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Hoteliers say cruise lines put more into Bermuda

The Caribbean Hotel Association (CHA) has called on the cruise ship industry to make a bigger contribution to the region.

But Bermuda Hotel Association, which is affiliated to CHA, distanced itself from the comments, saying the industry pays far more here through head tax and helps out through training schemes and scholarships.

CHA President Ralph Taylor said cruise ships profited handsomely from the Caribbean and enjoyed unfair competition because they sell berths well below the break-even level of hotels in the region.

He said although the cruise ship industry had almost as many berths as hotels, the sector only generates seven percent of tourism revenue in the Caribbean compared to 93 percent from land based hospitality.

"Competition, whilst healthy, must also be fair, and so we appeal to Caribbean governments to help us protect the much wider and deeper economy and employment structure of those Caribbean nationals who earn a living in land-based tourism," he said in a statement."

Mr. Taylor said it was particularly worrying that as many as 18,000 discounted berths will be redeployed in the Caribbean at prices below hotel break-even point in the wake of the September 11 terrorist attacks.

But BHA president William (Billy) Griffith said the Bermuda government has more influence over the industry than countries in the Caribbean.

The head tax per cruise ship passenger was around six times higher in Bermuda than in the Caribbean, he said.

Government has a closely controlled cruise ship policy designed to keep a limit of around 200,000 passengers each year. It also limits the size of ships visiting the Island.

"The Bermuda Government has had significantly more control over the cruise ships with their policy now and in the past," Mr. Griffith told The Royal Gazette.

"I also believe Tourism Minister David Allen is aware of the balance he has to strive for between air and cruise arrivals.

"As far as cruise ships making a contribution to the destinations, I'm not sure what it is on a dollar figure but the head tax in Bermuda is significantly higher than in the Caribbean. And the cruise ships do contribute significantly on Island through scholarships for schools."

Royal Caribbean International, which operates the Nordic Empress, has given the Bermuda Government $1 million towards the establishment of a hospitality training fund.

And at the Belco Visitor Industry Partnership awards last weekend, the cruise lines offered a number of free holidays as prizes.

"That does not exist anywhere remotely in the Caribbean. That might be what Ralph Taylor is talking about," said Mr. Griffith.