Improved: Second Quarter Tourism Statistics
Bermuda’s tourism numbers have improved, with total arrivals for the second of quarter of 2010 increased by 24.46% with 252,734 visitors flying, cruising and sailing to the island during this period, up from 203,067 during the same period in 2009. Air visitation to the island increased 3% in the second quarter, air arrivals from Canada increased by 42%, visitation from Europe was also positive with an increase of 18%, with the United States remaining relatively contestant with an increase of 1%. Record cruise visitation was achieved during the second quarter as the 171,295 cruise passengers to the island represented the largest second quarter total ever. Cruise arrivals during this time soared over 37% during this quarter, an increase from the 124,553 cruise arrivals in 2009.
Below is the full 13-page report, click “full screen’ for greater clarity:
Below follows the full statement from Premier and Minister of Tourism Dr Ewart Brown:
Good afternoon and welcome:
Thank you for joining me today. I’m sure you’ll agree that it’s been a very long, very hot, and very busy summer.
All sectors of our industry have been operating at full capacity, and I think it is safe to say that the season has gotten off to a wonderful start.
That said, I am particularly excited because despite the challenges being experienced in the global tourism environment we have some very good news to share.
Ladies and gentlemen, there have been many positive indicators that our overall tourism strategy continues to gain traction in these tough economic times. In fact there were some very tangible signs of improvement as we headed into the 2010 summer period.
Please pay strict attention to this information because by the time you see it in print it could have a negative slant.
Air, cruise and yacht visitation to Bermuda in the second quarter all showed increases year over year.
Total visitor arrivals for April, May and June 2010, increased by a dramatic 24.46% with 252,734 visitors flying, cruising and sailing to the island during this period, up from 203,067 during the same period in 2009.
Air arrivals to the Island increased 3% in the second quarter, with 77,512 visitors flying to the Island in April, May and June – up from 74,985 in 2009.
The positive affects of additional airlift out of the Canadian market have seen air arrivals from this region increase by an astounding 42%, an increase of 3,060 Canadian visitors to Bermuda.
Numbers out of Europe were positive as well, with an 18% increase in European visitors.
More good news – air visitors stayed longer on the Island this quarter compared to 2009 with 5.82 nights compared to 5.74 nights.
Average stay in commercial properties also increased in this quarter to 4.72 nights up from 4.66 nights.
Visitation in commercial properties also increased by almost 7% in the second quarter of 2010 with 57,707 visitors choosing to stay in paid accommodations during this period.
Hotel occupancy figures from the Bermuda Hotel Association also indicate that hotel occupancy for the quarter has increased by 11 percentage points averaging 69%, compared with 58% in the second quarter of 2009.
April’s occupancy percentage in BHA member hotels was 54% compared to 48% in 2009; May was 74% compared to 56% in 2009; and June saw a double digit increase with 79% compared to 69% in 2009.
Contrary to recent reports that occupancy levels of hotels were lagging 2008′s performance, the complete picture is very different and far more optimistic.
June’s occupancy of almost 88%, in major hotels, is the highest recorded occupancy percentage in the hotel industry in this category, in any given month, going back to the bumper year of 2007.
The reduction of rooms, approximately 235 rooms or 8 % in the past 12 months, clearly made business better for the existing hotels.
Yet this, along with lower average rates, continues to be a source of concern as the declining economies of scale provides the challenge of not enough rooms in key demand periods.
That said we welcome the start of the 9 Beaches project next month that will see us regaining at least 70 rooms by May 2011.
Additionally, I am advised that there will be even more good news on the hotel development front in the coming days.
The current partnership and communication between the Department of Tourism and the Bermuda Hotel Association has progressed positively in recent months to one that will serve the industry very well in the years to come.
You’ll of course recall their recent announcement of the launch of the Tourism Mega Fund. I am particularly pleased that the BHA has embraced the concept of financial participation in the marketing of Bermuda tourism.
I would like to thank all of our BHA partners for their commitment in making this possible.
It will mean improved business for the hotel industry and will benefit the people of Bermuda as well.
Turning to cruise arrivals Bermuda saw record cruise visitation during the second quarter.
171,295 passengers sailed to the Island which represents the largest second quarter total ever.
Cruise arrivals soared over 37% during this quarter, an increase from the 124,553 cruise arrivals in 2009.
Turning to yachts, visitation increased by 11% in quarter two, stimulated by the Newport to Bermuda Yacht Race which brought a total of 1,588 yachtsmen to the Island for the race alone in June.
Total yacht arrivals for the quarter saw 3,927 yachtsmen arrive on our shores, an increase from the 3,529 yachtsmen that sailed to the island in 2009.
Ladies and gentlemen, the second quarter arrival statistics weren’t the only positives. There were several other highlights worthy of mention.
* Team Tourism carried out a very successful Road Show in the UK, with hoteliers and partners, and we continue to focus on the UK as an important target market.
* The arrival of the Veendam for 24 cruises in 2010 heralded the first dedicated ship in Hamilton Harbour in three years and is just one of the reasons for the magnificent cruise season that we are having. Holland America has already announced its return for 2011.
* And today, the Ministry of Tourism and Transport is pleased to announce that Holland America Line’s Veendam will return to Bermuda in 2012. The premium cruise liner is scheduled to make 25 calls from New York, serving St. George’s and Hamilton.
Holland America Line offers a premium cruise product and their presence here has contributed to improving the ambiance and the economy of both St. George’s and Hamilton.
Although she is too large to navigate Town Cut, the tender operation has proven to be successful in providing Veendam’s guests with a St. George’s experience.
The Veendam has a capacity of approximately 1,400 guests, and is projected to bring 34,000 visitors to Bermuda in 2012, making a financial contribution of up to $7.5 million to Bermuda’s economy.
* Also, this quarter we were successful in attracting Celebrity Cruises to return to Bermuda for the 2011 season. Celebrity Cruises was a major part of our cruise product in the early 1990’s and we are pleased to have successfully negotiated their return.
* Westjet arrived on May 3 with its inaugural flight. We predicted then that this would be a game changer in our ability to grow the Canadian market. So far we’ve been correct and we are committed to the long term viability of two carriers from this market.
* We announced the appointment of Karla Lacey as the new Director of the Bermuda Hospitality Institute (BHI). The BHI launched its Summer Hospitality Programme and 28 young people between 16 and 19 years-old participated. Three young people were hired to work beyond the programme, including 16-year-old Brooke Caisey who is now working the front desk at Newstead Belmont Hills.
* Team Tourism, along with our Bermuda Hotel Association partners, launched a comprehensive Endless Summer destination promotion, aimed at increasing arrivals for August, September and October. Early indications are that this promotion is doing very well in the market.
Looking forward to the third quarter of 2010, we have an array of exciting events planned as we continue to stimulate air arrivals.
Of particular notes are the Bermuda Tango Festival next month, the 2010 Bermuda Music Festival from Sept. 30 – Oct. 2; the Perfect 10 wedding promotion from Oct. 8 – 13; the PGA Grand Slam of Golf Oct. 18 – 20 and the Bermuda Goodwill Golf tournament in December.
The Bermuda Tango Festival taking place next week, and the Perfect Ten Promotion, set to take place on October 10, 2010, call for special mention.
The first ever Argentine Tango Festival will take place at the Fairmont Hamilton Princess September 2-5. SalsaMania Productions, with generous support from the BDOT will welcome five Master Argentine Tango Instructors for a weekend of intense dance performances.
Bermuda’s Argentine Tango Festival will feature 12 multilevel workshops for beginning to advanced dancers, a professional showcase, and the opportunity for social dancing each evening.
The Argentine tango has grown in popularity over the years and the five Master instructors are all anxiously excited about visiting Bermuda and sharing their wealth of expertise with us. And we are very pleased to be a part of this multicultural joint venture.
Meanwhile, the Perfect Ten Promotion was launched in April, in partnership with knot.com.
The concept – giving 10 brides and grooms the opportunity to win a free wedding in Bermuda on October 10, 2010. This competition has delivered significant results with over 800 couples entering the contest.
The 30 finalists, 3 couples for each wedding, drew nearly 10,000 votes between them. Via the different pages on the website Bermuda received 3.8 million impressions.
The awareness generated is immeasurable. As we progress with the competition, stories are being created around each of the couples who come from all over the Northeast US.
In fact over 2,000 future brides have expressed an interest in Bermuda as a possible location for their wedding. Needless to say, we are in active communication with them.
One exciting development related to this promotion is the commitment of Jet Blue who agreed to support the initiative with a free charter to bring down the couples and eight of their guests.
Canada will also be the focus of attention in September to capitalize on the markets traditional winter booking period. Director of Tourism Billy Griffith recently returned from Toronto, having hosted a media luncheon for 30 influential newspapers, trade press and magazines.
There will be a joint tourism / hotelier Road Show in Toronto, Ottawa and Montreal starting on the week of September 13.
The following week will see Bermuda hosting the top 75 selling travel agents from the Canadian market. This will coincide with a similar travel agent group visiting from the United States.
And while not necessarily a third quarter initiative, I believe it is important to share that the arrival of an Indian delegation of influential business professionals in May was the direct result my visit to India earlier this year.
One of the major undertakings will be the filming of the Bollywood movie Veera in Bermuda. This is a huge production and we cannot help but be excited about all of the benefits that this kind of exposure will mean for the Island.
However it’s more than just exposure, this partnership includes educational and business opportunities and we are thrilled to be making the connection with our friends in India.
Ladies and gentlemen, I’d like to take a moment to share a few Transport success stories.
We continue to raise the bar with our technological improvements at the Transport Control Department.
In the coming months, we are about to embark on the installation of new kiosks at TCD. This quarter we laid the groundwork in preparation for the new units.
Once installed, customers will have an additional option to license their private vehicles should they choose to not license them on-line.
This should further reduce the customer’s waiting time which incidentally is at an all time low.
Over at the Department of Public Transport, we opened the newly created Stores Section.
This multi functional structure will house temperature sensitive chemicals and machinery, provide expanded work space for employees to conduct maintenance and service work, and additional space to train our mechanics.
Simply put, the new building will truly aid in ensuring that operations at the DPT, run smoothly, efficiently and most important cost effectively.
And finally, turning to Civil Aviation, last May, the Ministry of Tourism and Transport took leadership in protecting Bermuda’s Aircraft Registry, swiftly responding to unfounded concerns raised by the UK Government in relation to the soundness of the Registry and announced a series of measures to ensure that Bermuda’s reputation as well as the jobs and millions of dollars the Registry brings into our economy was protected.
To reinforce the significance of the Aircraft Registry, I led a Ministry delegation to Russia to meet with Russian Airlines, Aviation officials and regulators to reassure our industry partners that the Bermuda Department of Civil Aviation would continue to provide outstanding service and that the Registry is effectively managed and in compliance with the highest levels of international standards.
Today I am pleased to report that implementation of the Department of Civil Aviation’s Business Plan has commenced and two senior positions for Head of Airworthiness and Flight Operations will be advertised starting this Friday, August 27th.
Three proposals were received in response to the Department’s Request for Proposal for the running the London DCA Satellite Office and the process of establishing that office will now move forward.
The Department is confident that the satellite office will be staffed and open for business by November 2010.
Ladies and gentlemen, as we enter my final months as Minister of Tourism and Transport, I remain committed to improving both visitor arrivals and our tourism product.
We at the Ministry will not ease up on our efforts to champion this critical pillar of our economy and look forward to reporting the positive results of our hard work at our 3rd Quarter report in October.
Thank you.
