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Time hoteliers rolled up sleeves, says Marriott's manager Borsink

The glory days of the 1980s may be gone forever, says Marriott's Hotel chief Mr. Roger Borsink, but that doesn't mean arrival figures can't be turned around. In the third installment of a series on tourism, Mr. Borsink says hard work and a more intelligent approach will keep Bermuda in the game.

Bermuda's hoteliers must work harder, be smarter and become more efficient or else they risk being left behind for good.

A first and significant step in this drive for greater efficiency, however, will be the ability of management and union representatives to solve disagreements and problems amicably without resorting to a third party.

These are the views of Marriott's Castle Harbour general manager Mr. Roger Borsink, now in his sixth year at the hotel's helm.

Mr. Borsink, upon whom the distinguished Hotelier of the Year accolade was bestowed in March this year, is neither gloomy nor discouraged by the recent downward trend in air arrivals.

In fact he approaches the challenge with something akin to missionary zeal because he is convinced the trend can be reversed if a multi-pronged approach to the problem is used.

"The industry in general is struggling,'' he said. "We need to reinvest because the United States, the Middle and Far East, Europe and the Caribbean all want a piece of the tourism business.

"Overall the business has been going through a downward spiral for the past 15 to 20 years if one looks solely at visitors and occupancy rates.

"We all want to increase those numbers. To do that we have to provide a better service.

"But our biggest challenge by far is to lower costs by doing things smarter and less expensively.'' Mr. Borsink is the president of the Hotel Employers of Bermuda which is the bargaining and labour relations wing for a network of the eight larger hotels -- Belmont, Harmony Hall, Elbow Beach, Grotto Bay, Marriott's Castle Harbour, Princess, Southampton Princess, and Sonesta Beach.

These properties had a combined net profit of $5.8 million for the year ending September 30, 1994.

Nonetheless, for the years 1988-93, the hotels were hit by net losses of $3.8 million, $2.27 million, $5.5 million, $17.47 million, $12.4 million and $5.37 million. In 1987 they had a net profit of $7.4 million. In spite of these figures, Mr. Borsink said it was important look toward the future.

"The demands to cut costs and still have a better product are not complementary,'' Mr. Borsink continued. "But modern technology may point the way.'' Such items as voice mail and the Internet, he said, were two such areas his property is looking at.

Voice mail, where telephones can be answered quickly using an automated answering system, would cut down on labour costs, he suggested, while the Internet will allow a prospective guest to call up a hotel of their choosing, learn about what it has to offer and make a reservation.

While Bermuda's lack of poverty, proximity to the United States and the friendliness of its people will still be selling points for the Island, Mr.

Borsink said it would take more to keep visitors coming back.

"It's all changing. People want new experiences in new locations and there are a lot of interesting places available.

"Other countries are getting more sophisticated and if we want to get that visitor here we have to give them better service.

"We need to continue to invest in upgrading our facilities too, but when business is struggling it is not the first thing you do.

"You've got to pay your utilities, your employees and your suppliers first and use what is left for (the physical plant).'' Still, Mr. Borsink said Government's decision to reduce by five percent the duty on refurbishing for the next five years, will encourage hoteliers, although the cost of doing business in Bermuda is expensive.

"Bermuda's hotels compete with each other and every other destination, so our prices must not be that much different from what they would find elsewhere. We all have to recognise that we need a clear fresh product but this is not easy to do because we are in such tenuous shape.

"We (the HEB) made a small profit last year some $5 million which is not a lot of money, therefore investors and owners are reluctant to keep putting money in.

"So the challenge for us is to make our operations profitable. Higher wages and investment are easier to come by when we are making a profit.'' To counter the increased competition, he said, Bermuda had to become more aggressive and go after the South American market with its growing middle class and other special interest markets such as the family and sports.

"These are changing times for the industry and for the HEB,'' Mr. Borsink added. "But I look forward to the day when all of Bermuda's hotels have been brought into the fold.

"We've got to be realistic as an industry. The competition will continue to be aggressive. They will not go away. We had good times in the 1980s but those times are gone forever.'' Mr. Roger Borsink