Bermuda must return to being a `world-class destination'
The Royal Gazette presents the view from the trenches in the battle to win back Bermuda's share of the tourism market from its opponents.
Senior reporter Henry Adderley spoke with the people at the head of a variety of Island accommodations to gain insight into their perceptions of the Island's former top industry. This is the fourth part of a six-part series.
*** After spending many summers in Bermuda when he was younger, Bill Shoaf has returned to take the helm of a prestigious Island guest property undergoing a multi-million dollar refurbishment.
By 2001, Elbow Beach Hotel's owners will have pumped more than $140 million of capital into the Paget property since 1990.
It is understandable then when Mr. Shoaf is asked about the Island's present tourism situation that he replies: "It's all about product.'' But what he adds gives a clearer understanding of what he means: "Product quality, attention to detail and a belief in that product and the people who are delivering it.'' When Rafael was asked to take over Elbow Beach, it looked at the hotel, Bermuda and the overall tourism potential for the Island, said Mr. Shoaf.
"The conclusion we came away with is for Bermuda to survive in the tourism business, it must be able to operate as a world-class destination.
"To that end, we sat down with the owners and put together a development plan that takes us through to 2010.'' The plan has three modules. One and two are underway and Mr. Shoaf said the third would be revealed as soon as possible. This plan clearly outlines their commitment to the Island, he pointed out.
"In the first two we are reinvesting in an asset that is here. The hotel is being brought to a world class level so the staff will have the facilities and tools they need to run with.'' That did not include just new rooms and beds, he stressed.
"It is having a world class spa, a well groomed, well represented beach facility, reconditioned grounds and refurbished rooms. It is creating the total environment for the upper end traveller.
"Bermuda historically has been a world-class destination. We feel it still has the underlying assets to be a world-class destination again.'' And it has to be world class to compete, underlined Mr. Shoaf.
"Operating expenses for just being here are higher than most places in the world. You have to be able to charge a premium price because of the cost of doing business.
"For the prices we charge, they can go anywhere.'' The end goal is to make the hotel worthy of the name Rafael and successful.
"Our hope and intention is that Elbow Beach will join the other Rafael hotels as one of the premier properties in the world.
"The staff here has met the challenge wonderfully. They are shouldering the fact that a four or five star property does and can exist in Bermuda on a larger room level.
"We are not there yet. That is our goal. If we do not believe we can do that then we should move on and do something else to survive.'' Mr. Shoaf worked in Bermuda after graduating from Cornell University. The Island was a draw for him as he had spent many summers here as a child.
He returned to the US where he worked at a variety of properties before accepting the task of running the Elbow Beach Hotel.
On his return, he noticed the changes which had occurred in the industry.
"Bermuda used to be terrifically good at getting people to come down here.'' he said.
"We knew who our market was and we were the consummate expert at marketing and building that market, doing what it took to get that market to come to Bermuda.'' The Island's number one industry at the time did this by concentrating on the simple things. It is these it needs to emphasise again, he said.
"People spend a great deal of money to bring people here or come themselves and they are looking for one thing.
"The people who can afford a place like Bermuda make a lot of money and to do so they work very hard. They do not have a lot of free time so when they come here they are giving us their single most important thing -- their time.
"They don't want us to waste their time. If we ruin it we create our single-most worst enemy. That is where Bermuda has taken its eye off the ball.
"I think Bermuda took it for granted.'' Mr. Shoaf pointed out that was not the case when tourism was booming.
"Bermudians have a natural, wonderful grace and hospitality about them. When you came to Bermuda you were welcome. People shared their Island with visitors and they left with memories.
"They personally took care of them to ensure they got the treatment and attention so their free time would be memorable and they would be sent back home refreshed.'' Bermuda had to return to this era, he said.
"This is the area Bermuda needs to work on. You can have all the slick ads in the world, all the promotion jingles, but it means nothing when half of the guests leaving the Island say they will not be back.
"You cannot overcome that with marketing.'' And taking care of these visitors extended beyond hotels and their employees, he stressed "The people who come here are our cherished resource and they need to be taken care of and I don't just mean by people in the hotels -- we all have a job to do.'' Part of the Island's dedication to the industry in the past came from the fact that tourism was the Island's basic natural resource.
While that had changed -- in a healthy fashion -- to becoming a double-tiered economy through the growth of international business, said Mr. Shoaf, there was a definite need for the "bedrock'' industry.
"Tourism creates things that make Bermuda an attractive place to be and do business,'' he said.
The actions of a few had harmed tourism and this effect could extend to international business as well, he warned.
"Our livelihood has systematically been killed off by a very small minority.'' New initiatives, particularly the Monitor Company's efforts, were helping correct this, he maintained.
"What Monitor started is awareness. It is now top of mind. It is all part of Monitor's influence on the community.'' But all outside groups could do was provide a perspective, he noted.
"At the end of the day, it is up to Bermuda to save itself if that is what it thinks it needs to do. They have brought it up and put it on the table for everyone to discuss but Bermuda will change Bermuda.'' Another aspect of the Island's culture which had to change, continued Mr.
Shoaf, was the idea that it was Government's responsibility to fill hotels.
"It is not!'' he exclaimed. "It is our hotel, it is our responsibility to run it and run it well.
"I believe that feeling, which you did not find here two and a half decades ago, has created a situation where people have taken their eye off the ball.
"The Minister of Tourism's job is to give opportunity and make sure Bermuda is accessible and the overall image of the Island is kept in a pro-active state on or off-Island.
"It is also to make sure the general positioning of Bermuda in the tourism market is kept clean and clear.
"The Minister is not responsible for filling every hotel room. He cannot do that. Bermuda tourism needs to be able to operate freely so it can give a clear message to the international community.'' Meanwhile the private sector had to assume its responsibility as part of the effort to boost visitor numbers.
"Once that happens, Government can be held accountable for a clear overall picture.
"Properties will then work themselves through the programme of free market enterprise and those who do the job will profit more than others.'' "The Bermuda Government needs to be as vocal and as supportive and as publicly excited about tourism as it is about international business.'' "If it needs to do something to give tourism a level playing field then it should.'' But he added: "It should also require tourism to pull up its socks and get on with it.'' Mr. Shoaf highlighted his original point in closing.
"In a nutshell, if we (Rafael) did not think Bermuda was going to make it, we would pack up and leave. I do not understand why people complain and stay in business. We believe we can be very, very successful and we have put our money where our mouth is.
"The whole thing is not that broken. People are having one on one experiences. The people are still the best but they need the tools and they need to stop feeling like everything is going to go under in a minute.'' BILL SHOAF -- "It's all about product.'' GOVERNMENT GVT