Submitted by Looking Glass

We now plan to build a cruise terminal to facilitate the largest cruise ships. The facility includes piers, arrival and departure facilities, parking lots, cargo activities along with a casino and retail facilities. How many cruise lines visit? I believe only one cruise line services Barbados these days on a bi-weekly basis. Its ships bypassed us earlier this year. The same cruise line visits Jamaica and six other countries in the region on a weekly basis at least in the winter.

In Tourism In Peril concern was expressed re the Cruise Line deal that guaranteed the Government {BAT) earnings of $156m and 1.5million tourist arrivals over three years. Cruise liners seldom come there on a weekly basis, not even in winter. Now we are told cruise passengers grew from “over 127000 in 1985 to 726 541 last year.” So 6545 passengers per month (1636 per week) arrived last year in the midst of the world recession. It would require at least 3 arrivals per week. How many cruise ships arrive there weekly? Having been told passengers spend an average of $75.00 per port we tend to multiply that by the number of passengers on the ship which is very misleading. We have no way of really knowing how many got off, how much they spend or the amount of earnings generated. Some years ago it was estimated that only 25 cents of every tourist dollar remained on the island. That the cruise terminal will attract more and bigger ships and boost revenue appears to be wishful thinking. Do we really “need foreign exchange in order to register sustainable GDP growth?”

The construction will provide temporary work for 200 workers who, on completion will have to find work elsewhere. There is nothing to suggest permanent tourism related work for them.Construction and tourism are not value added industries.

Cruise liners have shopping facilities on board and we are normally the last port of call and the most expensive. Most of the items we have to offer are available in other ports of call. For all the stores to be profitable and generate permanent jobs we need more new locally made and attractive products. We objected to casino gambling in the past. None of the islands the cruise line visits except Jamaica have entertained casinos for the ships. Will the casino be owned by us or the cruise line? If the latter it is unlikely we will get much if any of the revenue generated.

Most likely we will have to borrow the $300m or more for the project which puts us deeper in debt. It is unlikely the returns will justify the investment. Use the money to accommodate agriculture. As I said before it will provide employment, reduce the import bill, increase revenue, enhance health and reduce health cost. The cruise industry cannot do it for us. I am not against cruise tourism. We have no comparative advantage via the North American market. Tourism is not a linear or exponential growth industry. We need to rationalize tourism to the country not the country to tourism.

We seem to create statistics to suit our purpose. We attract 700000 visitors a year Advocate (Sept 26/2012. If that was indeed the case why would 25 or more hotels and guest houses close in the last decade or so and are still closing? We need low cost hotels/guest houses to attract low income tourists. Did 61 international journalists really attend the food festival?

We are told there is lots of opportunity out of Canada especially the Western Canada where the average annual household exceeds $169000, and Wardair capable of filling a 456 seat B747 aircraft direct from Winnipeg, Edmonton and Alberta to Barbados. ((Lessons of Barbados Max Ward and Wardair in BFP). When was the last time an airline arrived with a fullhouse of tourists? Each year about 5million Canadians travel abroad to other countries via the USA mainly because it is cheaper than using Canadian airlines. Financially the current meat production problem in Western Canada will likely impact travel negatively.

Travel patterns and our international profile have changed. More and cheaper tourist destinations with much more to offer are coming on stream and we are the most expensive destination. West Jet and BA now have a bi-weekly direct service to the Bahamas and the Dominican Republic (DR). The DR also signed bilateral flight pacts/air service agreements with countries like The Arab Emirates, Jordan, Turkey and Iceland, opened an office in Vienna from which to expand into the EU. (Tourism Another Look 2009}. BA stared a new flight to Antigua and reduced flights to Barbados, Jet Blue twice daily to Jamaica, American Airline a daily non-stop to Jamaica, Air Canada direct to Grenada. Caribbean Airline now services the UK, Canada and the USA and Delta Air to Grenada. It means a loss of in-transit passengers and potential tourists. The same holds for the new Jamaica Airline servicing Guyana.

The merged American Airline and US Airway will do little for us given the state of the US economy. The bulk of the population is west of New York and indebtedness as in Canada is sky high. We have no comparative in the North American market. For the merger to benefit us both the airline and our local hotel prices would have to be low.

In the past I suggested linking up with Virgin Airline {UK} to establish our own low cost airline to service North America and Europe. It would facilitate our comparative advantage and the seats sold would generate income. So far it has fallen on death ears. However it is not too late.

Unlike the other countries in the region we have little to offer beside sea and sun. Consider using the “monument” of George Washington grandfather, the Greek Prince as an attraction. George visited there as a teenager with his sick brother. It was in Barbados that George first became acquainted with democratic government. The history would appeal to Americans. Also consider using the Police Band, the Merrymen and Red Plastic Bag. Tourist/visitors would love to be entertained and it could be a source of income. Perhaps tourism biggest problem lies in advertising and marketing. Why pay a company in the Midwest USA to “market” Barbados when the bulk of tourists come from the East? Many years ago articles promoting our tourism appeared in the Canadian media. These days it is almost impossible to find advertisement or promotion in the travel media or newspapers in North America or elsewhere.

According to Madame Mottley the south coast hotels are closing or are about to close. When the BLP forms the government “they will be setting up a fund of $500 million to make low interest loans to some of the hotels that were now closed…the funds will not come from taxpayers’ money, but from the Inter-American Bank, Caribbean Development Bank and the National Insurance Funds.” The restoration/ refurbishment would provide jobs for tradesmen and young women and enable fishermen to find a market for their catches.(Barbados Today Online 9/17/ 2012). Bajans stop buying fish?

Think again Madame and stop blaming the DLP. It all began when your Party was in office. The statement is a reminder that the BLP understand little about tourism. Devotion to self-indulgence without vision as an ongoing basis for socio-economic organization will ultimately result in socio-economic instability and unrest.