Hotel revenues hit as visitor numbers drop
Business and leisure visitor numbers were down in the second quarter of 2012, resulting in a negative knock-on effect in the hospitality and retail sector.According to Government’s Quarterly Bulletin of Statistics, air arrivals during the second quarter of 2012 fell by 6.6 percent when compared to the same quarter of 2011.A total of 75,186 visitors flew to the Island, down from the 80,462 that visited by air in 2011. This decrease was attributed to a 12 percent decline in business travellers and a 13 percent decline in leisure travellers. Arrivals from the United States, Bermuda’s largest tourist market, decreased 7.8 percent when compared to the second quarter of 2011.The decline in air arrivals resulted in a 6.6 percent drop in bookings at tourist accommodations.Guest houses registered the biggest decrease, falling 32.3 percent.Occupancy at resort hotels fell by 10.1 percent while visitors staying at housekeeping accommodations also declined, by nine percent. Sales revenue for resort hotels dipped $6.8 million or by nearly ten percent.The hotels, however, are trying to keep up a positive face about the statistics, saying there is reason for optimism.“While occupancy rates and sales revenue are down across the industry, our colleagues in the Fairmont Southampton’s sales team remain committed to attracting leisure, group and business travellers to Bermuda,” said Jamahl Simmons director of PR at the Fairmont Southampton.“There is cause for optimism however. As part of our ongoing efforts to meet and exceed the needs of today’s travellers, we have made several changes including: modernising the in-room amenities, improving and expanding service on the resort beach, successfully launching new food and beverage outlets such as The Newport, A Gastropub and The Dock at The Waterlot, increasing the level of on-property activities and introducing live entertainment throughout our restaurants. These changes have each been well received and combined with our sales and marketing efforts, we believe will help attract visitors to our shores.”The number of guests staying at small hotels and cottage colonies and private homes declined by 3.2 percent and 1.4 percent, respectively.JP Martins, the general manager of 200-bed resort Grotto Bay, said that the quarterly statistics weren’t reflective of his hotel’s experience.“So far this year, we’re doing better than we were last year,” he said. “Our occupancy rates now and going forward look better.”Grotto Bay primarily focuses on leisure travel with some group bookings. Even heading into the slow winter months, Mr Martins said that their group sales look positive.The decrease in visitors hasn’t affected hospitality employment. There were 2,454 workers employed within the hotel industry at the end of April 2012, an increase of eight workers when compared to the previous year.Cruise ship arrivals during the second quarter of 2012 increased fractionally by 0.2 percent. A total of 161,351 cruise passengers travelled to Bermuda during the second quarter of 2012. There were 161,036 cruise visitors in 2011.Cruise ship passengers spent an estimated $34.2 million while visiting the Island, $0.7 million more than in the same quarter of 2011.Overall, retail sales in Bermuda fell 1.1 percent during the second quarter of 2012. A total of $256.5 million in retail goods was sold during the period compared to $259.6 million in 2011.Motor vehicles sales fell by 23.9 percent. Although the volume of motor vehicles sold by auto dealers increased, the value of sales fell below the previous years level as consumers opted to purchase motorcycles instead of private cars.Retail sales receipts for apparel stores decreased 5.7 percent.Service stations recorded a decline in sales of 4.3 percent while retailers of building materials experienced a 3.6 percent dip in gross receipts, during the quarter.