Bermuda's tourism landscape is shifting, from the closure of major hotels and the introduction of new tariffs, small holiday rental properties are feeling the impact.

John Young, owner of The Ledgelets Cottage Colony in Somerset, reports a steady increase in reservations over the past few years. He attributes this growth to a strong social-media marketing game, as well as direct bookings through the property’s website.

“We have a decent following on our Instagram and Facebook pages,” Mr Young noted.

He also pointed to a major uptick in Canadian guests, estimating that 80 per cent of recent reservations originated from Bermuda’s northern neighbour.

This trend aligns with broader observations in the local hospitality sector, where hoteliers expect a surge in Canadian visitors during the upcoming summer season. ​

To help boost occupancy during off-peak seasons, The Ledgelets invested in heating its pool. This initiative led to a 30 per cent increase in occupancy for March.

“The heated pool had a positive effect on us,” said Mr Young, suggesting it was a prime draw for visitors from colder climates. ​

Meanwhile, Andy Detzer, owner of Fourways Inn in Paget, has observed a 30 per cent increase in bookings recently, particularly during the off-season starting in January.

Mr Detzer attributed this rise to overall tourism and business in Bermuda.

He noted that many of his guests are business travellers from the US, and the continued closure of larger hotels such as the Fairmont Southampton has redirected some of them to smaller properties like his.

“Now that the Princess [Fairmont Southampton] is closed, it definitely drives more traffic,” Mr Detzer commented. ​

However, despite the good news, both property owners are concerned about the potential impact of a new swathe of American tariffs on their operations.

Mr Young highlighted that many of their supplies, such as linens and towels, are sourced from the US, and increased costs could affect their bottom line.

“We're going to see an increase in cost,” he said, emphasising that he would consider alternative suppliers and shipping methods.

The introduction of the Vacation Rental (Application and Registration) Fees Act 2023 has also posed challenges for vacation rental owners, they both said.

The legislation requires holiday homeowners to pay between $1,500 and $2,500 per property to operate. This has led some property owners to reconsider their participation in the market.

A survey in 2023 indicated that 63 per cent of respondents had not yet paid the fees in full, and one third had no intention of paying.

As a result, the holiday rental market is estimated to have lost 47 per cent of its inventory between 2019 and 2023, according to a survey from AirDNA, an organisation often cited by the Bermuda Tourism Authority.

“We operate our vacation rental property more like a business,“ said Mr Young, as opposed to some Bermudians who rent their properties for ”ancillary revenue“.

Despite the difficulties, both Mr Young and Mr Detzer are confident that by differentiating themselves in a crowded market, they can stand out.

Mr Young emphasised his move to offer unique experiences to guests, like birthday parties and barbecues.

Mr Detzer highlighted personalised service, noting that smaller properties can offer a level of one-on-one connection that larger hotels may not. ​ “In the big hotel, you're a number and in the small hotels, you are Mr and Mrs,” he said.