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Tourism jobs rise in third quarter

John Harvey, CEO of the Bermuda Hotel Association

Hotel jobs increased by 84 positions and industry revenue jumped almost 20 percent in the third quarter of 2011.According to the Quarterly Bulletin of Statistics, distributed by the Department of Statistics, revenue for the hotel industry in Bermuda jumped 19.9 percent to $83 million.Resort hotels saw an increase for 23.6 percent in sales revenue, boosted by an increase in occupancy and convention-related sales. Smaller hotels and cottage colonies didn’t share in the spoils, however, seeing declines of 6.8 and 3.6 percent, respectively.There were 2,649 workers employed in the hotel industry at the end of the third quarter, up 84 jobs over the same period last year with the large hotel sector taking on the lion’s share with 165 new hires. In contrast, jobs were lost in smaller hotels, cottages and guest houses.According to John Harvey, CEO of the Bermuda Hotel Association, the increase in new hires were primarily all Bermudian and were a result of large business groups visiting Bermuda.“We are encouraged by the increase (in employment) and are delighted to have those groups here in Bermuda,” he said, noting that 2012, however, may not see a return visit. “We know that the State Farm group is coming down but not in the same numbers and the other large group that came last year is not returning.”He also predicted that group sales for the hotel industry will be facing a rough road in 2012.“Current indicators suggest that this year is going to be a bit more challenging than last,” he said.In the meantime, consumers tightened their belts in the third quarter of 2011, with retail spending falling here and abroad.Retail sales for the third quarter were estimated at $257.3 million, a $4.9 million decrease compared to the same period in 2010.Car sales took the biggest dive, with a 22.3 percent drop in sales in the third quarter.Of the seven retail sectors, only three recorded growth: service stations (up 7.4 percent), apparel stores (up 6.9 percent) and building materials (up 0.9 percent). The increases were due to higher fuel prices, increased tourist spending and a marginal increase in construction activity, respectively.Residents spent $18.5 million on overseas purchases from July to September, a 0.4 percent decline from the same time period in 2011. Overseas clothing and footwear purchases have declined every quarter this year but still account for nearly half (47.3 percent) of total spending abroad.Overseas spending on electronics and computer equipment increased by 9.3 and 8.3 percent, respectively, due to the growing demand for tablet computers, e-book readers and smart phones.