Caribbean Travel Is Sitting Pretty

At the 9th Annual Caribbean Hotel & Tourism Investment Conference and Profit Partnership Meeting held recently in the Barbados, CARICOM (Caribbean Community) countries industry experts bask in the assurance of clear signs of recovery past the global downturn post 9/11, SARS and the Iraq war.

National economies have been markedly improved with tourism economies well on the rebound stage. The Caribbean has recovered faster than the US post-September 11, as banks and investment managers have noted.

Reasons showing recovery has finally arrived reflecting a close link with increase in air lift and new routes opened in the region. Since the industry is not fully in control of this sector however, it is encouraged to keep vigilant in the direction airlines take.

Stability of the region is perceived high on the agenda of millions of travelers mindful of security and safety of destinations they pick. Proximity to the US compounded with the weakness of the US dollar serves as a plus factor for the Caribbean nations luring deep pockets and American vacationers. Since the situation will not likely continue this way – neither will the destinations remain very attractive under this present predicament- the Caribbean is less likely to cash in on the situation for long. Hence, the region should be on its toes regardless.

The Caribbean people should not take it easy. “Europe will become an affordable destination again once the dollar adjusts,” said James Burba, president of Horwath Hospitality & Leisure LLC and Burba Hotel Network.

“We must worry that our competitions all wise-up to the situation. They are getting better in terms of offers and service,” said Caribbean Hotel Association director-general and CEO Alec Sanguinetti. For instance at hotels in Prague today, staff invite parents to choose from a basket of toys and goodies free upon check-in to keep children entertained. It is not enough that they render par excellence service; European competitors go the extra mile in their quest for US business. From that perspective, that is serious competition who studies market trends.

Increased activity is afloat in the Caribbean. Investors and tourism experts confirm there have been more big profit schemes introduced to developers and operators etc. Heightened awareness of the region in the last months has been noticed especially after the tsunami hit the South Indian resorts.

Against the backdrop of uncertainty, hotel executives and owners are extremely interested in the concept – if the CSME will allow for better business and if it will set the playing field for operators and investors to compete on a global level for capital. Reservation on the CSME on the part of the big hospitality players lies in the actual materialization of the idea - if and when it ever takes place and if so, how it will be carried out. On the whole, there is widespread industry support.

According to Simon Townsend, partner and head of the KPMG´s corporate finance business in the Caribbean, major lenders feel optimistic about regional hospitality over the short and medium term. “But unlike the US and the European markets, lending data is not readily available while there is wide variance in lending terms all across the Caribbean depending on the quality of project, unique factors and jurisdictional issues. The consistent theme is that there is no current appetite for mezzanine financing due to the lack of liquid exit strategies in the region.”

Caribbean Hotel Association president Berthia Parle said the development field is extremely fertile. “Investors are seriously focused on the 4 and 5 star properties in the Caribbean.” However, it is extremely difficult to develop a 4 or 5 star hotel as a stand-alone property with the current trends shaped by recent changes in the marketplace.

If tourism were to grow more effectively in the region, Caribbean islands have to work together as one team – such as whose team spirit the Barbados will witness this 2007. Tourism leaders should play shoulder-to-shoulder as the island nations brace for the bigger bang a couple of years from now and beyond. The Barbados won the bid to host the ICC Cricket World Cup 2007 to the tune of $550 million, the largest rights deal in cricket´s history.

Similarly, tourism is to cash in and create history