Air tourism held back by reduced flights and capacity – BTA
Lack of hotel beds and reduced flights are limiting the growth of air visitor numbers, the Bermuda Tourism Authority has warned.
Wayne Caines, the BTA chairman, used the organisation’s annual report to say that while the general situation was improving after the Covid-19 pandemic, the tourism business was still in “choppy waters”.
Presenting the BTA document to the House of Assembly on Friday, Vance Campbell, the Minister of Tourism, told MPs that things were getting better for the industry, but added: “The report warns that reduced airlift and hotel beds will limit growth in air visitors this year.“
Mr Caines urged quicker progress regarding the delayed planned revamp of the Fairmont Southampton hotel complex
He stated: “While there has certainly been passionate debate about the redevelopment of the Fairmont Southampton, we must find a way to move forward with the project and ensure our largest hotel is brought back online as soon as possible.
“The increase in beds will in turn assist with ensuring additional flights from key hubs in the US.
“The most recent tourism arrival figures evidence the fact that we are heading in the right direction.”
He added: “It was encouraging to see the green shoots of recovery and resilience springing forth in 2022 with air and cruise arrivals continuing their steady rebound as restrictions were eased.
“What is clear is that for our recovery to continue and gain momentum, the entire community has a role to play.“
The BTA report states that leisure air arrivals were 99,382; cruise passengers came in at 402,657 and the economic impact from superyachts was $3.4 million.
It projects air capacity to reach at least 76 per cent of 2019 levels in the summer of 2023.
Hotel inventory will remain at approximately 73 per cent of pre-pandemic levels.
The BTA produced a surplus of $111,285 for the year.
Its income was $4,312,785 above budget primarily owing to the collection of visitor fees from hotels, vacation rental properties and cruise ships exceeding expectation.
The government grant was $270,207 above budget because of an additional funds provided during the year to support a programme of local entertainment on-island.
BTA fees paid by visitors and collected by hotels were $1,967,988 ahead of budget.
Cruise ship passenger fees paid by each departing visitor between April 1 and October 31 were $1,793,692 ahead of budget.
Vacation rental fees were $107,504 ahead of budget.
Total spend on sales and marketing was $20,247,216.
Tracy Berkeley, the BTA chief executive, said that she was optimistic about the island’s future as a tourist hub after the lifting of Covid regulations.
Ms Berkeley said in the annual report: “While reduced airlift and hotel beds will limit growth in air visitors, our team and group pillar of the National Tourism Plan continues to build on the success of our efforts to attract small groups, business meetings, conferences and retreats as well as leisure and sports groups to experience the Island.
“Despite the airlift and hotel beds shortfall, bookings for the year are trending strongly and should translate into significant growth when compared with 2022.
“We have experienced significant changes and challenges over the past year, but we are well-equipped to embrace and progress the opportunities that lie ahead.
“The termination of Bermuda’s Public Health Covid Emergency Orders in November 2022 has significantly increased our appeal as a holiday destination for 2023.
“We are excited to welcome over 220 cruise calls and anticipate an historic increase in cruise arrivals, which will positively impact tax revenue and bring more visitors to businesses at each port.
“While air capacity to Bermuda is expected to reach at least 76 per cent of 2019 levels this summer, our hotel inventory remains at approximately 73 per cent of pre-pandemic levels.
“Despite the airlift and hotel beds shortfall, bookings for the year are trending strongly and should translate into significant growth when compared with 2022.”
• To read the BTA annual report as well as its latest financial results, see "Related Media“
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