Jose Brichs Sala . Corporate Marketing Director for Barceló Hotels & Resorts

Q- We know all along that Barceló is a distinguished hotel chain that has enhanced the number of accommodations and raised quality worldwide. Can you talk to us about that strengthening process?

A- As we speak, the chain has been growing in different Latin American and European countries. We’ve set up shop in seventeen nations and the total amount of hotels is in the neighborhood of 140. Our main markets are Spain (in Europe) and the Americas, chiefly the U.S., Costa Rica, the Dominican Republic and Mexico. We also have a major expansion plan in Cuba. Right now, we’re running a couple of resorts on the island nation, plus a third one that’s going to be operational pretty soon. Moreover, we’ve already signed contracts to manage as many as 3,000 more rooms in this country.

Q- How do you assess the potentials of tourism growth in Latin America, Central America, the Caribbean and, especially in Cuba?

A- The future of tourism in all these countries will depend on how tourist-sending markets fare, especially in Europe and America, and on how the economies of these countries will perform. Suffice it to say that the more their economies grow, the more chances there’ll be to keep tourism up and running. Looking at the big-time markets, I can tell you this is a pretty good opportunity for Europe as far as outflows of travelers to the Americas are concerned. There are many tourist-sending markets that are bouncing back –like the Germans, for instance. I also believe perspectives in the British market are looking good, as well as in the Mediterranean beltway: Spain, France, Italy, and the like. In a word, perspectives are good.

As to the Americas, the big-time senders, Canada and the U.S., are keeping a good growing pace, and the good news is that South American nations are little by little waking up. In the past, they used to be good sending markets for the Caribbean and Central America. Chile and Argentina are two cases in point. And even though that flow is now tricking in, they’re certainly rebounding right now. I strongly believe perspectives are really good.

Q- As to Barceló’s investment projects in Central America, Latin America and the Caribbean, what can you say about that?

A- There’re some done deals. In Cuba, we’ve set up fifty-fifty joint ventures with local hotel chains and there are plans in the making to add 3,000 more rooms. Those agreements have been inked with Gaviota and Gran Caribe, and the hotels are going to be in Santa Lucia and Guardalavaca. There’s a third project for another hotel in Cayo Coco. Those are so far Barceló’s big projects on the island nation in terms of joint ventures.

All hotels are built by Cuban enterprises as we provide the funds and all details in terms of designing and outlay. Besides, we end up owning half of the hotel. That’s in the case of Cuba. On the other hand, in the Mayan Riviera, we possess a huge compound with plenty of building space to make 2,000 more rooms. And through an investment mutual fund set up by Barceló, we also have some projects for a few hotels in Mexico’s Pacific Coastline, especially in Puerto Vallarta. At the same time, we’re just within an ace of closing a deal for other lodgings in Cancun.

Apart from that investment process, the company is bent on finding more hotels and is therefore taking a look at all opportunities. I must also say that Barceló is becoming increasingly demanding when it comes to choosing new facilities to run.

Q- What about the idea of providing Barceló with an airline of its own?

A- That idea is not on the table. We once had an airline operating in the Caribbean, a carrier that was hubbed in the Dominican Republic and that we used to fly to Haiti and to the rest of the Caribbean. However, that project wound up laying an egg, so we haven’t outlined any future plans in that direction.

Q- You’re planning on building top-flight hotels in the Dominican Republic, basically for American tourists, aren’t you?

A- There’re no new building projects for the Dominican Republic. I think Barceló has too far-reaching an offer in that country. We’ve got seventeen hotels there, and that’s more than enough. We’d only stress on making hotels there comply with our quality standards and requirements; otherwise, we could terminate the management contract. As to the ones that we have there, we must pursue a hands-on policy of renovation, improvement and streamlining. But indeed, there’re no further expansion plans for Barceló in that country. I insist the offer there is way too big now because this is the hotel chain with the biggest number of beds in the Dominican Republic. I think Americans have ended up adapting to this kind of resort that was not exactly their cup of tea in the beginning, because they prefer Cancun-style lodgings. However, they’ve been gradually getting used to the kind of hotels that we have, say, in Punta Cana.

Q- How are uncertainty and the ongoing political situation affecting this country? How are they making tourism react?

A- Fortunately, there’s nothing to worry about right now. However, I admit this is quite a threat, anyway. Travel destinations in countries like these are sort of bubbles, but fortunately, things haven’t gotten tougher. Of course, nations that are subjected to this kind of instability generate some level of clear and present danger. As far as the currency devaluation is concerned, if you pause and take a good look at the numbers you’ll realize that’s a windfall for foreign companies because spending is rendered in local currency, whereas revenues are reaped in greenbacks. In that sense, the devaluation is not a drawback.

Q- Is Barceló toying with any possible partnership or alliance with tour operators or hoteliers?

A- We always hold talks with everybody. We have a very active president in Palma de Majorca, yet so far there’s nothing in the bag. We’re sticking to our partnership with First Choice, the British group, because Barceló owns some stocks there. In the travel sector, that’s the only alliance there is. Yet, that doesn’t mean we’re going to sit on our hands and stop talking with other companies or groups.

Q- Has Barceló in any way been affected by tour operator First Choice’s move to buy a considerable chunk of the Barceló Travel Division?

A- Not at all, because the management of that company, regardless of being in British hands, remains unaltered. We’re holding on to the same contracts and cooperation with hotels is still going the same way. That continues to be a receptive agency that deals closely with our hotels. The difference is that it used to be a hundred percent ours in the past, and now Barceló only owns 23 percent of shares. For me, that doesn’t make a heck of a big difference.

Q- Is there any partnership with any German group?

A- No, there’s not, and that could be a weak link. But nevertheless, that gives us the possibility of doing business with different companies. Whenever the German market has been crawling back, the signs have been pretty clear to anybody, especially due to the lack of alliances with them. When the volume of German passengers dwindles, those few left German travelers head for hotels that hold tight partnerships with their chains.

Q- Neckermann has signed some major agreements with you, isn’t it so?

A- Contracts rather than agreements, but that’s a good example of a tourist group that has a stock partnership with Iberostar. Of course, if demand drops, it goes to bat for Iberostar. If there’s an expansive demand, then there’ll be opportunities galore for everyone. I must say that each and every hotel chain has a realm of its own, its own features. We’re a conspicuous company that does some things right and others very wrong, but in which positive things are far more than negative ones. Our company is growing steadily and that growth is rock solid. It still has a long way to go and great perspectives on the road ahead.

Q- How many travel agencies does Barceló Travel have?

A- Barceló Travel has some 250 agencies, plus a few Business Travel offices for corporate businesses. I think they all add up 300; in Argentina, Costa Rica.

Q- As far as business tourism is concerned, how strong is Cuba’s position in that sector?

A- We’re virtually doing nothing to lure that kind of tourism. Right here, we’ve been moving slowly but steadily. This is our third year here. The first one was somewhat complicated; the second brought better winds, and the third year is finally bearing fruits. The general manager of this facility told me the other day that the Solymar Hotel has been ranked twelfth in the country in terms of revenues in recent months. We’ll keep moving on in Cuba in a piecemeal fashion, as we’ve done in other countries. We must prove that we’re here to stay. Going in is not as hard as keeping up the good work.

This is the third year and we’ve just opened a new hotel, and that’s a hard thing to do, especially when that hotel is in Cayo Largo and you want it to have good occupancy rates. I’m talking about a Gran Caribe hotel like the one that was opened after Cuba was pounded hard by a hurricane.

Another hotel will open in Punta Hicacos. This is going to be an oceanfront resort next to a marina. I believe that hotel is definitely going to give us a good name in Cuba and then we could embark on a more aggressive kind of strategy. For example, we didn’t have a stand in the latest Tourism Convention. You bet we’ll have one next year.

Q- In the case of the Caribbean, have you ever thought of Aruba?

A- Yes, we have. We’ve seen hotels there, but we’ve cut no deals. The one place we do have some still unsigned projects with is Jamaica. That’s an interesting country, in our view. There’s a new government there that’s opening up more opportunities and is more willing to take in investment and let foreign companies set up shop there.