Minister Campbell Provides Update On Tourism
Minister of Tourism and the Cabinet Office Vance Campbell provided an update on tourism in the House of Assembly on Friday [March 3] saying that ”while Bermuda has not yet returned to 2019 visitor volumes, moderate increases were seen in 2022 and year-end statistics underscore that more work remains to be done before reaching the baseline numbers of 2019.”
The Minister’s full statement follows below:
Mr. Speaker, this morning I rise to share with my honourable colleagues the incremental gains achieved, and the challenges faced, in tourism over the past year. The Bermuda Tourism Authority has worked with the Bermuda Government and the stakeholder community to implement the strategic recovery plan developed to restore the island’s vital economic pillar. While International Business is an essential generator of foreign direct investment for the economy, the tourism sector is the largest employer in Bermuda, and its success has a tremendous impact on a broad cross-section of this Country.
Mr. Speaker, the people of Bermuda are aware of the pandemic’s lingering impact on the community and economy, and like many places around the world, this government has worked hard to safely return our industry to a sense of normalcy. The Government was committed to protecting Bermuda’s residents and visitors from the devastating effects of Covid-19 on the healthcare system and the economy.
Mr. Speaker, while visitor surveys hailed us as one of the safest vacation destinations in our target markets in 2021; by early 2022, COVID-fatigue hit vacation-deprived travellers, and they sought to catch up on vacation-time in earnest. Through content partnerships and public relations campaigns, we engaged journalists from various media platforms to remind consumers that Bermuda was open for business.
Mr. Speaker, while Bermuda has not yet returned to 2019 visitor volumes, moderate increases were seen in 2022 and year-end statistics underscore that more work remains to be done before reaching the baseline numbers of 2019.
Mr. Speaker, in 2022, total visitor arrivals including Air, Cruise & Yacht visitors, recovered to 68% of 2019. Specifically, air arrivals at 54% of 2019, cruise arrivals at 75% of 2019 and yacht arrivals at 143% of 2019. There continues to be areas of success and the sales and marketing teams remain focused on finding creative ways to strategically position Bermuda as a premier tourist destination for all travellers. They are committed to telling our story and securing new business in key markets and this has led to leisure air arrivals recovering to 52% of 2019 levels.
The highest numbers of visitor arrivals have been sourced from the US markets which, nonetheless, still have a way to go to reach our pre-pandemic levels.
Mr. Speaker, Bermuda is reliant on air service to connect us with our target markets and the BTA team has worked with our airline stakeholder partners to help restore the island’s air capacity for visitors, business travellers and residents. The volume of seats available for travellers to reach Bermuda is referred to as ‘Air Capacity’, and last year we saw it grow to 61% of 2019 levels. We expect continued growth in air capacity for 2023. Meanwhile, hotel inventory recovered to approximately 73% of 2019 levels.
Mr. Speaker, the average visitor spend per air visitor rose to $1,852 per person, up 24.8% from 2019. Total Air visitor spending reached $270.1M in 2022 [68% of 2019]. Similarly, we saw growth in the average spend per cruise visitor, which rose to $255 per person, up 13% from 2019. Total Cruise visitor spending reached $102.7M in 2022 [91% of 2019]. While the length of staf of air visitors was higher in 2022 compared to 2019, the average spend per day also increased from $277 to $310. The vacation rentals sector, where ther are currently 324 licenced vacation rental units, continued to perform well, with results exceeding the 2019 occupancy levels by 10 percentage points.
Mr. Speaker, as the island’s destination marketing organisation, the BTA, is committed to driving short, medium, and long-term growth through targeted marketing and comprehensive sales strategies in key cities.
The team collaborated with our international partners to deliver a fresh and exciting marketing campaign, Lost Yet Found, which launched in September 2022. The campaign that celebrates the authentic Bermuda and features local talent in front of, and behind, the camera, has earned numerous international accolades and has played a key role in driving visitation with enticing coverage across hundreds of premier media platforms.
Mr. Speaker, I am excited about the approach that the Bermuda Tourism Authority has employed to raise awareness and track conversion in our key markets. State-of-the-art tracking tools continue to be used to identify how digital advertising directly translates into travel to Bermuda. This means the BTA can monitor the performance of its campaigns and adjust in real time to garner the highest return on investment [ROI].
Additionally, the Lost Yet Found activations and outdoor advertising campaigns connect directly with potential visitors in our focus markets in unexpected ways. A ground-breaking 3-D billboard captured the attention of millions of people travelling through Times Square and, with the goal of driving year-round travel, showcased Bermuda’s most exciting Spring season experiences. The Bermuda Tourism Authority also made a splash in New York, Boston, Miami, and other key cities with immersive consumer experiences highlighting Bermuda’s beauty, unexpected experiences, and locals with in-person support from Bermuda’s artists, culinary stars, and local mixologists.
Mr. Speaker, some have expressed concern as to why we would advertise in markets without direct service in 2022, such as Boston. The reality is that we need to seed long-term demand in those markets, readying those travelers for the return of service and creating a reason for our airline partners to resume and maintain service to Bermuda.
The advertising strategy was built in concert with aggressive public relations initiatives, and content partnerships. Tactical outreach on both sides of the Atlantic generated invaluable media mentions, feature stories and social media engagement. These initiatives earned Bermuda $10.2 M worth of media coverage [the value of the coverage if it had been purchased as advertising] in the US alone, with additional PR exposure and social engagement in our Canada and United Kingdom markets.
Mr. Speaker, the Sales division is a critical engine for tourism growth. Sports Tourism continued to be a strong performer for Bermuda’s tourism recovery in 2022, which aligns with the targets identified in the National Tourism Plan. In 2022, we welcomed for the first time the USATF Bermuda Games, our first foray into the upper echelons of professional track and field. We welcomed 217 international visitors comprising professional athletes and their guests, along with agents and media representatives. The event itself generated approximately $427K in direct spending on the Island. Media platforms produced over 300 stories with a combined audience of 639 million, valued at $1.2 million in advertising placement equivalents. Bermuda sold event organisers on establishing our island as the first non-US meeting venue for the tour – a major achievement for Bermuda.
In 2022 Butterfield Bermuda Championship returned to Bermuda’s world-renowned- public golf course at Port Royal. A staple in the tourism event calendar, with no covid restrictions in place, the 2022 PGA event saw a return to normalcy. This event worked well in the island’s favour, with significant media value and economic impact for the island and reports of on-island properties reporting sold-out nights during the period of the event. An official report is being compiled and will be released to the public to identify the value of the multi-year investment, as the BTA has done each year for this prestigious event.
The World Triathlon Series was postponed in 2021 due to a local COVID surge. We were therefore, thrilled to welcome the world-class triathlon event back to Bermuda in 2022. Of course, Bermuda’s very own Dame Flora Duffy was a major draw for the event, which welcomed top-tier athletes from around the world. The streets were lined with throngs of visitors and locals who were jubilantly cheering for the competitors in this high adrenaline experience. The triathlon event again served as a platform to showcase our island to the world, with major international coverage amplifying the efforts of the BTA and the local organising committee.
Mr. Speaker, the number of Bermuda-bound yachts exceeded figures from the past few years. The restoration of this segment can be partially attributed to the welcome return of sailing competitions, including the long-standing Newport to-Bermuda race. The island should hail the growth of the island’s superyacht category in 2022, which increased superyacht calls by 84% and injected a much-needed boost to the economy driving past 2021 performance by 147% with $3.4 million dollars in economic impact for Bermuda. We predict continued growth in this segment for 2023 as our teams have enlisted international and local partnerships to lure the jet setting crowd for superyacht travel to Bermuda.
Bermuda’s maritime heritage was on display for the SailGP event in the Spring supported by on-island experiences such as the SailGP Street Festival that enhanced the on-island experience for the pinnacle event. According to the PwC report on its impact, SailGP earned Bermuda $11.4 million dollars in global media coverage, or Advertising Equivalent Value, which is what the cost would have been had we purchased it.. We look forward to its return in 2024.
Bermuda welcomed the Clipper Round the World Race sailors to its shores as the host port. This event attracted incredible media coverage of the GoToBermuda.com crew which earned a top spot in the competition on the Bermuda-bound leg of the race. More than just a marketing opportunity, the partnership provided a Bermudian youth sailor, Matt Stephens, with an opportunity to sail on the journey, showing off Bermuda’s sailing pedigree on the Seattle to Panama leg before joining his crew in Bermuda. Additionally, the sailors contributed to the replenishment of our natural resources with a crew of participants helping to restore Bermuda’s critical mangrove population.
Mr. Speaker, the Forbes Under 30 residency at the Hamilton Princess was another standout success story. A contingent of young entrepreneurs whose game-changing impact in their various fields elevated them to the prestigious Forbes listing, landed in Bermuda for a 30-day residency at the Hamilton Princess. Their stay helped boost our numbers for February 2022 and provided additional business for tourism vendors and attractions. The BTA worked with the Bermuda Economic Development Corporation , and other local entrepreneur hubs to connect local entrepreneurs with volunteers from the Forbes’ cohort. Each week, the BTA hosted a networking session for the locals and their Forbes Under 30 under 30 mentors to help grow their businesses and refine their strategies throughout the month-long initiative. To broaden participation in this initiative, it was not exclusive to local entrepreneurs under the age of 30, with many participants over 30.
Mr. Speaker, while the marketing and sales divisions are vital drivers of our visitor arrivals, we rely heavily on the quality of hospitality standards to help ensure a positive Bermuda experience and increase the likelihood of our visitors recommending the Island to others and becoming repeat visitors themselves. Throughout 2022, the tourism standards and training division worked on the development of a new tourism service standards accreditation, Anchor Bermuda, and a learning management system, BTA Plus. The team at the BTA collaborated with education, training, and service providers to create a portal for users to enhance their professional skill set and deliver improved service levels in Bermuda. I encourage the community to explore exciting professional development opportunities for tourism veterans and those looking to make their entry into the industry. They can sign up for BTA Plus on the GOTOBERMUDA corporate website.
Mr. Speaker, exit surveys show what many of us already know – visitors to Bermuda are looking for a range of experiences whilst on-island. We know that some of the experiences on offer have historically waned in the winter and early spring months.
The BTA is charged with broadening and improving visitor experiences that help increase visitors’ on-island spend, reduce seasonality, and – promote Bermuda’s cultural capital. They have partnered with Bermuda’s tourism entrepreneurs and innovative operators to help generate fresh, engaging, and authentic experiences through the Tourism Experience Investment Programme that has provided over $4 million dollars in funding since its inception in 2014.
Mr. Speaker, in collaboration with the Government of Bermuda, BTA produced and executed a summer-into-fall entertainment strategy to revitalize the tourism sector to get local entertainers back to work in 2022.They cultivated festive experiences for visitors and locals alike. In 2022, they supported the promotion of entertainment, culinary and tour experiences, including the successful Great Sound Entertainment Series that stimulated the entertainment sector. The Government-supported initiative came after more than two years of pandemic-related disruptions to Bermuda’s entertainers, party planners, and promotors.
As the pace of tourism’s recovery enjoyed an upsurge, the island’s growing visitor numbers created a demand for entertainment and memorable Bermudian experiences. The experiences division leveraged data from entertainment research findings to identify the type of entertainment experiences for which today’s Bermuda visitor is looking. Home-grown entertainment that was low-key, serendipitous and authentically local, emerged as factors most likely to enhance their on-island experience. The team partnered with local promoters and venues to help promote weekly live performances at outdoor locations, local bars and restaurants, and on-the-water experiences. Additionally, the BTA supported expansion of the City of Hamilton busking programme. The series delivered many musical experiences for visitors and locals. Highlights of the series included the inaugural Bermuda Swizzle and Seafood Festivals which fused Bermuda’s food and cocktail culture with live performances.
Mr. Speaker, the tourism sector has faced an array of challenges ranging from limited air capacity, the lack of a major convention facility and reduced hotel inventory. The BTA has worked tirelessly alongside the Ministry of Transport, Bermuda Airport Authority and Skyport to strengthen relationships with airline partners, and continues to work to rebuild airline schedules to drive demand and more capacity.
Hotel inventory, group sales growth, accommodation costs, and air capacity are interconnected, and the return of hotel inventory is likely to influence the airline carrier scheduled flights to Bermuda.
Mr Speaker, 2022 saw increased cruise business that began to close the gap on pre-pandemic call volumes. As you would have heard from my Honourable colleague in the Ministry of Transport, this year we are expecting to see unprecedented numbers of cruise arrivals year-round in 2023, which is fantastic news for Bermuda, as well as the business operators who depend on the revenue generated from cruise travel. Current projections for 2023 show approximately 622,000 cruise visitors and 216 calls, compared to the record high in 2019 of 535,000 passengers and 181 calls.
Mr. Speaker, I would like to acknowledge that in the past nine months, the BTA has demonstrated impressive performance with swift organisational restructuring, the launch of the Lost Yet Found campaign, and a solid forward momentum layered upon a data-driven strategy targeting growth in our key markets. The team is energized and producing results. The BTA has strengthened stakeholder partnerships, resurrected the Tourism Summit, and have returned to stability following a tumultuous time in global tourism.
Mr. Speaker, in closing, allow me to acknowledge the leadership team of the Bermuda Tourism Authority for their dedicated service to the Country. They led a restructuring of the organisation, ensuring a qualified team was in place to execute the strategic recovery plan. They have been supported by a corps of talented and committed men and women who have employed innovative marketing, delivered strong sports sales performance, worked to support tourism stakeholders, and introduced new and exciting events to the tourism calendar.
Similarly, I would like to acknowledge the constellation of tourism partners, whose work in Bermuda and abroad has shored up our ability to stimulate visitation and deliver the phenomenal hospitality for which Bermuda is so well known.
Thank you, Mr. Speaker.
Read More About
Category: All
