It is that time of the year when Barbadians will have the opportunity again to measure the Barbados appeal-factor through the eyes of the rich and famous. Last Christmas BU blogged about honorary Bajan Simon Cowell of American Idol fame frolicking on Sandy Lane beach with Sir Philip Green and company. This year UK’s Fleet Street is telling us that a crowd of celebrities from Britain will be winging their way to Barbados to enjoy some respite from the cold North.
We welcome them!
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So this is the place that Simon “pull-up your pants” Cowell and Philip “ain’t you got enough stores” Green are hatching their new mega million pound entertainment company strategy.
Well boys, I hope some of that residual income flows into the Barbados economy (God knows we need it) and that NY & London are not just the recipients of your largesse.
Not sure if Prince Harry has any of that appeal-factor but he is expected to be in Barbados in January 2010 to be involved in polo.
WE could always beg these people for some money
I want a mullion-yes a mullion !
that shouldn’t not brek anybody
Let us try begging instead of spending spending to make these ‘peepull’ love Barbados. If they love the country, ‘leh’ we beg them for some money. That is my plan for the new year anyhow -begging ! ANYTHING WRONG WITH THAT ?
damn that woman look good ?
My head is so hard I dont even know where I am right now !
The picture above says alot about our tourism product and its appeal to a certain type of person. It brings to focus the question commenter (Tourism Monkey) raised on another blog. This is why Barbados has gone high end no doubt.
So because Barbados gone high end does that means that we have to sell our birthrite (which we are doing) and neglect our own people for the rich and famous? Nothing in Barbados seems to catering for the development and betterment of our local populace. And when I say local populace I mean the not so priviledge. The money in Barbados flows in a circle and the beneficiaries are surely not on the average list.
Merry Christmas, Johnny Postle! Without the foreign exchange that people like these bring to the country, what do you suppose we should live on? I mean, any of us? Do you have a car, do you eat imported food, do you do anything on a daily basis that does not use something that is paid for with foreign exchange? Where do you think it comes from? Santa?
Every Tourist contributes to the economy of Barbados including those who stay in the cheapest hotels.
Some of the Rich and Famous add value because of coverage in the overseas press and tabloids.
All Tourists should be given value for the money they are spending to have an enjoyable vacation.
Merry Christmas and a Prosperous New Year to all.
Barbadians continue to struggle with what is good service versus servitude.
@David: “Barbadians continue to struggle with what is good service versus servitude.
It *might* be to we Barbadians’ upside to figure out the difference….
Truly, suppose this is why NISE was given birth. Is this organization still functioning? Should Barbadians not be getting a progress report by now? Is NISE working or not? We need to hire Wickham!
Every year I make it my business to pass by the airport to see the array of private jets that are parked there. In fact there is usually a large gathering who go at the back of the airport on 2nd Jan when most of them are leaving. Also the mage yachts that are berthed either at Port Charles or in off Bay St. All these people come here and leave millions of dollars in just a few days. WE WELCOME THEM. I’m not saying we should kiss their feet but PLEASE don’t criticise them for having lots of money or for chosing Barbados. I don’t expect to be invited to any of their functions but I’m sure many bajans benefit from their being here some directly and many indirectly. I would like the see the numbers doubled this year.
@ Johnny Postle: I must somewhat agree with you concerning the birthright comment. As some of you on this blog may remember, I am incensed by the amount of land being sold off to the rich and famous on our little “rock”. However, that being said, tourism dollars do help the economy somewhat.
A tourist goes into a shop/restaurant/car rental company/you name it and the money that they spend there is introduced into the economy at that point. From there on, it can be spent by the management on salaries which then help employees to buy groceries etc.
Now @ David: Yes it does put into perspective our discussion but as I had mentioned, pricing ourselves out of whatever the current market may be is just foolhardy.
In this, the Winter Tourist Season, the week of Christmas Day, there are hotels on the West Coast of Barbados that have less than 50% occupancy and in some cases have had to lay off staff. Fact.
(Oh, and by the way, they’re now trying to implement discounts for NEXT WEEK, to see if they can make it a little better).
@Tourism Monkey
You maybe correct just trying to reconcile to what Wishing in Vain gave us a couple days ago about good numbers projected for December.
From all reports from people in the industry this winter season is going to be a bumper one for barbados.
I will take the word of those involved in the business before any one else.
@ Anonymous: Look at my login name.
Do you think that I’m not in the business?
Please!
People in the upper areas of the tourism sector are trying to avert panic. Of course they’re going to tell you everything’s fine.
Didn’t all the world’s financial institutions tell us everything was going to be fine before the crap hit the fan?
Still no arrival figures published for November. Why is that?
Two of our guests dined at a normally very popular St. Lawrence Gap restaurant last Sunday and reported it was virtually empty.
See Google results to tourist press in the German press. Thanks Adrian.
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21.12.2009 || Barbados Tourism Authority in Europa unter neuer Leitung 21.12.2009 | | Barbados Tourism Authority in Europe under new management
Robert Keysselitz wird zum Vice President Europe der Barbados Tourism Authority ernannt Robert Keysselitz is appointed Vice President Europe of the Barbados Tourism Authority
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02.12.2009 || Ein neues Gesicht für Mamaison 02.12.2009 | | A new face for Mamaison
Mamaison Hotels & Residences präsentiert eine neue Corporate Identity und eine überarbeitete Website. Mamaison Hotels & Residences presents a new corporate identity and redesigned website. Die neue Unternehmensidentität von Mamaison ist ein erster Schritt zu einem weiteren Ausbau der Marke mit Fokussierung auf die Netzwerkentwicklung und auf Nischenmärkte The new corporate identity of Mamaison is a first step towards a further expansion of the brand with a focus on network development and to niche markets
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21.11.2009 || GARY – frisches Album für die frische Dekade 21.11.2009 | | GARY – fresh album for the fresh Decade
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28.10.2009 || 20 Jahre Marriott International in Osteuropa: Passend zum Jubiläum zwei neue Hotelverträge unterzeichnet 28.10.2009 | | Marriott International 20 years in Eastern Europe: Suitable for the anniversary, two new hotels signed contracts
Mit den geplanten Courtyard by Marriott Hotels in Kazan (Republik Tatarstan) und Irkutsk (Russland) steigt die Anzahl der bis 2012 geplanten neuen Hotelprojekte auf zehn – zusätzlich zu den bereits bestehenden 24 Häusern in Osteuropa. With the planned Courtyard by Marriott hotel in Kazan (Tatarstan Republic) and Irkutsk (Russia), the number of new hotel projects planned by 2012 rises to ten – in addition to the already existing 24 stores in Eastern Europe.
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02.10.2009 || Deutschlands abgefahrenster Job besetzt: Entdecker bloggt auf Europa-Tour von unterwegs 02.10.2009 | | Germany’s coolest job filled: Explorers blogging on a European tour on the road
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02.09.2009 || Vorschau: Gliss – Europatour ab November 02/09/2009 | | Preview: Gliss – Europe tour in November
Gliss sind die Dänin Victoria Cecilia, sowie die beiden US-Amerikaner Martin Klingman und David Reiss und das am 23.Oktober via ADA/Warner erscheinende "Devotion Implosion" ist ihr zweites Album. Gliss are Danish actress Victoria Cecilia, and the two Americans Martin Klingman and David Reiss, and on October 23 through ADA / Warner published "Devotion Implosion" is their second album.
Adrian, the number are arrivals in Nov grew by 849 persons Nov 09 over 08, with the USA leading the way in arrival increases by 2928 arrivals more than in Nov 2008 or 33.1 % increase, followed by Canada at an increase of 1679 more arrivals in 09 than in 08 or a 30.0 % increase in Nov 09 over 08.
I find the stats department very helpful with making these figures available try that some time.
Wishing in Vain,
I will take your advice but if we have good news in tourism, please let everybody know in the industry. It helps maintain moral.
David,
Thank You.
Great to see that the appointment is official now and I wish the new VP of Europe, Robert Keysselitz all the very best.
In my humble opinion Petra has done a wonderful job, but her territory is vast and I know we can do better in Continental Europe.
and I know that we can
The extra cold winter in both north america and Britain is causing many persons to book their travel to the caribbean and Barbados is getting the bulk of the tourists. Let us treat them NISE/NICE as their being here can ease some of the pressure financially off us for 2010. i just hope many of the Barmy Army comes down for the Twenty/20 series, as these guys really know how to spend money and most of all with the little shops and bars.
Adrian L,
The emptiness your guests supports the statement made by the BHTA head that spend is down. It also shows that arrivals are not commensurate with spend.
I hope this scenario is not also evident in hotel bookings. If that is the case, it becomes clear that the introduction of additional seats especially the low fare carrier is appealing to persons VFR.
Adrian I only respond to your request for information, I find the staff very helpful indeed at the BTA.
Wishing in Vain,
Received the latest arrival figures from the BTA yesterday and I also find them very helpful.
The US long stay arrival figures at first look very impressive.
Up 2,809 (37.4%) in October and Up 2,928 (33.1%) in November (temp).
But ‘we’ added an additional 6,847 airlines seats in October and 6,622
in November (JetBlue and US Airways PHL).
So my concern is that we have added an extra 13,469 airline seats for those two months and only filled 5,737 or 42.6% of them.
IF JetBlue and US Airways are operating at economic levels then the only conclusion is that American must have experienced dramatic declines in load factors and that is cause for concern.
I have almost given up trying to get the BTA to launch a MILES programme, but remain convinced that this could have filled at least a large proportion of those 7,732 EMPTY seats.
Especially in the shoulder periods (ie: October, November, April and May).
Adrian,
Do you have similar statistics on the number of locals traveling to/from the US during the same period, as this might shed more light on the airline load factors. Also, are returning nationals included in the US long stay arrivals, and if so, do you know what percentage they represented?
MME,
Sadly not.
I understand that a ‘long stay visitor’ is defined by a person that spends at least one night on Barbados. I am not even sure if ‘we’ differentiate between non-national visitors, VFR and/or ‘locals’ returning home.
I think we need a lot more analysis of our tourism numbers to help maximise
potential revenue.
Take the Nation today as an example ‘Cruise arrivals up, revenue down’
Average cruise ship passenger spend down from US$111 to US$69 (38%).
What is the point of having huge increases in numbers if they are spending less?
It comes back to a conclusion I came to
many, many years ago. Is it better to have a hotel 50% occupied at full rack rate or 100% full with heavily discounted tour operator clients?
Personally I favour the first option as you can spoil those 50% percent full guests rotten, provide the best possible service and they are the ones most likely to return as they are driven by the exprience rather than the price.
@Adrian Loveridge……Will you be paying your employees a nice decent bonus this year to show your love and appreciation?
Hopi,
Already paid and delighted to do so as we do EVERY year. Without them, would not have a full hotel with 75% plus repeat guests.
And just before anyone comments, everyone of our staff is a Barbadian by birth or residency.
What is the point of having huge increases in numbers if they are spending less?
So Adrian do I understand you to be saying to hell with the increased numbers??
Did it cross your mind that if the numbers were far less that they are the pain would be greater??
With regard to the Airy Fairy figure of $ 100 Million have you seen the CTO figures which come out at year end as yet defining the true position ?
Or are you prepared to take it as gospel the gloom and doom king Capaldi and Springer nonsense?
WIV should we take the CEO of Bridgetown Cruise Terminals Inc. Geoffrey Roach who agreed, according to the Nation, that:
“CRUISE SHIP ARRIVALS are up, but passenger spending is down significantly [and] wants to see a reversal of this position, and is looking at ways to enhance visitor experience in Barbados. ”
What about the Florida Caribbean Cruise Association cited by Mr. Roach “which put the average spend per cruise passenger in Barbados at US$69, down from US$111 in 2006”?
Wishing in Vain,
I don’t think you are trying to understand my perspective.
Numbers should NOT be for numbers sake but a way of increasing tourism revenue, viability and as a result taxes for Government that can improve every residents quality of life.
Its great to boast about over 760,000 cruise ship passengers but if they have only spent the same as 472,432 did in 2006, what is the point?
I have learnt not to take ANY of the quoted figures for gospel since the heady days of Minister Lynch.
Our policymakers are entrusted with spending a record BDS$100 million per annum in marketing Barbados, do you think there should be no accountabiity, justification or questions asked to establish the cost-effectiveness of their decisions?
Adrian Loveridge
Said like the warrior you are. Now on the other side of the coin should we as Barbadians not have available statistivs on the amount of US dollars spent by hotels vs the amount of US dollars earned in Barbados per annum? How about the amount of US dollars spent that relates to the sale/rental of properties in Barbados per annum that does not pass through the Central Bank or does not even make it to these shores?
BAFBFP,
I am all for disclosure.
I believe that all companies should make their accounts a matter of public record within six months of the end of each financial year.
I think it was Sir Courtney Blackman that recently called for ALL statutory corporations ALSO to publish their audited accounts with 3-6 months of the end of their financial year.
It was suprising that the majority of the media did NOT report his suggestion.
At least then the taxpayer could have some idea of what was being done with their money, like Hotels and Resorts Ltd (GEMS).
When we purchased the then Arawak Inn, it was a legal requirement to register with the Central Bank all the funds brought in from overseas and at that time any profit made on the property when it was sold could not be repatriated.
I am 100% behind trying to retain the maximum percentage of foreign currency that our tourism industry earns.
Thats another reason why our small hotels should get more BTA support, because the majority of the monies earned by them stays HERE.
Adrian Loveridge
“because the majority of the monies earned by them (small hotels) stays HERE.” and I am glad you said that because for me it is no longer a belief, this is now a fact as stated by a respected local authority.
So now the attention can be focussed on the big operations on the West Coast and Needham’s Point (part owned by Government) as well as the hi-end Villa rentals and Realtors.
Here is an article by your predecessor, another Big Mout’ Englishman that is over ten years old:-
by Peter Morgan
A COUPLE OF WEEKS AGO I expressed the view that the only benefit to the country, in terms of foreign exchange, from the sale of condominiums to foreigners was the actual purchase price paid.
A friend, a professional man, hinted that I was naive to say so which prompted me to look into the matter further. I now confess I was wrong – not one cent reaches these shores from the sale of most of them and the revenues from taxes are minimalised.
Here’s how it works. A person, local or foreign, forms a company incorporated in St Lucia called STL Ltd. That company establishes a company in Barbados called HIM Ltd. in which STL Ltd. is the sole shareholder. HIM Ltd. buys a parcel of land in Barbados on which it intends to erect a building containing, say, 50 condominiums. Having obtained the blessing of Town Planning, HIM Ltd. files a Condominium Declaration with the Registrar of Titles and so becomes the owner of all of the condominiums which will be built.
However, HIM Ltd., does not develop the building in the usual way but causes it to be constructed under two separate building contracts. One is for the construction of the shell which is the outer walls, structural elements, roof and floors of each condominium in the building leaving the interiors unfinished.
STL Ltd. sets up a separate company for each one of the 50 unfinished condominiums in, say, the British Virgin Islands and owns all the shares in each company. One, for example, is called BVI Ltd and this is registered as an “external company” in Barbados which entitles it to buy and own real estate in Barbados without having to obtain Central Bank permission.
HIM Ltd. sells one of the condominiums to BVI Ltd. in its unfinished state. The aim is to minimise the amount of corporation tax which HIM Ltd. will have to pay for carrying out the development by making the sales of each condo in its unfinished, and therefore much cheaper, state.
BVI Ltd. contracts with a builder to finish the construction of the condominium and decides on the final selling price which is openly advertised at the total price.
The stamp duty and property transfer tax are minimised by HIM Ltd. paying them based on the unfinished selling price of the condo. Someone from North America or Europe buys the shares in BVI Ltd, and so acquires the condo paying no stamp duty or property transfer tax.
Remember that STL Ltd. owned BVI Ltd. and the transaction takes place in Tortola so not one cent of the purchase price reaches Barbados. The new owner acquires the property in Barbados without having to obtain permission of the Central Bank and can sell to anyone else without paying any stamp duty or property transfer tax.
This wheeling and dealing is apparently quite legal. One real estate company states in its published material: “The main advantage of this structure of ownership is the fact that on a future sale of the corporate vehicle through which the freehold is owned, property transfer tax and stamp duty will not be payable based on the legislation and current practice of the relevant authorities in Barbados.
“This is to be contrasted with the situation where the freehold is registered in the name of the individual purchaser.”
So what does all this mean in practical terms? Permission has been granted for about 200 new condominiums off the West Coast. Let’s say the average pre-construction price is US$500 000, this means that about US$100 million in foreign exchange which ought to be paid into banks here for the purchase of property in Barbados never reaches these shores. Far less property transfer tax and stamp duty that is due ever reaches the Treasury.
A similar formula is used in the sale of town house and luxury villa developments so that the loss of foreign exchange to this country is even higher than that by several multiples.
We are told that the country needs more foreign exchange so how can this be allowed to happen? The professional people – lawyers, chartered accounts, bankers – know all about it but they have clients to advise about how to get the most profitable deal.
However, the professional people in the Ministry of Finance and the Central Bank must know, too. So why are these manoeuvres, greatly to the disadvantage of this country, allowed to continue?
If any of the above statements are incorrect I would welcome a clarification. If not, I believe the public is entitled to an explanation.
Peter Morgan is a former Minister of Tourism in a Democratic Labour Party Administration.
Surely the immediate above no longer obtains.
@Adrian L………Who woulda think that in a worldwide ‘economic’ downpression that you could still maintain 75% occupancy! Sounds like hand ova fist and good fa you. Remember this Adrian..Only in Barbados! Only in Barbados! And in your Last Will & Testament, kindly remember those indigenous Bajans who helped to make you who you are today, And since you are of the the European persuasion I’ll say Merry Christmas to you, wifey and de pickney!
Hopi,
THANK YOU and seasons goodwill to you.
Just to correct you. 100% occupancy with 75% repeat guests.
We continue to be blessed and consider ourselves so fortunate to live on Barbados and will never forget those Bajans that have helped us so far.
Adrian L
That would mean that you have a KILL RATIO of 25%…lol. Please let our Tourism experts know your secrets..!
Hopi
I got an occupancy of 100% too which rises to a 110% when the rain falls and I have to accomodate my neighnour’s cat!
U R Mistaken
Please bring some information to disprove your immediate above…!
Another Bajan blogger’s (West Coast Blog) view on West Coast tourism.
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