Tourism Authority’s Contracts Over $50,000
Pursuant to the requirements of the Public Access to Information Act 2010, the Bermuda Tourism Authority has released information about contracts with a total value of $50,000,
Some of those listed include $100,000 for BHW Limited, $300,000 for Destination Think! for social media management/promoted social content, $160,000 for a multi-year sponsorship for Flora Duffy, $2,745,000 for JetBlue Cooperative Marketing, $411,00 for Lagardere Sports Host broadcast service for media services for the ITU World Triathlon, and $1,201,200 for Miles Partnership Website Hosting and Digital Marketing.
The BTA list of contracts follow below [PDF here]:
The listing provides interesting information.
Jet Blue receiving in excess of $2m?
We also see the reality of promoting Bermuda. There are significant grants given to several organizations to bring teams and events to Bermuda.
Our 3 year deal with JetBlue is a commitment to co-marketing with them, not a payment to them. When JetBlue committed to additional service to Bermuda out of Boston and NYC, we agreed to spend $900K a year promoting Bermuda and JetBlue together. Last year’s “Bermuda Calling” marketing campaign with JetBlue Vacations is an example of how the money is being spent.
Kevin, how many answered the call and came to Bermuda?? Hope BTA staff get special fates from JetBlue and are mandated to fly JetBlue!
1. What formula did you use to come up with that $900k per year?
2. What is the tourist headcount that you expect the $900k per year to generate?
3. How much in tax revenue do you expect the tourists to generate per year? (show a REALISTIC formula please) Not alleged spending, tax revenue.
Thank you.
Ok – how much business did we get from that marketing spend? If you don’t know or are not tracking it then we are just throwing money away! We could have put on a few free flights with the requirement that the traveler stay in a qualifying hotel for 5 or mor days
Why don’t we do that? Would get people here and make them stay and spend money! I am no expert but we have to think about spending our money with real results
I think the math speaks for itself;
- The JetBlue service expansion (Boston year round, 2nd seasonal service from NYC, larger planes on both routes) added ~70,000 seats of capacity
- Let’s assume for a moment that the flights are flying 50% full and that 50% of those folks are visitors (it’s actually higher, but it makes the math easier)
- That’s 17,500 incremental visitors annually, each of whom is worth $1,500 in on island spend (using 2017 numbers).
- In total, that’s an impact of >$26M for Bermuda’s tourism economy
- And that’s before you factor in any benefit from cheaper fares from increased competition.
Kevin in all respect Jet Blue is the worst airline service that comes to Bermuda. Ask anyone employed at the airport. Every business govt and private is paying the price. Specially with the late flight that arrives later than it’s normal 10:30pm every night. If you have not tried persuade another airline out of the UK or Atl. The cost is pure horse reddish crap. Also please stop with the Bob fuzzy math the people that come on jet blue are not contributing that figure per person to the Bermuda piggy bank. The average tourist only visits for 3 nights. Flys in Thursday departs Sunday.
JetBlue was the 2nd highest rated airline in the US in the 2017 JD Power Customer Satisfaction rankings (behind Alaska Airlines) – however I agree there have been serious operational challenges with their evening Bermuda flight. They’re aware of it and working on it.
The high fares out of Atlanta and London proves the point about competition and fares. We would love to see another carrier on both routes.
In 2017 the average leisure visitor stayed just shy of 5 days, and while Thursday is peak arrivals day (1,300 visitors / day on average in season, visitor arrivals are more distributed than you seem to think; 1,000 on Wednesdays, 840 on Tuesdays, 970 on Mondays, 940 on a Sunday and 1,200 on a Saturday and Friday).
That is some really fuzzy math with a lot of assumptions. There is no guarantee that 17,500 additional tourists will come annually.
Air Visitor 2017
Vacation & Leisure spending is estimated at $1,491.54.
Visiting Friends & Relatives spending is estimated at $873.30.
You assumed all 17,000 incremental visitors will spend $1,500, which assumes every visitor will fall under Vacation & Leisure spending with zero Visiting Friends & Relatives.
The average spend between the two is $1,392.56, x 17,000 = $23,673,603.35.
Your math of >$26 million is off by over $2.5 million.
Typo, $24,369,885.80, for 17,500 (not 17,000) using a blended rate.
Hilarious!!! Keven did admit that he rounded the numbers.. Yet some idiot picks them apart.. by less than 10%..
“Some idiot?” Do tell me EXACTLY what number >$26 million is?
Tell me one so well versed in math, how do you round up $873.30 to $1,500.00? Please, do elaborate on why YOU agree that $873.30 is rounded to $1,500.00.
$1,491.54 to $1,500, no argument there.
The point was the baseline assumption that he made was incorrect because he only used the biggest number and ignored the lower number. Or to be blunt, puffery. If I saw if, why did you miss it?
In the future, check your fingers before they touch the keyboard.
It was 17,500 incremental, not 17,000. Funny how you managed to round that down without any problem.
You also ignored that the 50% ridership / 50% visitor ratio numbers are both low, conservative estimtes. But you ignore that as well, because it diesn’t fit your miserable whining narrative.
You’re nothing but a troll.
Name calling, what a surprise!
No, I did not “round” 17,000. I made a typo, corrected it, and recalculated. The number is posted, learn to read.
I used Kevin’s 17,500 number and gave him the benefit of the doubt that it was even close. It is a projection based upon his numbers, not mine, but I let that ride.
You must work for BTA, or know Kevin, or are you just a rude person? At least 2 of 3?
Why can’t you respond professionally and just answer my questions?
My bad, you know that I am right.
You’re just a troll. You asked a question and it was answered. You obviously don’t really want an answer.
The Daily Totals Travel Report that my associate receives every day by email indicates an entire different figure. My darling let’s not deceive the public.
Just a thought…Why don’t you move your office to NJ or a suburb (Queens/Brooklyn) etc. Your rent will be cut in half and you will still be within 15 minutes of the city.
The BTA’s current NYC office is a lease inherited from the Government of Bermuda for space that the Department of Tourism had occupied since the 1980s. The lease expires in November 2019, and we’ll evaluate all options in search of a better deal on fit for purpose space then.
If only our government can explain their decisions as well as you. FYI Durst is hurting for tenants in one world, you can get a good deal
Is BTA still maintaining an office in Oakville, Ontario?? If so what purpose does it serve?
$2,745,000 for Jet Blue.
In other words if we don’t pay, they dont fly here.
Nothing more than Ransome that was arranged by Ewart Brown.
Actually the new deal was organized by the past government OBA. Give him some slack on this. He gets a free pass.
Jet Blue original deal was arranged by Ewart Brown and his wife and and Michael Douglas in Grotto Bay Resort.
$160,000 for Flora Duffy????
Details please.
$10,000,000 for cricket and football?!!!! Details Please.
Flora Duffy has put Bermuda has bought more attention to Bermuda than both football and cricket combined!!!!
Read. 18 July 2017. Ask the ubp/OBA.
Are Flora Duffy’s triumohs not being recognised to the fullest? Surely a world number one is something we sponsor and back to the fullest? Like boxing?
I agree, many hidden details in these documents lol!! Wish they could invest more in the Nicky Bascome and other spectacular bda athletes
just a thought
There’s no mystery about this one either – it was previously covered by RG.
It’s also a fairly obvious business driven decision; Bermuda will host a triathlon in 2018, 2019 and 2020. We want to attract a niche audience (triathletes) to that event. We have a Bermudian influencer (the world champion in the sport), who can help us do that, so we’ve signed an agreement with her to help promote Bermuda and the event over that time period
She is one of two Bermudian athletes sponsored by the BTA; the other is Mustafa for the Volvo Ocean Race – again because there are business opportunities for Bermuda in the sailing world.
How can BTA justify the $2,745,000 deal with JetBlue?????
You dare doubt the experts?
But for some reason we are supposed to rely on criticism from keyboard warriors.
You’re probably awaiting then return of the faith based tourism scandal as a panacea for our tourism industry.
The same way they justify the huge 6 figure paychecks the top 10 brass in the BTA receive lolololololol Does anyone have that list, I recall it being posted on bernews.com
Wow…$78,000 for one year ALHI membership! It is very difficult to see what value BTA got from this membership!!!
It all still represents better value that the 400K given to Andre Curtis. Oh, did I say that out loud, I meant his failed “Faith Based Tourism” initiative.