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Bermuda Online Travel & Tourism Guide

Our exclusive introduction to our Atlantic Islands in more than 125 websites

By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online

To refer to this file use "bermuda-online.org/tourism" as your Subject.

Tourism's woes with 2009-2010 Budget cut and staff slashed

2009. Air arrivals in the second quarter were the lowest seen in almost 30 years, with 74,979 tourists flying to the Island between April and June. The figure is the lowest since a modern recording system was introduced to the Department of Tourism in 1980 and a 14.27 percent decline compared to the same period last year, when 87,445 tourists flew to the Island. Cruise arrivals were down 3.7 percent for the period, with 124,552 people visiting, and overall arrivals, which include yacht visitors, were down 7.98 percent compared to the same period last year. In total 203,061 people visited the Island during the second quarter this year. All tourist accommodations, except small hotels, showed a decline during the three month period with an overall decline of 16.49 percent. But the figures were an improvement on the first quarter of the year which saw air arrivals drop 22 percent and overall visitors drop 27 percent, when compared with 2008. The year to date figurers reveal 235,524 people have come to the Island, compared to 265,479 visitors for the first six months of 2008, a decline of 11.23 percent.

In mid February 2009, the Bermuda Government's Department of Tourism's budget to March 31, 2010 was cut by eight percent. An estimated $32.48 million will be spent on tourism this year, down from $35.30 million last year and $42.07 in 2007/08. The Department has also shed 27 jobs in the past year, from 78 to 51, all as a result of the restructuring of the North American Tourism Office.

As part of Tourism's '400th anniversary sizzling summer offer', more than a dozen participating hotels in Bermuda offered guests a credit of $400 for stays of four nights or more. And four-night packages as low as $672 a person including accommodation at hotels like Surfside and The Wharf suites were offered from gateway cities such as New York and Boston. High-end luxury properties are discounting more and that business and corporate travel as well as meetings and conventions are off significantly, which also has a greater impact on the larger hotels. 

Dr. Brown revealed the Department of Tourism has engaged the services of global digital marketing agency iCrossing, to strengthen its on-line presence and to drive incremental business to the Island. And a project called 'Rejuvenating the Tourism Workforce' is being launched in a bid to encourage more Bermudians to get interested in the hospitality industry. 

In the challenging 2008/2009 winter season businesses have joined in a campaign to offer a range of discounts to visitors to pep up trade. The "Passport to the Bermuda Experience" is a booklet drawn up by the Bermuda Chamber of Commerce  (BCC) offering about $1,000 in potential coupon savings to visitors who booked a special winter package deal to celebrate the Island's 400th anniversary. BCC co-operated with the Bermuda Hotel Association and the Department of Tourism to offer the promotion, which started from November 1 2008 and runs through March 31, 2009. 5,000 booklets to date have been printed and the demand for them has been good. Examples of savings include buying one spa treatment and getting the second for 40 percent off; a $50 'early bird' dinner for two; a second round of golf free, cart fee only; free shipping to North America for purchases over $250; and 10 percent off sales over $25. BCC's goal however was to go that one step further for its members (most local businesses) by developing something that would help entice these visitors into our retail and restaurant establishments and encourage them to use local services.

2008 results

Visitor arrivals fell sharply in 2008. With air arrivals down 13.72 percent and cruise arrivals down 19.1 percent, the overall number of tourists dropped from 663,767 to 582,980 for the year. Those flying to Bermuda on vacation fell 10.1 percent, from 191,150 to 171,928, overshadowing a 5.6 percent increase in business arrivals from 48,762 to 51,469; and a 21.1 percent rise in convention attendees from 18,776 to 22,733. And the people that do come to the Island are also spending less in hotels, shops and bars and on leisure activities.

The Premier announced a battle plan intended to arrest the slide and help Bermuda weather the storm of the global economic crisis. With the travel industry affected in 2008 amid the backdrop of a recession, soaring gas prices, a weaker US dollar and reduced flights by airlines, Bermuda, like many other destinations, felt the effects. Forward looking visitor bookings indicate Bermuda is being affected by the economic downturn in the United States. The weakening of the pound and the Canadian dollar is also expected to impact the two markets that have shown some buoyancy in recent times.

Air arrivals were down from 305,548 in 2008 to 291,431, with the major problem a 9.5 percent slump in air visitors from the United States, down from 229,498 to 207,810. Visitation increased from Canada, the UK, Europe and the rest of the world, but overall figures were down because the US dominates the market. Government had predicted a fall in cruise visitors at the start of last year, due to the absence of small ships and the inability to accommodate more than one ship at a time. The fall of 19.1 percent represents a drop from 354,024 passengers to 286,408. 

The amount tourists spent in 2008 fell by more than a fifth, according to figures released by Government. For 2008, air visitor spending was $344.1 million, representing a drop of 22.3 percent on 2007 and in addition, hotel gross receipts stood at $273.3 million at the end of 2008, down nine percent from $300.3 million recorded in 2007.

All types of accommodation earned less for the year with small hotels being hit the hardest with a 24.9 percent loss in revenue. This decline was spread across all categories of spending as outlays on accommodations and food fell 28.8 percent to $50.4 million, while expenditure on shopping, entertainment, and transport fell 23.7 percent to $14.8 million.

Excluding private, unlicensed premises, Bermuda has 47 official guest accommodation properties comprising hotels, guesthouses and cottage colonies and about 134 restaurants.

2007 results

The Bermuda Government says it is "focused on attracting quality visitors" (those with incomes above $150,000). Bermuda saw a record breaking number of visitors to the Island in 2007. Bermuda had 663,767 visitors, an increase of 3.44 percent from the 641,717 visitors who arrived in 2006. Total air arrivals reached a 7 year high with 305,548 visitors arriving on island in 2007, up 2.2% from the 298,973 visitors in 2006. An Airport Exit Survey showed that the estimated total air visitor expenditure had risen by approximately $50 million. Hotel occupancy was also up, although there were 245 less beds in 2007 due to hotel closures. Bermuda's PR agency Corbin & Associates estimated that the total value of coverage in international media was worth approximately $16 million.

Tens of millions of dollars were invested in new hotels across the Island, with projects under way at Newstead Belmont Hills, Fairmont Southampton, Fairmont Hamilton Princess, Coco Reef, Tucker's Point and Ariel Sands. The former Wyndham resort is to become the Southampton Beach Resort, while Club Med, Lantana, and the Golden Hind properties are also earmarked for redevelopment. Bermuda is anticipating the arrival of luxury brands St. Regis, Ritz-Carlton and Jumeirah.

However there is growing concern that the business traveler is bolstering the arrivals numbers and that too much emphasis is being placed on the traditionally lower spending cruise ship passenger. Bermuda's largest customer segment is the business traveler, at 50-60 percent, driven by international companies on the Island. But with the arrival of low cost carriers out of Boston and New York, such as JetBlue, Bermuda has seen improved hotel occupancy levels, with many people coming here for a leisure weekend. In guest houses, 2007 was a booming year. Occupancy went gone up dramatically. It's the first time in 20 years most properties were full all summer. This is the best year Bermuda has ever had, and the airlines with the lower cost fares had a lot to do with it.

In January 2007, the World Bank confirmed Bermuda has the highest Gross Domestic Product (GDP) per capita in the world. The Island’s total GDP – the market value of all the goods and services produced – rose by 9.1 percent in 2005, driven upwards chiefly by the expansion of the international business sector. Bermuda’s total GDP was estimated at $4.857 billion – or $76,403 per head. That puts Bermuda at the top of the GDP per capita global league table, with second-placed Luxembourg more than $10,000 behind. In comparison, the US had a GDP per capita over the same year of $41,600, Canada $33,900 and the UK $30,100. 

See details about all tourism accommodation properties in Bermuda.