water
and beach sports can be taught in one location and where
participants could enter the park by paying variable fees and
obtaining use of selected sports by voucher. In this way a
safe environment could be created which embraces tuition
from trained professionals, and the resulting improvement in
client satisfaction and park profile should increase the
numbers of repeat vacationers. Holiday makers are looking
for more active vacations but wish to do so in a professional
environment, something which Barbados beach culture does
not always project.
Cricket generates huge profile for Barbados, because of the
island’s unparalleled history in the sport, yet Kensington Oval
is almost out of bounds for many cricket fans. The cricket
museum is offsite, the Oval is no longer available for visiting
teams to book, and our world class cricket ambassadors are
not employed in positions where they are accessible to the
visitors. The Oval is one of the few major sports stadiums in
the world where a daily tour is not available to paying
patrons. Even English football grounds less famous than the
Oval offer that service. The proximity of the ground to the
cruise port is not utilized. Organized excursions for cruise
passengers could include walking tours to and around the
ground, and the experience was enhanced with the use of
multi-media and demonstrations.
The experience of every school team could be greatly
enhanced by allowing them to book and play at Kensington
Oval, meet the stars, get autographs and buy souvenirs. The
word of mouth increase in Barbados profile would improve.
The use of Barbados sports stars to brand events is a key
component to improving our profile as a sports tourism
destination.
But it is not just the type of events which are staged but
targeting large organizations in the key source markets is
critical. Team Travel is a key innovator in this area. Run by
John McGuire and Malcolm Steel, they have been organizing
packaged multi sports vacations for over ten years. One of
their repeat clients is the British Civil Service. Each year
hundreds of employees come to Barbados on those packages
to participate in up to 15 different sports. In a similar vein,
next year an international association of Law Societies will be
hosting a Cricket world cup in Barbados.
In 2010 Barbados plays host to a World 20/20 Cricket Cup.
There is no reason why this concept could not be extended
beyond international teams to club teams. Barbados could
create an event such as this, for club sides which would
always be hosted in the island. Similarly perennial
tournaments in other sports could be created and branded as
59
New Tourism 8. Objective 3: Products To be Introduced worldwide event. For example the Caribbean has a team golf
championship but not an Individual Golf Championship.
RECOMMMENDATIONS Develop a cohesive plan to target this niche through the
creation of a calendar of sports events set in conjunction
with sports associations during low periods; packaging of
flight, hotel and event packages to be marketed to key
source markets; and making full use of the facilities
available at the existing sporting complex in Wildey.
Target 50,000 sports tourists within five years.
Package accommodation and sports facilities and events
to vertically integrate multiple tourism products
Take advantage of our natural waterfront assets by
hosting major watersports events or a sea based theme
park
Improve the use of the Kensington Oval to make it an
attraction in itself particularly given its historical
significance for cricket fans worldwide and its proximity
to the cruise port
Wellness tourism is not seasonal, and many of the specialist
areas of treatment are in major growth spurts, notably
cosmetic surgery and non invasive treatments. Many of these
disciplines should also attract Barbadians as clients.
“Staycation” with a purpose.
Medical tourism is defined as “travel across international
borders for health care”, and encompasses medical and
cosmetic treatments of many kinds. According to a study
completed in 2008 by Deloitte, medical tourism could jump by
a factor of 10 over the next ten years. This would make it the
fastest growing tourism niche in the world. Many of the
beneficiaries of this growth are in central and south America
with Cuba, Argentina and Brazil leading the way. There is no
reason why Barbados could not become a major player in this
field. International accreditation is critical and as an English
Speaking country positioning Barbados in this niche should
not be difficult. The Barbados Fertility Centre in Hastings has
demonstrated the ability to generate business from around
the world.
In the Spa field the successful Le Sport Spa and Hotel in St
Lucia has no parallel in Barbados.
Wellness Tourism
RECOMMENDATIONS The term “wellness tourism” is used to cover a multitude of
disciplines including:
Offer accommodation and treatment packages for long
stay visitors
Spa and Wellness programs
Medical tourism of all kinds
Beauty treatments
Develop wellness and medical tourism, which is
considered not to be seasonal, to enhance load factors
during low season
Heritage Tourism
Weight loss clinics
Medical schools
There are a number of hotels on the island which offer Spa
packages to enhance occupancy and room rate, but there are
no other facilities which package accommodation and
treatment together to attract long stay visitors.
Barbados has a rich historical heritage which is often
downplayed but is of interest to tourists. Museums like the
Barbados Museum, Arlington House, Sunbury House, George
Washington House and St Nicholas Abbey play an important
part and this can be enhanced by the renovation of Farley Hill
and Sam Lords Castle.
60
New Tourism 8. Objective 3: Products To be Introduced But often the static or interactive exhibits are not as impactful
as the pomp and pageantry of military displays or the
excitement of Historical shows. The historic Garrison Area
could be enlivened by the theatre of military history acted out
by uniformed players, in the fashion of Colonial Williamsburg
or London. The story of slavery would be more readily
accessible to visitors if acted out on stage or as street theatre
music festival which could become an international success.
A pan Caribbean “idol” talent show hosted in Barbados would
stir up interest in regional talent and fill hotel beds.
The story of George Washington’s two months in Barbados
has been suppressed in the US but also would be more
impactful if acted out in costume.
Oktoberfest has just finished in Munich, and there are lessons
to be learned by the Caribbean Rum industry. Neysha
Soodeen’s St Lucian Food and Rum Festival is Barbados’ loss
as the island was her first choice, but she found little
enthusiasm here. Notwithstanding that, a professionally run
International Rum Competition combined with a week of
festivities would be a boost during off peak periods.
Often Heritage tourism does not necessarily increase volume
of business to the island but it adds a new dimension to the
rich experience that visitors take away with them and return
to or talk to their friends about.
As mentioned above, the island’s watersports are second to
none, and a series of water festivals could be held. Brian
Talma, an ambassador for the island’s beach culture could do
a great deal more if well supported.
RECOMMENDATIONS In 2006, the sports management company IMG wrote a report
for the BTA on how to stage major events. The enduring
message was quality, not quantity counts and the target
should be to host a few world class events. The Cricket and
Golf world cups were two of the first, and these can be
replicated in many fields not just sport.
Enliven the Garrison Historic Area through use of theatre
and interactive museums to promote the rich history of
Barbados
Promote our history, don’t hide from it, it adds a new
dimension to the rich experiences of visitors and a better
cultural understanding of the island and its people
Festivals
One of the ways of filling business in low seasons is by the
creation of festivals. Jamaica has been very successful with
its Reggae Sunsplash and St Lucia with its Jazz Festival. The
upsurge in interest in Barbadian recording artists led by
Rihanna should be capitalised on by the creation of a unique
RECOMMMENDATIONS Emulate the success of other islands in utilising festivals
to fill business in low seasons particularly through the
promotion of the great success of music artists from
Barbados including Rihanna, Shontelle, Hal Linton and
Vita Chambers.
Improve the quality of world class events to ensure
optimal visitor experience
8.4 IMPROVING THE USE OF TECHNOLOGY IN TOURISM Advances in the use of technology in everyday life are
impacting tourism and service in many ways. Perhaps the
most striking changes, though, are in the everyday habits of
most people from the island’s major source markets. For
example cell phones are capable of downloading GPS based
maps, and most users expect to be able to search for local
attractions, shows, entertainment and more.
61
New Tourism 8. Objective 3: Products To be Introduced There is a global trend towards enabling personal action
through technology which provides the user with timely
action, confidence in the result, and a choice which suits their
needs. For the information provider, savings can be made by
reduction in the labour force required for client interaction
and procurement of the service or supply.
The application of technology is an area of much
developmental activity for both security and attractions.
Examples are:
Create a Barbados activities loyalty card which can be
swiped at all major attractions, providing instant feedback
on visitor experience and expenditure patterns
Engage an ongoing process of familiarization with
technology changes so that there is continuous feedback
to industry participants
Engage continuous high level advice on changes in
technology and the implications for the industry
Use of Biotechnology for personal identification ie.
finger printing and retina scanners
Software for planning and customizing visits
Touch-screen interactive guides
Interactive attractions/Entertainment technology
Use of social networking sites for product marketing
Online testimonial sites such as Trip Advisor which
influence booking patterns significantly. The sharing
of opinion by third parties beyond the control of the
service provider, becomes a major influence on
performance.
Online booking engines
Barbados needs to embrace technology because it is
such a powerful tool for enhancing customer
experience.
RECOMMENDATIONS Use intelligent information systems for client recognition.
This can start with immigration officials at ports of entry
– Imagine how impressed clients would be if they were
greeted warmly with a comment about their last trip, or
their family
BTA to host a facilitation desk to assist industry
participants to train in and make best use of technology
changes
62
9. Objective 4: New Marketing Initiatives to be Introduced 9.1 EFFECTIVENESS OF CURRENT MARKETING INITIATIVES Since the global financial crisis and the worldwide recession
tourism arrivals have slowed by more than 10%. Barbados is
not immune to this phenomenon and it is important to
benchmark Barbados’ marketing initiatives against those of its
competitors and to present a cohesive industry-wide
marketing strategy to ensure that best practice is enshrined in
the island’s marketing strategies.
Barbados Tourism Industry was not made available or even
referred to by most of those interviewed for this piece. That is
not to say there was not great knowledge, commitment and
contribution to advancing the Tourism cause; it is simply to
observe that their efforts are diminished by the weak
framework, lack of common language for the industry and
lack of strong future vision.
In the course of researching this project it has been extremely
difficult to identify a distinctive set of metrics by which to
measure the performance of the tourism sector and
determine the effectiveness of all the dollars spent on
marketing. Is the true measure of success numbers of visitors
or the amount they contribute to the economy? How good are
the systems which provide the numbers to make these
calculations valid? Unfortunately this is an area of weakness
which leaves primarily the BTA wide open to criticism due to
the lack of transparency and focus on the key performance
indicators for its work. Industry partners are also
disadvantaged by this state of affairs.
In 2001 the Ministry of Tourism produced a Green Paper on
the future of Sustainable Tourism. Some 8 years on the
Ministry is ‘reviewing’ this with a view to turning it into a
White Paper. This kind of procrastination/lack of direction
would not be acceptable in a business with a billion dollar
turnover and an almost 100M dollar spend on marketing? And
it is not acceptable for Barbados in 2009.
What is the overriding strategy and objectives for Barbados?
Is it to solely drive up visitor numbers (to fill more beds/cruise
dock slots) or is it trying to increase the spend per head? Is it
to employ more in Tourism? Presumably success is defined as
a combination of all of these measurables and the
benchmarks must be set and reviewed according to economic
and market intelligence indicators? Without a strategy with
clearly measurable objectives it is impossible to evaluate the
quality of performance from those charged with developing
and promoting tourism –which seems to be a great injustice
for the many hardworking and dedicated persons employed to
do just that.
Similarly, there does not seem to be a common set of terms or
language used by the main stakeholders in terms of the
strategic plan, the brand or the objectives for Barbados
Tourism even if they do exist somewhere. In fact, despite
many requests, articulation of a Strategic Master Plan for
Unsurprisingly, in the absence of clear direction from the
Leadership of Brand Barbados the individual stakeholders
have interpreted the future as they see fit and operated
accordingly. The strength of the industry (even in the current
economic environment) is a testament to the ability, passion
and entrepreneurial flair of the industry’s partners. But
imagine how powerful this could be were the collective
energies combined and aligned?
The BHTA, whose own members value their annual marketing
spend in the region of $45.5M have been extremely active in
promoting the value of partnership with the BTA and aligning
marketing initiatives around market niches (or Product Clubs)
– a natural extension of their business/niche centric focus .
Signs are positive that this approach is becoming the de facto
modus operandi and has the potential to significantly
enhance and streamline the industry’s ability to punch above
its weight out in the markets –be they geographical or niche.
It will require continued co-operation and collaboration and
to a much deeper degree than previously. The restructure of
the BTA must not be allowed to derail these processes and the
63
9. Objective 4: New Marketing Initiatives to be Introduced interfaces must be quickly mapped out to support this work
to bear fruit.
It is obvious then that the first step to future success should
be to rearticulate the strategic plan, the actions and the
metrics in order to align the sector and provide a basis for
collaborative and cohesive approach with short, medium and
long term measurable ambitions.
Further, it is clear that with Tourism being such an intrinsic
part of the economy and fabric of Barbados society there
must be a new approach to engaging and sharing the
messages of the tourism sector from children to adults. There
remains too much negativity expressed which detracts from
the successful work and achievements which are sustaining
tourism. Where there is an external message to the world
about Barbados there must also be consideration for the
‘internal’ consumers or there is a great risk of disconnect and
a missed opportunity to align, inform and unite business and
citizens around the strategic milestones and tactics. There is a
‘duty’ to manage PR (Public Relations) as proactively to its
own home audience as much as it has to manage PR beyond
these shores. This has to address service, environmental and
quality issues in a mature and apolitical way.
It is inevitable that there will be criticism of any organization
that has a large chunk of the taxpayers’ dollars with which to
carry out its work. Much of that debate is healthy and
thought provoking; some of it is a distraction and rooted in
very personal beliefs or perspectives. Regardless, a Strategic
Plan with short, medium and long term objectives would
greatly assist in uniting this interest and ‘expertise’ to best
effect.
9.1.1 Variation in Marketing by Target Region
In view of the changing and evolving airlift situation, each
overseas territory has had a different set of challenges to
overcome in order to deliver their objectives.
United States
In the US, where the seat capacity growth is most significant,
the challenge has been to get ‘heard’ in a very crowded
marketplace. Jamaica and the Bahamas have typically been
the market leaders, with value driven products and high spend
on both TV and print (above the line) advertising as well as
compelling (financial/volume driven override) incentives in
place with the Trade (below the line). Additionally, their ‘lead’
products and brands such as Sandals, Hiltons, Ritz Carlton’s
etc also play a significant role in ‘boosting’ the marketing
dollar by either joint promotions or their own group efforts
which ripple positively to the Destination since they have their
own followers and loyalty programmes which can be
manipulated or leveraged to drive business. This further
emphasizes the need for Barbados to develop the
international brand presence in accommodation.
Barbados (in the US) is disadvantaged by its relatively small
marketing budget and the limited number of hubs from which
one can depart for a non-stop or ‘direct’ service to the island
and the seasonal nature of airlift meaning a year round
awareness campaign is not really feasible or cost effective.
The island is one of the furthest Caribbean islands,
geographically, from the US which adds to the cost of travel.
The consumer is typically:
non-loyal: looking for new experiences each trip
with short attention span for leisure and short breaks
the norm);
wants value guaranteed: steering towards allinclusive deals; and
is generally a cautious traveler: looking for familiarity
(i.e. US brands).
Areas around the airline gateways are targeted through a
variety of above the line media: niche magazines, newspapers
in target areas linked to the gateways; for example, JetBlue’s
Chicago services now make this a possible market for
development. However, the bottom line in the US is that
Barbados needs to raise awareness –of the brand and the
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9. Objective 4: New Marketing Initiatives to be Introduced product alike to become Top of Mind in a way currently
enjoyed by Jamaica and Bahamas.
Canada
In Canada, brand Barbados remains aspirational; the ‘Monaco’
of the Caribbean, but enjoys great affection and loyalty for its
accommodation product mix, and especially for its integration
of the tourist and residential communities. This is broadly true
for the UK market also. The Canadian and UK demographic is
quite different from the US - although Value remains a much
valued proposition, there is more willingness to engage in the
‘island’ experience beyond the hotel, there is a much higher
propensity to repeat visit and there is not the same need to
see familiar brands. Interestingly (and anecdotally!) Canadians
tend not to like tourist spots dominated by Americans which
may ultimately deter them from Cuba when this market opens
up to the US.
United Kingdom
In terms of consumer behaviour, the UK market consumer
shares more in common with the Canadian visitor than the US
visitor. Barbados is also an aspirational destination (it has a
“wow” factor in the consumer mind); it is generally considered
a luxury brand and has an ageing (albeit increasingly active)
following of loyalists which must be firmly put on the radar
and addressed. It is now competing with the likes of Dubai
and Mauritius, the Maldives etc. for attention from 25-35
middle income travelers who seek designer style and
modernism in their holiday accommodation alongside the
sun, sea, sand, dining delights (and hidden ‘hygiene’ factor viz.
safety) that are now the minimum expectation from an
increasingly well travelled and sophisticated group.
For all markets, the socio-economic demographics are skewed
towards the 35-54 plus age group with middle incomes; the
Best of Barbados and Barbados Freedom Package skew this
more towards the 25-54, slightly less affluent, more budget
conscious age group. This is an important point to
acknowledge when looking at who will replace the traditional
consumer. New traffic is being stimulated in a demographic
that is not typically seen as being consistent with the
traditional positioning of Barbados. Inevitably, this must have
ramifications for the consumer expectation and the product.
It also directly highlights a juxtaposition that has to be
addressed; satisfying the ‘budget’ traveler as well as offering
products for the more affluent sophisticated younger traveler
who now has a much bigger range of choice in terms of
vacation.
9.1.2 Trade Partnerships & Programmes
The value of the Trade partnership is well understood and
continues to be a main thrust of the ‘below the line’
marketing activity in all the primary markets. In common with
the other overseas offices, the Best of Barbados (BOB)
campaign, although effective, was felt to be about
maintaining market share rather than driving new business.
After 8 years this programme is in need of review and
overhaul in order to assess its value in the marketing mix. The
BOB initiative is really an ‘above the line’ value deal which
appeals directly to the consumer by delivering tangible dollar
amounts to the visitor on booking –a credit towards airfare,
credit towards food and beverage etc. The value to the agent
is the same and the reductions are underwritten by the fund
allocated to BOB.
Canada has already evolved the programme to the Barbados
Freedom Package. This evolved package is a very user friendly
and obvious ‘value’ proposition, which uses the same funds
allocated to Best of Barbados but loading them directly onto a
debit card. This gives a real sense of ‘gain’ to the consumer
and was introduced to the preferred trade operators in Spring
2009. It directly addresses the issue of value successfully and
the benefit is easy to realize.
A number of other programmes are also operating amongst
the trade to drive business and loyalty; the effect is principally
to maintain market share and encourage loyalty. Note that
Canadians dominate the ‘Over 25 Club’, the device for
recognizing visitors with over 25 visits. Disappointingly the
website underplays the benefits and begs the question as to
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9. Objective 4: New Marketing Initiatives to be Introduced whether loyalty is being utlitised or managed as well as it
could be?
As the market changes and the distribution switches towards
more direct bookings, the trade relationships will need to
come under more scrutiny to assess their value and determine
their share of marketing attention/funds. The prevailing
sentiment was that the role of the trade in driving volume
was shifting; in the US the retail sector was retrenching
significantly – a pattern also seen in the UK, Europe and
Canada. The role of incentives has generally a short term
impact and the trade is vulnerable to persuasion from other
islands that have bigger pockets! There is some danger of
institutionalizing and conditioning the market through this
practice but its tactical value is undisputed.
9.1.3 Trade Shows
There was a general shift away from Large Scale Trade
Show/Exhibition activity towards more targeted, personal
connection with the trade and consumer – sponsoring a
‘Barbados evening’ for a group of agencies or an agency and
their top clients for example as a more personal and
memorable way to interact with prospective clients. Tactical
alignment is also becoming more popular; the Canadian BTA
office have partnered with the Liquor Board of Control of
Ontario in key stores as part of a lifestyle positioning
initiative. The PR element is also a good by product of a
genuine move towards ‘touching’ the public by brand synergy.
However, Trade Shows allied to, or based on, Niche products
(ex. Dive Shows, Wedding Expos) are increasingly seen as
being able to penetrate a market segment defined by activity
interest. This is a relatively new focus but one which is
increasingly likely to provide opportunities to drive growth if
used to support a strategic plan of niche development.
9.1.4 Public Relations
The role of PR in the marketing mix was felt to be
undervalued and an area for development. The role of PR was
seen as something of a specialist subject and was more
significant in both the UK, European and Canadian markets
than in the US. The use of PR specialists (or a PR training
session) would no doubt enhance the confidence around this
medium and allow Barbados to ‘punch above its weight’ in
dollar terms. As identified earlier, the need for PR Quality
Photography is also a ‘must have’.
Jamaica has ‘scored’ significantly in PR terms; it has been able
to gain masses of positive PR for the island due to its
outstanding success in Athletics and the halo effect has been
a welcome boost for the island providing a multitude of
opportunities to leverage the Jamaica brand and flag (the
latter being a strong identifier). The recent success of Ryan
Brathwaithe in the World Championships provides a perfect
opportunity to raise some PR inches through clever and
topical use of his achievement. The art of this kind of
marketing is to be quick off the mark and topical; it requires
inventive thinking and a sense of humour is also useful. One
execution could be pictures of Ryan overcoming the ‘hurdles’
of island life to represent a lifestyle type message; falling off a
wave surfing, struggling to land a big fish and so on.
Obviously this would need to be subject to approval by Ryan’s
image management but the opportunity is just waiting to be
seized. The PR element combined with the campaign element
strengthens and extends the impact.
9.1.5 Marketing Media: The Wave of the “Net”
Traditional media such as newspapers and magazines were
used to varying effect throughout the markets to support
either awareness, tactical, promotional or lifestyle messages.
Radio remains extremely powerful and good value; the
Canadian Breakfast in Barbados annual competition in
partnership with MUCH Music in Canada continues to be a
huge success and achieves international coverage through the
use of celebrity artists. TV is considered expensive although
careful use of vacations as prizes for popular TV shows is a
relatively inexpensive way of gaining awareness and obtaining
exposure. The potential for raising awareness through radiocompetitions, travel shows etc is great. However radio is not
considered a new or sexy medium and can often be
overlooked in the media mix when it actually has the potential
to deliver real value and brand awareness cost effectively.
66
9. Objective 4: New Marketing Initiatives to be Introduced In all markets the influence of the trade and tour operator on
the consumer was being eroded by the internet and the
increase in independently booked trips. Again, this speaks to
the well-documented effect of the World Wide Web on
tourism. The defining zeitgeist is that we live in an
information-driven age and there is an explosion in the
growth of consumer led, peer to peer advice with TripAdvisor
being the dominant force in the market. This has massive
implications for marketers –‘control’ of the brand and the
visitor experience passes to a third party with infinite
reach and influence and thus the need to ensure the
experience of the visitor is positive is more vital now than
in any previous era.
The spectre of a negative experience ending up on say,
YouTube is a potential PR nightmare which is simply not
controllable by the marketing authorities. The web has
effectively instituted the ‘democratisation’ of travel and it
must also be remembered that tourism stakeholders such as
waiters, taxi drivers etc are also able to go on-line and express
their views which may not always gel with the ‘official’ line.
Again, this speaks to the need to have a clear and
understandable vision and brand which is ‘out’ on the island.
Amongst 25-45 year olds, booking on line is the norm. There
are a number of strategic partnerships in each of the overseas
territories with the market leaders such as Travelocity,
Expedia etc. They now account for a significant and growing
percentage of traffic and are likely to remain the key channels
in the immediate future. The web is likely to continue to
evolve and will drive the lion’s share of bookings (where it
doesn’t already) in a very short space of time. E-commerce
will be the standard for product distribution and it is essential
that this media is well understood and can be leveraged for
maximum effect. The intertwining with Social media such as
Facebook and Twitter is inevitable and whilst the BHTA and
the Intimate Hotels brand have Facebook presence on their
sites there is currently no link on the BTA website. The
Barbados Stay-Over visitor survey confirms that over 45% of
all visitors consider the internet to be a very important
information source when planning their travel, while only
16% relied as heavily on travel agents and even less on print
media and television. For travel, the internet is the primary
source for information and has significant influence on the
travel decision of the potential visitor.
The current website www.visitbarbados.org was generally felt
to be outdated, unable to provide management information or
analytics, too difficult to update or use for tactical effect and
in general not an adequate reflection of what is needed in
terms of functionality and vision for Barbados in 2009. The
BHTA website www.bhta.org is equally unimpressive and
again a poor reflection of the industry and its considerable
capabilities. Both sites are scheduled to be re-launched
imminently and not before time; they cannot be allowed to
become anachronisms and must be fully integrated into the
Sales and Marketing processes of the industry. The BHTA is
launching its own new e-commerce portal for its members in
November www.barbadosbookingcentre.com which is a
positive development.
A comparison with the industry leader, www.australia.com
would be a useful exercise; ditto www.canadatourism.com
which is specifically for Canada’s Tourism partners and
contains a brand toolkit alongside statistics and research. The
objectives are transparent, the vision clear and the sites are
designed to appeal and be useful to the consumer and the
tourism partners.
The importance of strong and dynamic web presence cannot
be overstated. The opportunities presented by the
proliferation of social media must also be grasped and
exploited within the framework of the strategy and brand
vision. These are specialist areas and will require education of
industry leaders from experts in what is a new and fast
evolving niche. The need to be fast moving, relevant (topical)
and tactical calls for a different set of skills than is likely to be
the norm in most traditional marketing organizations; thus
the structure of the marketing operation must be reviewed to
ensure this area is being appropriately managed and
resourced with the right level of skill and talent as it becomes
a more significant part of the marketing mix and expenditure.
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9. Objective 4: New Marketing Initiatives to be Introduced As the web evolves, there is a general shift away from
traditional on-line marketing as Search Engine Optimisation
becomes the holy grail of e-commerce. User Generated
content, Unique, Relevant and Destination Content plus
multi-lingual portals (especially if the South American market
is to be engaged) must be designed to drive traffic and
increase the conversion to book/visit.
9.1.6 Best Practice Sharing
There is no doubt a wealth of knowledge, passion and
expertise within the BTA and the BHTA and its associated
membership. The restructure of the BTA is clearly an attempt
to bring focus to both the product aspects of the brand and
the marketing through the splitting of the organization into
two specialized functional divisions.
One of the key issues for the newly formed marketing team
will be to address how to share Best Practice and successful
initiatives. There appears to be an informal network of
colleague to colleague collaboration across the markets; there
are some common programmes but also a great degree of
autonomy in terms of local execution which is very effective.
The interface between Head Office and the overseas
operations must be developed to ensure alignment of key
strategic objectives. The recent Sports Tourism seminar
illustrated the gaps in the opportunity and the application of
resource. As one of the new targets for Tourism Barbados the
appointment of a VP for Sports and Liaison Officers in each of
the overseas markets is an important step in making
significant inroads into a lucrative sector which is already
being loosely worked by the Private sector to varying degrees
of success. Ditto the Wellness niche and also the Faith based
tourists which are emerging as areas of significant potential.
Other emerging niches e.g. Corporate Travel Clubs and
University Travel Clubs were trends that had reached a degree
of maturity in some markets but clearly offered potential in
others.
9.2 THE CARIBBEAN MARKET AND THE CRUISE VISITOR There was very little data shared which spoke to either the
Caribbean visitor or efforts to grow this market or the Cruise
Visitor and the potential represented by this sector.
Both are highly significant to the industry and the marketing
efforts are spearheaded out of BTA HQ. The drive to encourage
home porting is being grasped and the need to encourage
later departures to allow cruise passengers to remain on
island longer is being pursued; timescales and strategies to
achieve this are unclear. The Product question again raises its
persistent head: is there an understanding of what is being
offered by the competition or other islands? How much is
there to differentiate Barbados from St. Kitts, Antigua,
Grenada? Why does a t-shirt cost US$15 in Barbados but only
US$12 in St. Thomas? Cruise ship passengers are uniquely
placed to compare value from island to island and it is
essential that this monitored by the custodians of the brand.
The Caribbean marketing strategy for the regional visitor
market is strongly rooted around Cropover and Cricketing
Events. These have been successful and established a ‘pattern’
of tourism which is reasonably consistent. Events such as the
Jazz Festival have also sought to bring visitors from within the
region and St. Lucia’s success in this genre is inspiring. The
VFR market is difficult to evaluate but by general consensus
remains an opportunity to develop. Ditto for MICE where the
infrastructure efficiencies (hotel plant, conference facilities,
reliable communications) are a major attraction along with
the relatively short flight times. This is offset by the relatively
high fares for flights and the somewhat dubious reputation
for reliability and baggage delivery that is part of the Liat
legacy. The partnership between BTA and Liat for cricket in
Barbados for $1 was fully subscribed and was instrumental in
ensuring that flight capacity was fully utilized. Whether it
generated additional traffic or simply subsidized existing
demand is unclear.
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9. Objective 4: New Marketing Initiatives to be Introduced The marketing challenges represented by the intra-regional
target audience are very different from those presented by the
non Caribbean markets. Attitudes to core products such as the
beach, weather and food are markedly different although
relaxation and value remain major determinants of the
‘experience expectation’.
9.3 NICHE MARKET SEGMENTS AND ‘PRODUCT OWNERS’ There were also a number of comments about the need to
link the ‘product owners’ more closely to the market place.
The BHTA Product Clubs provides this interface currently
although both parties would benefit from the niche values
and potentials being better recognized and quantified in
terms of visitors and dollars. The BHTA have identified areas
within these niches which need improvement and
development and have in many cases implemented the
solutions. Examples of these include:
an upgrade of the areas where wedding licenses and
formalities are dealt with, leaving a much more
positive impression for the visitor;
donation of 2 Segways to the Royal Barbados Police
Force to assist with patrolling the South Coast
Boardwalk (supporting the Visitor Safety principle).
This also provides the vehicle to agree funding, development
and expansion of these niche markets and ensuring they
contribute appropriately to the overall mix and value of the
Barbados Brand. The need to support sales drives and keep
up to date with the competition and the consumer
expectation was a consistent message from those in the
field. The ability of the Product Team and the Product Clubs
to meet this challenge will determine how successful
Barbados can be in evolving itself to match the demands of
the next decade.
9.4 A CRITIQUE OF THE BRAND & ITS MARKET PRESENCE The Brand represents a promise to the consumer, and
therefore clearly needs redefining and rearticulating to meet
the needs of the market in 2010 and up to the next 5 years.
The conclusion is that some major work needs to be done on
the brand. It was mentioned that a Brand Perception Study
was undertaken in 2004, but this was not seen or expanded
upon. The output of this is probably the first point of review.
Regardless, there is a lack of cohesiveness in the brand
visually. For example, there are at least 8 different fonts on
the home page of the website and numerous ‘sub-brands’
e.g. Staycations, Run Barbados, which don’t appear to be
related to the ‘Master Brand’ –which is also a ‘Country
Brand’. The majority of these seem to be initiatives which
have been ‘adopted’ by the Master Brand but their place in
the family seems uncertain –for example the Intimate Hotels
brand evolved under the banner of the BHTA does not seem
to have any presence on the BTA web site but this is perhaps
explainable by it being seen as a private and independent
initiative –although on its own website it states it is a ‘Close
Partner of the Barbados Tourism Authority’. Intimate Hotel
members are listed in the accommodation section however.
To use a local term it appears to be an outside child! Indeed,
this is almost symptomatic of the brand’s weaknesses. The
sub-brands, be it accommodation, attractions, culinary,
sports related are poorly defined and their role in the
marketing mix is not maximized.
Further, the website, essentially the most visible and tone
setting manifestation of the brand presents Barbados along
the lines of something designed to attract ‘Spring Breakers’ –
if you access through the Caribbean, South American or
African portal. There is no sense of modernity,
69
9. Objective 4: New Marketing Initiatives to be Introduced differentiation, ‘cleanness of image’, aspiration; numerous
gaps in information –events, calendars, press kits, images etc
which is a very negative reflection on the BTA and their ‘shop
front’ to the world. It undermines confidence in the BTA as
the custodians and heart of Brand Barbados. The look and
feel via the UK, US and Canadian portals is less schizophrenic
and more ‘international’ but the most often echoed
sentiment of Barbados as an up market and aspirational
brand is simply absent and highlights the confusion and
weakness of the brand profile. Bizarrely the font used to
‘headline’ each subject area is casual and completely
unrelated to the font used for Barbados with the Flying Fish
swoosh. There doesn’t appear to be ownership of this area of
the brand or even an understanding of the need to
define/reinforce the brand through cohesive and appropriate
logos, images, font, style.
A new BTA website is promised for early October (but as of
mid Nov is still undelivered) so it is expected this will address
both the functionality and brand image issues which are
currently a weakness of the site. However the lack of a
strong and relevant brand framework raises a red flag at this
point. In the Web 2.0 era, nothing less than a superior
functional and visual design can be expected.
Images of the island are also weak and poorly utilized in the
most part –better utilization is evident via the US, UK and
Canada portals. There are some excellent photographs but
the layout of the site does not always showcase them to
deliver the wow factor; they are mostly very small and
crowded and there is a lack of iconic imagery. Kensington
Oval and Grantley Adams may not be everyone’s ideal image
of Barbados but they are as iconic as the rocks at Cattlewash
and can become identifiers which reinforce the brand as
much as Burj-al Arab shouts Dubai and Sydney Opera House
screams Australia. The use of a specialist PR Photography
company will undoubtedly deliver much higher impact
images and continue the differentiation of Brand Barbados.
Most worrying are the absence of brand values and the clear
identification of the sub-brands. The recommendations for
this section outline how the Strategic Plan/Corporate Intent
must ultimately translate into the Corporate Reality and
activities through the Corporate Expression. The recent
reorganization of the BTA into a Marketing and Product
Centric duopoly heightens the need for this to be addresses
or there is risk of further misalignment.
9.5 LESSONS FROM COMPETITORS ON BRANDING It was not possible to obtain statistical or ‘official’ comment
on the ROI or relative successes of the campaigns and
marketing efforts undertaken by other islands within the
region so the following is essentially anecdotal observation
of their activities.
However, before assessing the relative strengths and
weaknesses of the competition and their marketing tactics it
is useful to reference FutureBrand’s Country Brand Index and
consider what are the determinants of a successful country
brand.
Still a relatively new concept, Country Branding is actually
at the heart of most Caribbean Tourism Marketing initiatives:
sub-brands being destination and city products. Country
branding has to increasingly combine different aspects and
tools that together create a strong brand:
attractions
infrastructure
Price
Quality
Safety
70
9. Objective 4: New Marketing Initiatives to be Introduced Beauty
Tourism promotion along with business and
education promotion.
FutureBrand notes that country branding is often seen as
tactical and short term rather than as an essential strategic
activity that requires long term investment. Barbados
arguably does take a long term view but equally arguably
needs to redefine the value proposition and freshen up the
visual expression to one which is truly differentiating,
enduring and dynamic. This is essential in unlocking the
true potential of the brand and connecting it to visitors,
residents and investors alike.
in Preference- the audience does not esteem a visit, an
interesting result! It is possible that Barbados performs quite
differently in different markets on this factor. In the UK and
Canada, the Preference/Esteem factor is probably quite high.
In the US, this is probably not true (although probably linked
to Familiarity) giving the marketer food for thought as to
how to tackle this challenge: maintain in one market,
improve in another. Thus, whilst Barbados may be in an
emerging phase of branding in some markets, it may be in a
rising, maintaining or even ‘in vogue’ phase in another.
Remaining in Maintenance phase presents different
challenges to those in a Rising or In Vogue phase; the one to
avoid is obviously the Declining.
FutureBrand use a hierarchical Decision Model which
identifies the country brand’s maturity and evaluates how
the (existing and potential) visitors, residents and investors
relate to it along a continuum starting at awareness and
moving to advocacy. The specifics of the evaluation are:
Awareness: Is the target audience aware of the
country? How ‘top of mind’ is it?
Familiarity: how well do people know the country
and what it offers?
The number one Country Brand, Australia has a brand which
zeroes in on;
Adventure
Associations: what qualities come to mind when
thinking of the country?
Relaxation
Preference: how highly do audiences esteem the
brand?
Mouthwatering Gastronomy
Consideration: is it being thought about for a visit?
Pure (unspoilt) Scenery
Canada, at number 2 is notable for;
Decision/Visitation: to what degree do people follow
through and visit?
Natural and urban beauty
Advocacy: do people recommend the country to
family, friends and colleagues?
Diversity and Culture
The reason Australia continues to maintain its position as the
#1 Country Brand is its depth of brand associations;
although interestingly it does not lead in advocacy (Canada
#1) or Familiarity (also Canada at #1). Canada’s weakness is
Quality of life
Entertainment
Gastronomy
Business Infrastructure
71
9. Objective 4: New Marketing Initiatives to be Introduced Stability and Openness
As Barbados can also claim ownership of many of these
assets it is in a good position to strengthen its image around
the core message and values which support Brand Barbados.
It has, per the BTA website;
sheer natural beauty
richness of culture
friendliness of people
The traditional positioning of luxury, beach, relaxation is still
valid; it is however not enough of a differentiator nor wide
reaching enough to adequately identify it despite being part
of the ‘essence’ of the island. In a sense these assets
underpin the brand, but they are not sufficient alone to
prompt a purchase/visit or attract an increasingly
sophisticated and well informed traveler.
The Country Brand survey points out that Citizens are Rising!
Citizens are becoming much more vocal about the brands
their countries present and this speaks to fully integrating
the brand and its values into the education system as well as
through open and two way interface with the brand
custodians (the BTA and is business partners). It is worth
mentioning at this point that the Australian campaign
“Where the bloody hell are you?” stirred up great controversy
and even had the distinction of getting a ban from the UK’s
Broadcast Advertising Clearance Centre - a sure sign of a
successful campaign! It became a water cooler topic!
In both print and TV, set to aboriginal music- a strong
Australian identifier, the campaign attempts to harness the
value of Australian environmental icons by displaying them
as compelling experiences. (www.australia.com)
There is clearly an opportunity to present campaigns and
branding to the Barbados ‘citizens’ (both at home and
abroad) in a much more deliberate and considered manner;
informing and educating the ‘citizens’. This presents many
diverse options to engage with the citizens, to provoke
comment, to educate and introduce a common language and
term of reference on the evolution of the brand and the
product. And if it causes controversy, at least it proves the
old adage that the only thing worse than being talked about
is not getting talked about! The call-in programmes will be
busy!
Tourism is often the most visible manifestation of a county
brand and the image, reputation and brand values impact
strongly on the products, population and investment
opportunities.
Brand messages which get honorable mentions include;
“No Artificial Ingredients” Costa Rica “100% Pure” New Zealand By contrast, “Just Beyond your Imagination” is a much
weaker proposition; it also positions Barbados as being
unattainable which is hardly a compelling tagline or brand
message.
Australia’s Tourism website provides a master class in a 360
degree, three-dimensional, fully transparent approach to
tourism and marketing the country brand.
Notable features are:
Total transparency of numbers: the Global Market
Monitor reports monthly on key trends and is
usually just 6 weeks behind with the latest visitor
numbers by sector. No membership is required to
access this data.
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9. Objective 4: New Marketing Initiatives to be Introduced User friendly and comprehensive explanation of
the brand: a brand toolkit with explanations of the
symbolism (logos, trademarks, artwork are all
accessible with guidelines and detail on use)
Information on the Destination Campaign of the
moment: this includes information about where,
when and how the campaign is being rolled out and
reinforces the brand values.
Details on Trade Marketing: the Aussies Specialist
Programme (ASP) is a device allowing Australian
tourism suppliers to feed product information and
educate the ASP network as well as taking feedback
from the trade. It maintains the active relationships
with the trade through on-line training, enewsletters, family trips, incentives etc.
Comprehensive advice on marketing to Inbound
travelers
Product Manuals: featuring accommodation,
transport information, attractions, special interest
areas
PR and Media strategy: including international
media hosting, global news network (print,
broadcast and on-line) and the advocacy strategy.
Industry Development Team: a point of contact for
industry partners who aim to connect, share
opportunities and provide support
A
comparison
of
www.visitbarbados.org
with
www.australia.com is an essential exercise in understanding
the success of Australia’s tourism and country branding and
taking some of the ‘wins’ and tips from the antipodeans.
collaborative in tone/approach
confidence in both product and campaign
accessibility to the industry and especially the brand
guardians
transparency: clear, attractive and interesting detail
on the campaign “Where the bloody hell are you?”
A strong country brand can hold up its products against the
following ‘Wants’ of the visitor and be sure it has a robust
offering in each category. Barbados must ruthlessly analyse
itself in respect of these and honestly assess and identify
areas for improvement and development. Equally, it must
recognize its strengths and seek to preserve and promote
them in a relevant and valid way.
Attractions –diversity, quality and uniqueness.
Authenticity- unique character combining the
texture of local life with rituals, events etc.
Culture- arts, crafts, intellectual pursuits, creative
environment
Ethos –customs, beliefs, mores and history that
create desire to Visit
The desire to Visit a country (ie ‘general vocational tourism)
typically invokes the following considerations:
Natural Beauty
Authenticity
Rest and Relaxation
Friendly Locals
Safety
Some simplistic observations of the successes of the
Australian marketing strategy are:
cohesive image: clean and modern look to the
brand, branding and website, but always identifiably
Australian
Standard of Living
Art and Culture
Ease of Travel
73
9. Objective 4: New Marketing Initiatives to be Introduced Fine Dining
a) ‘Off limits’ to Americans: appealing to a visitor who
doesn’t want a ‘disneyfied’ experience
Value
Climate
The relative success and longevity of Barbados’s Tourism
industry is testimony to its ability to satisfy in many of these
categories. However, it is essential that these features are
continually evolved and standards maintained in order to
keep Barbados current and relevant in the mind of the
modern traveler.
Jamaica is generally considered to have the most iconic
‘brand’ in terms Caribbean tourism although it has an image
problem -personal safety - in the UK which is not so evident
in the US. This is an interesting example of the sensitivities,
knowledge and maturity of the product in the various
markets in which the island presents its case. It has some
iconic images and associations which provide useful
reinforcements and awareness of the island and its charms –
Bob Marley, Reggae music, Dunn’s River Falls and now Usain
Bolt speak inextricably and positively of Jamaica. Equally,
Jamaica’s flag is another easily identified universal symbol
which keeps the image alive and which is in the happy
position of getting exposure every time a Jamaican athlete
succeeds – recently quite often!
Bahamas, Dominican Republic and Barbados are also
notable in terms of establishing a ‘country brand. However,
Dominican Republic, Cuba and Cancun dominate the
numbers game in terms of visitors. This is partly considered
to be a function of the number of hotel rooms and plane
seats available, and partly because, as a general rule, they
price lower than the other islands who seek to lure tourists
to their tropical paradise. In the consumers’ mind this is
purely and simply a Value-for-Money proposition which sits
alongside the checks on the box for Attractions, Authenticity,
Culture etc.
Cuba, despite the relatively unsophisticated marketing of the
island, scores high on the appeal/interest rating by being:
b) A ‘safe’ experience whilst at the same time offering
something unfamiliar and out of the comfort zone
in terms of the political ideology
c) Enigmatic, but combining a strong combination of
USP’s (UNESCO World Heritage sites etc.) with
history, culture and the exotic beaches, weather,
architecture, and cars
d) Value for money: as a result of cheap and controlled
labour and Cuba’s import restrictions which have
had an impact on agricultural and other service
supplies to the tourism industry.
Essentially Cuba is being marketed as an island of charms,
happiness, history and hospitality: important hook/buzz
words which the traveller can understand and desires of
their tropical trip.
A delegation last year to India that resulted in 3,000 visitors
from the sub-continent is witness to the ambition and focus
of this nation - which still outwardly wrestles with
welcoming in ‘extrañeros’ (foreigners) who may ‘dilute’ the
vision of Castro’s La Revolución.
Even today Cubans are discouraged from ‘engaging’ with
tourists although with growing numbers and a more relaxed
outlook (perhaps encouraged by the value of the tourist
dollar) this is becoming less of a barrier and bucks the trend
that tourism succeeds when locals are engaged and interact
freely with visitors? But then, Cuba is almost always the
exception that proves the rule in tourism terms.
This is a smart, and perhaps lucky, distillation of the brand
and its values and translates easily to the stakeholders and
potential visitors alike. Interestingly, the reality is of course
somewhat more complicated and controversial although the
recent efforts by Raul Castro to allow more free integration
between Cubans and visitors are a hallmark of the ‘new’ post
Fidel days.
74
9. Objective 4: New Marketing Initiatives to be Introduced What is also significant (and a little ironic) is that Cuba
appeals for its political stability and reputation for safety.
Visitors are largely willing to ignore the issues of widely
differing socio-political ideologies as their trip reassures
them of safety but also ticks the ‘not what I am used to but
still in my comfort zone’ box to just the right degree!
In recent times almost all the English speaking Caribbean
islands with a heavy reliance on Tourism have put out above
and below the line initiatives to try and stimulate demand in
additional to traditional activity.
The tactics vary from the use of cab top signs by Jamaica
using its ‘Once you go you know’ strap line in the key metros
in the US, to an on-line Treasure Hunt competition targeted
at the LA market by Curacao! Two extreme examples of the
degree of innovation and range of medium required by the
modern marketer attempting to get
attention,
stimulate interest
desire to try
convert the increasingly sophisticated and
knowledgeable consumer to action and purchase!
The agency has created a TV, print, online and direct mail
campaign intended to drive people to a website allowing
them to enter a prize draw for flights to the island of
Curacao.
The draw will pick ten finalists who will take part in a
treasure hunt on the island in August to find the $500,000
prize. People are also encouraged to visit the website
frequently as they have a chance until May 23 of winning a
daily prize of a trip for two to the island.
In June 2009 it was reported that the United States Virgin
Islands Department of Tourism launched a new advertising
blitz aimed at luring potential visitors from the U.S. with a
message of freedom and reinvention –two of the new
buzzwords in destination and leisure marketing.
The idea of the "You, Unscripted" campaign - which includes
TV, magazine, and Web spots - is that visitors to the USVI
can have unique experiences that help them establish a new
identity while on vacation, casting off old demons and rising
like a phoenix from the ashes of the quotidian, allegedly. It's
an updated version of a familiar message, but it could be
especially resonant these days now that most Americans are
stressed out and on the brink of unemployment.
It's interesting to see the USVI's approach to marketing in
the wake of several big campaigns from other Caribbean
islands. Aruba, for example, enlisted the aid of
comedian Lewis Black (a character well known in the
US) earlier this year to argue that a vacation there can soften
up even a diehard curmudgeon. An example of a celebrity
endorsement combined with a tactical message.
The traditional imagery of ads featuring white-sand beaches,
happy families frolicking in the surf, and sexy, childless
couples gazing dreamily into each other's eyes while toasting
the good life with tropical drinks is undeniably clichéd, not
specific but still very relevant at a certain level. Does it really
matter what the underlying message is? You've got beaches,
booze, and canoodling. Isn't that enough? Well, yes it does!
Such images reinforce the aspirational, the attractiveness of
the Caribbean but they don’t help the visitor differentiate,
determine or justify their choice of trip/vacation.
The use of USP’s and iconic symbols (Jamaica’s Marley
museum, St. Lucia Jazz Festival, or Antigua’s historic Nelson’s
Dockyard at English Harbour) is essential to supporting the
macro brand of each island. However, given the desire by
visitors to ‘experience’ the culture or have a memorable
experience, the use of more subtle and esoteric elements of
the product are also equally valid and necessary. Combine
the notable architecture of the new Kensington Oval with a
world class Cricket Museum tour and the combination of
iconic image and positive experience becomes a compelling
platform in support of Brand Barbados.
These authentic delights, often overlooked and undervalued
by marketers looking for a ‘sexy’ angle must be recognized,
75
9. Objective 4: New Marketing Initiatives to be Introduced preserved and supported in order for Barbados to deliver its
brand promise. Thus the opportunity for a visitor to join in a
game of dominoes at Oistins, go to the Drive-in movie
theatre or enjoy some beach cricket with locals is essential to
underpinning the bigger infrastructure and brand issues.
Product is a multi dimensional and complex combination of
elements which do not have to require large capital
investment or vision; preserving authenticity is as important
as evolving an iconic architecturally notable new hotel or
golf facility.
Tourism Intelligence, a European (Germany) and Caribbean
(Trinidad) based tourism consultancy summarise the
challenge facing tourism destinations as:
The "golden age" of mass tourism - of unlimited
growth and disregard for the environment, of
standardised, rigidly packaged products and services
- is over.
A new tourism is emerging, sustainable,
environmentally and socially responsible, and
characterised by flexibility and choice. A new type of
tourist is driving it: more educated, experienced,
independent, conservation-minded, respectful of
cultures, and insistent on value for money.
Information technology is opening up an astonishing array
of travel and vacation options for this new tourist. To remain
competitive, tourism destinations and industry players alike
must adapt. For many, the challenge is to "reinvent" tourism.
Market intelligence, innovation, and orchestrating customer
experiences have become the new imperatives.
9.6 RECOMMENDATIONS Branding
Determine the manifestations of Value, Authenticity, Sustainability and Personal Safety as they relate to Brand Barbados
Review of the 2004 branding exercise
Establish brand values, the sub-brands(niches) and define their terms of reference e.g. Sports Tourism/Sporting Life, Island
Romance/Wonderful Weddings, etc
Update the brand image and logos to reflect the values and perceptions that will underpin the Master Brand and its
positioning
Create a Brand Bible to establish use of the logo, positioning, fonts, colour iterations, iconic images, sub-brands, taglines etc.
Ensure Website, print, collateral, etc reflects the brand to best effect and is consistent with the brand bible.
Align the organization(s) around both the markets and the brands as appropriate.
Align the Product Development and Marketing initiatives around the brand and its values.
Contract a specialist PR Photography company to differentiate the visual images and to boost the PR initiative.
Ensure there is consistency with the brand message as it translates into the local markets
Build the Country Brand to increase Awareness
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9. Objective 4: New Marketing Initiatives to be Introduced Overall Strategy & Marketing
Articulate a Strategic plan for Sustainable Development of Tourism in Barbados –up to date, relevant and endorsed by the
BTA, Ministry of Tourism, Ministry of Trade, Industry and Commerce and the BHTA.
Define the measures of success/Key Performance Indicators (KPI’s) as precise objectives.
Ensure systems and technologies are aligned to provide timely and valid information.
Ensure the measures of success (KPI’s) are communicated to the industry.
Update the industry and the public frequently on progress and review the measures and results for each budget year.
Unite BTA and BHTA around the niche/Product Club opportunities in terms of both promotional activity and marketing
spend.
Articulate the measures as they relate to the Strategic Plan.
Quantify the relationship between the dollars spent on marketing and the dollars generated including the multiplier effects
are they are understood/reliably calculated for the island.
As noted, reference to a common strategy or action plan was not evident. By reason of deduction and discussion, the following
‘emerged’ as the contenders or Strategy Possibilities for Tourism Barbados.
Pursue a Strategy of Differentiation by;
o
Developing World Class standards e.g. Zagat for dining, AAA Blue Flag etc.
o
Create Top of Mind Awareness by undertaking Large Scale World Class Events e.g. CWC 2007 and World Golf 2006
Create a World Class Marketing Capability
o
Ensure intelligent systems and software which provides market segmentation data, demographics and
psychographics
o
Align marketing activity in the core and emerging markets around the ‘mother ship/BTA/Ministry of Tourism’ vision
Establish World Class Service Delivery
o
Incentivise and recognize superior service
o
Turbo-charge the NISE initiative
o
Address ‘hard’ service issues e.g. Road signage etc.
Establish World Class Product
o
Manage and match the mix of product and marketing to airlift and cruise traffic targets
77
9. Objective 4: New Marketing Initiatives to be Introduced o
Simplify, simplify, simplify arrival and departure and visa requirement processes (without compromising border or
safety issues)
o
Update, modernise and upgrade hotel plant and attractions and infrastructure to attract visitors in the younger
demographic
o
Address issues of sustainability
o
Preach the ‘holy grail’ of Cleanliness, Friendliness, Safety and Security =Relaxation
o
Retain, protect, preserve the ‘small delights’ that characterise Barbados and underpin its authenticity e.g. Oistins,
Drive-in Movie theatre, Second Street Holetown
o
Develop/promote niche products such as for MICE, Weddings, Sports, Faith, Health etc
Manage macro socio/economic cost/ yield relationships by alignment with National Strategic Plan.
Increase PR capability and expertise especially in terms of photography
More tactical and topical marketing initiatives showing wit and humour
Better use of web analytics, research and intelligent software
Further define and refine market segments –mature, evolving, new, Sports, MICE etc and allocate resource based on
expected contribution in terms of visitor numbers and spend.
Review and revisit the plan frequently
Deepen the demographic data/research capability and compare/contrast to predictions for future travel trends
Share Best Practice and results and successes
Benchmark against the best and most successful country brands and web presence
Fix the web site
Amongst the industry stakeholders the core principles and strategies for tourism in Barbados must be reviewed and agreed and
become part of the DNA and language of the industry and translated into a Strategic Plan with actions, accountabilities and
timescales. Success or failure must be actively measured against this framework and the action plan to implement and deliver
the results can then be adjusted and evolved accordingly.
The ability to identify the opportunities and to diagnose the challenges has never been the problem. It is the ability and resolve
to deliver the solutions that have perhaps been the weakness historically. This must be a ‘Tipping Point’ moment where the BTA
repositions itself and can measure its results against its ambitions and objectives. It has never had a better opportunity.
78
10. Objective 5: Support Required
For Controlled Supply Growth 10.1 INTRODUCTION We understand the support required to facilitate controlled
supply growth to be all policies, regulations, and public
processes that facilitate the controlled development of the
tourism sector. It is this regulatory and access infrastructure
that governs how tourism develops in Barbados and without
sacrificing the existing supply.
It should be noted, however, that there has been minimal
supply growth over the past ten years despite significant
growth in tourism arrivals including both stay-over visitors
and cruise passengers. The most notable developments in the
tourism product supply has come as a result of the villa
developments which have added such amenities as two new
golf courses, polo, and a new marina and beach club.
Approximately 900 hotel rooms have been added in the past
five years and a handful of new attractions, one of which,
Ocean Park, has subsequently closed.
The support required to facilitate supply growth of the sector
includes:
financial support, through the provision of favorable
financing terms and financial incentives;
government support, through the facilitation of
timely approval processes and the communication
of a unified strategic direction for the industry;
continual improvement to air and sea access to
ensure that adequate numbers of visitors come to
Barbados to provide the necessary volume of
business to support increases in supply.
In order for supply to viably increase there has to be a case
for a solid return on investment, sound operational support
from regulatory bodies and a skilled pool of human
resources, and adequate market size from tourists and locals
alike.
10.2 A REVIEW OF THE GREEN PAPER 2001 & SUSTAINABLE DEVELOPMENT Policy formulation must be driven by a clear understanding of
the market place, a vision for the future and periodic strategic
planning targeted at achieving the vision. Barbados lacks
these key elements, and may be guilty of disjointed action, and
periodic direction changes which undermine its success.
Sustainable development in a world where competition is
fierce is the Holy Grail which has not yet been achieved. In
fact many indicators point to a decline in Barbados
competitiveness and the sustainability of its product. We are
of the view that lack of strategic direction may be the single
most critical issue for the island to address now.
In looking for a common strategic tourism plan, it was
noticeable that there are no recent reports which provide as
good a foundation as the Green Paper of 2001. It represents a
“national tourism policy” and was written by the Tourism
Advisory Council which has recently reinstated by the current
administration. It remains the bible of guiding principles for
the Ministry of Tourism and the TAC has now been mandated
to update it and to produce a white paper.
It is useful to evaluate the Green Paper and to measure the
achievement of targets set nine years ago in the current
environment.
The Green Paper sets nineteen key objectives, which are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Awareness
Human Resources
Organization Structure
Standards
Contribution to the Economy
Investment
Marketing
Community Involvement
Services
Accommodation
79
For Controlled Supply Growth 11.
12.
13.
14.
15.
16.
17.
18.
19.
Inadequate foreign language skills in the workforce
Built Environment
The Natural Environment
Cultural Heritage
Land Use
Inter-sectoral Linkages
Technology
Safety & Security
Airlift
Cruise Tourism
Inadequate of technology in tourism development
General lack of awareness and understanding of the
tourism industry and its contribution to nation
development
Inappropriate base for inter-sectoral linkages
Inadequate number of brand name hotels
Low return on investment
The report contributes a very frank assessment of the current
state of each of these and sets a series of very practical goals
for each objective, and targets to be achieved for each. The
achievement of these targets has been compared in the
following Table 8. It is also interesting to repeat the
weaknesses which were identified in the SWOT analysis
included in the report, many of these remain genuine issues
today:
Relatively high operating costs,
Insufficient focus on service
Little or no participation by local communities in
planning and development,
Ineffective marketing of Barbados tourism product
Inadequate access to some activities and beaches
Unacceptable Incidence of Garbage
Accommodation plant is physically run down in some
areas
No clearly stated national vision for tourism
Lack of adequate research capability
Inadequately trained workforce in some aspects of the
industry
Unattractive investment climate
The Green Paper also explored the organizational structure of
the industry and the branding of Barbados. It remains true
today that there is no common set of values, cohesive
language, commonality of critical success factors and a clear
brand which all stakeholders in the industry are mandated to
comply with. This is partly due to the lack of a clearly thought
out brand and a lack of participation and involvement of all
stakeholders at all levels of the tourism development process
and the partnership within and between the public and private
sectors of the economy. There is no integration of policy
formulation and no serious commitment to business
facilitation
It is interesting to note how few of the targets set in 2001
have been achieved or even come close to being achieved. For
example:
Table 8: Green Paper Targets vs. Actual Stay Over Visitors 2009
Cruise Ship Arrivals 2009
Brand Name Hotels
Employment
Hotel Rooms
TARGET
2009
864,219
881,557
6
22,090
9,400
ACTUAL
2008
563,118
597,523
2
14,000
5,200
Limited national focus on intraregional tourism
80
For Controlled Supply Growth 10.3 GOVERNMENT POLICY STREAMLINING Government policies and procedures facilitate the activities of
the tourism sector. With this in mind, the regulatory
environment must be structured in such a way that it ensures
that the policies in place do not create undesirable effects on
companies by hindering their productivity, slowing the
execution of initiatives, and generating downtime on projects.
Any such effects cause additional costs which therefore can
become a burden on companies and hamper their growth.
Based on the interviews with industry stakeholders and the
results of the survey conducted, the main concerns and
repeated shortcoming of government departments is the red
tape. Government’s policies need to be refined to create an
effective balance between the regulatory standards whilst
preserving a business climate conducive to competitiveness. In
an economy that is highly dependent on tourism, it is
important that the government make it a priority in all
departments to ensure its success.
According to the survey results, the government departments
with which the tourism sector interacts with most are the
Ministry of Tourism, Ministry of Health, Town & Country
Planning Authority, Coastal Zone Management Unit, and
Immigration. The general opinion of the sector is that the
response time from these departments is too slow - 60% of
respondents. When asked to rate the service provided various
government departments the responses were generally less
than desirable with only the Central Bank and Land Tax
department being rated more than a 3 (where 1 represented
excellent and 5 represented poor). Table 9 summarizes the
results.
Table 9: Service Rating of Government Departments Government Department
Central Bank
Land tax department
Immigration
Ministry of Transport & Works
Ministry of Health
Ministry of Tourism
Town and Country Planning Authority
Rating
1
2
3
3
3
3
5
5
The survey participants were also asked to select the main
sources of inefficiencies from a list. The most commonly cited
reason source of inefficiency was “Unbusiness-like approach
to operation”. The government is generally seen to be
adequately staffed with reasonable segregation of duties. The
table below summarizes the results:
Table 10: Cited causes of poor service and inefficiencies in government Observations of Causes of Poor Service
Unbusiness-like approach to operation
Poor organization
Too many departments to deal with
Poor / Insufficient training
Poor access to information
No one department dedicated to all activities of the sector
Unnecessary information requirements
Inadequate number of staff
Poor communication of processes
Too many functions for one department
Frequency
8
7
6
6
3
3
3
2
2
0
The government can be considered to be Barbados Ltd., it is
the company in the business of running the country. For any
successful business to achieve its goals and operate
effectively, it must constantly reinvent itself and eliminate
inefficiencies to ensure that the shareholders (in this case, the
citizens and businesses of Barbados) earn the best return on
investment possible. Certainly, no business can thrive without
making customer service a priority, the government is no
exception.
81
For Controlled Supply Growth A Case Study in Setting Up a Hotel in Barbados:
By way of example consider the number of government departments and ministries which must be dealt with by an
entrepreneur looking to set up a new beachfront hotel:
1.
Corporate Registry
7.
BTA
13. Fire Department
2.
TCDPO
8.
MoT
14. National Insurance Office
3.
CZMU
9.
MoF
15. Customs & Excise
4.
EPD
10. Immigration Department
16. Commissioner of Inland Revenue
5.
MTW
11. The law Courts
17. BWA
6.
Ministry of Health
12. Exchange Control Authority of
CBB
Many of these departments have multiple obligations, for example Ministry of Health approves Pool licences, restaurant
licences, the health implications of planning applications etc.
There is no facilitation desk to help new business entrants through the minefield of this process, and no reference manual
which describes it. The need for such tools is evident.
It is evident from anecdotes we have received from foreign business owners and managers that they find the process of
establishing a new business in Barbados frustrating, unwieldy, time consuming and unnecessarily complex. Many Business
commentators regard “time” as a major factor affecting competitiveness, and Barbados can no longer expect to compete
with practices which are an impediment to new business generation.
RECOMMENDATIONS When asked how the Government could streamline its
operations, 57% of participants considered the creation of a
“one stop shop” for tourism to be an effective solution with
an overwhelming 71% considering improved use of
technology to make a significant impact on operations.
tourism industry. The road map should be laid out in clear,
simple guidelines, so that new entrants can understand their
obligations, plan them logically and execute without
frustration.
Invest Barbados has now been empowered as a one stop shop
for the offshore financial services sector, and the time is ripe
for a similar initiative for Tourism.
One Stop Shop Concept:
The concept of a one stop shop is not new. It is a principle of
new business facilitation that the process of setting up a new
business from conception to opening should be “enabled” and
not “disabled” by the regulatory framework which exists in the
Government could streamline its policies and help those
employed in the public sector to do a better job by:
82
For Controlled Supply Growth removing the bureaucracy with the unnecessary
administrative tasks, approvals, and paperwork;
removing duplication with the identical activities that are
performed at different parts of the process and within
other departments;
creating simplified processes by reducing the complexity
of the tasks;
creating an efficient processing cycle – by reducing the
time interacting with the public;
evaluating every activity in the business process to
determine its contribution to meeting customer
requirements;
making it difficult to do the activity incorrectly;
upgrading equipment and the working environment to
improve overall performance;
using simple language and making documents easy to
comprehend by all who use them;
standardizing activities and having all employees do the
activity that same way all the time;
changing the day-to-day processes drastically- basically
improving the big picture; and
improving on technology - applying tools, equipment,
and computers to boring, routine activities.
10.4 AIRLIFT IATA (International Air Transport Association) are expecting a
combined $ 11 billion loss for the industry in 2009.
The economic crisis continues to be the key factor impacting
airline profitability but in recent months a number of airlines
have reported declines in traffic associated with the Swine
Flu.
IATA estimates international passenger revenue fell by as
much as 30 per cent in May 2009 (the first full month to feel
the impact of the Swine Flu on travel), compared to a 20 per
cent fall in March Quarter 2009 –YOY.
Whilst airlines have attempted to mitigate the effect of fuel
spiraling out of any reasonable budget forecast by hedging
and fuel surcharges, the latter has inevitably hit the
consumer in the pocket and although fuel surcharges have
been reduced as fuel costs subsided around the end of 2008.
Today they can add as much as 60 USD more to the cost of a
transatlantic flight compared to 3 years ago. The current fuel
surcharge for a UK/Barbados round trip is 444 BDS per
person –typically around 20% of the total fare.
The following figure gives an insight into the raw material
cost.
The twin pincers of suppressed demand and high fuel costs
have already borne witness to the demise of a number of
carriers and although fuel has come down considerably from
the July 2008 high of almost US$150 per barrel there is
genuine concern that a major carrier could be forced into
bankruptcy/Chapter 11. IATA has in fact suspended nearly 40
airlines from its financial settlement programme in the last
15 months. Giovanni Bissigani, the Director General of IATA
has stated that the industry is in worse shape than after the
terror attacks of September 2001.
83
For Controlled Supply Growth Figure 6: Average US Jet Fuel Prices
vulnerable to failure of serving carriers or cut backs by its
current airline partners. Although there are signs demand is
Average U.S. Jet Fuel Price
(Cents per Gallon)
Figure 5: Passenger Market Segments vs. Tourist Arrivals 2008
Passenger Market Segments 2008
350
300
298
Canada
250
200
172.7
150
100
197
United Kingdom
216.5
USA
50
74.7
70.9
85.7
40%
29%
0
2000
2001
2002
Other
7%
120.8
90.1
Caribbean
1%
2003
2004
2005
2006
2007
2008
Locking in the prevailing price for future deliveries of a
commodity like jet fuel is called a hedge. Hedging allows
airlines to limit the uncertainty over future costs by
mitigating volatility and improving financial planning.
However, hedging is a gamble that requires a relatively
healthy financial condition, a willing counter-party and often
a sizable upfront transaction cost. This makes hedging an
increasingly difficult proposition for many carriers. Hedging
also can be financially risky, because an airline could find
itself locked into paying more for fuel if the market price
drops below what it has agreed to pay in the hedge contract.
As Standard & Poor's remarked in a March 28, 2008 research
note, "The U.S. airlines...have a relatively low portion of their
2008 fuel needs hedged, because hedging high and volatile
fuel prices is expensive and may require posting cash
collateral." 23%
Tourist Arrivals 2008
Canada
United Kingdom
18%
5%
23%
USA
Caribbean
Other
10%
44%
2010
IATA expects losses to continue into 2010 with the industry
expected to report a US$3.8 billion net loss. This is based on
a limited revival of growth in traffic volumes of 3.2% for
passenger and 5% for cargo; very little increase in yields of
1.1% for passenger and 0.9% for cargo and oil at US$72 per
barrel.
The heavy reliance of Tourism on airlines and the stress
facing the aviation industry leaves Barbados highly
starting to harden for the Winter season as capacity is
returning there needs to be a continuing ‘alert’ and close
dialogue in terms of both load factor and yield in order to
stay on top of the airlift ‘need’ for the island.
10.4.1 Factors affecting Airlift
The parallels and relationships between adding hotel plant
and adding airlift capacity cannot be overstated. Planning
cycles for airlines are quite long and although to the casual
84
For Controlled Supply Growth observer airlines can ‘move’ their asset easily –switching it
from a non-profitable route to one with more potential, the
reality is much more complex. For example, there may be
slots restrictions in one or more of the airports; the new
route and ‘block’ times may not support integration of the
aircraft onto another route so as to maximize its utilization.
Barbados is not currently slot restricted but it does suffer
from peak period congestion; the suggestion of applying a
slot restriction to improve passenger handling and the arrival
and departure experience must be very carefully weighed
against the possible ramifications on the larger and more
dominant home hub operations.
Islands in particular are keen to add an extra flight a week,
sometimes seasonally –as room stock rarely comes on
stream in more than 200 units at a time –but the aircraft
that will operate that service also needs to have a
meaningful schedule for the remaining 7 days of the week
(with Maintenance time factored in accordingly) and in both
Winter and Summer. In accounting terms, an aircraft flying
5 days a week in Winter will have to have the 6th, nonproductive day allocated to its operating cost base –meaning
lease charges, crew costs, parking fees etc will all need to be
absorbed by the route to which it is allocated. The picture
could be even worse in summer unless other seasonal routes
are possible. In the Caribbean, double drop flights or shared
services (triangular patterning or shuttling) can be the
solution although they add considerable cost to the
operation but effectively maintain presence (and schedule)
on the route and contribute to the fixed overheads.
The recent appointment of an Aviation Consultant by the
BTA is recognition of the need to put airlift high on the
agenda and to increase the ability to be proactive in this
matter. There is both a need to maintain the existing
relationships and also to be the instigator of new market
relationships.
As a note of caution, the relationship between the airline and
its tour operator partners and business mix must also be
clearly understood; there have been historical ‘deals’ in place
which have not reflected the true business drivers and
perhaps been less effective for that. With revenue sharing or
‘marketing support’ deals a part of the operating and
competitive environment, the effect of these on route
profitability and strategic commitment to a route must be
carefully understood. The BTA representatives in each of the
countries serving Barbados also have a role to play in
maintaining meaningful and effective relationships with the
aviation players. It is therefore essential that the Barbados
based specialist and the field specialists are aligned in their
strategy and objectives.
10.4.2 Additional Capacity
The good news is that not only are increases in capacity from
existing operators planned for Winter 09/10 there are also
new services from the main markets and also from new
markets.
Jet Blue begins services from JFK on October 1st utilizing a
150 set A320. This will add 109,500 NEW seats between the
US market and the island (note these are calculated to
include inbound and outbound).
US Airways relaunches its Philadelphia service with a 4 p.w.
schedule also from October 1st which increases to a daily
service from December 18th through to April 7th 2010. The
aircraft is a 124 seat A319 which will add around 38,000
seats to the mix through the season although this is a match
to the 08/09 schedule so does not represent additional
capacity.
85
For Controlled Supply Growth Figure 7: Winter Seat Capacity Winter Seat Capacity
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 ‐
Monday
Tuesday
Wednesday
2008‐2009
Thursday
Friday
Saturday
Sunday
2009‐2010
From the UK, British Airways and Virgin Atlantic are
resuming their ‘normal’ weekly Winter schedules and in
Europe efforts are underway to gain direct airlift from both
Germany and Italy as well as Scandinavia.
At the same time, the South American and Latin American
region offers prospective traffic and air service and at time
of writing the signs are encouraging for a number of services
from Brazil, Panama and Venezuela by 2010.
In absolute terms it would appear (according to Winter 09/10
Schedules published by GAIA Inc) that there will be around
27,500 less seats into Barbados this Winter. This is a drop
from 792,000 capacity in 08/09 to 764,500 starting
November 1st – 7.4% drop.
However, the actual traffic numbers last year were 512,376
for the Winter Season which represents a Load Factor of
64% across the airlines. As the capacity into the island
already exists to match, the Load Factors for the flights need
to be pushed to 67% in order to deliver the same volume of
visitors as last year and there is clearly potential to push this
further.
The art of this kind of drive to fill capacity is to have a clear
idea of when it is available; fortunately, the market is
relatively predictable around school holidays etc. and the
airlines and tour operators are usually willing to share their
forward loads. An intelligent approach will be to select the
opportunities to stimulate the market in order to fill seats
that would otherwise fly empty. The Regional VP’s in the
field are best placed to know the tactics required to
stimulate their targets and the channels through which to
promote them. In fact the airlines are often already planning
various Seat Sale Campaigns in anticipation of the bookings
not hitting targets so a partnership approach would be
beneficial on many levels not least in sharing costs for the
promotion. The stay-over visitor survey has consistently
shown that specially discounted airfare is a very important
factor influencing the 38% of the decision of visitors,
confirming that it is an effective way to drive visitor traffic
to Barbados. This would seem like an excellent opportunity to
review the niche marketing opportunities identified
elsewhere in this report. A leisure oriented (ie. non
professional) sports event timed to coincide with soft
demand could create a win-win and make a significant
inroad into the gap that currently appears to give cause for
concern.
10.4.3 Airport Fees and Taxes
The current levels of fees/taxes levied by the island on tickets
for passengers travelling into Grantley Adams International
Airport are not the highest in the region. However, they now
amount to some US $31.50 and are comprised of:
BGI Arrival Facilitation Fee
1.50
BGI Passenger Service Charge
27.50
BGI Security Fee
2.50
In addition, the UK is increasing the Air Passenger Duty from
November to US$ 80 and 160* (Economy and Premium
Cabins respectively). There is also a Passenger Service Fee (for
the Airport) of $US 19 and US$ 182 for the Insurance and
Fuel Surcharge.
Thus, a passenger travelling from London to Barbados and
back is required to pay almost 300 USD to the various
authorities in addition to the actual fare charged by the
86
For Controlled Supply Growth airline. Even extracting the fuel surcharge (which strictly
speaking is an airline cost) the amount still totals an eye
watering US$140.
Barbados ranks 46 (most expensive) out of 130 in terms of
its Ticket Taxes and Airport Charges according to the World
Economic Forum’s 2008 Report on Travel and Tourism
Competitiveness.
It is worth mentioning that Malaysia slashed its airport
charges by 50% recently in response to the economic
downturn. Singapore and Thailand have also taken positive
steps on this front. This may not be ‘deal breaking’ amounts
but they surely send a signal to the carriers that the airport
is willing to share some of the pain in straitened times. A
graphic example of the effect of Taxes being introduced and
removed is shown by the Dutch Airport Authorities figures
for Amsterdam’s Schipol Airport:
Being pragmatists, the Dutch Government quickly recognised
the damage an air passenger departure tax did to their travel
industry last year. Introduced in June 2008 it was given the
boot in June 2009. The sharp 15% collapse in originating and
departing traffic witnessed over the twelve months from
June ’08 to June ’09 has eased considerably with -6% and 3% being recorded in August and September 2009.
Figure 8: Effect of Departure Tax on Arrivals
However, Caribbean airports are the proverbial cash cow in
many islands so it is likely this would be resisted by most
Airports (who are mainly Government entities) in the
majority of cases. Furthermore, there would need to be a
great deal of confidence that this saving was passed onto
the passenger and make a significant difference to the air
element of a visit to a destination. At the same time, when
families are concerned, savings of US$20 per person can be
the persuading factor in making a destination selection. A
solution therefore could be to reduce the arrival/departure
fee to ensure the saving reached the passenger/visitor as it
would be directly removed from the total ticket price.
The global financial crisis has made airlines scrutinise their
operating costs even more closely than ever before and
whilst the passenger may not see the benefit of any
reduction in Airport Departure Fees paid by the carriers to
the Airport operators, (time limited or otherwise), the airline
numbers for the route profitability would be positively
impacted and may be enough to influence the airline to add
an extra service or even aircraft rather than operate to an
island with higher operating costs.
10.4.4 Load Factors and Revenue Sharing Guarantees
Generally, aviation is suffering exponentially from the Global
Financial Crisis. Airline seats, like hotel rooms are a highly
perishable product with a high fixed asset base. Retiring
aircraft or mothballing them until profitable demand returns
can have a catastrophic affect on islands that are so reliant
on airlift to deliver tourists and support their economies.
As the economic forecasts remain pessimistic and constrain
consumer confidence, this remains a significant threat to the
island. It is essential that the key parties from the airlines
and Tourism Authority are frequently reviewing the forecasts
so that action can be taken to avoid the airline withdrawing
from a route. Typically airlines can be very reluctant to share
commercially sensitive information about operating costs
and profitability, but is essential that a consistent and open
dialogue is maintained. The appointment of an Aviation
specialist by the BTA is a sign the value of the airline
87
For Controlled Supply Growth relationship is well understood and that ‘support’ or even
encouragement to start a new/additional service can be
extended.
Regionally it can be considered one of the better airports but
it still reflects a fairly standard and traditional arrival and
departure experience.
Revenue Sharing deals can help overcome some of the
deterrents of a seasonal market operation as well as being
the ‘deal maker’ in terms of the decision to fly. However,
Origin and Destination data and market sizing are
fundamental influencers in an airlines route structure
decision and its strategic goals (alongside aircraft type and
configuration) and these should be fully understood by those
in Tourism who are interfacing with the Commercial
Directors of the Carriers. It may be necessary for data to be
purchased from the Official Airline Guide (OAG), Marketing
Information Data Transfer (MIDT), or International Air
Transport Association (IATA) (both providers of traffic
patterns and booking data) in order for the Barbados
champion to be in possession of all the facts and be able to
negotiate strongly.
Review of the websites of the Best Airport Awards of 2009
top 3 airports www.worldairportawards.com (Incheon,
Seoul; Chep Lap Kok, Hong Kong; Changi, Singapore) will
easily identify some quick wins that Barbados can adopt;
The downside of revenue sharing is that complacency can set
in and the airline isn’t required to focus as strongly on the
route profitability in a pure sense and can lack long term
commitment to the route. Is it expanding into the Caribbean
as part of a long term strategic goal or is it seeking to
develop new routes elsewhere and the Caribbean is a short
term arrangement. The longevity of the ‘deal’ is always under
scrutiny; essential for ‘new business’ what is the role of the
revenue share in the longer term or in boom/bust times?
There must be a clear ROI evaluation in each and every case
which is also weighted with longevity factors and strategic
value of the route to the Tourism Industry before the
revenue share arrangement is entered into.
10.4.5 Airport
Whilst Grantley Adams has improved tremendously as a
facility in recent years due to the extensive expansion and
upgrade work completed in 2006, it still has opportunities to
enhance the visitor experience.
Left Luggage facility (especially helpful for transit
passengers with long connections which represent
approximately 220,000 passengers per annum)
Showers (especially in transit area)
Kid’s Play areas
New Interactive
generating
Games
–free
and
revenue
Baggage Trolleys
Art Installations –local and regional artists
‘What’s happening on island’ TV screens strategically
placed around the baggage hall/baggage belts.
In addition, the evolution of the Premium Terminal concept
(as pioneered by Doha in Qatar) should be reviewed to
identify opportunities to improve and enhance the high end
visitor who wants speed, efficiency and priority on their
arrival and departures. The Jet Centre (west of the Main
Terminals) provides this to a small group of users currently
but there is potential for a more main stream product within
the airport itself.
The value of the Emigration process must be scrutinised and
evaluated with the relevant stakeholders. Introduced again in
2001 it creates yet another queuing situation; Emigration in
this manner is not undertaken in the UK, US or Canada.
The recent introduction of finger-printing at both arrival and
departure points and the subsequent furore and
withdrawal/suspension of the practice suggests this aspect
requires further consideration and discussion before another
implementation is initiated. As expected, various websites
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For Controlled Supply Growth such as Tripadvisor, Skytrax etc have generated a variety and
range of comments and observations on such practices. The
prevailing sentiment is if it helps with security and is
correctly executed (with clearly identified policy on privacy
of data etc) whilst being undertaken efficiently there is an
acceptance or tolerance of the practice. Where these are not
aligned there is a general dissatisfaction expressed which
undermines the premise that a country is visitor friendly – a
vital tool in a tourism based economy. Most Caribbean
countries take a traditional and bureaucracy driven approach
to this matter so any airport which makes improvements in
even a small way will be able to utilise this to positive effect
and most likely see the results in black and white on the web
very quickly.
Even if parts of these processes are deemed
necessary/essential it must either be moved into the 21st
Century with the application of state of the art technology
which reduces the use of paper and the time taken to
complete the process, or, if the reduction of staff is too
sensitive an issue then the customer service aspects of the
role must be given equal importance in the execution of
duties. Ditto for the Immigration process.
In general, the airport experience is pleasant but
predictable. There is no cutting edge example of technology
either for business or pure entertainment which supports the
tourism product. A good example of the latter would be a
surf simulator. A good example of the former would be FLIFO
texting –SMS to a GAIA portal with flight number and date
to get ETA’s, ETD’s etc. The FIDS (Flight Information Display
Screens) are not always accurate and this can be a major
source of frustration for someone waiting to meet an arrival;
most airports state at least ‘Flight Landed, In Arrivals Hall etc’
giving meeters and greeters a sense of the progress. Where
technology is in place it must be correctly used or it runs the
risk of creating a negative impression by not being reliable.
The arrivals hall is a perfect opportunity to introduce some
theatre into the experience e.g., live models displaying
carnival costume, scuba gear etc. At the very least, there
should be a TV near each baggage belt showing aspects of
the islands attractions and charms whilst there is the
inevitable wait for the bags to appear.
There is also clearly an opportunity for more interactive art
displays which could be linked to an annual competition to
show images of the island –various categories can be
determined with the public voting (interactively through
GAIA website) for their favourite. A return trip could be a
good prize to encourage participation with obvious
opportunities for sponsorship from airlines, hotels, etc.
The GAIA website needs a major overhaul –it is currently out
of date and overly concerned with its political status rather
than being customer focused. There is no current
information for the customer on the site which is
inexcusable. Again, a comparison with the Top 3 World
Airports 2009 will show the kinds of data and services which
should be available to users of the website and potential
users of the airport.
Given the airport’s status as a major regional hub, this aspect
of the traveller’s experience must be enhanced.
Sleep/rest/work ‘pods’, booked by hour could be available
airside for passengers facing a 2 hour plus transit who don’t
have time to leave the airport. For longer layovers, day
transit packages could be offered through the BTA office
partnering with either hotels for day passes, or attractions or
both.
In general, the BTA facility in the Arrivals Hall is not
conducive to inviting passengers in to browse. This area
needs to be opened up and made more free-flowing –
removing the ‘counter’ type arrangement and acting as an
interactive ‘retail’ space where the island’s tourism products
are appropriately showcased.
The airport is generally not overcrowded and offers a
reasonable range and variety of refreshment outlets. Retail
outlets are also varied –both landside and airside with a solid
Duty Free offering from the key sectors –alcohol and
cigarettes, branded items, high end jewellery, amenities and
souvenirs.
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For Controlled Supply Growth Debate continues as to the value of Jet Bridges. On the one
hand there is the view that jet bridges offer protection from
the weather, are better for disabled passengers and are the
trademark of a ‘First World’ airport; on the other, they can
add to the time taken to commence disembarkation, they
provide a ‘sterile’ and soulless arrival experience and where
they are limited there will be issues over allocation and
priority utilisation amongst the airlines.
Package ‘experiences’ for longer transit visitors ie. 5
hours plus
For long haul, wide bodied flights and aircraft (which are
really the ideal/target jet bridge users) the case for installing
in Barbados is not especially compelling. The experience of
fresh, balmy air and sunshine (despite an average of rain fall
on 41% of days of the year) is highly valued by tourists –
particularly in winter when travelling from colder climes. The
‘back-up’ of buses and rain capes in inclement weather is
currently considered an appropriate response to the reality
of the customer experience value compared to the
investment required.
Ending this section on a positive note it is important to
acknowledge the design of Grantley Adams as being
architecturally striking and unique. It is hoped that future
public construction will be undertaken to provide Barbados
with visually striking and iconic images which will provide
the marketers with the materials to help differentiate
Barbados and reflect it as a modern and progressive country
whilst respecting its history and authenticity. It would be
good to see the airport and the Oval featured in Design or
Architecture magazines; they are both worthy of being used
as symbols and identifiers of the modern Barbados brand.
Showcase Art to add interest, distraction and topicality
Improve the Web site to match the World’s Leading
Airport Standards
Implement the Quick Wins detailed above.
Regionally and internationally Grantley Adams is considered
one of the best facilities for the airlines and passengers. The
change of focus and structure from a Government run
department to a Board appointed operation with a
Commercial remit has been a positive one.
RECOMMENDATIONS Ensure price competitiveness in fees, taxes, charges
Ensure efficiency of airport; state of art baggage
systems, X-rays with effective maintenance and back up,
appropriate security, supportive/educated workforce
agencies (viz Customs, Immigration, Cargo, choice of
capable ground handlers)
Enhance the ‘Arrival’ experience by appropriate exposure
of the island’s tourism (and business) assets; use of TV’s
by baggage belts, ‘live’ displays, art, Retail style BTA
outlet etc.
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For Controlled Supply Growth 10.5 CRUISE & SEA ACCESS The cruise industry in the Caribbean generated $1.8 billion in
spending in the 2005-2006 cruise year, averaging $94 million
per destination from 16.3 million passengers. CLIA research
has shown that despite the downturn in the economy,
consumers are willing to defer other budget items in favor of
holiday travel, but are looking for outstanding value for their
money spent. Of those surveyed in the CLIA’s Cruise Market
Profile Study, 96% considered a cruise good value for money
and nearly all respondents name the Caribbean the top area
to visit. This is because in many cases the cost of the cruise is
lower than the cost of the flight to the destination alone from
the individual’s home market. Furthermore, according to the
CLIA study, approximately 50% of cruise travelers state that
they returned to Caribbean islands they first visited while on a
cruise. The CLIA estimates that 34 million people intend to
Figure 9: Cruise Arrivals 1960‐2008 Cruise Arrivals 1960-2008
800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 2008 (P)
2002
2005 ®
1999
1996
1993
1990
1987
1984
1981
This year to September an additional 38 ships have called in
Barbados compared to the same period in 2008, which
represents an increase in visitor arrivals of 9.7% or nearly
48,000 passengers even before the start of the winter season.
Most of this growth was seen in the month of September.
The current port facilities comprise 5 berths in the main port
totaling 1,531 metres in length. In addition to those facilities
in the port itself, three other oil berths exist:
Needham’s Point for crude oil imports accepts ships
up to 193 metres in length
Oistins, which is dedicated to the import of aviation
fuel, can accommodate up to 172 metres, and;
1978
1975
1972
1969
‐
1966
According to the Caribbean Tourism Report for Q1 2009 by
Business Monitor International Ltd, the cruise industry is one
of the most important parts of Caribbean tourism. Growth in
tourism connected with cruise ships over the past ten years
has far surpassed growth of land-based travel to the region.
This further emphasizes the need for Barbados to make cruise
a focused priority through the creation of a focused
department responsible only for the development of the
cruise industry in Barbados.
The cruise industry in Barbados has shown significantly more
growth in the past few years than stay-over arrivals,
recording 12% growth since the turn of the century
compared to 4% growth in long stay arrivals, and showing
double digit growth in some years, peaking in 2004 at over
720,000 arrivals per annum:
1963
According to the President and CEO of Cruise Lines
International Association (CLIA), despite economic obstacles
the cruise industry has seen a history of steady growth. Since
1980, average annual growth has been 7.5%. Based on the
third quarter results and fourth quarter estimates, it is
forecasted that a record 13.2 million passengers cruised in
2008, representing 5% growth over the prior year. The
Caribbean continues to dominate the industry, comprising
38.19% of all itineraries in 2008. It is predicted that growth
will continue in 2009 with the addition of 14 new ships, with
the orders for a further 35 by 2012 with 69,200 new berths.
take a cruise within the next three years, with the largest
proportion planning to visit the Caribbean.
1960
10.5.1 Cruise Development
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For Controlled Supply Growth Spring Garden, an LPG facility for vessels up to 103
metres long and is often used for cruise ships when
the port facilities are at capacity.
Even the addition of one cruise ship per week with a typical
passenger load of 2,000 and 800 crew members, would
conservatively generate an addition US$8.9 million in
foreign currency earnings per annum based on 2008 cruise
passenger expenditure.
The main area of concern for Barbados’ cruise tourism is the
quality and capacity of the facilities, which has a significant
effect on how many passengers disembark the ship. For the
2010/2011 cruise season (November – April) the port will be
operating at full capacity four out of seven days per week. The
present cruise terminal and port was designed in the 1950’s
with the overall footprint of the port remaining unchanged
despite huge growth in arrivals. While the cruise terminal was
completed in 1994, the arrivals at that time were just over
450,000 per year, 30% less than they were in 2008. Anyone
who has been in the port on a day when they are at full
capacity can tell you the experience is not pleasant.
Furthermore, the port is not aesthetically pleasing or
welcoming relative to other Caribbean cruise ports. There is no
theatre, not even signage that thanks visitors for coming. The
combination cargo and cruise in one facility further reduces
the aesthetics of the port to cruise visitors.
The fact is, ships have gotten bigger and the terminal and port
have not. Three to four years ago there were few ships under
2,000 passenger capacity, today there are few under 3,000
passengers.
It was recently announced that Barbados would have a
multimillion-dollar cruise pier, homeport facility and
cultural/historical theme park in the area of the Bridgetown
Port within the next two years. The $70 million project is
aimed at attracting an additional 250,000 passengers, growth
that would represent an additional $27.9 million in visitor
expenditure and $3 million in head taxes annually. These
estimates exclude the likely increase in foreign currency
receipts from home porting and plans to increase cruise
visitor expenditure.
Cruise conversion has great potential to increase tourism in
Barbados, yet it appears that none of the industry participants
have put in place any initiatives to improve this phenomenon.
No hotels offer day rooms to cruise passengers or offer
vouchers to cruise passengers for discounts if they book their
next visit to Barbados within a certain period. There is no
effort to ensure that the last experience of cruise passengers
in Barbados is memorable, leaving them wanting more. The
tourism industry has to rally around cruise to ensure that the
one day spent in Barbados remains top of mind over all the
other destinations visited during their trip. One of the biggest
areas of improvement urgently needed is the Bridgetown
experience. While the cruise visitor survey has consistently
rated Bridgetown as a “good” experience by the majority of
passengers, the following have been expressed as concerns
about the experience:
There is no theatrical element to Bridgetown
Traffic congestion on Broad Street makes the
experience intimidating
Architecture appears dated
Harassment by taxi drivers
Overall, all aspects of the cruise experience have to be
enjoyable from the view at the time of arrival in the port, to
how friendly and knowledgeable taxi operators are, to their
last impression on leaving Barbados.
RECOMMENDATIONS Increase the footprint of the port and berthing facilities
to accommodate higher volumes of passengers without
reducing the quality of the experience
Improve the aesthetics of the cruise terminal and theatre
in the port
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For Controlled Supply Growth Hotels should look to welcome cruise passengers to their
facilities for the day. This would allow visitors to
experience the facilities and encourage them to return.
The present unwillingness of hotels to accommodate
cruise passengers during the day gives an unwelcoming
impression to visitors.
Create an interactive “walk through Barbados’ history”
experience for cruise passengers as they leave the port to
re-board ships in order to leave a lasting impression of
Barbados as a place to return
Taxi drivers from the cruise terminal should be tested for
their knowledge of Barbados. According to the cruise
visitor survey, advice from taxi drivers was the most
important factor influencing the decision of 39% of
visitors to participate in various activities on island.
Create a clear division between cargo and cruise in the
port in order to improve aesthetics of the facilities
10.5.2 Home Porting
The large volume of cruise arrivals and the high likelihood of
passengers returning to the destination islands for a longer
vacation present a significant opportunity for growth in the
tourism sector and economy as a whole. In a study completed
on the economic contribution of home porting in the South
Hampton Port, it was found that home porting contributes
twenty times more to the economy than transit cruise ships.
Current home porting contribution to Barbados is estimated
at $100 million with 180,000 passengers being transported
(90,000 arriving and 90,000 departing). The economic
contribution stems from transportation, landing fees, fuel,
engineering services, provisioning, ground handling, head
taxes, security taxes and marine charges amongst other
things. Local businesses such as Banks Holdings, Pine Hill
Dairy, BICO, and Rainbow Paper products have benefited
significantly from the home porting business through the
provision of food services, which represent top ups to original
provisioning that is facilitated through the importation of
approximately 1,000 forty foot containers per year.
Last year 450 charter flights in and out of Barbados, or 8
flights per day, were related to home porting activities. Based
on the new European and UK cruise lines negotiated to home
port in Barbados in 2012, it will require the airport to
accommodate capacity for 15 flights per day.
Barbados is considered to be one of the most developed
islands and considering its location and the businesses
operating in the island, it is well positioned to be the primary
source for provisioning of the ships. By increasing the use of
Barbados as a home port for cruise ships it not only results in
higher air traffic to Barbados and therefore potential for
return visitors and for cruise visitors to spend additional time
in Barbados pre and post cruise, but also in better
contribution to the economy by way of wholesale food and
beverage sales and equipment maintenance.
Banks Holdings Inc. has already attributed much of their
growth over the last fiscal year despite a general decline in
personal spending due to the recession to the provisioning of
increased levels of cruise ships.
According to Noel Lynch, Minister of Tourism & International
Transport at the time, home-porting passengers in 2000
accounted for 10% of total cruise arrivals; by 2005 this figure
had grown to 101,621 or 18%. Growth, however, is
constrained by airlift; Michael Ronan of the FCCA stated that
despite forecasted growth in the next year in the Caribbean
with the introduction of new vessels, Barbados is unlikely to
be on the top of the list to welcome them home because of
airlift difficulties. The issue of airlift is both a capacity
constraint during peak arrival periods and a cost issue with
respect to flights from the US. The cost of flights to Barbados
from the US is significantly more than flights to other home
porting destinations such as Puerto Rico or Miami. Without
improvements to airlift, Barbados is not equipped to be part
of the more popular seven night cruise itineraries only
possible due to its location if Barbados is the home port for
the vessel.
Considering the facilities constraints of the port and cruise
terminal, the smaller luxury ships are considered to be the
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For Controlled Supply Growth best target for home porting. However, those ships that do
make Barbados their home have recently expressed concern
about the quality of the experience for their passengers in the
Barbados with respect to the facilities. These ships cater to a
high end market and therefore require excellent facilities with
respect to aesthetics and services. The potential for
Speightstown to become a port for cruise ships has been
explored; however, there is a question of the readiness of the
town to handle such an influx in visitors.
RECOMMENDATIONS Overall the benefits of home porting in Barbados are increases
in tourism arrivals, improved foreign currency earnings,
positive impact on employment, and higher likelihood of
cruise conversion. In order to facilitate an increase in home
porting in Barbados, the country must look to do the
following:
Increase airlift from major cruise market sources with a
particular focus on European markets
While the plan for port expansion in the next two years
includes a home porting facility, it will be imperative that
initiatives are put in place to ensure that adequate airlift
support is developed to operate this facility at full
capacity and that the local infrastructure for
transportation is improved to ensure that the increased
passenger volume does not lead to traffic congestion
Any new home porting facilities must consider the
aesthetics of the facilities for cruise passengers to ensure
that the experience in Barbados is enjoyable
Develop best in the industry skills in cruise ship servicing
and support services
Ensure that the value proposition to cruise lines for home
porting in Barbados versus any other destination is
competitive. This includes port charges, fuel charges, head
taxes, quality, selection and price of food and beverage
provisions.
It is clear that the benefits will outweigh the costs and the
return on investment is sound.
10.5.3 Ferry Services
As passengers face higher prices on airline tickets, finally a
ferry service is being implemented that will connect Barbados
with its Caribbean neighbours, providing an alternative to the
poor value for money inter island flight services. The new
service is set to connect Barbados, St. Lucia, Trinidad, Grenada
and St. Vincent and will join connections with Guadeloupe,
Dominica, and Martinique currently offered by L’Express des
Iles. The new routes are to be operated by Grenada based
BEDY Ocean Line with fares priced starting from US$120
return for a four to five hour journey. One route will operate
from St. Vincent with stops in Barbados and St. Lucia. The
second will operate from Grenada and stop in Trinidad and
Barbados. Each ferry will carry 260 to 300 passenger seats.
In a region where numerous destinations are within close
proximity of eachother, the opportunity to provide passengers
with an alternative way to travel the Caribbean in a way that
Europeans have done for years in the Mediterranean, opens
doors of opportunity. In order to achieve the full potential of
the service, however, the region will have to work together to
encourage travelers to visit multiple countries on one visit
and ensure that fare structure and scheduling makes it an
attractive alternative. Some examples of how this could be
done are:
Treating the ferry like the trains of Europe, by
creating a ferry pass that allows for a set number of
trips within a set time period at a discounted price
when compared to purchasing single journey tickets
Consider revenue maximization strategies for
improving yields through the use of technology to
track seats purchased and available and offer rate
differentials to improve yield
Ensure that scheduling is convenient for other
transportation connections for both air and sea
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For Controlled Supply Growth Introduce marketing initiatives on board – the
journey is lengthy with plenty of time for passengers
to research and decide what they will do when they
arrive, the audience is captive
Market the ferry experience as a new way to discover
the Caribbean from a picturesque and entertainment
standpoint – the five hour journey should be pleasant
and not dreaded
Develop online booking capability
While the ferry service provides an alternative means of
transportation between islands it is important to put the cost
to the consumer into context. For similar return journeys in
the Mediterranean rates are as follows:
Greek Islands
Croatia
Spain to Morocco
Scotland to Ireland
A trip from Barbados to St. Vincent by sea takes approximately
3 hours according to published schedules. Compare this to a
40 minute flight to St. Vincent for US$90 more, drives home
the need for careful structuring and marketing of this service.
The service therefore clearly is targeted at the budget
conscious tourist, the exact opposite of the visitor profile that
suits Barbados’ product offering as an expensive, luxurious,
aspirational destination. Is the return really worth the
investment?
10.5.4 Barbados as a Yachting Destination
As the closest island to our cross Atlantic neighbours, it begs a
question why Barbados has such poor yacht berthing
facilities. Over 200 yachts make the trip across the Atlantic
each year through the Atlantic Rally for Cruisers (ARC) but
wind up in St. Lucia, an approximately 200 kilometre longer
trip from their departure in the Canary Islands. Each year in
November, St. Lucia gears up to welcome the yachts into the
region, most of whom stay for the Christmas Sailing festival
that begins in December. A perfect example of how events can
be utilised to attract people to the island and make them stay.
In 1999 there were 238 yachts that made the crossing,
breaking a Guinness Book records for the world’s largest
transocean event of sailing yachts ever to sail the Atlantic in a
company. In 1986, the original journey, the fleet of 200 yachts
set sail for Barbados, but it quickly became clear that
Barbados could not cope with the arrival and management of
such large numbers – another lost opportunity that has
become a much anticipate and highly publicized event in St.
Lucia despite Barbados being the first choice. Today, the event
continues to be the world’s largest transocean sailing event,
and the most popular way to cross the Atlantic.
Figure 10: Growth of High Net Worth Individuals Consider the likely potential for increases in tourism arrivals
throughout the Caribbean daily. Assuming an average annual
yield factor of 40% per service arriving in Barbados every day,
seven days a week, this represents an additional 43,800
passengers per year on a 300 seat ferry; an increase of
approximately 3.8% over 2008 visitor arrivals.
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For Controlled Supply Growth Worldwide Market
Within the last ten years, the yachting industry has
undergone significant growth. Boating International magazine
reports that a large percentage of this growth can be largely
attributed the increasing number of High Net Worth
Individuals who account for over 40% of the world’s total
yacht supply and typically purchase vessels which can be
classified as luxury yachts or superyachts which are at the top
end of the yachting market. This in turn has resulted in the
largest demand for luxury boats ever seen and, even in the
current economic downturn manufactures are reporting
‘tremendous growth in yacht sales’.
Over the same time period, the international yachting industry
has undergone a considerable evolution especially in the case
of the superyachts which has experienced the highest average
annual growth of the boating sector. This growth has been
driven by market demand rather than suppliers’ push. It has
been reported that there has been a 16.4% in annual growth
over the last six years with an estimated 30% increase in
world production forecast for the 2007-2008 period. Overall,
luxury yachts occupy approximately 40% of the world’s yacht
market with the majority of these comprising superyachts
(vessels over 24 meters or 78.7 feet in length).
According to the 12th annual World Wealth report their
spending has not been adversely affected by rising costs and
financial market turmoil. They are still retiring early with an
increasing amount of leisure time, a significant portion of
which is now being spent in water-based activity. High Net
Worth Individuals make up the main customer profile for
luxury yachts and their numbers are increasing especially in
the emerging markets of the world – most notably China,
Russia and the Middle East. However, North America
continues to be the region with the largest number of HNWI’s
in the world. This same demographic of people fits the visitor
profile desired by Barbados, the market primarily catered to as
we continue to build an image as a high quality, luxury
destination that doesn’t not compete on price.
According to international surveys, in the first half of this
decade the overall number of super rich people or HNWI’s
rose to in excess of 8.3 million and overall, has been growing
steadily in the past decade. This number is now estimated to
be over 10 million. Globally, HNWI wealth is expected to grow
to US$59.1 trillion by 2012. It is this consumer group that
offers a highly attractive customer profile for large luxury
yachts, measuring up to 100 feet in length as their demand
for luxury items continues to be high.
This market trend of increasing growth in the demand for
yachts especially mega yachts is evidenced across the
Caribbean by the number of mega yacht slips developed in
recent years and by the growth in the production of pleasure
crafts, and mega yachts in particular. According to Showboats
International, in 1993 there were fewer than 700 privately
owned large yachts compared to over 7,000 today. In
response to this trend of increasing demand, there has also
been a sharp rise in the number of new and proposed marina
developments in previously untapped markets. Recent activity
both regionally and internationally has seen the development
of a number of new marinas catering specifically to the luxury
yacht market which has experienced the highest average
annual growth of the boating sector. Some older marinas
have also been undergoing significant redevelopment in the
reconfiguration of berths to meet the demands of this
changing market. While the emphasis has been on luxury
yacht growth, there has also been evidence by various
publications that smaller yachts, ranging from 30’ to 50’ are
also increasing in popularity, particularly among first time
yacht owners.
Despite this increase in the supply of marinas and berthing
facilities, the increase in the number of yachts worldwide has
created a significant strain on existing infrastructure and
demand for marina space continues to increase. While many
countries have undertaken initiatives to expand and develop
additional marinas, the supply of new yachts is outstripping
the new berthing capacity. Despite the well known
opportunity in this market, Barbados has still failed to action
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For Controlled Supply Growth initiatives that will ensure that we have the facilities available
to capture some of this growing demand.
more than one island within a leisurely sailing distance makes
the region more attractive.
Caribbean Market
The pleasure boat and yachting sector currently generates
world-wide turnovers in the billions of dollars per annum. This
sector, which generates significant income from berthing fees
and rentals of related marine equipment and services, is the
major stimulus for the ever increasing investments in docking
facilities throughout the Caribbean in recent years.
The yachting industry in the Caribbean differs from island to
island. The most popular yachting destinations are where
islands are located within a chain, making crossings easier
and leisure cruising more appealing. These include:
The British Virgin Islands (BVI)
Antigua & Barbuda
St. Barths
St. Maarten
St. Lucia
St. Vincent & The Grenadines
Trinidad and Tobago
US Virgin Islands (USVI)
Of those, the main yacht chartering destinations are the BVI,
USVI and the Grenadines. St. Barth’s is by far the most
popular yachting destination. The success of the island is a
direct result of its popularity with high profile and world
famous people, further accentuated by the quality and variety
of beaches, restaurants and shopping facilities; all qualities
that Barbados also has.
Despite the relative uniqueness of the marina product across
the region, most yachting territories in the Caribbean are
subject to seasonality where marina occupancies can range
between 70% and 100% during the high season and 10% and
30% during the low season. In the hurricane season from
June to November occupancies are low and in the winter
months are high due in part to the numerous regattas that
occur throughout the Caribbean.
Much more than land-based tourism, marine-based tourism is
mobile and while the islands do compete, they are also
interdependent for marine tourism because the ability to visit
Antigua: A Case Study
As a key yachting destination in the Caribbean, Nelson’s
Harbour and Falmouth Harbour are the two major docking
communities in Antigua and are commonly frequented by
mega yachts. The importance of the yachting industry to the
Antigua economy is paramount and is evident in its
contribution of to the country’s GDP of BDS$55.5m per year,
as estimated by a study on the Antigua Yachting Sector, with
direct expenditure of approximately $26 million in 1999
compared to $18.4 million for cruise tourism in the same
period. Visitor expenditure relates to food and beverage, gifts,
transportation and related services purchased on land. In
2007, visitors from yachting arrivals accounted for
approximately 25,000 people per annum, contributing
approximately 4.5% to total tourism expenditure versus the
3.1% per annum contributed by the cruise ship sector in the
same period. Despite the historical success of Antigua, the
island’s competitiveness has weakened in recent years and
given its close proximity to St. Maarten, it has lost visitors due
to better facilities and attractive government policies and
duties in St. Maarten, further emphasizing the need to be
competitive in the provision of services and facilities with
support from favorable government policies. Location isn’t
everything.
Barbados Market
While Barbados is the eastern-most island of the Lesser
Antilles and could potentially provide easy access to yachts
crossing from the transatlantic route, the island has
continued to place little emphasis on increasing the size and
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For Controlled Supply Growth promotion of the yachting industry. Unlike some of the major
yachting destinations in the Caribbean, there is limited
dockage capacity in Barbados with only four ports; one of
which is the Barbados Port catering primarily to commercial
ships and cruise liners. There are approximately 200 berths in
Barbados, of which 156 are located in Port St. Charles, which
is not publicly accessible and are for private use only.
Despite its inability to capitalise on the benefits to be derived
from the yachting industry to date, Barbados does have the
potential to become a superyacht location, boasting many
similarities to St. Barths:
RECOMMENDATIONS high quality beaches.
In order to capitalise on the continually growing yachting
market, Barbados must look to develop a commercial marina.
Legislation will require amendments in order to facilitate
development of this market. The current duties in place on the
importation of parts and supplies for visiting yachts are
considered to be high compared to our competitors and the
bureaucratic customs and immigration policies are not
amenable to yacht arrivals.
Barbados will have to have a value proposition superior to
competitors in order to entice yacht cruisers to visit the
island despite its remote location in the island chain.
By developing a strong yachting support sector for
maintenance and repairs, Barbados has the opportunity
to become the logical choice for yachts entering the
Caribbean island chain to visit at the end of a long
crossing prior to continuing on their journey.
easy access by air to food and medical facilities,
good variety of restaurants, and
However, Barbados’ will need to adequately structure and
market any marina facilities to combat the less favourable
characteristics associated with its location within the island
chain. Barbados would need to become the first port of call
for Atlantic crossings and promote long stay of yachting
visitors as opposed to the typical short term of stay typically
exhibited in the other island chains.
Barbados is unlikely to become a winning destination in the
typical cruiser market, however, its high profile as a top class
vacation destination appeals best to the luxury market making
it likely to have success in developing itself in the superyacht
niche, which already exhibits high demand, high growth and
low supply of facilities.
10.6 HUMAN RESOURCE DEVELOPMENT In an industry that is primarily service driven, success is a
function of the human resource management and ability of
the people to deliver on the value proposition.
The University of West Indies (UWI) has a number of programs
that are geared at training the country’s tourism leaders of
tomorrow. These programs include Hospitality and Tourism
Management and Hotel Management. Based on enrollment
statistics provided by UWI, while enrollment has increased
since 2004, it has remained relatively flat from 2005 onwards.
With only approximately 73 students enrolled in the programs
each year, out of a total student population of 5,500, tourism
is clearly not seen as a career of choice for those entering
university. It should be noted, however, that applications for
tourism programmes has increased every year since 2004 and
that the offer to application rate has remained relatively
steady at between 50% and 60%. Over 100 students apply to
tourism and hospitality related programs each year, yet the
number of admission spots appears to have remained the
same since 2007. Figure 11 shows the enrollment of students
at UWI for 2008/2009, the tourism and hospitality programs
fall under the faculty of Social Sciences.
98
For Controlled Supply Growth Despite numerous programs available to students interested
in a career in the hospitality and tourism sectors, the majority
of the programs are geared towards churning out a labour
force as opposed to managers.
It has been the strong opinion of industry participants, that in
order to increase the awareness in the community about the
importance of tourism and raise the status of a career in
tourism to the likes of engineering or professional disciplines,
it must be taught at not only a secondary level, but a primary
level. Educational programs in Barbados should be geared
towards training the population in relevant industries that
have a significant impact on the economy.
As it has been said by the Prime Minister, there is no use in
funding university education and churning out graduates who
cannot find jobs. It is up to the sector to ensure that they
communicate where the shortfalls are in skill sets and where
there is a need for skilled candidates.
Figure 11: UWI Program Enrollment UWI Program Enrollment 2008/2009
3,500 3,000 Female
2,500 Male
2,000 1,500 1,000 500 ‐
RECOMMENDATIONS cooperative effort is made to establish that the academic
training is relevant to the primary human resources issue
faced in the industry. By playing a key role in the development
of tourism related training programs in the educational
institutions, the employing institutions can ensure that future
employees have been provided with the adequate academic
training and skills to succeed at not only an entry level, but a
managerial level as well.
The BHTA should partner with tertiary institutions to offer
subsidised training and process re-engineering for businesses
within the sector. It should be possible for the BHTA to tap
into grant funding from international funding agencies and
NGOs to partner with UWI, BIMAP and BCC to create
vocational training opportunities which industry participants
can use to sponsor critical training for their key personnel.
BHTA can also play a key role in facilitating the recruitment of
hospitality and tourism program graduates including a
hospitality employment fair.
Creation of a Licensing & Certification Program for
Hospitality Management Personnel
In order to ensure accountability of management in the
tourism sector and commitment to continual education and
upgrading of their skills, a licence program should be
encouraged. Given the significant impact of the tourism
sector on the economy, regulations need to be in place to
ensure the effective management of the country’s tourism
assets. Similar to the way that the Institute of Chartered
Accountants in Barbados requires ongoing training with
penalty of suspension of license and membership for noncompliant members the managers of our tourism assets
should be required to undertake professional education and
the BHTA should become the prime facilitator of such
training.
Sector Involvement in Tourism Program Curriculum
The urgent need for reform of the tourism academic training
programs will require support from the sector. A strong
partnership should be formed between Barbados Community
College, and the University of the West Indies to ensure that
In many respects the personnel employed in the tourism
industry are the ambassadors of Barbados to our visitors. They
are the point of constant interaction and therefore the
catalyst to ensuring that visitors have a memorable and
pleasant experience. With the future of our economy in the
99
For Controlled Supply Growth hands of these people, their training and skill set must be
taken seriously and monitored through a regulatory board.
These licensing and continuing education initiatives should be
reinforced at the business level through the creation of
financial incentives for cross-trained employees and through
the financial support of tertiary education.
Industry Participants Must Play a Key Role in Raising
Awareness of Career Opportunities in Tourism
Through the creation of opportunities like the Trainee
program at the Hilton for secondary school students,
awareness can be raised amongst the student community
about potential career opportunities in the industry prior to
making their decisions about post secondary education.
Human Resource Experience Overseas
It is critical that tourism personnel who have the capability of
achieving managerial positions be exposed to tourism
overseas through employee swaps and overseas job
placements. This can be achieved by encouraging overseas
placements in equal numbers to work permit approvals.
10.7 SAFETY & SECURITY Improving and maintaining a competitive advantage in the
tourism industry should be the primary concern of a country
like Barbados whose main source of foreign exchange
earnings is tourism. A key component in maintaining
competitiveness and continuing to attract visitors to the
island is the assurance of their safety and security during
their stay, particularly given the poor reputation of many
Caribbean islands with respect to crime. Since the integrity of
the Barbados tourism product and economic viability can be
compromised if measures are not in place to create a secure
destination, Barbados could lose its ability to compete
successfully without making safety and security a priority.
Safety and security issues inter alia:
the ability to tackle terrorism;
the security of ports;
the competency of the security infrastructure
the ability
harassment;
to
manage/minimize
crime
the reliability of the health care systems;
the crisis and disaster preparedness systems;
and
Following the unpredicted attacks on September 11, 2002 the
disaster countries significantly increased their security at their
ports of entry and Barbados was no exception. Prior to the
September 11, 2002 attacks it was perceived that Barbados
was not prone to any terrorism, but the events of September
11th showed the world that attacks cannot be predicted by
anyone and it is the responsibility of the country to ensure
that the populace is aware of what steps to take in order to
fight terrorism and to put measures in place to ensure that
the safety of the people residing or visiting is upheld.
The Royal Barbados Police Force has received negative reviews
in their response to crisis by the local citizens, but it appears
that when it comes to responding to visitors’ complaints and
crime related matters the response time is perceived to be
much improved. While they should be commended on their
efforts to keep tourists safe, a truly service focused
community should give the interests of all people equal
importance. The overall safety of the country, for tourists or
locals alike, is what forms the perception of safety of the
entire place. Despite good response time, visitors are still
subjected to crime and harassment. Table 11 presents
statistics from the Research Department of the Barbados
Police Force on crimes against tourists from 2004 – 2008.
the safety of water and food sources.
100
For Controlled Supply Growth Table 11: Crime against tourists 2004‐2008 Crime Classification
2004 2005 2006 2007 2008
Murder
0
1
0
0
0
Serious bodily harm
1
0
0
0
3
Wounding (minor)
11
10
7
0
1
Harassment
5
0
0
0
0
Rape
1
4
1
2
4
Other sex crimes
2
3
3
1
2
Robbery
27
19
26
19
37
Assault w/intent to rob
2
1
2
0
9
Aggravated Burglary
19
7
1
3
7
Burglary hotels, etc
107
73
113
44
66
Burglary other
1
0
1
0
0
Theft from motor vehicle
9
4
4
7
2
Theft from Person
10
5
15
10
25
Theft from Beaches
14
13
26
24
43
Other Theft
21
18
28
16
21
All Other Offences
0
8
10
2
15
TOTAL
240 166 237 128 235
Despite the number of crimes against tourists, it is positive to
note that not only does the total number show that less than
one tourist per every two thousand has a crime committed
against them, but also that in 2008 (as is consistent across
the board) over 80% of all crimes were considered petty
crimes such as theft or burglary. Only 20% can be considered
major crimes including murder (one in the past five years),
serious bodily harm, minor wounding, harassment, rape, sex
crimes, aggravated burglary, and assault. Compared to our
neighbours, Barbados deserves a pat on the back.
The Travel & Tourism Competitiveness Report 2009 rated
various countries with respect to security based on the
following measures:
Business cost of terrorism
Business cost of crime of crime and violence
Reliability of police services
Road traffic accidents
Barbados was ranked 26 out of 133 countries with a score of
5.9 on a 1 – 7 scale. The disadvantages in Barbados safety and
security as based on the instruments of measure were
Business cost of terrorism where Barbados ranked 44 ahead
of Jamaica – 46, Dominican Republic – 47, Trinidad & Tobago
– 97 and Guyana – 118. The other short coming for Barbados
that ranked 68 in TTCR is Business cost of crime and violence
again ahead of Jamaica – 131, Dominican Republic – 116,
Trinidad & Tobago – 129 and Guyana – 127. Barbados reliable
police service ranked 21 with a score of 5.9, placing it in line
with the rating of such developed countries as the United
States and France, and ahead of the United Kingdom. The
limited road traffic accidents placed Barbados number 2
which were viewed as advantages in the countries safety and
security gauge. Table 12 presents a summary of Barbados’
performance relative to the other Caribbean countries
examined.
Table 12: Barbados Rankings vs. other Caribbean Countries
Safety & Security Measure
Reliability of police services
Business costs of crime & violence
Road traffic accidents
Business costs of terrorism
Overall Ranking
Overall Score
Barbados
21
68
2
44
26
5.9
DR
128
116
72
47
101
4.5
Jamaica
102
131
4
46
96
4.6
T&T
124
129
14
97
110
4.2
Guyana
118
127
9
118
111
4.16
101
For Controlled Supply Growth mobilising resources to cope with disasters;
Table 13: Road Accident Rate Category
Fatal
Serious
Slight
W/o Injury
Total
2005
23
132
2304
5828
8303
2006
22
132
2625
5897
8676
2007
38
108
2264
5897
8307
2008
17
147
2446
6140
8750
Emergency Response Facilities
With two major hospitals - the Queen Elizabeth Hospital
(QEH) and BayView Hospital – and 20 polyclinics, Barbados is
equipped to offer a wide range of medical services. Lending
support to QEH and Bayview there are two medical centres Sandy Crest Medical Centre (24hr service) and FMH
Emergency Medical Clinic. Below are statistics from the
Research Department of the Barbados Police Force on road
accidents from 2004 – 2008. The one short coming of the
health care system is the lack or limited supply of the accident
and emergency response units (ambulance service) which is at
an all time low and does not aid in the promotion of our
medical services.
Disaster Preparedness Systems
The Department of Emergency Management (DEM) is the
organisation established to create and implement crisis and
disaster preparedness systems. The role of DEM is:-
coordinating disaster management preparedness
activities;
issuing alert and warnings and initiating emergency
response;
guiding recovery and reconstruction efforts;
evaluating and up-dating disaster management
plans; and
encouraging the development and implementation of
mitigation practices, as well as disaster risk reduction.
When an unexpected earthquake, measuring 5.0 on the
Richter scale, occurred in Barbados in 2007 it sent the entire
city of Bridgetown into panic, resulting in traffic for hours.
This event opened the eyes of the nation to the severity of the
absence of Disaster Management and preparedness systems
to ensure speedy evacuation of trouble areas and led the
Eastern Caribbean nations to question whether we are truly
prepared for disaster. With the last major hurricane hitting
Barbados in the 1950s, Barbadians have become complacent;
generally assuming hurricanes will pass us by. The country’s
ability to deal with disasters affects the impressions of safety
and security of tourists, particularly when the majority come
from countries seldom affected by hurricanes.
informing, educating and training;
10.8 ENVIRONMENTAL AWARENESS & HEALTH Awareness of the importance of the environment can no
longer be ignored. Environmental consciousness has been
awakened, the world over, by repeated health concerns and
climate change. In most countries policies on maintaining
and improving the environment are considered to be
mandatory and most large organizations now publish their
policies in annual reports and on their websites. These
policies are perceived by many to give them a competitive
advantage. It is recommended that all PR which exposes the
island, whether through the public or private sector highlights
the environmental successes of the country and its strategic
direction on environmental issues.
102
For Controlled Supply Growth A country as small as Barbados could set realistic targets to
become the most “green” country in the region within a few
years with immediate consequences for the island’s
competitiveness.
These all fall within the realm of renewable energy sources,
and they have the added benefit of reducing our requirement
to use foreign currency for energy inputs.
RECOMMENDATIONS Perhaps the most immediate and visible area which requires
urgent action is the general cleanliness of the island. Issues to
be addressed include:
Indiscriminate dropping of garbage in public areas
Unnecessary use of plastic bags, even for items which are
already packaged
Bush and weeds on or near major roads
Cleanliness of the beaches
Insufficient garbage receptacles in public places
Image 1: Example of poor environmental cleaniness on a prim west coast beach property Roadside scrap yards for vehicles, boats etc
Condemned but un-demolished buildings
It is of note that there are already many green initiatives
which could be lauded including:
The prevalence of use of solar energy for water
heating in both domestic and commercial application
Desalination of potable water in the public supply
Sewage treatment initiatives
The new waste incinerator
Most of these issues can be easily addressed but there needs
to be a continuing commitment to public education on
cleanliness. Recycling of waste and use of plastic are easy
fixes but there needs to be financial inducements and
penalties to ensure compliance. For example stores must be
required to sell plastic bags for carriage of goods rather than
giving them away. In this way customers will be encouraged
to use their own bags. Recycling receptacles need to be
prevalent in each neighbourhood with recycling organisations
receiving fiscal incentives and cheap capital.
Rainwater dams for irrigation of golf courses
Areas where there is current focus are:
The use of bio-fuels for energy production and
vehicle fuel
The use of solar energy for air conditioning
Wind turbine based energy production
103
11. Objective 6: Appropriate Mix
Of Accommodation Stock 11.1 CURRENT ACCOMMODATION STOCK Traditionally, the accommodation stock of Barbados has been
considered to be dominated by the hotels, which comprise
approximately 5,500 bedrooms. However, our research has
shown that the villa, guesthouse and vacation apartment
markets add room stock that adds an additional 4,000 plus
rooms to the total stock available. The latter markets have
been inadequately studied, and yet clearly provide a
significant impact on the accommodation sector and to the
economy. The figures below show the share of the overall
accommodation stock represented by each of the various
markets:
Figure 12: Accommodation by Share of Units & Bedrooms Accommodation Share of Units
Accommodation Share of Bedrooms
Guesthouses
2%
Guesthouses
2%
Apartments
16%
Apartments
16%
Villas
11%
Hotels
58%
Hotels
71%
Villas
24%
11.2 THE BARBADOS HOTEL PLANT 11.2.1 The Importance of Hotels in Tourism
11.2.2 The Current Inventory & Hotel Product
The hotel sector continues to be the accommodation of choice
for the majority of visitors with over 40% of all stay over
visitors staying in either full service or all inclusive hotels. The
hotels need to be adequately incentivized to ensure that not
only are they continually improving their product offering,
but ensuring that they provide a level of service that is second
to none.
The hotel plant in Barbados is comprised of a total of
approximately 5,200 units or 5,500 bedrooms in 73 hotels
across the island, primarily located on the south and west
coasts. An inventory of the hotels is included in Appendix D.
The hotels continue to dominate the accommodation available
on the south coast with the villas having overtaken the
market share on the west coast in recent years. No new hotels
have been built in the past 5 years, leaving the current
product available in some cases tired and old fashioned. There
are five new hotel projects in planning or under construction.
Figure 13: Accommodation by Location 104
Of Accommodation Stock The following presents a snapshot of the current
Accommodation Bedrooms by Location
5000
4000
3000
Apartments
2000
Villas
Hotels
1000
0
South Coast
West Coast
East Coast
North
Interior
characteristics of the hotel plant available in Barbados with
respect to product mix, amenity, location and price:
Approximately 60% of the total available bedrooms
in hotels are located on the south coast
Over 60% of the total room stock is comprised of
standard rooms and studios with only 10% of total
room stock being two bedroom units, making hotels
the primary source of accommodation for single
travelers and couples
Hotel Unit Configurations
Standard & Studios
1 Bed
2 Bed
3+ Bed
Amenity
BEACH
BEAUTY SALON
GOLF
GYM
MEETING FACILITIES
POOL
RESTAURANTS
TENNIS
TV
WATERSPORTS
TOTAL HOTELS
#
53
26
13
37
30
65
63
24
66
33
73
% Total
73%
36%
18%
51%
41%
89%
86%
33%
90%
45%
11.2.3 The Importance of Major Hotel Brands
Research indicates that branded hotels are more successful
than independent’s because of the power of their brands, the
loyalty of their clientele and the efficiencies that they bring to
operation because of their size and experience. They have
been shown to significantly increase awareness of small
islands and the term “destination resort” which often
accompanies small-island branded resorts speaks to the
impression that the awareness of the brand in many cases
exceeds the awareness of the island as a tourism destination.
Examples are:
Four Seasons in Nevis
Raffles Canouan
International hotel chains raise awareness about the island as
a whole. The decision by the chain to operate in a destination
is conditional on the presence of a number of key factors:
Units Bedrooms
All hotels have some form of amenity with the most
common being beach, pools, restaurants, and
television
The existence of a hotel developer to finance the
construction;
Ease of access to the island;
An amenity which would drive business to the hotel.
105
Of Accommodation Stock Major Hotel Brand Criteria
International hotel chains generally do not invest in the hotel
plant in the Caribbean but may take a small stake or pay “key
money” if they consider the potential returns to be
exceptional. The more usual model is that the chains offer
management contracts to owners of hotels. The typical
structure of a hotel management agreement is as follows:
Base fee - percentage of revenue – typically 3%
Incentive fee – percentage of net operating income –
typically 10%
Marketing and central service fees – typically 2% of
revenue
Additionally the hotel chain may also earn technical services
fees prior to opening and will insist on having a say in design
so that the built facilities are adequate and operationally
functional. The contract will clearly set out the responsibilities
of both parties and will provide for sinking funds for repair
and replacement of all capital items.
In general the international chains bring marketing power and
operational efficiencies which make a branded hotel more
successful than an independent one. But they will make a
very careful assessment of the market place and will only
offer a management contract if the returns achievable by the
owner and manager are adequate to service the investment.
Brand awareness of the Caribbean has been growing as the
major brands look to expand their product base. The main
reasons for this are:
The growth of master planned resort communities in
the island’s fuelled by growth in the second home
market
The introduction of the brands into the condo hotel
and private residence club market
Far eastern brands have focused their growth on the
west; Raffles, Banyan Tree, Amman, Mandarin
Oriental being examples
11.3 THE VILLA SECTOR 11.3.1 Overview of the Industry
Significant growth has been achieved in the past 10 years
fueled by low interest rates, a boom in the growth of
personal wealth, ease of access to finance, strength of
sterling, excellent developer returns.
In the Caribbean the villa sector has been the fastest growing
segment of the market.
Many developments bring the bi-products of amenities to
the island such as marinas, golf, polo, which have improved
the overall reputation of the tourism product. It could be
argued that these second home developments have been
responsible almost single handedly for the improvement to
the island’s tourism product through the addition of their
amenities. It is evident that there is migration of many
clients from hotel stays, to rented villas and then to home
owners. We consider that home owners are perhaps the most
important of all of Barbados tourists; their stays are frequent
and their investment considerable. The purchase of a home
here is the greatest act of loyalty a visitor can make as it
signifies their commitment to returning to Barbados each
year as visitors, and contributing to the economy through
continual foreign currency investment in maintaining and
often renting their home.
11.3.2 Luxury Villa Rental Inventory
The villa sector has been inadequately measured as a source
of accommodation stock in Barbados and as a contributor to
the tourism industry and economy overall. According to the
BTA, only 3 villas have registered with the MoT and due to
the fragmented nature of their management, information
has been difficult to compile. None of the existing tourism
agencies separately recognize the villa sector from overall
106
Of Accommodation Stock accommodation. Thus, despite an estimated 50% of the villas
being registered for VAT (recognizing that they earn income
in excess of $60,000 per annum), their contribution is not
measured or generally recognized as having a significant
impact on the economy. As a result, the villa sector has been
provided with little government support with respect to
marketing or incentive schemes. The general opinion of the
industry participants has been that the villa market
contributes a minimal amount to the economy, with the
majority of foreign exchange earnings remaining offshore.
70% of the rented villas are located on the west
coast
The most common unit configurations are the 2
bedroom and 3 bedroom units, which comprise 58%
of the total units available
Figure 14: Villa Unit Configuration Composition Villa Unit Configurations
2 & 3 Bed
1 Bed
4 Bed
5+ Bed
Studio
As the result of PCS’ extensive research completed on this
sector, this opinion has proven to be a complete
misconception created by a lack of understanding.
Units
Bedrooms
The majority of properties available for rent fall in
the price range of US$100-250 per night, with only
a small number of properties exceeding the US$550
per night price point:
Figure 15: Villa Units by Rental Rates Units by Rental Rate
250
CHRISTMAS
Rental Units
By surveying the majority of real estate companies in
Barbados, a full list of villas actively marketed for rent has
been compiled and a detailed analysis of the available
accommodation stock in the villa sector has been completed.
Through a survey of 28 real estate companies, a total of 814
unique villas are actively marketed for rent, totaling 2,340
bedrooms. This represents approximately 42.5% of the total
bedrooms available in hotels, making it a significant
contributor to the available accommodation stock. It should
also be noted that this only represents a fraction of the villas
in existence. Villas in master planned communities that are
suitable for rent total 1,655 units or 3,675 bedrooms. This
means that only approximately half of the villa product is
actively rented. Because many of the villas have been
developed in recent years, the sector is considered to provide
some of the highest quality accommodation in the island.
200
WINTER
150
SUMMER
100
50
0
Of the 814 units, 658 (80%) are located within masterplanned, resort communities. Units include single family
homes, townhouses, and condominiums.
11.3.3 Comparative Room Rates
For all 814 villa units identified, we compiled information on
their location, unit configuration, unit type, and rack rates
throughout the year. The following presents a summary of
this information with the remaining statistics presented in
Appendix E.
As villas are primarily suited for family accommodation, the
price comparison is best made on a per room basis since
most families require multiple hotel rooms to accommodate
their whole party. Table 14 represents the average rates per
room of the villas for the Summer and Winter seasons.
107
Of Accommodation Stock Rates are also significantly different between beachfront and
near beach locations with beachfront generally affording a
premium of 20-40% over near beach properties that are a
short walk away.
Christmas
Winter
Summer
Table 14: US$ Rates Per Room Studio
1 Bed
2 Bed
3 Bed
4 Bed
5+ Bed
Studio
1 Bed
2 Bed
3 Bed
4 Bed
5+ Bed
Studio
1 Bed
2 Bed
3 Bed
4 Bed
5+ Bed
WEST
COAST
SOUTH
COAST
OTHER
$161
$308
$184
$214
$264
$520
$258
$490
$277
$326
$397
$753
$258
$518
$307
$416
$500
$843
$79
$99
$99
$108
$108
$162
$91
$126
$129
$143
$146
$270
$99
$131
$137
$156
$141
$388
n/a
$127
$105
$198
$159
$271
n/a
$80
$132
$349
$194
$401
n/a
$80
$160
$357
$242
$275
11.3.4 Hotels Converted to Condominiums
There has been a misconception in the industry that
condominium developments have significantly depleted the
hotel stock in Barbados. Over 30 condominium communities
have been developed over the last 15 years. Of these, only
nine were conversions of existing hotels. Most of these were
conversions of poorly performing hotels; some of which had
been closed for extended periods prior to conversion.
Table 15: Condominium Developments from Demolished or Converted Hotels DEVELOPMENT
EXISTING PLANNED TOTAL
Brownes
20
20
Glitter Bay Phase 1
26
26
Magic Isle
14
56
70
Ocean 2
72
72
Reeds House
14
14
Sandy Cove
15
15
St. Lawrence Beach Condos
17
17
Villas on the Beach
18
18
Silver Point Hotel
58
58
TOTAL
182
128
310
TOTAL OVERALL UNITS
1655
1730
3385
% TOTAL UNITS
11.0%
7.4%
9.2%
Note that all of these developments still operate rental
programs and Silver Point still operates as a hotel.
11.3.5 Trends in Accommodation & Villa Amenity
In line with the increasing demand for self catering
apartments and larger spaces in accommodation, villa
accommodation is well suited to follow the trend offering an
excellent value proposition on a per bedroom basis.
Furthermore, many of the villas include the services of a
maid or cook, which allow the visitor to customize meals to
their liking without the inconvenience of doing the cooking
themselves. The villas effectively become the visitor’s home
away from home, a feature which reinforces the
“aspirational” image of Barbados.
Many of the master planned communities include hotel like
amenities with pools, restaurants, or golf. The following table
summarizes the amenities of 92 master planned
communities in Barbados.
Of those nine hotels that were converted, the majority of the
condominiums that were built are now available for rent as
new and improved accommodation. Error! Not a valid
bookmark self-reference. shows the condominium
developments resulting from the demolition or conversion of
hotels.
108
Of Accommodation Stock Amenity
Clubhouse
Communal Pool
Golf
Gym/Fitness
Marina
Polo
Restaurant/Bar
Shopping
Spa/Salon
Tennis
TOTAL DEVELOPMENTS
#
15
62
16
24
1
3
14
1
9
17
92
% Total
16%
67%
17%
26%
1%
3%
15%
1%
10%
18%
11.3.6 Economic Contribution of the Villa Sector
The contribution of the villa sector is relevant for the current
account and the capital account of the balance of payments
but is under measured because insufficient data is collected
to fully quantify those impacts. In our discussions with
Central Bank they acknowledged that the foreign direct
investment generated from capital inflows for development
for the years 2006 and 2007 is under review.
By way of example, “other direct investment” shown in the
balance of payment for 2007 as $92.5 million contrasts
sharply with the actual inflows recorded by the Foreign
Exchange Department for that year of $426 million and it is
almost certain that much of this investment is included in a
catchall line item called “Other Investment”.
It is noticeable however, how fickle foreign direct investment
can be. The actual inflows from real estate recorded by the
Exchange Control Department show the following trend:
Figure 16: Foreign Exchange Inflows from Real Estate Inflows from Real Estate
$450 $400 Inflows BDS$ millions
Table 16: Common Development Amenities $426 $350 $300 $344 $250 $200 $150 $100 $100 $50 $6 $‐
2006
2007
2008
2009 (Q1)
Source: Central Bank of Barbados
The current account deficit and foreign exchange reserves
have been funded in part by capital inflows and these capital
inflows have grown from $287 million in 2001 to nearly $1.7
billion. It is anticipated that it may be as low as $500 million
in 2009.
The foreign currency power of successful tourism and
continued development cannot be over estimated.
In order to demonstrate the estimated impact of the villa
sector on the economy we have examined a number of
metrics for the sector:
Revenue from Villa Rentals
Employment
Contribution to VAT
Land Tax Contribution.
The six major villa rental agencies in Barbados account for
the management and rental of over 57% of the villas in the
island. They collaborated to compile information on the
following items relating to their properties under
management:
Employment
Land Tax Assessed Values
109
Of Accommodation Stock Land Tax Payable
VAT Contribution
Related Payroll Expenditure
Of the 346 villas rented by the six major companies, 157
villas are VAT registered. Assuming that the same 45%
applies to the total inventory this represents over 366 VAT
registrants or approximately $3.8 million in VAT per annum.
This figure could well be considerably higher because more
than half of the villas in existence were not found actively
marketed to be in rental programs.
Annual Owner Foreign Exchange Investment
Rental Revenue
Using a sample of approximately 100 villas (12% of the total
rented), we have calculated the estimated room nights
available in each season for the villas, the typical occupancy
levels after considering owner occupation, and likely
discounts off of rack rates. A model was then created using
the following assumptions and the rack rates compiled for all
814 villas in the rental pool to estimate the total revenue
from rental of the villas:
Table 17: Villa Rental Assumptions Days Available for Rent
Occupancy
Discount Off Rack Rate
Summer Winter Christmas TOTAL
325
185
125
15
26%
22%
35%
70%
15%
0.15
0.15
0.15
Based on these assumptions, we estimate the total annual
revenue from the 814 villas in rental programs at US$55.8
million. Applying the same assumptions to the 1,655 villas
suitable for rental that are located in master planned
communities, the total potential revenue from villa rentals is
over US$106.7 million per year (excluding independent
villas).
Employment
Based on the information collected from the six agencies, 1.6
employees are employed per villa on average, excluding
those jobs created in respect of the rental and management
of the properties. On this basis, this would represent a total
of over 3,000 people employed in the villas as compared to
14,000 employed in the hotel sector.
Land Tax
With many of the villas being located in prime areas, land tax
assessed values are considered to be high and therefore
contribution to land tax is significant. Based on information
collected about 465 villa units, the total land tax contributed
totals approximately $6.1 million per annum with assessed
values averaging over $2.7 million per unit. Considering that
this represents only 28% of the total units existing in master
planned resort communities, total land tax contributed from
the villa sector is likely to exceed $21.8 million per annum.
Table 18: Summary of Annual Economic Contribution of the Villa Sector Average Forex from Real Estate Development (2006-08)
Estimated Annual Rental Income (814 Villas)
Annual Inflows from Villa Owners (excl. rents)
Estimated VAT Contribution from 814 Villas
Land Tax Contribution (814 Villas)
Estimated Numbers of Employees (814 Villas)
BDS million
$ 290.0
$ 111.6
$ 206.5
$
3.8
$
21.8
3,000
In summary therefore, it is estimated that the annual foreign
exchange generated by the villa sector could be in excess of
$600 million per annum. VAT and Land Tax contributions
exceed $25 million and the sector employs over 3,000
people.
110
Of Accommodation Stock 11.4 APARTMENTS & GUESTHOUSES Apartments and guesthouses represent 1,368 units
comprising 1,695 bedrooms. In relation to the total room
stock of the island they make up approximately 18% of the
total available room stock, but are for the most part the least
successful in terms of marketing and visibility. They are
generally run by owner operators and few are attached to
tour operators. Over 70% are located on the south coast,
which is appropriate given that they tend to service the
budget traveler with rates generally below those of the villas
and hotels. Leading up to Cricket World Cup in 2007 private
developers invested large sums in the construction of new
apartment complexes in anticipation of large numbers of
tourists requiring accommodation during the event.
Unfortunate circumstance and planning resulted in most
being left vacant and presently running into financial
difficulty from a decline in demand and oversupply.
Nevertheless, at one third the size of the hotel room stock,
they still make a significant impact on the availability of
accommodation in the island that is commonly overlooked
and therefore inadequately supported.
11.5 PLANNED INVENTORY The most recently developed accommodation stock in
Barbados has come from the villa sector with the majority of
the overall inventory being constructed in the past 10 years.
During the past five years, approximately 900 rooms were
added in the hotels; with the most being attributed to the
reopening of the Hilton Barbados with 350 rooms, the
addition of 100 rooms to the Casuarina resort on acquisition
by Almond Resorts, 201 rooms being added by the Crane
Beach Hotel (with a further 30 expected to be added by this
winter), and 73 rooms added to Accra Beach Hotel (Source:
BTA). Thus, the growth in accommodation stock in recent
years attributable to the boom of the villa and second home
market exceeds that of hotels by 160%. If the GoB wishes to
increase the number of hotel rooms in the island, it will have
to find a way to make the value and investment proposition
for hotel development equitable to investing in a villa
community where the investment pays back in a shorter
period.
The MoT has emphasized the role that branded hotels play in
the attraction of tourists to the island and there is potential
for an additional six brands to be added to the hotel stock in
Barbados in the near future.
Four Seasons began development at Clearwater Bay
and is set to construct a 104 room hotel in addition
to the 36 residences already under construction
Banyan Tree have signed an agreement to operate a
200 room hotel at Black Bess, St. Peter
W Hotels has signed a letter of intent for a 100
room hotel to be constructed at Long Beach
Rosewood has been in discussions about a 200
room hotel in Harrisons Point
Le Meridien is proposed to operate a 200 room hotel
in the Pierhead development
If all of the above projects proceed, it will add an additional
925 rooms to the available hotel accommodation stock.
The development plans for the villa sector amount to
significantly more units over the next two to three years
with an additional 1,750 units being planned or already
under
construction,
excluding
standalone
villas.
Conservatively assuming that the average unit size planned
for construction is two bedrooms, this could represent an
additional 3,500 bedrooms available to the market.
Marriott Courtyard is currently constructing a 120
room hotel in Hastings, Christ Church
111
Of Accommodation Stock 11.6 WORLDWIDE ACCOMMODATION TRENDS According to the Caribbean Hotel & Tourism Association
(CHTA), as of April 2009 there were approximately 250,000
rooms in the Caribbean from small guest houses to large
resorts. Over 100,000 rooms were added to the Caribbean
tourism accommodation stock between 1990 and 2000,
which represented a capacity increase of 66%. A study by
Business Monitor International Ltd. estimates that there are
approximately 7,242 hotels across the region, with the most
rooms concentrated in Cuba, the Dominican Republic and
Mexican Caribbean.
11.6.1 Increasing presence of International Luxury
Brands in the Caribbean
Recent years have seen an influx of development of luxury
hotels under international brands such as the Ritz Carlton,
Four Seasons, W Hotels and Amanresorts. Luxury brands
bring the competitive advantage of consumer recognition
and confidence, which has been perceived to attract visitors
worldwide. Projects planned for the Caribbean are shown in
the table to follows:
Amenities Key
Golf - onsite
Casino
Island
Anguilla
Antigua
Grand Cayman
Name
C
Golf - nearby
Residences
Brand
Temenos
Viceroy
St Regis
KOR
Grande Antiguan
Jumby Bay
Hyatt Grand
Ritz Carlton
Marriott Beach Resort
Casuarina
Barbados
Go
Clearwater Bay
Bacassa
Harrisons Point
Pavilion court
Pier Head
Hilton
Long Beach
No. of
rooms
Gn
Marina
M
R
No. of
Residential
Units
Amenities
Current Status
G
Unavailable
Unavailable
140
St Regis pulled out
In construction
Sandals
Rosewood
265
40
12
11
R
In operation
In operation
Hyatt
Ritz Carlton
Grand
Cayman
53
365
24
Go
G, R
In operation
In operation
295
Gn
In operation
343
n
In operation
Westin
Four
Seasons
Banyan Tree
Rosewood
Marriott
Le Meridien
Hilton
W Hotels
104
Unavailable
200
120
200
350
100
G
36
200
335
G
205
M
120
R
o
On hold
On hold
On hold
On hold
On hold
In operation
On hold
112
Of Accommodation Stock St Lucia
BVI
Royal Pavilion
Fairmont
72
Ritz Carlton
The Point
The Landings
Halcyon
Grande St Lucian
Regency
The Tides, Sugar Beach
Le Paradis
Ritz Carlton
Raffles
Rock Resorts
Sandals
Sandals
Sandals
KOR
Westin
275
140
231
169
283
327
150
Little Dix Bay
Rosewood
98 / 100
Wyndham
One & Only
Nassau Beach
Wyndham
One & Only
Nassau
Breezes
Atlantis
In operation
G, M, R
On hold
On hold
In operation
In operation
In operation
In operation
On hold
On hold
R
In operation
279
96
Cn, Gn
G
C
In operation
In operation
In operation
Super Clubs
400
Cn, Gn
In operation
Atlantis
2900
Co, Gn
In operation
400
231
G
G
M
150
17
Bahamas:
Grand Bahama
o
n
In operation
In operation
Nassau Resort
Wyndham
850
C,G
Royal Bahamian
Sandals
405
Cn, Gn
Our Lucaya
Grand Bahama, Our
Lucaya
n
o
In operation
Westin
740
C,G
Sheraton
478
Cn, Go
In operation
Go
Closing
C
In operation
Exuma
Emerald Bay
Four
Seasons
210
Abaco
Abaco club at Winding
Bay
Ritz Carlton
20
Bermuda
Southampton Princess
Hamilton Princess
Fairmont
Fairmont
593
410
Go
In operation
In operation
Trinidad
Crowne Plaza
Hyatt
Crowne
Plaza
Hyatt
243
Cn, Gn
In operation
In operation
Hilton
Hilton
419
Cn, Gn
In operation
20
113
Of Accommodation Stock St Kitts & Nevis
Jamaica
Nevis
Four
Seasons
196
Cn, Go
Closed
Marriott
Marriott
648
Co, Go
In operation
Rose Hall
Ritz Carlton
427
Go
In operation
Montego Bay
Sandals
251
Gn
In operation
n
In operation
Negril
Sandals
223
G
Ocho Rios
Sandals
529
Go
In operation
n
In operation
Whitehouse
Sandals
360
G
St Thomas
Ritz Carlton
Ritz Carlton
180
C
In operation
St John
Caneel Bay
Rosewood
166
Gn
In operation
Westin
Westin
266
Gn
In operation
Amanyara
Aman
Resorts
40
Turks & Caicos
Canouan
Raffles
TOTAL ROOMS
TOTAL ROOMS IN OPERATION
Raffles
11.6.2 Room Configuration for Revenue Optimization
Gone are the days where the saying “Build it and they will
come” held true; today the true saying is better stated as
“Build the right thing and they will come”. In order to realize
the highest room sales potential, hotel units have become
more multi-configurable than ever before to accommodate
the needs of various traveling groups while improving
revenue potential. This effect is particularly true for small
boutique hotels where each room sale has a significant
impact on financial performance.
In order to ensure that rooms are configured to suit the
primary target market, the developer must do the following:
156
16,017
13,972
In operation
Co, Go
In operation
Know the target market and their needs – the room
configuration and bed count must fit the needs of
the target market. Consider such things as need for
privacy, the size of groups traveling together, the
purpose of their visit, the income level and price
sensitivity of the visitor, and typical length of stay.
Know the competition – understand what the
competition is providing and how their property
compares. Are you offering the same thing
everyone else is or do you have the ability to serve a
market unserviced by the competition? This is
important to remember for not only within
Barbados, but the wider Caribbean.
114
Of Accommodation Stock In order to maintain their status as a high class destination,
Barbados must be conscious of the ongoing trends in the
industry and ensure that the accommodation product
evolves with the regional and worldwide trends. In an
industry that is becoming increasingly competitive as the
Caribbean region develops, Barbados cannot afford to be
complacent. The importance of hotels in the tourism
industry cannot be understated. If the hoteliers are not
motivating themselves to improve their product, the
government should find ways to stimulate improvement and
ensure that any new product considers the changes to the
industry.
11.6.3 Going Green
The major trend across business throughout the world has
been going green. In efforts to conserve resources, improve
efficiency, and improve PR in a society that is becoming
increasingly environmentally conscious, initiatives are being
implemented across the world to be more environmentally
friendly. Particularly when the Barbados tourism product
and main attracting feature is its natural environment,
Barbados must show a commitment to environmental
preservation.
11.7 THE COMPETITIVENESS OF THE BARBADOS ACCOMMODATION PRODUCT The sustainability of Barbados as a high quality destination is
inextricably linked to the quality of the tourism assets, with
particular emphasis on the hotel and accommodation
product given that the experience of guests in the one place
they see every day of their visit, has a significant impact on
their experience and also in the decision to visit the island.
11.7.1 Competitiveness of the Hotel Product
The big issues with the Barbados accommodation product
are:
Dilapidation of hotel assets due to high costs of
construction and refurbishment and the suboptimal
structure of incentives and legislation that do not
support constant improvement to assets. While
many of the banks require that hotels maintain a
replacement reserve each year, there is no mandate
to ensure these funds are being used to continually
improve and upgrade. The hotels that make a
consistent commitment to maintenance and
refurbishment
continually
receive
positive
comments from tour operators and should be seen
as an example to the rest.
Minimal numbers of branded hotels to improve the
profile of the product and attractiveness of the
destination from the sense of familiarity with an
international brand. While plans are now in place to
introduce more branded hotels to Barbados, the
government must make every effort to support
these developments to ensure they are executed to
completion. This includes a requirement to ensure
that planning approvals, work permits, and any
other government related approvals are completed
in a timely manner.
Feedback provided by the Barbados TAAB in June this year
provided the following observations about the hotel product:
Many of the properties were observed to built to
such a high density that the amenity of the property
is diminished despite high quality room stock;
The hotels in St. James were seen to be lacking in
guest amenities;
All-inclusive product appeared to be tired and no
comparison to the all-inclusive offerings in the
Spanish speaking Caribbean or United States.
High end hotels often viewed as being over-priced
for their product offering
Hotels often seen as tired
115
Of Accommodation Stock RECOMMENDATIONS The hotel product, with a few exceptions, has generally
been seen as tired and dated. Government needs to put
in place a framework that encourages the hotels to
upgrade and improve.
Planning Permission for new hotels should require
developers to present a business case to support the
project with respect to its potential success based on
proposed product versus competing product to ensure
that new product being built does not replicate existing
issues resulting in hotel closure and poor use of prime
real estate.
The all-inclusive product requires a significant upgrade
to be competitive. The current product in Barbados is
seen as dated, tired, with minimal amenities and
activities at a significantly higher price point to
competing all-inclusive destinations.
As discussed in the taxation section of this report, there
is a need for reform to tax and duty legislation in order
to reduce the costs of construction, food & beverage and
land tax costs for the hotel sector in order in to give
hotels the opportunity to be more price-competitive
without suffering financially.
There are no real “Destination Resorts” in Barbados, with
the exception perhaps of The Crane and Sandy Lane. The
government needs to work with the private sector to
ensure that new resorts on stream have the potential to
become Destination Resorts in order to drive traffic to
the island.
US tour operators perceive most hotels to be lacking in
activities and amenities. While the “tranquility and
relaxation” factor of the hotels is considered good, it was
the opinion of tour operators that more activities should
be planned and actively offered to guests. The current
method of waiting for guests to ask is not considered
adequate. Better cooperation between hotels and
attractions to promote the activities on the island will
improve visitor participation in activities and overall
perception of the variety of activities available on island.
11.7.2 Competitiveness of the Villa Product
Although Barbados has built a strong reputation as a second
home destination due to the high quality of its product, in
order for the villa product to be competitive in the tourism
industry there are a number of areas that require
improvement as it relates to the visitor experience. While the
typical villa renter enjoys the freedom of self catering and
the privacy of their own home away from home, the ease of
check in and check out and their ability to inform visitors
about “What’s On” in Barbados certainly has room for
improvement and perhaps better regulation and attention to
ensure that their experience is just as good, if not better than
if they had stayed in a resort.
Observations made by Barbados TAAB about the villa product
were as follows:
Promotion of villas was seen as an excellent
opportunity to draw in families
Require a more formal process for arrival with
information about the villa and hotel like amenities
in the villas
Villa staff generally perceived welcoming and
friendly
Rainy day activities lacking – board games, TV, etc.
More consistent guidelines should be followed for
rental villas in terms of décor, amenities, service and
staff particularly within a company portfolio
Having been responsible for the major increase in
accommodation stock in Barbados over the past ten years,
the villa product is generally well received; however, the lack
of regulation and governmental support for the sector as a
result of poor information on the true contribution to the
economy can quickly result in the decline in quality. There is
116
Of Accommodation Stock an urgent need for incentives to be put in place to encourage
villa owners to maintain their product adequately. The task
of the villa management companies to maintain hotel like
consistency in quality of their product is an ominous and
challenging one when you consider that there is a separate
owner for every villa with their own budgets and agendas.
The six major villa rental companies that manage over 800
villas between them are currently forming a villa renters’
association with the goal of increasing awareness of the
importance of the sector. The organization is effectively
envisioned to be a body that can inform, lobby, advocate and
generally represent the interests of the villa rental
community. As an extension to this association, the vision of
the members would be to eventually become the regulatory
body for the villa sector that sets the standards for villas
including a certification program for quality assurance. The
forming of this body will be an important step in moving the
sector forward and supporting its success.
RECOMMENDATIONS Institute a certification program for luxury villas to
ensure that the product is well maintained, properly
equipped and refurbished regularly to meet and exceed
expectations of clientele
Villa rental companies must improve the check-in
process to a hotel like experience in order to encourage
repeat business and equal service as a hotel concierge
can offer. This process should include meeting guests at
the airport, escorting them to the villa and ensuring that
guests are aware of the facilities of the villa and the
operation of systems such as security and air
conditioning.
Linkages can be formed between the villa rental
companies and the tourist attractions in order to inform
villa guests of the activities on island and drive visitor
expenditure
The sector must work together to raise awareness of the
economic contribution of the villa sector to the
economy, particularly with respect to foreign exchange
earnings, in order to improve legislation and incentives
for the sector.
Less than 10 villas are registered with the BTA. No villa
legislation has been passed by the Ministry of Tourism
despite continual requests from the BTA and a draft
already submitted. As such, there is no current benefit of
registration. This legislation should be passed urgently
with the draft legislation reviewed by the villa sector
prior to ratification.
11.7.3 Competitiveness of the Apartments &
Guesthouses
With a few exceptions, the apartments and guesthouses are
considered to be the low cost, budget conscious
accommodation alternative for visitors to Barbados. Their
lower price point, lower standards of finish, and minimal
amenity caters to a different market than the hotels and
villas and can therefore be considered an important aspect of
the accommodation stock to ensure there are alternatives for
this niche. The BTA has 58 properties registered (a total of 68
are registered as apartments, however some have been
reclassified as hotels based on their quality by PCS). This only
represents approximately 50% of the all apartment
properties available. As long as properties remain
unregistered, they are unregulated and not monitored
against quality legislation under the Act of the BTA. In the
guest house category, only 19 are registered with the BTA
compared to the 29 properties found to be considered
guesthouses by PCS. All properties operating as short term
accommodation related to tourism is theoretically mandated
to register with the Ministry of Tourism. However, according
to the BTA, the legislation requires that the property operator
make first contact with the Ministry and that the BTA is not
permitted to approach these properties directly. As a result,
despite recourse of fines for non-registration of properties
being ratified in the legislation, the BTA has difficulty
enforcing such fines.
117
Of Accommodation Stock RECOMMENDATIONS If Barbados is to be serious about ensuring that all
aspects of the tourism product are monitored for quality
to remain competitive legislation must be structured in
such a way that the BTA or Ministry of Tourism has
enforceable control over all tourism products. It should
be a strict condition of any planning permission being
granted for any new properties, no matter how small,
that they present proof of registration with the BTA prior
to commencement of construction.
Awareness needs to be increased with the apartments
and guesthouses of the benefits of registration with the
BTA, the concessions available to them from doing so.
There is a significant number of bedrooms of the
accommodation stock housed in apartments and
guesthouses in a budget conscious market that tends to
be more interested in experiencing the destination than
remaining in the confines of a resort. If marketed
appropriately this provides an opportunity to increase
the market capture of this group.
Once again, the impact of accommodation the visitors’
experience should not be underestimated and no matter the
cost or size of the property, each should be equally
monitored to ensure that the accommodation product on
offer in Barbados is consistently well maintained and
presented.
11.8 DEMAND VS. SUPPLY The question of the optimal mix of accommodation stock can
be considered a round-about question. Does the
accommodation come first in attracting the desired markets,
or should the accommodation stock be planned based on the
market that the island already attracts? In a way, it can be
argued based on the importance of accommodation stock in
the travel decision that if you build it they will come. A
caveat being: as long as all the other factors in the tourism
product are in line with the market being targeted. This
includes: the type of attractions available, the price point of
the tourism offering relative to accommodation cost, and,
most importantly, airlift to ensure that occupancy levels of
new product are sufficient to make the projects viable and
that they are not simply reducing occupancy in other hotels.
According to statistics collected by the BHTA on 34
properties, average occupancy of their member hotels
between January and November 2009 was as follows:
Table 19: 2008/2009 Sample BHTA Hotel Occupancies PROPERTY
LUXURY CLASS
"A" CLASS
"B" CLASS
Average Occupancy
2008
Winter Summer Overall
74.75
60.00
65.36
73.5
63.86
64.91
68.5
51.57
67.36
72.25
58.48
63.48
2009
Winter Summer Overall
67.25 42.86
51.73
66.5 38.29
52.09
70.5 38.14
49.73
68.08
39.76
50.06
The results show a significant decline in occupancy in the
past year and an overall excess capacity in the hotels even
during high season with occupancy never exceeding an
average of 73% in the past four years. This trend of excess
capacity is even more evident in the villas, which have
exhibit average occupancies of approximately 25% or 51% of
the time unoccupied by the owners. On average, the luxury
hotels exhibited the highest level of occupancy.
There is a severe lack of data available to support projections
for an increased supply of various types of accommodation.
This would require constant monitoring of the visitor
demographic of each accommodation type, the occupancies
of each property, and changing accommodation preferences,
which would be compared against the visitor demographic
of the stay-over visitors of the island. The only publicly
available information about the visitor demographic includes
the country of residence, age, and travel companions. No
information on income level or occupation (from which
income level could be estimated) is available. Given the lack
of data it is difficult to project the areas of increasing
demand and the supply required. Based on the rule of thumb
that hotels require a minimum annual occupancy of 65% in
118
Of Accommodation Stock order to be viable, and considering that approximately 55%
of stay-over visitors stay in hotels, for a 100 room hotel to
be viable it would require an increase in arrivals by at least
12,300. This projection is based on an average length of stay
of 7 nights and two persons per room.
It is interesting to note that when comparing the mix of
accommodation stock to the type of accommodation used by
those visitors that do not stay with friends or family, the
distribution correlates almost perfectly as shown in Table 20
It is unfortunate that the current exit survey does not
distinguish between apartments and villas in order to make a
more meaningful comparison.
Table 20: Mix of Accommodation Stock & Visitor Accommodation Type Hotels
Villas
Apts/Guesthouses
Other
TOTAL
Accommodation
Visitor
Stock
Accommodation
74.0%
66.3%
12.0%
30.4%
14.0%
Unavailable
3.3%
100.0%
100.0%
RECOMMENDATIONS The question of the appropriate mix of accommodation stock
is a difficult challenge to answer given the lack of data
available. Given the foregoing, it is important that the BTA
and Ministry of Tourism continue to monitor changes in the
market with respect to accommodation preferences
worldwide, the growth in stock in competing islands, and
trends in visitor accommodation type.
The hotels will continue to be important for marketing the
destination and are unlikely to change as the
accommodation type of choice for visitors. It is therefore
imperative that regulations are put in place to ensure that
planning approvals of projects consider the economic
viability of the proposed assets.
The BTII is currently seeking consultation on a coastal master
plan for the southern part of the island. Out of this plan and
study it is anticipated that a number of potential projects
will be identified and tested against market information on
supply and demand. This exercise is an important one in
ensuring that our prime real estate is utilised optimally. For
all potentially developable areas for tourism, an exercise such
as this should be undertaken in order to present investors
and developers with tested, viable development projects as
lands become available.
One area of accommodation that has not been widely
explored in Barbados is time share. Only 6 properties in
Barbados have time share agreements. With the network of
RCI, Windham Estates, and Interval International are growing
each year (despite economic decline worldwide), Barbados
should ensure that appropriate legislation is put in place for
time share and that desirable properties are available for this
market who travel consistently. Time share ownership, much
like the ownership of a villa although to a lesser degree, can
be considered a step in solidifying repeat business from
visitors.
119
12. Bibliography Altman Real Estate. 24th July 2009. <http://www.aaaltman.com/>
Alleyne Real Estate. 31st July 2009. <http://www.jalbarbados.com/>
Allicor Inc. 31st July. 2009. <http://realestate.allicor.com/properties.asp>
Ask Real Estate. 27th July 2009. <http://www.askbarbadosrealty.com/>
Bajan Services. 22nd July 2009. <http://bajanservices.com/>
Boardwalk Realty Inc. 22nd July 2009. <http://www.bribarbados.com/>
Buy Barbados Real Estate. 30th July 2009. <http://www.buybarbados.com/>
Churchfield Real Estate Agents. 7th August 2009. <http://churchfieldrealestate.com/>
Cluttons Barbados. 11th August 2009. <http://www.cluttonsbarbados.com/>
Elegant Properties Realty. 5th August 2009. <http://www.elegantpropertiesrealty.com/>
Island Gold Realty Ltd. 28th July 2009. <http://www.igrealty.com/>
Island Villas. 29th July 2009. <http://www.island-villas.com/index.php>
Million Dollar Homes. 6th August 2009. <http://milliondollarhomes.co.uk/>
Pelican Barbados Realty. 30th July 2009. <http://www.pelicanbarbadosrealty.com/>
Realtors. 29th July 2009. <http://www.realtorslimited.com/>
Rex Realty. 30th July 2009. <http://www.rexrealtybarbados.com/>
Ronald Stoute & Sons. 27th July 2009. <http://www.ronstoute.com/>
Seaside Realty. 27th July 2009. <http://www.seasiderealtybarbados.com/>
Terra Caribbean. 23rd July 2009. <http://www.terracaribbean.com/>
Vintage Properties. 8th August 2009. <http://philipmartin3.point2agent.com/>
West Coast Villas. 27th July 2009. <http://www.westcoastvillasbarbados.com/>
Barbados top site for Bajan rentals. 3rd September 2009. <http://www.barbadosbarbados.com/Golf--Tennis.cfm>
National Conservation Commission. 3rd September 2009. <http://www.nccbarbados.org/content/view/59/67/>
Totally Barbados. 4th September 2009. < http://www.totallybarbados.com/barbados/About_Barbados/Beaches_and_Bays/>
Laying Out the Facts on The Industrial Credit Fund. 1st October 2009
<http://www.centralbank.org.bb/Services/indust_credit_fund_facts.pdf>
120
12. Bibliography Funding. 1st October 2009 <http://www.egfl.bb/>
Funding. 1st October 2009 <http://www.sba.org.bb/cms/>
Funding. 1st October 2009 <http://bdsfinance.com/government/>
How To Tackle Terrorism. 22nd October 2009 <http://meowlife.blogspot.com/2008/12/how-to-tackle-terrorism.html>
Financial and Technical Incentives Booklet. 22nd October 2009 <http://www.commerce.gov.bb/Agency/BDU/Documents/
Financial%20and%20Technical%20Incentives%20Booklet.pdf>
CARICOM Law. 7th October 2009 <http://www.caricomlaw.org/library.php?country=3&doc_type=0&query=Query>
Travel & Tourism Competitiveness Reports. 24th September 2009
<http://www.weforum.org/en/initiatives/gcp/TravelandTourismReport/TravelTourismCompetitivenessReport2007/index.htm
Central Bank of Barbados PUBLICATIONS AND RESEARCH - Annual Reports. 21st July 2009
<http://www.centralbank.org.bb/WEBCBB.nsf/webpage/40FCE6544385E2D204257314006B4B59?OpenDocument>
Miller, Keith Sally Miller, and Christine Wilkie. Ins & Outs of Barbados. Barbados: Miller Publishing Company Limited, 2009. Print
The Research and Planning Unit. Barbados Socio-Economic Data – 2009 Pocket Statistics: Ministry of Economic Affairs,
Empowerment, Innovation, Trade, Industry and Commerce, 2009. Print
Central Bank of Barbados. Economic Review. VOL XXXVI No.2 – September 2009.2009. Print
PKF Hospitality Research, PKF Consulting. Caribbean Trends In the Hotel Industry 2008. Print
Ministry of Tourism. Green Paper on the Sustainable Development of Tourism in Barbados; A Policy Framework .2001. Print
PA Consulting Group. Taxation & Operating Cost for the Caribbean Hotel Sector. 2006. Print
Caribbean Tourism Organisation. Barbados Stayover Visitor Survey – October - December. 2006. Print
Tourism Global Inc. The Caribbean Accomodation Sector as a Consumer of Locally Produced Goods and Services and Contributor
to Government Revenues. 2006. Print
Barbados Advisory Council. Report on Recommendations for the Barbadian Tourism Industry. 2009. Print
Caribbean Tourism Organisation. Barbados Economic Impacts of 1998 Tourism Expenditure. 2001. Print
Barbados Hotel and Tourism Association. VisitBarbados. Barbados: Miller Publishing Company Limited, 2006. Print
Florida-Caribbean Cruise Association. Cruise Industry Overview 2008. 2008
121
12. Bibliography Florida-Caribbean Cruise Association. Cruise Industry Overview 2009. 2009
Business Research & Economic Advisors, Price Water House Coopers, 2001, Cruise Industry’s Economic Impact on the Caribbean
Caribbean Export Development Agency, November 2008, Health & Wellness Tourism: Ten Strategies For Success Within The
Caribbean Single Market & Economy (CSME)
Caribbean Tourism Organisation, 2007, Caribbean Air Transport Study 2007
Caribbean Tourism Organistion, April 2009, Latest Statistics 2008
Future Brand, 2008, Country Brand Index 2008: Insights, Findings & Country Rankiings
Price Water House Coopers, 2001, Economic Contribution of the FCCA Member Lines to the Caribbean and Florida
Price Water House Coopers, July 2008, Tax News: “Our brother’s keeper”- a budget of restraint
Price Water House Coopers, May 2009, Tax News: Walking an uncharted path
Prime Minister and Minister of Finance, January 2006, Financial Statement And Budgetary Proposals 2006
Prime Minister and Minister of Finance, July 2008, Financial Statement And Budgetary Proposals 2008
Pro-Poor Tourism Partnership & the Caribbean Tourism Organisation, April 2006, Making Tourism Count for The Local Economy in
the Caribbean, Guidelines for Good Practice
The Special Working Group on the Economy, November 2008, Barbados Short and Medium Term Action Plan
Tourism Global Inc., Tourism Consultants, October 2003, Ministry of Tourism & International Transport, Government of Barbados,
Accommodation Capacity Plan 2004- 2010
World Economic Forum, 2009, The Travel & Tourism Competitiveness Report 2009
122
APPENDIX A: Questionnaire Dear Barbados Hotel and Tourism Association (BHTA) Members,
Property Consultancy Services (PCS) is carrying out research for a Tourism Study
being done for the Barbados Hotel and Tourism Association (BHTA) entitled “A Study on the
Competitive Tourism Environment which Barbados Faces – Its Challenges and Solutions”. The intention
of this study is to recommend strategies to improve profitability and return on investment;
assess changes to the tax cost which the industry faces and address any issues relating to the
applicable taxes; explore new tourism products that need to be introduced; investigate new
marketing initiatives which may be more effective; implement support required to facilitate
controlled supply growth, and to determine the appropriate mix of rooms, condominiums,
townhouses, timeshares and other forms of accommodation that Barbados should have.
The questionnaire presented below is a part of the study and will aid in gathering the
necessary information to produce a meaningful study and we hereby request your kind
cooperation in the completion of the questionnaire. We would appreciate your accuracy in
all responses. ALL INFORMATION DISCLOSED WILL BE KEPT IN THE
STRICTEST OF CONFIDENCE. WHILE SOME INFORMATION WILL BE
UTILIZED IN THE BODY OF THE REPORT, IT WILL NOT BE DIRECTLY
ATTRIBUTED TO YOUR BUSINESS AND RESPONSES WILL REMAIN
ANONYMOUS.
PART 1: BACKGROUND INFORMATION
1. Business Name:
___________________________________________________________
Business Address:
___________________________________________________________
Business Description:
___________________________________________________________
Respondent’s Name:
___________________________________________________________
2. # of Employees:
___________________________________________________________
# of Years in Operation:
___________________________________________________________
Nature of Business:
___________________________________________________________
3. Does your business have an international affiliation? Yes
No
a. If yes, please name? _________________________________________________________________
b. Where are they located? ______________________________________________________________
4. What do you consider to be the strengths of your business? Please rank them in order of importance with 1 being the
most important.
Strong management
Good marketing
Good cost control
Well maintained property/ assets
Value for money
Good customer relations leading to repeat business
Good location
Good product
Other
5. What do you consider to be the weaknesses of your business? Please rank them in order of importance with 1 being
the most important.
Poor labour productivity
Expensive financing
Expensive inputs
Insufficient scale to gain economies
Other
6. What do you consider to be the threats to your business? Please rank them in order of importance with 1 being the most
important.
Government bureaucracy
International competition
High cost base
Economic downturn
Interest rates
Other
7. Who are your main customers? Please estimate percentage.
Locals
Longstay Tourists:
Cruise passengers

%
%
%
a. If tourists, please estimate origin of business by country and percentage.
UK
____%
Europe
____%
USA
____%
Caribbean
____%
Canada
____%
Other ___________ ____%
8. Customer Information collection:
a. Does your business collect information about your customers on an ongoing basis?
b. How?
9. How can your business increase the efficiency of its operations?
Yes No
PART 2: YOUR CUSTOMERS
If your business is ‘tourist oriented’ please complete this section
10. Are your customers satisfied with their experience in Barbados?
No
Somewhat
Yes but, with reservations
Yes
11. What are their greatest concerns? Please rank them in order starting 1 being the greatest concern
Service standards
Immigration/ Customs
Quality of product
Crime
Cleanliness of the island
Need more to do
Other
Cost of vacation:
Food & Beverage
Attractions
Accommodation
Transportation
12. Crime against tourists
a. How big an issue is crime against tourists?
Very
Somewhat
Not at all
b. Is it improving?
Yes
No
c. How is it improving?
Better policing
Private security companies
13. How big an issue are drugs on the island?
Very
Somewhat
Not at all
14. How big an issue is beach harassment?
Very
Somewhat
Not at all
PART 3: FINANCIAL PERFORMANCE
15. Are you satisfied with the financial performance of your business?
Somewhat dissatisfied
Dissatisfied
Neutral
Somewhat Satisfied
Satisfied
Please explain why or why not?
16. Which input costs are most onerous to your business? Please rank them in order starting 1 being the most difficult.
Utilities
Labour
Insurance
Telecommunications
Security
Marketing
Food and Beverage cost
Building Maintenance
17. What are the main drivers of your profitability and operational success? Please rank them in order of importance with 1
being the most important.
Volume
Price
Product Differentiation
Strict Cost Management
18. What do you believe your business can do internally to increase its profitability?
19. Has the current economic crisis have a significant affect on your profitability? Yes
No
a. If yes, please estimate its affect:
10% decline
25% decline
40 – 50% decline 50 – 75% decline
20. What do you think can be done externally to improve the profitability of your business sector? Please rank them in
order of importance with 1 being the most important and give reasons for your responses.
Increase government incentives
Rank ___
Reduced input costs
Rank ___
Increased access to the island to improve occupancy / use of your product
Rank ___
More marketing of the island by government bodies
Rank ___
Reduced Taxes
Rank ___
Improving quality of your service
Rank ___
21. Access to financing:
a. How would you rate the ease of access to financing for businesses?
Poor
Below average
Average
Good
Excellent
b. If poor, why?
22. How would you rate the cost of capital in Barbados relative to competing markets?
High
Low
Average
23. How important is the length of the loan term?
Very Important Not Important
PART 4: THE ENABLING ENVIRONMENT
The enabling environment can be described as the conditions which exist to encourage the development and
success of the tourism industry. In its wider context, it includes such issues as taxes, legislation governing activities,
processes of approval by various departments and ministries, the attitude of officials and personnel within the
approval process, and the availability of finance. Given the large effect of various taxes on the industry, they will be
dealt with in a separate section.
INTERACTION WITH GOVERNMENT
24. Interaction with government:
a. Does your business interact with government offices on a regular basis?
b. Please specify which departments:

Immigration
Central Bank
Ministry of Health
Ministry of Tourism
Land Tax department

Yes
No
Other
25. Is the response of these departments too slow?
Yes
Somewhat No
Please give a reason for your response.
26. Has your business ever had an application for development turned down by the Town & Country Development
Planning Office?
Yes
No
a. Was the reasoning for the declined application fair?
Yes
Please explain:
b. What period of time did you have to wait for a response?
___ weeks
___ months
___ years
No
27. How would you rate the service provided to you by the following government departments? Please rate on a scale
of 1 to 5 with 1 being excellent and 5 being poor (if you do not deal with the relevant department kindly state N/A).
Immigration
Central Bank
Ministry of Health
Ministry of Tourism
Land tax department
Other
28. What do you believe to be the main source of inefficiencies in government departments? Check all that apply.

Poor organization
Too many functions for one department

29. How do you think government could streamline its dealings with the private sector? Check all that apply.
One stop shop
Public sector reform
Use of technology
Vesting more power in the Ministry of Tourism
Other
TAXES & CONCESSION LEGISLATION
30. Do you think the current taxes levied by government are too high?
Yes
No
If so which taxes:
for e.g. DIRECT: Hotel Accommodation Tax, Departure Tax, Customs Duties, Non-Tariff Barriers, Excise Tax, Environmental Levies,
Corporation Tax, Income Tax, Land Tax, Property Transfer Tax, Stamp Duty, Withholding Tax. INDIRECT: Value Added Tax “VAT”,
National Insurance, Payroll Taxes
31. Is your business registered under the Tourism Development Act?
Yes No
a. If no, why not?
My business does not qualify
I didn’t know about it
The process is too onerous and long
It isn’t worth it
Not Applicable
b. Do you think the Tourism Development Act is effective?
Yes No N/A
Please give a reason for your response:
c. How can the Tourism Development Act be improved?
32. The Special Development Areas Act:
a. Is your business registered under the Special Development Areas Act?
Yes No
b. If no, why not?
My business does not qualify
I didn’t know about it
The process is too onerous and long
It isn’t worth it
Not Applicable
c. Do you think the Special Development Areas Act is effective?
d. How can the Special Development Areas Act be improved?
33. Do you consider that the land tax value of your property is too high?
Yes
Somewhat
ADDITIONAL COMMENTS:
No
Yes No N/A
PART 5: LABOUR, EMPLOYMENT, EDUCATION AND TRAINING
34. How would you rate your overall relationship with your labour force?
Very Poor
Poor
Average
Good
Excellent
35. How would you rate the skills and competencies of your overall labour force?
Completely Inadequate Very Poor Poor
Average
Good
Excellent
36. What are the strengths of your employees?
37. What are the weaknesses of your employees?
38. Are your employees unionized?
Yes
No
a. If so, approximately what percentage of your employees belong to the union:
< 10%
10% - 25%
25% - 50%
50% - 75%
75% +
b. Is the union supportive or is it seen as a hindrance? Please give a reason for your response.
39. Does your business employ sub-contractors? Yes No
a. What type of services do you sub-contract
40. How does the existing employment legislation regarding layoffs during the slow tourist season affect your
profitability, and your ability to operate effectively?
41. Local education and training:
a. Are the standards of training at academic institutions in Barbados high enough to meet the demands of the
work place?
Yes
No
b. Is this training provided relevant?
Yes
No
42. Are academic institutions failing to produce enough suitable candidates? Yes
No
43. How would you rate the quality of your manpower? Please rank in order of importance with 1 being the best and 5 being
the worst.
Entry Level
1 2 3 4 5
Supervisory Level
1 2 3 4 5
Junior Management Level
1 2 3 4 5
Senior Management Level
1 2 3 4 5
44. Should Hospitality / Tourism Management be taught at the secondary school level?
Yes
No
45. When a job is advertised for a placement within your organization, in your opinion, what percentage of the
applicants is unqualified?
<5%
5 – 10%
10 – 25% 25-50%
50% - 75%
75%+
46. What percentage of your employees are currently studying to become qualified? __________
a. Do you provide your employees with financial support for their training and education?
Yes
No
47. Do you think businesses in the Tourism adequately train their staff?
Yes
No
a. If no, why not?
b. In your opinion, what areas need improvement?
48. How important is National Initiative for Service Excellence (NISE) to the delivery of quality services in
Barbados?
Unimportant
Average
Important
Very Important
PART 6: BARBADOS IN THE COMPETITIVE LANDSCAPE
49. How would you rate Barbados as a tourist destination?
Poor
Below Average
Average
Good
Excellent
Good
Excellent
50. How good is Barbados at generating repeat business?
Poor
Below Average
Average
51. Who do you consider to be Barbados’ main competitors?
52. How would you rate the level of service provided by businesses in Barbados relative to international standards?
Poor
Below Average
Average
Good
Excellent
53. Do you think Barbados has enough diversity of attractions for tourists visiting the island?
Yes No
If no, name 3 attractions that would improve the quality of the product offering of Barbados.
54. Which niche markets do you consider could strengthen our tourism product and increase the volume of
business? Please rank in order of importance with 1 being the most important and 9 being the least important.
Sports tourism
Conference business
Health tourism
Indigenous festivals
Product expos (ie. Rumfest)
Water based tourism
Heritage tourism
Eco tourism
Educational tourism
Other
55. Which of the following have the most influence on our competitiveness? Please rank in order of importance with 1
being the most important.
POSITIVE (ADD TO OUR APPEAL)
Sun, Sea & Sand
Sports Facilities
People
Climate
Attractions
Environmental Cleanliness
Restaurants
Other
NEGATIVE (REDUCE OUR APPEAL)
Immigration/Customs Officials
High Cost of Destination
Long Flights
Environmental Cleanliness
Other
PART 7: ACCESSIBILITY OF THE ISLAND
56. In your opinion, does Barbados have enough air access / lifts to the island?
Yes
No
57. Which areas of the world should Barbados focus on for more airlift? Please rank in order of importance with 1 being
the most important and 7 the least important.
UK
North America
Far East
Middle East
Russia
Europe
Africa
Other
58. What can be done to improve the first impression or the experience of visitors at our air and sea ports
PART 8: MARKETING
59. What methods do you use to attract your customers? Please rank them in order of importance with 1 being the most
important and 7 the least important.
Television
Radio
Word-of-Mouth
Print Media
Contracts with providers (operators &agents)
E-marketing & the Internet
Other
60. How do you measure the effectiveness of your marketing?
61. How do you measure the satisfaction of your customers?
62. In your opinion, how should Barbados be projected; to potential tourists?
63. Do you think Barbados is marketing itself satisfactorily?
64. If not what can we do to improve on marketing?
Media
Target new/ other markets
Market the Caribbean as one region
Yes
No
PART 9: INTERACTION WITH THE LOCAL COMMUNITY
65. Do Barbadians understand the financial importance of tourism?
Not at all
Some what Yes, but don’t link their actions to the concept
66. Does your business offer a special rate for locals?
Yes No
Very much
PART 10: THE VISION FOR BARBADOS TOURISM
67. Is there a clearly identifiable vision for the industry, lead by the Ministry?
Yes
No
68. How important is it for Barbados to have a Tourism Strategic Plan to indentify goals and monitor performance?
Not at all
Important
Very Important
69. Do the main stakeholders act as a team? (BHTA/ Ministry of Tourism/ BTA)

Yes
No
70. If not, what could they do to improve on this?
71. Which of our national assets are not sufficiently used in promoting tourism?
Kensington Oval
Sir Erskine Sandiford Centre
Beaches / Watersports
Sir Garfield Sobers Gymnasium
National Stadium
72. Are some of our tourism strategies hurting our competitiveness? i.e. Best of Barbados.
If so which ones?
73. What are the three (3) most important things Barbados can do to improve the competitiveness of its tourism
product?
1
2
3
PART 11: ACCOMMODATION STOCK
If you are in the business of providing tourism accommodation, please complete this section.
74. What forms of accommodation do you offer?
Hotel Rooms Suites
Self Catering Apartments Detached Villas
Townhouses
75. What unit configurations comprise your accommodation stock by percentage?
Studios
1 Bedroom
2 Bedroom
3 Bedroom
4+ Bedroom
_____%
_____%
_____%
_____%
_____%
76. What is the most commonly requested type of accommodation?
Suites
Self Catering Apartments Detached Villas
Townhouses
77. What is the trend in accommodation requirements?
Larger hotel rooms
More suites
Apartments for larger family groups
78. What is the most commonly requested unit configuration?
Studios
1 Bedroom
2 Bedroom
3 Bedroom
4+ Bedroom
79. How would you rate the level of quality of your accommodation?
Budget
Mid Level
Upper Level
Luxury
80. How often do you refurbish your accommodation stock?
Once per year Every 2 years
every 3-5 years
Rarely
Never
PART 12: INFORMATION SHARING
We assure you that all information provided will remain confidential. In order to aid us in our research for the
purposes of this study kindly indicate which (if any) of the following information you would be willing to provide
about your business:
Financial Information/Statements
Customer Information
__________________
Signed
__________________
Title
__________________
Date
Staff demographic information
Survey of your customers
APPENDIX B: Key Findings of the Questionnaire KEY FINDINGS OF THE QUESTIONNAIRE 1. Background Information a) Participants found the (in ranked order):
1
2
3
4
Value for Money & Good Location
Well maintained property/assets
Strong Management
Good Marketing, Good Product
b) Participants found the major threats to their business to be (in ranked order):
1
2
3
4
Economic Downturn
High Cost Base
Government Bureaucracy
International Competition
c) The average share of business by source market for each of the participants was as follows:
UK
USA
Canada
52%
23%
18%
Europe
Caribbean
Other
5%
11%
3%
d) Share of business by long stay or cruise tourists:
Longstay Tourists
13%
% Overnight
% Cruise
passengers
87%
e) 64% of businesses collect information about their customers on a regular basis
f)
Ways cited that they could improve efficiency of operations:
•
productivity of staff, friendliness;
•
consistent training (even after courses);
•
more flexible labour (based on union contract / labour legislation);
•
technology for bookings, government assistance to regulations for hotels;
•
growth: improve / increase productivity & better systems;
•
bigger hotel plant (more rooms);
•
better time management, management personnel, keeping an optimistic approach to daily
operations and staff output;
•
marketing, more planes operating from Barbados (8-seater) to accommodate 1 day tours /
excursions;
•
reduce the bureaucracy - licenses & certificate hassles, time consuming;
•
reduce taxes : duties (20% - 184%), environmental levy, maximise collection of monies, reduce
stock level; and
•
better customer service.
2. Your Customers a) The number 1 concern of their customers as reported was service standards and cost of vacation by
50% and 29% of the respondents respectively.
b) Customers Greatest concerns by ranking were:
1
Cost of Vacation & Service Standards
2
Cleanliness of the island & Quality of Product
c) 56% of participants believed beach harassment and drugs were a very big issue for tourism:
How big an issue is crime
against tourists?
Very
Somewhat
Not at all
11%
33%
How big an issue are drugs
on the island?
Very
Somewhat
Not at all
How big an issue is
beach harassment?
Very
Somewhat
11%
56%
33%
56%
3. Financial Performance a) The input costs considered to be most burdensome were:
1
Utilities
2
Labour & Insurance
3
Food & Beverage Cost
4
Building Maintenance
44%
56%
b) The main drivers of profitability of the participating businesses were:
1
Price
2
Volume
3
Strict Cost Management
4
Product Differentiation
c) The current economic crisis affected profitability of businesses as follows:
40-50% Decline
Experienced by 50% of participants
25% Decline
10% Decline
d) In order of priority, participants cited the following as major actions that should be taken to improve
their profitability:
1
Reduce Input Costs & Taxes
2
Increase Government Incentives
3
Increase Access to the Island
4
Improve Marketing by Government Bodies
e) The cost of capital in Barbados was rated as being high relative to competing markets by 57% of the
participants while 50% thought that the length of the loan term was very important.
4. The Enabling Environment a) In response to the question “Is the response of (the government departments) too slow?” the
following answers were received:
•
initial contact is good but execution is poor;
•
MoH fairly responsive as well as CZMU, MoT is mix;
•
MTW - send correspondences but no responses;
•
answers are not forthcoming on interaction - too many persons to go through before you
get an answer;
•
lack of care - based on the sector (public) they take their time in addressing issues;
•
red tape - the time it takes;
•
got good responses;
•
too much bureaucracy – too much 'turf' wars between government agencies - individual
government officers assuming omnipotence in the execution of their duties e.g. customs,
immigration, health inspectors.
b) The range of response time for planning approval was 4.7 months to 1.6 years
c) A summary of the inefficiencies perceived in government departments is presented in the following
figure. The percentages represent the percentage of respondents that considered this issue to be real:
Inefficiencies of Government Departments
Poor organization
57%
50%
43%
43%
21%
21%
14%
21%
14%
-
d) 79% of respondents believe that taxes levied by government are too high.
• departure tax, custom duties, non-tariff barriers, corporation tax, income tax, land tax;
•
land tax, import duties for F & B;
•
land tax;
•
combination of taxes;
•
VAT should be reduced by 7.5% for direct tourism services, could decrease departure tax and
should be eliminated for ‘in transit’ passengers;
•
import taxes (tourism related), airport taxes (these taxes are based on zones - zoning should be
looked at to be competitive);
•
instead of creating incentives for businesses that don't need it ($15 million) spread it in areas
that could benefit the whole sector e.g. insurance company - so rates are not so high;
•
departure tax, input tax;
•
land tax, customs duties;
•
VAT, Landing Fees, Airport Facilities tax.
e) Suggested improvements to the TDA included:
•
reduce requirement for tax clearances;
•
address and communicate with hotels directly so that they know how they can take advantage
of it;
•
depends on the goals of the destination;
•
might make sense to register under shipping incentives act;
•
create a one stop shop for the application process;
•
eliminate the need for audited accounts for the little people;
•
it needs to be reviewed on a more frequent basis as the dynamics are constantly changing in this
business. There also needs to be greater vigilance on entities who are benefiting but do not
qualify.
5. Labour, Employment a) 57% of businesses have unionized employees.
b) The following summarizes responses of the % of total employees that belong to unions:
Unionised Employees
38%
13%
< 10%
38%
13%
10% - 25%
25% - 50%
75% +
c) The majority of respondents view the union as being supportive
6. Education and Training a) 79% of respondents believed that the standards of training at the Barbados educational institutions
was high enough to meet the demands of the work place and 57% believed the training was relevant
b) Despite the responses above, no level of management was given a rating any higher than 2 (senior
management only) when rating the quality of manpower
c) 56% believe that tourism should be taught at a secondary school level
d) The most common answer to question 45 (What percentage of applicants are unqualified?) was 5075%.
e) 86% of participants provide financial support for employee training and education
7. Barbados in the Competitive Landscape a) The following destinations were considered to be Barbados’ main competitors:
•
Indian Ocean;
•
luxury: Indian ocean, lower: Jamaica, Bahamas, Mexico, Dominican Republic, Cuba;
•
Caribbean islands, Thailand (service, food & cost), Dubai (service);
•
Seychelles, Middle East, Mauritius (value for money);
•
any warm weather destination;
•
western Caribbean (Jamaica, St. Maarten, St. Thomas);
•
Jamaica - close to the US slightly different market;
•
Dubai, St. Lucia, Jamaica, Dutch Antilles, Seychelles;
•
regional: St. Lucia, Jamaica & Caymans; Middle East;
•
Far East;
•
Dubai, Seychelles, Maldives, Dominican Republic, Cuba, Mexico;
•
St. Lucia, Grenada, Antigua.
b) 43% of respondents rated service in Barbados as being “Average” relative to International Standards.
Reasons for Barbados not being on par were:
•
engagement of customers are lacking, the psyche behind the selling process - why people buy;
•
no comparisons;
•
qualifications in sector / area (product knowledge);
•
response to service calls is usually excellent;
•
service level not high enough in majority of the places person interact with;
•
average worker don't understand the avenues of business by supplying a level of good service for
what they are doing;
•
room for improvement;
c) 57% thought Barbados was diverse in its attractions tourism product but that niche markets that
could be considered to strengthen product and increase the volume of business was conference
business, health, sports and eco tourism.
8. Accessibility of the Island a) 43% did not believe that air access is adequate to Barbados.
b) Suggestions for improvements to the air and sea port experience of visitors were:
•
VISAs are a problem / hassle;
•
speedy entry - clean arrival hall;
•
immigration could be better - reduce lines and arrival execution - as 1st port of call not friendly /
welcoming enough;
•
airport: physical facility e.g. Airbridges, facilities should match how you want to sell the
destination, staff; seaport: facelift - general port because the industry has moved from being a
cargo port to being a cruise port. Availability of information to cruise passengers. Professionalism /
attitudes of person working in the facilities;
•
customs / immigration at airport. The airport's first impression is cold - it doesn’t say Caribbean;
•
friendly people - hostesses within the arrivals area to assist (to help with filling out cards);
•
new sea port for tourist arrivals with less of a commercial image, need a Caribbean flavour (set the
tone for the holiday at the airport);
•
less time wasting;
•
airport: make the environment more comfortable (air-conditioned), friendlier, colorful(more
Caribbean); seaport: has/needs more work, lack appeal;
•
more welcoming, Caribbean flavour (steel pan);
•
make the environment aesthetically pleasing e.g. seaport: big containers, take the ports to another
level;
•
reduce lines especially in peak times, and arrival experience (baggage claims)
9. Marketing a) The main marketing methods used by survey participants were (in rank order):
1
Contacts with tour operators & agents
2
E-marketing & internet
3
Word of mouth
4
Print Media
b) 64% of those surveyed did not think Barbados is marketed satisfactorily
10. Interaction with the Local Community a) Responses to the question of if Barbadians understand the financial importance of tourism are
summarized as follows:
Do Barbadians understand the financial importance of tourism?
43%
36%
14%
7%
Not at all
Some what
Yes, but don’t link their
actions to the concept
No Response
11. The Vision for Barbados Tourism a) 64% did not believe that Barbados has a clearly identifiable vision for the industry
b) 93% considered having a Tourism Strategic Plan to identify goals and monitor performance to be very
important
c) 43% do not believe that the main industry stakeholders act as a team
d) Assets considered to be underutilized were as follows:
Assets not used sufficiently in
promoting tourism
57%
43%
36%
29%
21%
Kensington Oval
Sir Erskine
Sandiford Centre
Beaches /
Watersports
Sir Garfield
Sobers
Gymnasium
National
Stadium
12. Accommodation Stock a) The most commonly requested type of accommodation was considered to be suites and self-catering
apartments
b) The trends in accommodation were for larger rooms, more suites, and apartments for larger groups
c) The most commonly requested unit configuration was a 1 bedroom apartment, followed by two
bedrooms and studios.
d) 43% of participants refurbish their room stock every 3-5 years
APPENDIX C: Attractions Inventory Sailing
Diving
Sports Golf Courses
Distilleries
Sightseeing
Nature reserves Aquarium
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Museums Art galleries 9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Barbados National Surfing Championships
Barbados National Trust Sir Frank Hutson Sugar Museum
Barbados Reggae Festival 2009
Barbados Turf Club Barbados Wildlife Reserve
Barbados Windfest
Bathsheba
Best of Barbados Gift Shops
Beyond Aesthetics Gallery
Bill Fisher II
Blowin in the Windies Youth Jazz Festival
Bridgetown Film Festival
Bridgetown Synagogue
Burkie's Surf School C.O. Williams Flowers C.R. Cruises Ltd. T/A Cool Runnings
Canefield Plantation Cannon Charters
Local food/craft product
9
9
Barbados Hockey Federation Banks Hockey Festival
Barbados Horticultural Society Barbados Jazz Festival
Barbados Marine Reserve
Events Gardens
Beaches
Adventure / Hiking
Adventureland Tours Inc.
Aerial Trek Zipline Adventures
Agrofest
Andromeda Botanic Gardens Animal Flower Cave
Apes Hill Club Polo
Arbib Heritage and Nature Trail
Arlington House Museum
Atlantis Adventures
ATV Quads Bike Safari Tour Bajan Helicopters
Banks Beer Visitors Center
Barbados Blue Watersports
Barbados Cropover Festival
Barbados Equestrian Association
Barbados Gospelfest
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Sailing
Diving
Sports Golf Courses
Distilleries
Sightseeing
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Museums Art galleries Local food/craft product
Events Gardens
Beaches
Adventure / Hiking
Caribbean International Riding Centre ‐ Ride Barbados Celtic Festival
Chalky Mount
Challenge Charters
Chantours
Charles Watersports Inc
Cherry Tree Hill
Christ Church Parish Church
Club Mistral
Codrington College
Cool Jazz
Culpepper Island
Day Trip to the Grenadines deAction Man Beach Shop
Discover Mustique and Bequia Dive Pro Barbados
Earth & Fire Workshop
Earthworks Pottery
East Point Lighthouse at Ragged Point
Eco Dive Barbados El Tigre
Farley Hill
Fisherpond House Fishing Charters Barbados
Flower Forest
Folkstone Marine Reserve & Museum
Foursquare Rum Factory and Heritage Park
Frangipani Art Gallery
Gallery of Caribbean Art
Gang of 4 Art Studio
George Washington House Museum Good Times Catamaran Sailing Graeme Hall Nature Sanctuary
Grenada in a Day Grenade Hall Signal Station & Educational Forest
Gun Hill Signal Station
Harrisons Cave
Hazell's Water World Inc
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Sailing
Diving
Sports Golf Courses
Distilleries
Sightseeing
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Events 9
9
9
9
9
9
9
9
9
9
Independence Pro Surfing Championships Indian Pond Plantation
Ins & Outs Gift Emporium
IOU Fishing Charters
Island Safari Barbados Ltd.
Jah Works Stud & Riding Stables
Jewish Synagogue
Just Breezing Watersports Ken Watersports Inc Kendal Sporting Club Kensington Oval KING GEORGE V MEMORIAL PARK
Kings Bay
Kool Kat Catamaran Cruise
Lakes Beach
Laycock Bay
Lion Castle Polo Estate Little Bay
Long Bay
Long Beach
Long Pond
Lorenzo's Scuba Dreams
Mahogany Bay
Malibu Beach
Malibu Beach Club & Visitor Centre
Malibu Watersports Mallalieu Motor Collection Mango's Fine Art Gallery
Martin's Bay
Gardens
Beaches
Adventure / Hiking
Heatwave Sailing Cruises
Highland Adventure Centre Holder's Season
Holetown Beach
Holetown Festival
Horizon Helicopters ‐ temporarily closed
Horse Racing
Hunte's Gardens
Inch Marlow Beach
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Sailing
Diving
Sports Golf Courses
Distilleries
Sightseeing
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Events Gardens
Beaches
Adventure / Hiking
Maxwell Beach
Middle Bay
Morgan Lewis Beach
Morgan Lewis Sugar Mill
Mothers Day Bay
Mount Gay Rum Tour & Gift Shop
Mullins Bay
Museum of Parliament and the National Heroes Gallery
National Armory in St. Ann's Fort
National Independence Festival of Creative Arts (NIFCA)
Needham's Point / Hilton Beach
Needhams Point Lighthouse
Nidhe Israel Museum
North Point Cove
Ocean Adventures & Silver Moon Cruises
Ocean Echo Stables ‐ Hiking Tours & Horse Back Riding
Ocean Park Barbados
Ocean Racing Challenge
Oistins Beach
Oistins Fish Festival
Old Time Days Museum and Eco Tours On the Wall Gallery & Art House Café
Orchid World
Paradise Beach
Paynes Bay
Pebbles Beach
Pelican Craft Centre
Pico Tenerife
Port St.Charles
Powerboats
Queen's Park
Queen's Park Gallery
Ragged Point and East Point Lighthouse Ragged Point Lighthouse
Redeye Kiteboarding Redezvous
Reeds Bay
Reefers & Wreckers
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Sailing
Diving
9
9
Rogers Scuba Shack
9
Royal Westmoreland
Rubaiyat Catamaran Cruises
Sam Lord's Beach
Sandy Beach
Sandy Lane Beach
Sandy Lane Gold Cup Festival
Segway Adventure Fun Rides Shasa Catamaran Cruises
Silver Rock/ Round Rock
Silver Sands Beach
Six Men's Bay
Skeetes Bay
Small Cats Catamaran Sailing Cruises
Smitons Bay
South Point Lighthouse
Springvale Eco‐Heritage Museum
St Nicholas Abbey
St. Andrew Parish Church
St. George Parish Church
St. James Church St. John Parish Church St. Joseph Parish Church
St. Lucy Parish Church
St. Michael Cathedral
St. Patrick's Cathedral St. Peter Church
St. Philip Parish Church
St. Thomas Church
St.Lawrence Beach
Stiletto Catamaran Cruises Sunbury Planation House
Super Cats Cruises
Surf Barbados
Surfer's Point
Tall Ships Cruises ‐ Tiami / Harbour Master
Sports Golf Courses
Distilleries
Sightseeing
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Events Gardens
Beaches
Adventure / Hiking
9
River Bay
Rockley Golf Club
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Sailing
Diving
Sports Golf Courses
Distilleries
Sightseeing
Churches
Fishing
Surfing
Watersports
Travel / Tours
Helicopter Rides
Historic Sites
Events Gardens
Beaches
Adventure / Hiking
9
Taste of Barbados Festival
The Barbados Arts Council
9
9
The Barbados Golf Club
9
The Barbados Museum & Historical Society 9
The Barbados Rally Carnival
9
The Brock Gallery
The Concorde Experience
The Dive Shop Ltd
The Gallery at Southsea
The Gallery St. James
The Garrison ‐ Garrison Historic Area and Tours 9
9
9
9
9
9
9
9
The Sandy Lane ‐ Country Club
The Sandy Lane ‐ Green Monkey The Sandy Lane ‐ Old 9
9
The Sea Eye The Shell Gallery
The Tamarind Seed
Three Houses National Park
Thriller Ocean Tours
Tides Gallery
Trent Bay
Tulis Batik
Turner's Hall Woods
Tyrol Cot Heritage Village
Walkers Beach
Walkers' World
Walkers' World West
Waterfront Café
Waterhall Polo Centre
Welches Beach
Welchman Hall Gully
West Side Scuba Centre
Westwater Adventures Inc.
Why Not Sailing Cruises / Barbados Ahoy
Worthing Beach
Zed's Surfing Adventures
Zemicon Gallery
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
227
10
43
7
20
9
10 14
9
19
2
4
6
5
5
12
1
6
9
4
6
8
11
16
APPENDIX D: Hotel Inventory 3
6
3
22
2
15
100
16
97
96
30
56
88
59
49
72
0
0
0
0
0
23
1
65
0
0
16
45
73
13
8
56
73
2
30
3
1
57
3
2
18
127
6
13
0
9
124
350
19
23
0
0
15
21
1
1
12
0
1
29
0
2
0
0
0
0
4
4
0
1
0
18
BEDROOMS
15
11
49
2
0
0
TOTAL
50
2
0
13
PENTHOUSES
4
0
1
OTHER SUITES
TWO - BEDROOM
32
10
1
153
359
7
20
STUDIO
ONE - BEDROOM
188
38
48
8
36
273
57
112
THREE - BEDROOM
STANDARD ROOM
Hotel
Accra Beach Hotel & Resort
All Seasons Resorts - Europa
Allamanda Beach Hotel
Almond Beach Club & Spa
Almond Beach Village
Almond Casuarina
Amaryllis Beach Resort
Barbados Beach Club
Beach View Condominium Hotel
Blue Horizon Apt. Hotel
Blue Orchids Beach Hotel
Bougainvillea Beach Resort
Butterfly Beach Hotel
Casa Grande Airport Hotel & Resort
Cobblers Cove Hotel
Coconut Court Beach Hotel
Colony Club Hotel
Coral Mist Beach Hotel
Coral Reef Club
Coral Sands Beach Resort
Crane Resort & Residences (The)
Croton Inn, The
Crystal Cove Hotel
Discovery Bay Barbados
Divi Heritage
Divi Southwinds Beach Resort
Dover Beach Hotel
Escape at the Gap
Fairmont Royal Pavilion
Golden Sands Hotel
Grand Barbados Beach Resort
Hilton Barbados
House (The)
Island Inn Hotel
224
48
50
161
395
280
144
112
36
65
31
100
93
100
40
110
96
32
88
31
142
7
88
88
22
133
59
66
73
27
124
350
34
23
228
48
51
161
395
280
146
112
95
65
35
106
96
100
42
110
96
35
95
34
220
10
88
88
22
145
59
66
75
27
124
350
34
23
10
70
3
10
6
6
12
5
1
0
7
4
7
7
0
0
0
6
4
0
2
0
2
20
2
14
0
0
1
0
0
0
22
20
22
129
96
98
25
1
1
20
23
2
5
11
1
6
21
41
70
0
21
22
24
22
6
21
0
2
40
0
77
25
21
18
1
2
22
3
3
51
12
65
27
28
0
6
2
0
0
0
1
0
12
3
0
0
0
0
23
12
0
0
0
0
0
0
76
16
35
0
0
BEDROOMS
TOTAL
PENTHOUSES
OTHER SUITES
STUDIO
THREE - BEDROOM
TWO - BEDROOM
ONE - BEDROOM
STANDARD ROOM
Hotel
Little Arches
Little Bay Hotel
Little Good Harbour
Lush Life Nature Resort
Mango Bay Hotel & Beach Club
Nautilus Beach Apartments
NewEdgewater Hotel, The
Ocean 11 Hotel Apts
Palm Garden Apt Hotel
Peach & Quiet
Pirate's Inn
PomMarine Hotel
Sand Acres Hotel
Sandpiper (The)
Sandy Bay Beach Club
Sandy Lane Hotel
Savannah Hotel (The)
Sea Breeze Beach Hotel
Settlers Beach Villa Hotel
Shonlan Airport Hotel
Silver Point Villa Hotel
Silver Sands Resort
South Beach Resort & Vacation Club
South Gap Hotel
Southern Palms Beach Club
Southern Surf Beach Apts
St. James Apartment Hotel
Sugar Cane Club Hotel & Spa
Sunswept Beach Hotel
Tamarind Cove Hotel
Halycon Palm Apartment Hotel
Time Out at the Gap
Travellers Palm Apartment Hotel
Treasure Beach Hotel
10
10
21
13
76
14
25
11
19
22
22
21
38
47
129
113
98
78
23
9
58
130
49
34
91
12
11
43
23
110
25
76
16
35
10
10
39
20
76
14
25
21
22
22
22
21
38
49
140
128
98
80
45
12
61
130
49
34
91
12
17
47
23
110
25
76
16
35
2,766
18
5
0
3
1,410
0
24
164
24
164
0
20
16
5,208
20
19
5,506
146
0
181
49
15
13
649
149
BEDROOMS
STUDIO
0
TOTAL
THREE - BEDROOM
0
PENTHOUSES
TWO - BEDROOM
6
18
OTHER SUITES
ONE - BEDROOM
STANDARD ROOM
Hotel
Tropical Winds Hotel
Turtle Beach Resort
Windsurf Beach Hotel
Worthing Court Apt Hotel
Yellow Bird Hotel
TOTAL
4
Y
Y
Y
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
NB
Y
NB
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
N
Y
N
Y
NB
Y
NB
Y
NB
Y
N
Y
Y
Y
Y
NB
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
NB
NB
NB
Y
Y
Y
Y
NB
Y
Y
Y
Y
Y
NB
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
NB
Y
Y
Y
Y
NB
Y
NB
Y
Y
Rockley
Sunset Crest
Hastings
Holetown
Heywoods
St.Lawrence
Hastings
Maxwell
Paynes Bay
Rockley
Worthing
Maxwell
Maxwell
Oldbury
Coast
Hastings
Porters
Worthing
Porters
Worthing
The Crane
Maxwell
Appleby
Holetown
Sunset Crest
St. Lawrence
Dover
St.Lawrence
Porters
Maxwell
NB Aquatic Gap
Y Aquatic Gap
Paynes Bay
Y Aquatic Gap
PARISH
Y
Y
Y
NB
Y
NB
Y
Y
Y
Y
Y
N
NB
Y
Y
NB
N
Y
NB
Y
Y
Y
NB
ADDRESS
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
ENTERTAINMENT
Y
NB
NB
Y
Y
Y
Y
Y
Y
Y
N
Y
NB
Y
Y
N
Y
Y
Y
NB
Y
NB
Y
Y
Y
Y
Y
Y
NB
Y
Y
WATERSPORTS
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
NB
Y
NB
NB
NB
Y
Y
Y
N
NB
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
TV
Y
Y
Y
Y
NB
TENNIS
Y
Y
NB
NB
NB
Y
NB
SHOPPING
Y
Y
NB
Y
NB
Y
NB
Y
Y
POOL
Y
Y
Y
NB
Y
NB
Y
Y
N
Y
NB
Y
Y
Y
NB
Y
N
Y
NB
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
N
Y
N
Y
Y
Y
Y
Y
Y
PRIVATE BALCONIES
N
NB
Y
NB
NB
NB
N
NB
Y
N
NB
Y
NB
NB
N
NB
NB
NB
Y
NB
NB
NB
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
NB
NB
NB
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
MEETING FACILITIES
Y
N
NB
Y
Y
Y
Y
Y
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
KITCHEN
Y
N
NB
Y
Y
Y
Y
N
N
NB
NB
Y
BEACH
GOLF
1
GYM
2
1
Y
2
1
1
3
BEAUTY SALON
3
Y
1
2
2
3
2
Y
Y
1
N
2
1
Y
1
1
2
1
1
1
4
1
2
1
AIR-CONDITIONING
RESTAURANTS
Hotel
Almond Casuarina
Barbados Beach Club
Cobblers Cove Hotel
Colony Club Hotel
Coral Reef Club
Croton Inn, The
Crystal Cove Hotel
Divi Heritage
Dover Beach Hotel
Escape at the Gap
Golden Sands Hotel
Hilton Barbados
House (The)
Island Inn Hotel
Christ Church
St. James
Christ Church
St. James
St. Peter
Christ Church
Christ Church
Christ Church
St. James
Christ Church
Christ Church
Christ Church
Christ Church
St. Philip
St. Peter
Christ Church
St. James
Christ Church
St. James
Christ Church
St. Philip
Christ Church
St. James
St. James
St. James
Christ Church
Christ Church
Christ Church
St. James
Christ Church
St. Michael
St. Michael
St. James
Christ Church
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
NB
Y
Y
Y
NB
Y
Y
Y
NB
NB
Y
Y
Y
Y
Y
N
N
Y
N
N
Y
N
N
Y
Y
N
Y
Y
NB
NB
NB
Y
NB
NB
Y
Y
Y
Y
N
Y
Y
NB
Y
N
N
N
Y
Y
NB
Y
Y
NB
NB
Y
Y
Y
Y
Y
Y
NB
NB
Y
Y
NB
Y
NB
NB
N
N
Y
Y
Y
Y
Y
Y
Y
Y
NB
N
Y
Y
NB
NB
Y
N
N
Y
N
Y
Y
N
NB
Y
NB
Y
NB
NB
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
Y
Y
Y
Y
N
N
Y
Y
N
N
N
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
NB
Y
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
N
N
N
NB
NB
NB
NB
Y
Y
Y
Y
NB
Y
Y
Y
NB
NB
Y
Y
Y
Y
Y
Y
Y
Y
NB
Y
Y
Y
NB
Y
NB
NB
NB
N
Y
Y
NB
Y
N
N
N
NB
Y
NB
NB
NB
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
NB
NB
Y
Y
N
Y
NB
NB
Y
Y
Y
Y
NB
Y
Y
N
Y
Y
NB
NB
Y
N
N
NB
N
Y
Y
NB
NB
NB
NB Enterprise
Y St.Lawrence
Shermans
Suriname
Y Holetown
Bay St.
N Bathsheba
N Dover
Y Worthing
Inch Marlow
NB Hastings
NB Hastings
Y Maxwell
Y Holetown
Y Worthing
Y Sandy Lane
Y Hastings
Y Maxwell
Y Holetown
Y Coverly Terrace
Y Silver Sands
Y Silver Sands
Rockley
NB St.Lawrence
Y St.Lawrence
N Rockley
N Paynes Bay
Y Maynards
N Holetown
Y Paynes Bay
Y Sunset Crest
Y St. Lawrence
NB Sunset Crest
Y Paynes Bay
PARISH
Y
Y
Y
Y
Y
Y
ADDRESS
NB
ENTERTAINMENT
NB
WATERSPORTS
Y
TV
PRIVATE BALCONIES
MEETING FACILITIES
GOLF
NB
NB
KITCHEN
GYM
Y
Y
Y
Y
Y
Y
NB
NB
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
BEAUTY SALON
Y
Y
Y
Y
Y
NB
NB
TENNIS
1
NB
Y
Y
SHOPPING
4
1
3
1
Y
Y
2
1
1
1
N
N
1
N
2
Y
1
Y
Y
Y
POOL
1
1
Y
1
1
2
1
1
BEACH
1
1
1
1
1
AIR-CONDITIONING
RESTAURANTS
Hotel
Little Arches
Little Bay Hotel
Little Good Harbour
Ocean 11 Hotel Apts
Peach & Quiet
Pirate's Inn
PomMarine Hotel
Sand Acres Hotel
Sandpiper (The)
Sandy Lane Hotel
Silver Sands Resort
South Gap Hotel
Tamarind Cove Hotel
Time Out at the Gap
Christ Church
Christ Church
St. Peter
St. Joseph
St. James
St. Michael
St. Joseph
Christ Church
Christ Church
Christ Church
Christ Church
Christ Church
Christ Church
St. James
Christ Church
St. James
Christ Church
Christ Church
St. James
Christ Church
Christ Church
Christ Church
Christ Church
Christ Church
Christ Church
Christ Church
St. James
St. Peter
St. James
St. James
St. James
Christ Church
St. James
St. James
GOLF
MEETING FACILITIES
PRIVATE BALCONIES
POOL
SHOPPING
TENNIS
TV
WATERSPORTS
ENTERTAINMENT
N
N
Y
N
NB
Y
N
Y
Y
Y
Y
Y
N
Y
N
Y
Y
Y
N
Y
Y
Y
Y
1
63
Y
Y
68
N
NB
53
Y
NB
26
Y
NB
37
N
NB
13
Y
Y
47
Y
Y
Y
68
Y
Y
65
Y
NB
44
N
NB
24
Y
Y
66
N
NB
33
30
Long Bay
Dover
St.Lawrence
N Worthing
NB St. Lawrence
46
PARISH
GYM
Y
Y
ADDRESS
BEACH
Y
Y
KITCHEN
AIR-CONDITIONING
Y
3
BEAUTY SALON
RESTAURANTS
Hotel
Turtle Beach Resort
Yellow Bird Hotel
TOTAL
St. Philip
Christ Church
Christ Church
Christ Church
Christ Church
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
175.00
136.00
152.00
449.00
449.00
407.50
187.00
308.00
200.00
127.00
123.00
178.00
88.00
117.50
330.00
109.00
401.00
123.00
245.00
180.00
179.00
35.00
421.00
191.00
99.00
100.00
120.00
253.00
550.00
110.00
168.00
279.00
664.00
210.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
WINTER RATES MAX US$
WINTER RATES MIN US$
SUMMER RATES MAX US$
SUMMER RATES MIN US$
Hotel
Almond Casuarina
Barbados Beach Club
Cobblers Cove Hotel
Colony Club Hotel
Coral Reef Club
Croton Inn, The
Crystal Cove Hotel
Divi Heritage
Dover Beach Hotel
Escape at the Gap
Golden Sands Hotel
Hilton Barbados
House (The)
Island Inn Hotel
863.00
204.00
189.00
910.00
1,680.00
892.50
456.00
329.00
475.00
182.00
220.00
395.00
225.00
117.50
1,285.00
159.00
837.00
231.00
1,410.00
780.00
1,439.00
55.00
720.00
240.00
129.00
309.00
175.00
299.00
650.00
180.00
225.00
929.00
1,180.00
210.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
214.00
178.00
218.00
611.00
611.00
473.00
229.00
383.00
385.00
178.00
187.00
271.00
115.00
117.50
770.00
141.00
706.00
187.00
555.00
320.00
370.00
45.00
648.00
276.00
70.00
178.00
145.00
325.00
910.00
150.00
181.25
399.00
700.00
225.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,092.00
275.00
278.00
1,456.00
1,890.00
957.50
613.00
450.00
475.00
259.00
319.00
688.00
325.00
117.50
2,575.00
197.00
1,567.00
320.00
2,710.00
780.00
2,210.00
65.00
1,238.00
390.00
153.00
306.00
200.00
390.00
1,750.00
235.00
310.00
1,049.00
2,213.00
225.00
$
$
$
$
$
$
$
$
195.00
117.50
292.58
200.00
425.00
94.00
81.50
75.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
90.00
106.26
187.00
310.00
282.00
1,000.00
225.00
322.00
262.00
58.75
170.00
110.00
167.00
100.00
193.00
120.00
225.00
135.00
125.00
334.00
125.00
110.00
125.00
285.00
$
$
$
$
$
$
$
$
$
Hotel
Little Arches
Little Bay Hotel
Little Good Harbour
Ocean 11 Hotel Apts
Peach & Quiet
Pirate's Inn
PomMarine Hotel
Sand Acres Hotel
Sandpiper (The)
Sandy Lane Hotel
Silver Sands Resort
South Gap Hotel
Tamarind Cove Hotel
Time Out at the Gap
340.00
135.12
670.93
300.00
1,500.00
129.00
163.00
155.00
65.00
$
160.00
$
150.00
$
244.00
$ 1,375.00
$
282.00
$ 11,000.00
$
246.00
$
645.00
$
814.00
$
120.00
$
480.00
180.00
$
$
221.00
$
135.00
$
360.00
$
130.00
$
675.00
$
255.00
$
125.00
$
693.00
$
125.00
$
140.00
$
125.00
$
910.00
$
$
$
$
$
$
$
$
275.00
129.26
492.32
270.00
535.00
123.00
116.00
96.50
109.00
125.00
150.00
271.00
740.00
355.00
1,400.00
280.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
555.00
170.38
1,104.50
530.00
2,250.00
159.00
212.00
188.00
115.00
119.00
210.00
185.00
344.00
2,710.00
355.00
25,000.00
310.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
294.00
64.63
266.00
180.00
234.00
135.00
310.00
140.00
225.00
175.00
162.00
567.00
165.00
162.00
165.00
575.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,627.00
152.74
726.00
270.00
318.00
165.00
520.00
150.00
750.00
295.00
175.00
1,119.00
165.00
204.00
165.00
1,900.00
$
$
$
$
$
89.00
440.00
175.00
100.00
100.00
$
$
$
$
$
Hotel
Turtle Beach Resort
Yellow Bird Hotel
TOTAL
240.00
724.00
175.00
135.00
225.00
$
$
$
$
$
90.00
673.00
175.00
150.00
150.00
$
$
$
$
$
106.00
966.00
175.00
180.00
300.00
APPENDIX E: Villa Inventory & Key Statistics RENTAL VILLA LISTINGS
#42 Sandy Lane
Absolute Luxury
Ajoupa Villas #6
Alcoutri
Alila
Aliseo
Al Hambra
Allamanda Apartment
Allamanda Row #138
Amberley Cottage
Anchorage
Ancient Grove
Anthena
Aquamarine (Beach Cottage)
Aquarius (Sandy Lane)
Atlantic Rising
Aurora
Bali Hai
Bali Hai
Banyan Court #17
Banyan Beach House
Barefoot Bay
Barefoot Bay Studio
Bathsheba Cottage
Battaleys Mews
Bayfield House (Porters Suite)
Bayfield House (Andrews)
Bayfield House (Bulkeley)
Bayfield House (Carringtons)
Bayfield House (Fairfield)
Bayfield House (Warrens Suite)
Bayfield House (Lascelles)
Bayfield House (Port Vale)
Bayfield House (Vaucluse)
Beach View
Beach Pavillion
Beacon Hill (Aviary)
Beacon Hill (Cool Runnings)
Beacon Hill (Supernova)
Beacon Hill #303 (Trade Winds)
Belair
Belair Great House
Casa Ronka
Caspian Beach Apartments One
Caspian Beach Apartments Two
Belle Rive
Belle View
Bellevue Plantation Estate
Benjoli Breeze
Best E Villas
Beyond The Reef
Beverly #1
Beverly #2
Bibians Beach House
Blue Bayou
Blue Lagoon
Blue Point
Blue Waters
Blue Waters
Blue Waters #3
Bluff Cottage
Bluff House
Bohemia (Mullins)
Bohemia (Sandy Lane)
Bolly Dollies
Bonavista
Bon Vivant
Bora Bora Beach Villa #1
Bora Bora Beach Villa #2
Bristol View Apartment
Browns Apartment
Brownes Penthouse
Bruadair
Butterfly Villa
Buttsbury
Buttsbury Court
Buttsbury House
Ca'Limbo
Coralymn
Callaloo
Calypso
Cape Coral
Caprice
Caribquest
Casa Caoba
Casa De Leo Studio One
Casa De Leo Studio Two
Casa De Pablo
Coral Point #2
Coralita
Costa Vista #2
Page 1
Cassia Heights #11
Cassia Heights #14
Cassia Heights #15
Cassia Heights #16
Cassia Heights #18
Cassia Heights #20
Cassia Heights #21
Cassia Heights #22
Cassia Heights #24
Cassia Heights #25
Cassia Heights #27
Cassia Heights #28
Cassia Heights #29
Cassia Heights #4
Cassia Heights #7
Castle Close Cottage (Baranga)
Castle Close Cottage (Carrington)
Castle Close Cottage (Clarke)
Castle Close Cottage (Hunter)
Castle Close Cottage (Williams)
Casuarina House
Ceiba
Chateau D’Espoir
Chesney Apartments
Church Point Two
Clariston
Clearwater
Coco
Coconut Grove #1
Coconut Grove #7
Coconut Grove #8
Coconut Grove #12
Colina Del Mar
Coral Breeze
Coral Cove #1
Coral Cove #12
Coral Cove #14 (Crowsnest)
Coral Cove #2 (The Mahogany Tree)
Coral Cove #3 (Green Flash)
Coral Cove #5 (Shutters)
Coral Cove #6 (The Ivy)
Coral Cove #8
Coral Drive Apartment
Coral House
Forest Hills #3
Forest Hills #4
Forest Hills #8
Forest Hills #11
Forest Hills #14
Costa Vista #4
Cove Spring House
Croeso
Crossbow
Crow's Nest
Crystal Court #302
Crystal Springs
Crystal Waters Upper
Crystal Waters Lower
Curlew Cottage
De House
Dene Court
Dover #3
Dream Away
Dudley Wood
Ealing Park #148
Eastry Cottage #8
Easy Reach
Ebb Tide
El Sol Sureno #6
El Sol Sureno #9
El Sol Sureno #10
El Sol Sureno #11 (Barcelona)
El Sol Sureno #14
El Sol Sureno #18
El Sol Sureno #23
El Sol Sureno #31
El Sol Sureno #32
El Sol Sureno #33
El Sol Sureno #34
El Sol Sureno #35
Elsewhere
Emerald Beach #1 (Solandra)
Emerald Beach #2 (Allamanda)
Emerald Beach #3 (Ixoria)
Emerald Beach #4 (Plumbago)
Emerald Beach #5 (Aspicia)
Emerald Beach #6 (Cassia)
Evergreen
Farr Out
Fidji
Fig Tree House
Firefly
Forest Hills #1
Happy Days
Happy Trees
Harmony House
Hastings Towers
Headley Road #48
Page 2
Forest Hills #16
Forest Hills #19
Forest Hills #20 (Mandalay)
Forest Hills #25
Forest Hills #35
Fosters House
Frantasia
Freshwater Bay #9
Freyers Well Bay House
Fustic House
Gardenia
Galina
Galena
Gibbs Cottage
Gibbs House
Gibbs Lodge
Gibbes Pavillion
Gingerbread
Ginger Lily
Glade House
Glitter Bay Estate #109
Glitter Bay Estate #201 (Eternity)
Glitter Bay Estate #202 (Serenity)
Glitter Bay Estate #306 (Princess Suite)
Glitter Bay Estate #412 (Suite)
Golden Eye
Golf Club Villa
Good Hope
Graceville
Greensleeves
Greentails #3
Grendon House
Gunsite #31
Half Century House
Halyconia
Hammble House
Karibu (Garden #1)
Karibu (Garden #2)
Karibu (Courtyard #1)
Karibu (Courtyard #2)
Karibu (Garden Suite)
Karibu (Suite)
Ker Avel
Healthy Horizons
Heliconia
Heronetta
Heron Court (Beija Flor)
Heron Court #2 (Sand Dollar)
Hibiscus
Hideaway
High Constantia
High Point
High Tide
High Trees
Holder's House
Holders (Mirage)
Husband Heights Town House #1
Illusion
Innisfree
Isabelle
Ixora
Jacaranda
James Bay #4
James Bay Lower
James Bay Pavilion
James Habour
Jamoon
Janes Harbour
Java Bay
Jessamine
Jotari
Jus Chillin
Kabakalli Apartments #1
Karekath (Karen)
Karekath (Rose)
Karekath (Neumier)
Karekath (Kathy)
Karekath (Dev)
Malvern House
Mandalay
Mango Bay
Mango Cresent #2
Mango Walk
Manta Ray Bay #1
Manta Ray Bay #13
Page 3
Kites
Kings Beach Village #13
Kingsly Club Villa
Kinloch House Upper Apartment
Klairan
L'Amore
La Dolce Vita
La Manuia
La Paloma
La Paz
Lagoona
Landfall
Landmark Cottage
Landmark House
Lascelles Great House
Leamington Cottage
Leamington House
Leamington Pavilion
Leigh House
Leith Court #1
Leith Court #11
Leith Court #15
Leith Court #16
Leith Court #2
Leith Court #3
Leith Court #6
Leith Court #8
Little Seascape
Luxury On The Beach #201
Lumiere
Mahogany Bay (Chanel No. 5)
Mahogany Bay (Fathom's End)
Mahogany Bay (Mahogany Pod)
Mahogany Bay (Starfish)
Mahogany Boulevard #26
Mahogany Boulevard #27
Mahogany Drive #8
Mahogany Drive #10
Mahogany Drive #14
Mahogany Drive #15
Mullins Bay (Tamarind)
Mullins Heights #1
Mullins Heights #2
Mullins Mill
Mullins Terrace #25
Mustard Seed
Nautilus
Nelson Gay
New Mansion
Manta Ray Bay #14
Maple Gardens #8
Margate Gardens #9
Margate Gardens #19
Margate Gardens #26
Marguerite Apartment #1
Maxwell Beach Villa 102
Merlin Bay #2 (Eden On The Sea)
Merlin Bay #1 (Oceans Edge)
Mermaid Apartment #2
Milord
Mirabelle Apartments
Mistle Cove #102
Mistle Cove #307
Mistle Cove #309
Mistle Cove #513
Mount Standfast Villa #73
Mon Caprice
Monkey Puzzle
Monkeys Run
Monkeys
Moonfleet
Moon Reach
Morning Glory
Mullins Bay #10
Mullins Bay (Foster's House)
Mullins Bay #11 (Jalouise)
Mullins Bay (Junkanoo)
Mullins Bay #14 (Mullins View)
Mullins Bay #18 (Turtles Reach)
Oyster Bay
Palm Beach
Palm Grove #1
Palm Grove #3
Palm Grove #9 (Soup Dance)
Palm Grove #10
Palm Ridge #2A
Palm Ridge #9 (Fool on the Hill)
Palm Shores
Page 4
Newstead Cottage
Nicoli
Nirvana
Nuestra Casa
Nutmeg
Oasis
Ocean Dr 7
Ocean Dr 8
Ocean Mist House
Ocean One #102
Ocean One #103
Ocean One #203
Ocean One #204
Ocean One #301
Ocean One #302
Ocean One #304
Ocean One #401
Ocean One #503
Ocean View
Old Trees #1
Old Trees #10
Old Trees #6
Old Trees #7
Old Trees #9
Old Trees #103
Old Trees (Azzuro)
Old Trees (Caprice)
Old Trees (Halcyon)
Old Trees (La Mirage)
Old Trees (The Bolt Hole)
Old Trees (The Casuarinas)
Old Trees (Westbeach)
Orange Sunrise
Orange Walk
Oleander Apartments #1
Oleander Apartments #7
On The Beach
Fitts On The Beach
Port St. Charles #168
Paradise Lodge Upper
Paradise Lodge Lower
Paradise Point
Paradise Villa
Pavillian Cottage
Pavillion Grove #2
Pavillion Grove #3
Pavillion Grove #4
Paynes Bay House
Pink Cottage
Plover Court
Poachers
Point of View
Porters Court #1
Porters Court #2
Porters Court #3
Porters Court #4
Porters Court #5
Porters Court #6
Porters Court #7
Porter's Gate #30
Porters Gate #9
Port St.Charles #102
Rockley Golf & Country Club #238 (Golden Grove)
Rockley Golf & Country Club #308 (Moonshine)
Rockley Golf & Country Club #406 (Pleasant Hall)
Page 5
Prospect House
Queen's Corner
Queen's Fort
Rainbow House
Rainbow Villa
Reeds House #1
Reeds House #10
Reeds House #13
Reeds House #14
Reeds House #3
Reeds House #5
Reeds House #6
Reeds House #8
Reeds House #9
Rio Lama Lodge
Rockley Golf & Country Club #105 (Friendship)
Rockley Golf & Country Club #14 (Foursquare)
Rockley Golf & Country Club #15 (Harmony Hall)
Rockley Golf & Country Club #2 (Harmony Hall)
Rockley Golf & Country Club #414 (Golden View)
Rockley Golf & Country Club #504 (Lemon Arbour)
Rockley Golf & Country Club #513 (Lemon Arbor)
Rockley Golf & Country Club #611 (Bushy Park)
Page 6
Rockley Golf & Country Club #807 (Orange Hill)
Rockley Golf & Country Club (Rockley Apartments)
Rockley Terrace
Rosadale
Rose of Sharon
Rossferry
Royal Apartment Penthouse P3-134
Royal Apartment Penthouse P4-331
Royal Palm
Royal View #133
Royal Villa (w/ pool) #1
Royal Villa (w/o pool) #5
Royal Villa #24 (White Palms)
Rydal Waters Studio
Rydal Waters Upper
Rydal Waters Lower
San Flamingo
Sand Dollar
Sandalo
Sandbox
Sandbox Studio
Sand Box
Sandalwood House
Sandy Cove #102
Sandy Cove #201
Sandy Cove #203
Sandy Cove #301
Sandy Hook 21
Sandy Lane
Sandy Lane Villa
Sandy Surf #5
Saramanda
Schooner Bay #102
Schooner Bay #105
Schooner Bay #106 (Dreamweaver)
Schooner Bay #108 (Chilterns)
Schooner Bay #112 (Moonshine)
Schooner Bay #114 (Amoré)
Schooner Bay #201 (Flamboyant)
Schooner Bay (Frangipani)
Schooner Bay #202 (Dolphins)
Schooner Bay #203
Schooner Bay #204 (Carringtons)
Schooner Bay #205
Schooner Bay #206 (The Palms)
Schooner Bay #207
Schooner Bay #301 (Pansea)
Schooner Bay #306
Schooner Bay #401 (Electra)
Schooner Bay 307 - The Lookout
Sea Cliff House
Seaford Villa
Sea Gaze Apt 1
Sea Gaze Apt 2
Sea Gaze Villa
Sea Haze Villa
Seahorse
Sea Isle
Sea Salter
Seascape (Inch Marlow)
Seascape (Gibbes)
Seascape House
Sea Shell
Sea Spray
Seastar #3
Seawards
Seawinds #6
Seawinds #10
Secret Cove #1
Secret Cove #3
Secret Cove #4
Secret Garden
Senderlea
Sugar Hill (Sugar Plum)
Sugar Hill (Sunwatch)
Page 7
Seventh Heaven
Shades Apartments
Shangri-La
Silver Leopards
Smugglers Cove #1
Smugglers Cove #4
Smugglers Cove #5
Smugglers Cove #6
Smugglers Cove #7
Snugness
Solandra
Seriento
Southwinds
South Ocean Villas #501
Southern Surf Beach House
Southern Surf Beach Studio Apartment
Southern Surf Delux Beach Apartment
Spinnaker Run
Springs Terrace #6
St.Helena
St.Lawrence Gap
St.Lawrence Beach #1
St.Peter Cottage
Steying
Stanford House
Sugadadeze
Sugar Hill #205
Sugar Hill (Aurora Lusso)
Sugar Hill (Bananaquit)
Sugar Hill (Calliaqua)
Sugar Hill (Coral Sundown)
Sugar Hill (Eden)
Sugar Hill (Frangipani)
Sugar Hill (Go Easy)
Sugar Hill (Monkey Business)
Sugar Hill (Oceana)
Sugar Hill (Sweet Enough)
Sugar Hill (The Summer House)
Sugar Hill A1 (Sugar One)
Sugar Hill A3 (Sweet Breeze)
Sugar Hill A15
Sugar Hill- Coconut Ridge #5
Sugarlands
Summerland Villa #101
Summerland Villa #102 (Emerald Pearl)
Summerlands Penthouse #105
Summerlands Penthouse #106
Summerland Villa #206 (Penthouse Suite)
Sundown Villa
Sunset Annex
Sunset Crest Villa
Sunset House
Sunset Reach
Sunset Reach
Sunset Ridge " La Paz"
Tamarind Cottage
Tamarindo
Tennis Village A101
Tennis Village A104
Tennis Village A203
Tennis Village A204 "Sugar Hill"
Tennis Village B107
Tennis Village B206
Tennis Village B207
Tennis Village B305
Tennis Village B306
Tennis Village C111
Tennis Village C309
Terraces #101
Terraces #102
Terraces #201
Page 8
Sugar Hill (Star Gazer)
Terraces #202
Terraces #203
Terraces #302
Terraces #304
Terraces #404
The Dream
The Falls #14
The Falls #15
The Falls #3
The Falls #4
The Great House
The Lakes #237 (renamed to Vuemont)
The Lakes #239
The Manyatta
The Moorings (Starlight)
The Old Sugarhouse
Tom Tom
Tradewinds
Tradewinds
Train House
Tranquility
Turtle Cove
Turtle View #10
Turtle View #3
Turtle's Nest
Two Properties In One
Vibrance House
Villa Mango
Villa Rosa
Villa St.Lucy
Villas on The Beach 101
Villas on The Beach 201 (Barolo)
Villas on the Beach 203
Wales End
Watergate
Waterside #202
Waterside #405
Waverly #1
Waverly House
Wemsea
West We Go
Westhaven
Westlook #1 (The Inheritance)
Westlook #2
Weston House Villa
Westport (Lime Villa)
Westport (Soleil Cottage)
Westport (Villa Creole)
Westport (Villa Soleil)
Westshore Lower
Westshore Upper
West Shore
White Sands (Jacaranda)
White Sands (Twin Palms)
White Sands Beach (Villa K)
White Sands Beach (Villa S)
White Sands Beach (5 Palms)
Whitecaps
Whitegates
Windermere
Windrush
Windward
Woodlands
Yellow Bird #501
Yellow Bird #601
Page 9
VILLA STATISTICS
VILLAS BY PARISH
Parish
Christ Church
St. Andrew
St. James
St. John
St. Joseph
St. Lucy
St. Michael
St. Peter
St. Philip
St.Thomas
TOTAL
# Units
205
0
446
1
5
1
12
121
17
4
812
%
# Bedrooms
25%
386
0%
0
55%
1471
0%
3
1%
21
0%
2
1%
44
15%
348
2%
47
0%
13
2,335
%
17%
0%
63%
0%
1%
0%
2%
15%
2%
1%
VILLAS BY COAST
Parish
South Coast
West Coast
East Coast
North
Interior
# Units
217
567
22
1
5
%
# Bedrooms
36%
430
95%
1819
4%
68
0%
2
1%
16
%
23%
95%
4%
0%
1%
# Units
12
123
221
251
105
58
22
21
%
%
VILLA CONFIGURATION
Studio
1 bed
2 bed
3 bed
4 bed
5 bed
6 bed
7+ bed
1%
15%
27%
31%
13%
7%
3%
3%
# Bedrooms
12
123
442
753
420
290
132
166
1%
5%
19%
32%
18%
12%
6%
7%