BTA, PLP On Bonus Payments/Marketing Budget

August 19, 2015

The BTA released financial data which they said refuted an assertion in a PLP statement saying the data “proves the Parliamentarian’s suggestion is incorrect,” while the PLP said they stand by the statement and said it is “shocking that the organisation which produced the lowest air arrivals in 48 years would defend bonus payments on top of salaries that exceed the highest salaries in the civil service.”

This follows after the release of BTA staff salary information, which said that the “total incentives for 2014 were $412K,” with the highest bonus payment, of $88,000, going to BTA CEO Bill Hanbury.

The BTA said, “The Bermuda Tourism Authority [BTA] released financial data refuting an assertion in an Opposition Parliamentarian’s press statement. According to the statement, it was suggested the BTA is/was spending more on compensation than promoting the destination.

“The data below proves the Parliamentarian’s suggestion is incorrect. At no time in the BTA’s history or in its 2015 budget will compensation outspend the allocation for marketing Bermuda.

Chart provided by the BTA:

budget chart August 19 2015

“The BTA’s percentage of budget allocated to compensation – less than 20% — is well within business best practices which dictate compensation should not exceed 33% of total budget,” said COO Karla Lacey who has oversight of BTA’s HR and finance practices.

“In Government, for example, salaries and benefits typically make up 50% of the budget, or about one-half. For the BTA, the compensation portion, including performance incentives and benefits, is less than one-fifth.”

The BTA added, “Meantime, on the Opposition’s call for the Tourism Authority’s strategic plan the BTA would like to remind the public of its Tourism Summit this past January where its strategic plan was shared widely.

“Members of the Opposition, the Government and hundreds of industry stakeholders attended the summit. The next Tourism Summit, detailing the strategic plan for 2016, will be held this November.

“Additionally, the sales and marketing division today shared a progress report [PDF here] on its 2015 strategies with local media. Tomorrow, the product and experiences division will share a similar local media update.”

In response, Shadow Tourism Minister Zane DeSilva said the PLP “stands by its statement” as the BTA’s 2014 Annual Report “states that the BTA only spent $4,041,664 on media in 2014, whereas they spent $4,522,333 on staff costs.”

Chart extracted from the BTA’s Annual Report:

expenses by object august 19 2015

Mr DeSilva said, “The Bermuda Tourism Authority’s 2014 Annual Report states that the BTA only spent $4,041,664 on media in 2014, whereas they spent $4,522,333 on staff costs during the same period.

“The PLP stands by its statement yesterday which asked, ‘Why is the BTA paying more for staff costs & bonuses than they spend annually on advertising Bermuda overseas?”

“The PLP reiterates its position that the OBA should invest the $11 million of additional revenue to be gained this year from new tourism taxes into tourism advertising so that Bermuda can be competitive with other jurisdictions.

“Furthermore, it is shocking that the organisation which produced the lowest air arrivals in 48 years would defend bonus payments on top of salaries that exceed the highest salaries in the civil service.

“While many Bermudians are struggling with unemployment, reduced hours, increased costs, and increased taxes, staff at the BTA are collecting 5 figure bonuses while producing record low numbers.”

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Comments (34)

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  1. Unbelievable says:

    Hey! Someone needs to get a grip of the PLP cuz all they do is distort the information they are given. Every week someone has to come out and correct the nonsense they are saying.

    • Maddog says:

      Mr Hanbiry said he has to pay taxes….Well Hanbury…Bermudians have to pay rent plus taxes.. Your housing allowance is $75000.00 a year which is about $6000.00 a month…plus $88,000 in bonuses… and you have failed to bring people to our shores…SHAWN CROCKWELL SHOULD BE A SHAME OF HIS SELF..HE GO RID OF ALL THOSE BERMUDIANS FOR THIS..WHAT A SHAME!!!! THEN HE TELL BERMUDIANS STOP COMPLAINING..WELL THIS SHOULD HAPPEN IN THE USA HANBURY…YOU WOULD BE FIRED!!!! AND YOU KNOW IT…

      • Unbelievable says:

        Crockwell hasn’t told anyone to stop complaining and the BTA is majority Bermudian employed. What are you even talking about?

        • Maddog says:

          We live in Bermuda fool… This is what the PLP is trying to tell you..Bermuda SHOULD be hired frist in there own country !!!
          HANBURY HAS NOT DONE US ANY FAVORS..HE IS THE ONE THATS GETTING ALL THE FAVORS $5000.00
          A year…go figure!!!!

          • Ping Pong says:

            Think you need to get a better hold of the English language, or possibly proof read your comments before hitting send. Doubt you would work for $5000.00 per year. Secondly please enlighten myself on a any possible or qualified BERMUDIANS that could do Mr. Hanbury’s job description.

      • hmmm says:

        I think he is probably referring to overseas taxes. Bermudians don’t have to pay them.

    • Russ says:

      The issue is not the rule as it exists … the issue is that the rule needs to be repealed.

      Salary with no bonuses should be the rule. Unless of course the staff would prefer to be paid purely commission based on results – the optimal approach.

  2. Perspective says:

    So we are all okay with stifling progress on all fronts for the sake of political points? How about we begin by cutting salaries at the House of Assembly?

    Also, I’m glad Karla threw in Government’s proportion of salaries to budget. The BTA have undoubtedly made good progress in the last 18 months, and I doubt any other agency would have done better in that time.

    • Bill says:

      You cannot be serious…..what progress…sponsoring a fish sandwich competition.Please!

      The have done zilch, but paid themselves a bonus.Probably because they came up with the fish sandwich idea.

  3. watching says:

    Technically the PLP’s statement was correct. 1- PLP, 0 – BTA.

  4. SHM says:

    Hey Zane, where’s our $20Million on Port Royal? Hey Wayne, where’s our $18Million that we collateralized with a parking lot. THAT’S WHAT WE WANT TO HEAR ABOUT not the rest of your hourly dribble

    • Progressive says:

      I agree with everything you’re saying. But if your only reaction to every article about PLP criticisms goes back to these same points, you’re not really offering to the debate, and you’re probably hurting the OBA more at this point than you’re helping them.

      React the the points themselves, don’t keep pulling out the dirty laundry every time.

      • Unbelievable says:

        Well this is about honesty and transparency and since the OBA is getting criticised (and rightly so) by an organisation who has not been honest and transparent with even their own supporters, then I think it’s ok.

  5. Just a matter of time says:

    The total actual Sales and Marketing figures do not agree above. Is the $9.7 million 12 months ending or 9 months ending? If we are making salary comparisons to this object code it would be helpful to know what the direct and indirect associated salary costs are (excluding bonuses) for an apples to apples comparison. That would be useful. That way we the public can determine value for money in that context.

  6. somuchless says:

    The police need to get involved in this immediately and lock up each and every one of them. BtaGate

  7. Christopher says:

    A fair day’s work etc. says:

    I am not in a position to determine whether or not the compensation is excessive, but I take exception to the televised assertion that the public does not understand. It is not a bonus which is a reward for . good work. The COO calls the money a performance incentive. I guess the salary is for showing up at the office .

  8. SHM says:

    So within the last 5 days the PLP have come out with
    -Marc Bean accuses the OBA of lying over incident at polling station
    -A press conference against the development for St. George’s
    -A press conference to get an inquiry on MPs (based on someone who seems to has had $18M’ go ‘missing’ statement )
    -An article saying the Premier is not in touch with Bermudians
    -A press conference about BTA’s remuneration
    -A press conference about visitor arrivals
    -An upcoming town hall meeting on the airport
    Why all this mania all of a sudden. “Please GOD, let some of this stick so we can divert everyone’s attention”

    • Lala says:

      the PLP motto: The amount of energy necessary to refute BS is an order of magnitude bigger than required to produce it

  9. SHM says:

    So within the last 5 days the PLP have come out with
    -Marc Bean accuses the OBA of lying over incident at polling station
    -A press conference against the development for St. George’s
    -A press conference to get an inquiry on MPs (based on someone who seems to have stolen $18M’s statement )
    -An article saying the Premier is not in touch with Bermudians
    -A press conference about BTA’s remuneration
    -A press conference about visitor arrivals
    -An upcoming town hall meeting on the airport
    Why all this mania all of a sudden. “Please GOD, let some of this stick so we can divert everyone’s attention”

    • Maddog says:

      The Dunkley administration is out of touch with the people of Bermuda and losing ground.. They are running scared especially DUNKLEY!!!!

      • Anbu says:

        Lmfao u think dunkley is scared?! Where the hell u been bie?! Dunkley is scared of nothing. Pee el pee can have the gov back tomorrow and hed still be sitting pretty. Get a life

    • TRUTH says:

      @ SHM Thanks for an Opposition that is Active, and holding the government Accountable. They are not receiving Taxpayers money for doing nothing. An Opposition must and should hold the Government to their feet. I would not have it any other way….I glad to see a long list of things they are working on. Well done Opposition.

  10. Jeremy Deacon says:

    Think I know who i believe ….

  11. Just a matter of time says:

    @SMH. And in that same 5 days we have heard about red underwear, frivolous lawsuits, listening to an overly defensive photo op Premier hardly addressing people matters, defending questionable non performance BTA bonuses and more deflections, ducking and weaving. Overall the PLP and other people power have been quite assertive, effective and relentless as it should be. Were this not the case and the PLP was as passive as you would like them to be we would have:

    Children of expat workers being able to work taking jobs from Bdians and Immigration changes kept in tact and unnoticed.
    No Jetgate and the public would not have been made aware of all the ugly revelations that came out of it.
    Cannonier would stil be Premier.
    No pullback of Public Service Reform for privatization and mutualization et el
    Continued furlough days due to expire at the 11th hour (with still no accounting of the ‘savings’)
    Limited to no exposure on the no bid CCC contract and airport dealings (still do)
    Limited to no exposure on the AC35 (still do)
    Limited exposure to St. Georges hotel
    Reduced mammography exams
    No pressure to hold the OBA accountable for its broken promises of creating jobs
    BTA bonuses being paid and pocketed unnoticed
    No accountability to investigate any alleged corruption.
    Unnoticed broken campaign promises
    Etc etc. and on and on..

    Keep up the good work PLP and grass roots organizations. Nip it in the bud. It’s called democracy in action and I’m loving it.

  12. somuchless says:

    Karla and Bill are only there for the money. FACT

    • somuchless says:

      And everything else that they can get for free.

  13. um um says:

    do people even still support the plp at this point….. just seems like a lost cause, a wining little brother sitting in the corner crying bc its your turn to play on the playstation…. pitiful

    • hmmm says:

      ….and after their turn, as you picked up the controller for your turn.

  14. Just a matter of time says:

    @um um. Never underestimate the power of the people. There are more PLP supporters than you believe. The frustration with the OBA grows day by day. I personally know of past OBA voters who are now questioning.

  15. Eve says:

    What business school didn’t Karla go to…start up companies should have staff cost within 5%-10% of the budget. Recent hires will bring staff costs over 20%.

  16. Coffee says:

    Friends and family plan in action ! However we can’t say that about the OBA can we ? We might end up in court !

  17. clearasmud says:

    Very weak and disappointing efforts at justification.