BTA working to become more self-sustaining
The Bermuda Tourism Authority has invested in work to “rethink” the funding of tourism growth as the Government seeks to make the body self-sustaining.
Figures released in response to a Pati request showed that the BTA paid PricewaterhouseCoopers a total of $268,125 for a compensation review and two phases of a funding project.
A BTA spokeswoman said that the project was related to plans to reconsider tourism expenditure and create a more sustainable tourism industry.
“The shift in the tourism funding model was a major strategic initiative spearheaded in 2024, referenced in the 2024 Throne Speech, and aimed at rethinking how we fund tourism growth,” the spokeswoman said.
“In Q3 2024, the BTA engaged PwC, alongside a working group of professionals from across Bermuda’s economic spectrum, to explore sustainable funding solutions for the industry.
“This initiative seeks to reduce reliance on government contributions, create self-sustaining revenue streams and build a financially resilient future for Bermuda’s tourism sector.
“The cost of PwC’s engagement aligns with the scope and complexity of this critical long-term strategy.”
The 2024 Throne Speech said that while the BTA was intended to be self-funding within five years of its inception in 2013, that had not come to pass.
A section of the speech read: “Now in its second decade of existence, the time has come to perfect that vision and devise the means and method by which taxpayer funding for this independent entity is reduced and eventually eliminated.
“The journey will include fulsome public consultation on a commissioned report, informed by stakeholder review and specific working groups.”
In addition to the $13.07 million paid to the Miles Partnership, an international digital marketing firm, the Pati figures showed that the BTA paid almost $3.38 million to MMGY Hills Balfour for “international representation”.
The spokeswoman said that the BTA had also worked with the London-based firm to support media buys, public relations and support for group sales in Britain.
“Like our relationship with US-based Miles Partnership, we leverage Hills Balfour’s media buying power and continental partnerships to execute our strategic goals for our European market,” she said.
“They are BTA partners for Bermuda's earned media strategy in the UK, securing top-tier media placements and generating press coverage to promote the destination.
“Similarly they support the positioning of Bermuda as a premier destination for meeting planners, incentives, conventions and exhibitions.
“They have been engaged to play a role in expanding Bermuda’s presence among travel agents, tour operators and wholesalers in the UK and European markets.”
The Pati records also included $2.7 million paid to Apollo Programme for media purchasing, which the spokeswoman said related to a media placements to raise awareness about the island in US target markets between 2022 and 2023.
The spokeswoman said that the BTA’s 2024 marketing campaigns generated more than 375 media stories in magazines such as Condé Nast Traveler and Forbes, reaching more than 776 million people and adding $232.9 million in media value.
More details about the impact of the BTA’s efforts are expected to be released this week in its Year End Tourism Measures report.
The BTA said that it gauges the return on investment for campaigns based on “a combination of quantitative tracking tools, qualitative insights and robust reporting structures”, along with arrival figures.
“We correlate media exposure with travel data, tracking how advertising influences actual visitor arrivals,” the spokeswoman said. “This helps validate the direct impact of media investments on tourism growth.”
She said the BTA produces quarterly reports to track engagement metrics such as website visits, advertisement and social media engagement, and uses Adara Tracking Pixels to monitor “conversion actions” such as bookings made after ad exposure.
The BTA produces a monthly scorecard to compare engagement and the amount spent on media.
The spokeswoman also said that the BTA carries out brand ROI research to determine how campaigns affect brand perception, familiarity and intent to visit.
“Our brand awareness and perception studies measure how our campaigns shape consumer perceptions over time,” she said “Through surveys, focus groups and market research, we evaluate brand sentiment and positioning against competitors.”
The Gazette reported in January that an e-mail from Owen Darrell, the tourism minister, was sent to the BTA board in December.
That correspondence was said to include a request for information on why a full investigation into claims of bullying and harassment, and “other unprofessional behaviour displayed by executive management”, was not carried out when requested in September.
The Gazette’s Pati request to the BTA included a similarly worded inquiry.
A BTA spokeswoman said on Sunday: “The suggestion that a full investigation was not initiated following the minister’s request is inaccurate.
“In reality, an investigation was already under way, and outreach for a culture review had begun before the minister’s inquiry in September 2024.
“Following the minister’s request, the scope of the review was modified to incorporate specific concerns raised by the ministry.
“This approach ensured that the minister’s request was fully addressed within the broader ongoing process.
“The minister was made aware that these steps were already in motion, and that their request was integrated into the review to ensure a thorough and comprehensive assessment.”
In response to that element of the Pati request, the Gazette was told last Wednesday: “In accordance with Section 15 of the Pati Act, we confirm that the BTA is undertaking internal consultation regarding whether access to the requested information is in the public interest.
“The BTA will provide a substantive response to this request on or before April 2, 2025.”
Tracy Berkeley, the quango’s chief executive, said this week that the authority’s executive team had received the findings and recommendations from the independent third-party culture review on Thursday.
She added that the next step was to make sure staff were fully informed, with a presentation planned for the entire BTA team.
Ms Berkeley added: “Once this key step is completed, the board, which sanctioned the cultural review, will determine the appropriate next steps in collaboration with leadership.
“This includes implementing the recommendations and deciding when and how the report will be made public.”
• For the Bermuda Tourism Authority’s Pati response, see Related Media
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