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Adrian Loveridge - Owner of Peach & Quiet Hotel
Adrian Loveridge – Owner of Peach & Quiet Hotel

Britons travelling long haul are beginning to forsake traditional seven-night beach holidays in favour of packing different experiences into one trip’.

That is the conclusion of the latest Long Haul Trend Report published recently by Hayes and Jarvis, one of the UK’s oldest established and most successful tour operators, specialising in long haul holidays and who are now part of the TUI Travel empire. It also reveals ‘that the destinations making waves in 2013 are ones which lend themselves to a combination of city, beach and culture or heritage tours’. For the sales period January-May 2013, their bestselling destinations are: 1) New York, 2) Las Vegas, 3) Thailand, 4) The Maldives, 5) Mexico, 6) Mauritius, 7) Dubai, 8) California, 9) Kenya and 10) St. Lucia.

And the fastest growing destinations for the same period:

1) Vietnam, 2) Brazil, 3) Kenya, 4) Tanzania, 5) South Africa, 6) Egypt, 7) New York, 8) Dominican Republic, 9) Las Vegas and 10) Mauritius.

Sean Dowd, Hayes and Jarvis, Head of Commercial said ‘While off-the-peg beach packages are still popular – especially four and five star All inclusive ones, there is no doubting the steady decline in demand for traditional fly-and-flop beach holidays’. Adding ‘In sharp contrast, our multi-centre trip bookings have doubled over the last two years’ and ‘now account for over a third of our business and this growth trend is one which we expect to accelerate’.

Is this the time to look more carefully how we (Barbados) can capitalise on this growing market, particularly bearing in mind the new Virgin Atlantic and Delta Airlines strategic alliance. It just might help sustain the return of a direct Atlanta/Barbados service.

To be truly objective, you have to remember that this is a report by one tour operator and without knowing any demographic sampling of their average customer, we cannot assume that it is totally representative of all our visitors from this major market.

However, there are some alarming signals, especially for us.

The drop-off in demand has been even more marked in the major Caribbean islands with Barbados (down 51 per cent) and Antigua (down 58 per cent), experiencing the biggest drops. Seemingly however, as if to reinforce the belief by many, that the APD has not had the devastating effect generally thought, bookings for Tobago are up 16 per cent and the Dominican Republic, up 14 per cent, both when compared with last year. Perhaps the DR can be partially explained by price points and perceived value-for-money, but Tobago is another story.

A comparable 7 night all-inclusive stay at a 4 star hotel with flights from Gatwick in June taken from their brochure, puts the Barbados product as 65 per cent more expensive than the DR. But the closest lodging comparison that can be made between Barbados and Tobago, would be two 3 star all inclusive hotels, where the Tobago package is in fact at a slightly higher price.

So among the questions we should be asking, is why are we losing market share to Tobago and continue to lose business to St. Lucia?


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84 responses to “Engaging a Tourism Strategy to Win Marketshare”


  1. We need to wake up in BIM. We have had too many people involved in tourism for selfish reasons. A lot of conflict of interest and plenty of decisions based on negative motives. It is time to face the truth about our tourism and tackle the problems with wisdom.


  2. “Do not remember the last time I have seen a newspaper ad with BTA flying fish logo.”

    Even the flying fish have moved to more fertile grounds, it cost too much to swim and eat in our waters


  3. A good place to begin is to investigate the criteria used to appoint BTA board members.


  4. Republic Dominica all inclusive from UK for 2 weeks approx 1100£

    Air fares ONLY from UK to Barbados “Cattle Class” approx 700£
    Air fare only UK to Barbados, Premium Cattle class (has extra leg room) approx 3228.00£ !!!!!

    Do we really have to discuss WHY tourist #’s are dropping?

  5. Adrian Loveridge Avatar
    Adrian Loveridge

    Tourism Master Plan – ‘by the end of the year’
    ‘by the end of June’
    Which YEAR and which June?

    11st November 2010 – Barbados Advocate
    Tourism Master Plan by ‘the end of the year’

    ‘Lethargy’ – a lack of energy and enthusiasm

  6. Adrian Loveridge Avatar
    Adrian Loveridge

    Roverp,

    Agreed! But how do we change this?


  7. @Miller
    I smell a rat. The obvious answer for the Beach Village is for it to be taken over and redeveloped by a company that can promote itself and Barbados, like Sandals, or even Doyle. But we hear that government want to buy the property, just clean it up (redevelopment will cost a lot more than they can afford) and hand it back to the same people that ran it into the ground before. Is it just coincidence that the former Chairman of Almond is frequently seen lunching at Timothy Oulton with Leroy Greenverbs? You don’t even have to guess the conversation.


  8. David

    For those who did not go to the Business Barbados link, I copy the first two paragraphs

    “Long-term Tourism Planning: A National Obligation
    by Wayne Capaldi
    12 August 2010
    Since January of 2008 tourism planners and policy makers at the public sector level have been promising to deliver to the industry and the people of Barbados the much anticipated Tourism Master Plan (TMP) which, in a nutshell, is meant to guide and inform the development of our number one industry well into the future.

    Almost three years later, I am reliably informed that the task force that will be charged with the oversight and ultimate delivery of the TMP has not even been constituted. Why the delay? The importance of such a document especially in the context of the precarious economic environment in which we find ourselves, cannot be overstated as it sets out for the practitioners, investors and potential investors in tourism, a framework to not only guide all future decision-making but also to determine the demands of the sector as it relates to foreign exchange earnings, accommodation mix, sectoral linkages, environmental considerations, employment demands, marketing strategies, investor initiatives – to name a few.”

    Since January of 2008? It is now June 2013, 5 1/2 years later. In the context of the far more precarious economic environment in which Barbados finds itself today, it is completely incomprehensible why the MOT
    has shown no leadership in advancing a TMP.

    Minister Sealy where are you?


  9. Peltdownman….The former chairman wants to get back into the swing to net whatever he can net. If anyone in their right mind would allow this to happen again then Barbados black people are stupid as ass.


  10. I remain concerned that the main call from the privately owned tourism and hospitality providers is more government funding and subsidies, to a sector that is already the most heavily subsidized in the country.

    Why should the tax payers fund the refurbishment of private hotels? Seems a classic case of privatizing the profits and socializing the losses. Are they going to be prepared to open their books to government officials in order to access this funding?

  11. Adrian Loveridge Avatar
    Adrian Loveridge

    Observer, I agree with a lot of what you say, but please do NOT lump us all in the same barrel. Apart from a 50 per cent reduction in land taxes, we have not received a single cent of Government subsidy in 25 years. Even then, this Government increased land taxes last time by 50 per cent during the worse recession in eighty years. I have ALWAYS believed that any Government concessions should be subject to the sight of audited accounts and that proof that there are no outstanding taxes/nis/vat etc., owing to Government. You also have to recall that Almond Resorts received almost $2 million in TIRF (taxpayers) monies and within months had laid-off 500 people. Silver Sands Resort was another example.
    And before I forget, there is the Minister telling the small hotels to upgrade and when you do (as in our case) you are kept waiting 3 YEARS and 8 MONTHS (so far) for agreed VAT refunds. Do you think that is subsidising the industry And before you tell me, some tourism enterprises owe monies to Government. That is NOT my job as I have been too busy running a small hotel, 7 days a week, 17 hours a day.


  12. Observer | June 13, 2013 at 9:10 AM |
    I remain concerned that the main call from the privately owned tourism and hospitality providers is more government funding and subsidies, to a sector that is already the most heavily subsidized in the country.
    —————
    This sector has been allowed to feel they are the chosen ones to raid the treasury at will.
    They demand control of the national budget.
    Any questioning of their selfish, anti govrnement motives brings foul mouth reprisals from the blog owner, island gal, peltdownwoman etc (are they all the same person?)

    james paul crying in vain for help in agricultrue.
    Sir david Seale crying for similar assistance hoteliers get for rum.
    The noise makers in the privately owned tourist sector are aggressively anti government. They backed the BLP in a big way financially in the elections. Their horse was beaten so they are breathing fire and brimstone at the government.
    The people did not elect Dass and the hoteliers to run our country. A word to the wise is enough.

  13. Adrian Loveridge Avatar
    Adrian Loveridge

    Undaunted, While I hate to admit it, because democracy is very precious to me, I was one of the nearly 40 per cent of eligible voters that decided not to exercise my electoral right in this last election. I didn’t want to vote for either party and somehow, I don’t think I was alone. I was also not one of the many people that appeared to be willing to sell their vote.


  14. Independent
    I find it very interesting that for all the negativity on the blog towards Ralph Taylor, previous Almond staff couldn’t wait to sign on to work at Soco. Min. Sealy was very complimentary towards Taylor in his speech and put him as an example of an innovative, hard working hotelier who doesn’t moan and groan but gets on with what needs to be done.


  15. LIAT takes possession of first aircraft in US$100 million re-fleeting exercise
    ST. JOHN’S, Antigua, Thursday June 13, 2013 – The financially strapped regional airline, LIAT, Thursday announced it had taken possession of an ATR 72-600 aircraft as it upgrades its aging fleet.

    The airline said the French-manufactured ATR is being leased from the lessor GECAS (GE Capital Aviation Services) and “is the first of a total of eight ATRs -four 68-seat ATR 72-600 and four 48-seat ATR 42-600s- that will be introduced into LIAT’s fleet.

    “The introduction of these brand new ATR-600s in LIAT’s current fleet of 14 aircraft is a part of the airline’s restructuring plans aiming at fleet modernization and network improvements. By progressively replacing its current fleet of former turboprop aircraft with the modern and fuel efficient ATRs, the airline will significantly reduce operating and maintenance costs, gain further in profitability and offer more comfort to its passengers due to its enhanced seats design,” the airline said in a statement.

    Read more: http://www.caribbean360.com/index.php/news/antigua_news/776954.html?print#ixzz2W7alX0EJ

    How much of that US100 million is Barbados going to be paying?


  16. Undaunted, please point out to me where at any time, I have used “foul mouthed reprisals” on ANY subject. You’re right, agriculture is crying out for assistance BUT THEY’RE NOT GETTING IT EITHER! I do not know where you get this nonesense from, as I don’t see a big lot of hoteliers on this blog crying out for assistance or hand-outs. What I see is a concerned hotelier pointing out that government has promised a Tourism Master Plan and have not yet delivered, and is concerned that Barbados is slipping in the tourism rankings. Show me where Adrian has asked for a handout of any kind. Oh, I know, he paid too much VAT to government and they won’t pay him back. No doubt if the other party was in government you would be backing him to the hilt. You, CCC, ac, onions and the other yardfowls are apparently incapable of realising that there are people in Barbados who are apolitical and just want the best for the country no matter who is in power.


  17. @Independent
    When you’re desperate for work……….. You would be stunned if you knew what really went on at Almond.


  18. Observer you hit one of the nails on the head. When is subsidy appropriate? How long if done should a subsidy be in place? is a subsidized business able after to stand on its own? Adrian has proven that if you have the right knowledge and business sense you do not need subsidies.

  19. Adrian Loveridge Avatar
    Adrian Loveridge

    Independent,

    What you forget to say is that Almond received almost $2 million in taxpayer subsidies (TIRF) and within months then laid-off over 500 staff.


  20. @ Adrian Loveridge
    No, I didn’t forget to say that. Your argument only reinforces my point : Some of the best workers at Almond were DELIGHTED to go and work for Taylor, one may assume at a lower salary than they were getting at Almond. I find this interesting; it may be as Peltdownman said that they’re desperate for work, but they also got paid severance pay. And what makes it even more interesting is that these same workers provide excellent service to the guests. They are not grumpy or bitter or whatever, as one might expect them to be. They are really happy to be working again for Mr. Taylor. I was at Soco and I spoke to them.

  21. Adrian Loveridge Avatar
    Adrian Loveridge

    Independent,
    I wish Mr. Taylor, Stephanie and his staff all the success in the world with Soco and welcome him to the land of the Mom and Pop hotels. The term he referred to me and my wife, while stating that a hotel of our size could never work (22 rooms). It is also refreshing that he and Minister are now embracing TripAdvisor and using it as a marketing too. A far cry when he described TripAdvisor as a ‘menace’ while addressing a group of visiting tour operators and travel agents a couple of years ago.
    With this dramatically changed thinking, hopefully the Minister will now ensure a complete list of all the 2013 TripAdvisor Certificate of Excellence awardees will be published by the BTA, as so many other national marketing agencies have. After all, wouldn’t any Minister of Tourism be justly proud of the top ten per cent of tourism operators in any destination.


  22. Adrian from what i am hearing there is a fundamental mismatch between the room rates and the amenities offered in barbados. The amenities and the condition of a number of properties no longer justify the rates these being charged. To me if the hotels are privately owned this has to be a management problem at heart.

    In terms of the land tax I don’t think we can have it both ways. As far as i am aware the land tax rates did not rise, the property valuations rose. If the hotelier is selling the property, or he wants to access financing he is going to use the higher valuation, why should the state ignore this higher valuation when assessing taxes?

    We have a structural problem with the value proposition offered by many aspects of our hotel sector. That is a management problem. To my causal observation, the properties with solid business models where there is a match between amenitities and price and a targeted marketing strategy are holding their own. Its the ones with weak strategies which really depend on the market as a whole who are struggling.


  23. David and Adrian, it may be that the press is not reporting it, but I hear no sense of introspection in the Tourism and Hospitality sector. From I what I heard yesterday and my own reading the sector has a basic problem with its value proposition. Its traditional price point no longer is no longer consistent with the other aspects of the product. To my mind that is less of a macro economic policy issue and more of an organizational strategic management issue. Incumbent players in a sector rarely ever lead the kind of structural reform needed at this time. Its is perfectly normal for them to seek to cling to or call for a restoration of the status quo, when there is a new normal. The reports coming from the BHTA sounds that way to me.

    You see David i think you guys and the media are perpetuating the notion that what is good for the BHTA is good for Barbados, Barbados tourism and economy. The BHTA is at its core a lobby group seeking to extract benefits for its members. They wrap themselves in the flag and may actually genuinely believe that they are acting in the best national interest, but at the end of the day it is seeking to extract benefits for its members. And not just its membership, but the influential members. Adrian’s comments often suggest to me that the BHTA does not necessarily represent the interests of properties like his or corporate strategies like his.

    What if many of the influential players in the sector are relatively comfortable financially. They may have no real desire to undertake real fundamental reform. Some extra subsidies from the state will put a plaster on the sore, but do they really want any radical surgery in the face of a new normal. Large, influential incumbents rarely act in that manner. that why sectors are often shaken up by new entrants.

    I come back to a point I have been trying to make consistently, that we seem capable of holding the government and public officers to the fire, but the private sector gets a free pass.


  24. Observer, I think that you are absolutely correct. In any business, when sales are good, there is a tendency to paper over the cracks. Product development is even more essential when times are good, because the money is there to implement it. When times are bad, and money is short, product development either takes a back seat, which is self-defeating, or the company has to look elsewhere for help.


  25. @Observer

    You diagnosis maybe correct to identify casual factors BUT given the importance of the sector ie. contribution to GDP (also underground economy) you need leadership from government. The stakeholders in the sector must be on the same page. The buck stops with the taciturn minister of Tourism et al.


  26. The following is from http://en.wikipedia.org/wiki/Barbados–Canada_relations

    During the 1970s Canada became the largest source of tourists to Barbados. In 1979, roughly 97,000 Canadians visited the island of Barbados. Over time Barbados has seen market share from Canada shift towards lower cost Caribbean destinations such as Cuba or the Dominican Republic.

    According to http://www.barstats.gov.bb/files/documents/Dec_2011_and_2012_compared.pdf

    Arrivals from Canada were 72,020 in 2012.

    In the 34 years since 1979, the number of Canadians traveling outside Canada for vacations has undoubtedly more that doubled; but the number going to Barbados has shrunk by 25%; so Barbados marketshare of Canadian tourists has declined by more than half.

    Wonder if that has anything to do with BTA marketing in Canada, or is it just that the cost in every other Caribbean destination is lower?


  27. David if you look at the WEF Tourism Competitiveness survey barbados ranks highly on all the things that government is supposed to be doing. These rankings have all improved since 2007.

    Business strategy is about the management of the organization, subsidies cannot help with organizational lethargy and complacency.


  28. @Observer

    The response was not framed around subsidies, it is about leadership. If the government has rejigged its relationship with stakeholders, in this case BHTA, both parties should be reconciled to the way forward. It is our main sector, too much politics. Case in point, what is the criteria for membership of the BTA? If the government wants to accrue credibility it must be seen to be transparent how it is managing the sector. Instead what do we have? A politician’s wife, bed partner etc.


  29. I was watching a show on how pythons are killing off everything in the florida everglades, they breed quickly and there seems to be no way of stopping them, Then a few days later a picture in the daily nation shows someone with a snake around his neck driving besides the stupidity of driving with a constrictor around you, this seems like a recipe for disaster for a small island if it is released or escapes.


  30. David you seem to consistently equate leadership with the MOT. I am saying leadership on the issues affecting the industry as outlined by the BHTA has to come primarily from the sector itself.

    This sector seems to want to depend on government for its own strategic management.


  31. do any of you look at the comments in tripadvisor?????????
    because between the wonderfull experience in barbados for a week.!
    one week! they can tell it is wonderful.i think not.
    now some one has paid off the tourist that got shot downbath recently to make barbados seem so nice and lovely.
    but i am afraid if look between the comments you will see .
    things like [constantly harassed by black men]
    did not feel safe and so on/ do you look good at these?
    it does not seem so.
    here is the answer david———–
    sell barbados to canada as it is looking for a destination canadiens can go
    in no time the rcmp will have all the skum locked up and the goverment will be a dependable one and they will feed barbados with canadien dollers
    and safety and while they are looking for those canadien criminals who have their offices there to prevent paying canadien tax will all be fixed.
    there is the answer to all barbados problems.
    safety,good goverment,thansparency, and if people hear barbados is canadien.then they will come knowing things are properly run.
    of course all canadiens would not be allowed to live there ,there will have to be some agreement about that part.
    so there you go.a for sure income and decent island.
    other than that i think barbados alone is incapable of running itself as it has been proven now for sure.man i would love to see the look on the bad boys faces when the near 7 foot tall 250 lb canadien police swat come for their evil asses with better guns than they have .man i would jump for joy.


  32. BARBADOS TRIPADVISOR.COM

    sell barbados to canada as it is looking for a destination canadiens can go

    Sell what?

    A bankrupt island bleeding money.

    Canada just spent the last several years stopping its own bleeding.

    By the time Canada’s Auditor General conducted its own due diligence of the Government’s books (what books?) you could not give it to Canada, or for that matter pay them to take it.

    Canadians are happy to go to Mexico, Cuba, DR, Costa Rico, Panama.

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