Bermuda 2008: Tourism and Hospitality
Date Posted: Monday, February 25, 2008Author: Norma Mastalir
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2007 was a banner year for Bermuda’s tourism and hospitality industries. The stage for success was set, in large part, by the cooperative efforts of Government and the private sector.
Two key initiatives offered to Bermuda’s air travellers, the $300 “Compliments of Bermuda” Companion Air Fare Credit and the $200 Group Delegate Credit—stemming from a partnership between hotels and the Department of Tourism—boosted hotel occupancy, as did the Endless Summer Programme offered by the Bermuda Hotel Association.
But even more fundamental to this year’s success has been low-cost airfare to Bermuda. The downward pressure on pricing from the introduction of Jet Blue and Zoom service has been instrumental in positioning Bermuda as a viable vacation option. At $360, the average airfare to Bermuda in 2007 is one-third the cost of that on offer just two years ago.
At Fairmont Hotels & Resorts Bermuda, our average occupancy rate in 2007 is at a 20-year high and fellow hoteliers report similar success. While critics may point out that there were fewer hotel rooms in Bermuda this year and thus occupancy rates should be higher, historically this had not been the case. In the past when hotels in Bermuda have closed and the number of available rooms has declined, that portion of the market has simply disappeared. This year’s change is a very positive turnaround.
In 2008, the key to tourism’s success in Bermuda lies in three areas:
- The continued presence of low-cost airlines and the courting of new ones.
The greatest benefits would result from an increase in flights and competition to and from Canada, but also to the Atlanta and Miami markets.
- The introduction of additional world-class hotel properties.
At Fairmont, we are enthusiastic proponents of more hotel rooms and luxury hotel brands on the island. New properties strengthen Bermuda’s ability to attract additional air carriers and increase the island’s prestige and visibility to potential travellers. The 2008 openings of Newstead and Tucker’s Point Club are tremendously positive, and we have been buoyed by the prospect of future hotel projects involving Four Seasons, the Ritz Carlton and others.
- Service and staff.
The future of a successful hospitality industry is all about enhanced service. Today’s customers want to define luxury themselves, and they have new ideas on their mind. No longer does luxury mean conspicuous consumption. Many travellers, especially groups, are looking for a “green” or eco-conscious experience. Others guests demand connectivity to technology, perhaps a certain room type, or customised spa services, while others simply want to slow down. This presents an interesting challenge for hoteliers, and the winners will learn how to anticipate these varying desires.
The challenge for hospitality in 2008 involves staffing. How will we find sufficiently trained people to deliver this level of service, especially during a time of global worker shortages? Bermudians comprise 70 percent of Fairmont’s staff, but to fill the remaining positions, we recruit from around the world.
As new hotel properties open in Bermuda—all wanting to employ Bermudians—the challenge will become even greater. In the end, qualified Bermudian staffing is a key component to Bermuda’s hospitality success and it will require long-term planning to nurture and protect.