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Special: Crisis in tourism | ||||||||||||||||||||||||||||||||||||||||||
In recent years, the once vibrant Caribbean tourism industry has been plagued with a number of challenges, including natural disasters and competition from new destinations. But this year, it was the weakening global economy that has dealt the hardest blow to the industry. Across the region, hundreds of tourism jobs have been lost to the financial crisis. Luxury resorts, reporting a drop in visitor arrivals, were forced to lay off staff and in some countries, tourism development projects were halted because of a lack of funding. And there are no immediate signs that things will change. Governor of the Barbados Central Bank, Marion Williams, warned that a prolonged recession could result in a 20 percent drop in tourism revenue. But the executive vice president of the Barbados Hotel and Tourism Association (BHTA), Sue Springer, said that would be disastrous. "If we are talking 20 percent we can all pack up and go home, because that would be the end of the tourism industry in Barbados and it will have a catastrophic effect," Ms Springer said. Julia Blenman, who manages a small hotel, foresees tough times ahead. "We're a small property, competing among a lot of people here in Barbados, larger hotels who may lower their rates just to get people to come in. "So that's going to be hard for us," she told BBC Caribbean. Gloomy outlook President of the Jamaica Hotel and Tourism Association (JHTA), Wayne Cummings, says the outlook for the season remains gloomy and about 30 percent off target. "We've been working very closely with the government to try and put in place some kind of stimulus package that is going to help to shore up cash. "Cash is going to be the biggest challenge for hotels than a lot of the other sectors right now because we need to keep our doors open," Mr Cummings said. This negative outlook is in stark contrast to the optimism of Jamaica's Tourism Minister Ed Bartlett. He believes an advertising campaign in North America will encourage those who do travel, to come to Jamaica. But owners of smaller properties are not convinced. Vanna Taylor, who heads the Association of Villas and Apartments, said forward bookings have been slow. She says prospective guests are seeking lower prices, and that is hurting business. "Everybody is competing for the same guests, so the price is getting lower and lower, but if it continues down that line we're not going to be able to pay our bills," Ms Taylor said. Hoteliers fear that some properties will be forced to close their doors or scale back operations in the New Year, as the crisis drags on. Air Passenger Duty In addition to lower visitor arrivals, reduced spending and job losses, the industry was dealt another blow in November. The British government announced plans to introduce a new tax, the Air Passenger Duty, as part of a drive to reduce carbon emissions. Under the new law, passengers flying within 2,000 miles of London will have to pay incremental taxes on their ticket fare.
The new tax take effect from November 2009. St Lucia's Tourism Minister Allen Chastanet described the tax as a slap in the face for the Caribbean, and he warned that it would spell further problems for the industry. Dominican hotelier Judith Pestaina agrees and she says regional governments should lobby against the levy. "Here it is we have had our bananas, rum, sugar - all these major commodities - affected by WTO rulings, now you have an additional tax being imposed on travel. "This is something I think our ministers should be lobbying aggressively against, so that we can safeguard our tourism," she said. Cuba's positive outlook But while the rest of the Caribbean is struggling with its tourism sector, Cuba seems to be gearing up for a strong winter season. Tourism officials in Havana say they are expecting a record 2.3 million visitors this year. Officials say their positive outlook for the industry is because the island's main market, Canada has not suffered a major fallout from the financial crisis, like other countries. Industry analysts point to a number of factors for Cuba's strong performance in the face of global economic uncertainty. They say many travellers are enticed by the prospect of visiting one of only five remaining communist countries in the world. Havana is also said to be cheaper than its Caribbean neighbours. Officials predict that it will be at least two years before the tourism industry gets back on its feet. But in the short term at least one island is looking to team up with Cuba, to boost its industry. Jamaica will sign an agreement with Havana in the coming weeks, for joint destination marketing and airlift arrangements between the islands. | |||||||||||||||||||||||||||||||||||||||||||
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