The accommodation sector in Cayman
is holding its ground compared to other Caribbean islands over the holiday
period.
However, room costs remain
depressed while business costs continue to rise, according to the industry.
“We are seeing good pick up for the
winter season, slightly ahead of last year. We are cautiously optimistic that
the business will be stronger for the new year,” said Thomas Mason, general
manager of Comfort Suites.
Penny Cumber of Cayman Villas said
that several wholesalers, many of whom deal with the entire Caribbean area,
have told her that the Cayman Islands are doing better than many other islands
regarding Christmas and New Year bookings.
The latest United Nations World
Tourism Organisation data, which includes visitor numbers from January until
August 2010, measured growth of visitors to the Caribbean as 3 per cent during
that period. Worldwide, according to the World Travel and Tourism Council,
tourism’s share of GDP will increase 1 per cent in 2010.
Industry has changed
But the industry, said Ms Cumber,
has now changed and the days of a 14-day minimum stay across the board are gone
for everything, aside from the larger villas, with bookings also coming in much
closer to vacation time. In Cayman’s heyday, the Christmas period would more
often than not be booked entirely by August.
“Our wholesalers [in the condo and
villa sector] tell us that people don’t want to go away anymore for Christmas;
they want to stay at home [for December 25], then go away
immediately afterwards for a few days or a week – no longer.”
At The Reef Resort in East End,
reservations manager Sandra Spannheimer said occupancy is high and that they
anticipate the holiday season will sell out. At this time of year, the booking
window is longer than usual, she added, with more people booking three months
or more in advance of the holiday season.
Michael Broderick, general manager
of Ramada Grand Caymanian Resort, noted that their resort timeshare rooms are
booked six months to a year ahead because owners know they will come every year
at the same time.
“For regular hotel bookings we are
still seeing a relatively short booking window – approximately two to three
weeks – but we are also seeing some advanced bookings into February, March of
next year as guests take advantage of special advance booking promotions that
the brand is doing, as well as different online travel agents such as
Expedia/Hotels, Travelocity et cetera.”
Ms Spannheimer added that the
average daily rate is largely similar to the same time in 2009, but the
traditional seasonal upsurge remains a factor.
“In short, the holiday period is
the highest demand period of the year, and that is still holding for 2010,” she
said.
Financial issues
Hoteliers throughout the industry
have consistently noted that the worldwide economic downturn brought about a
slashing of room rates in 2009 and 2010, with travellers shopping around for
the best deal and expecting – even demanding – more bang for their buck. This
has forced destinations, including Cayman, to upgrade and update their
offerings, say industry experts.
“We are seeing stiffer competition
from other Caribbean islands with added values and booking incentives, as well
as many of these destinations investing large sums in TV and other high profile
advertising. This is resulting in us having to be more competitive with rates
and also added values,” said Thomas Mason of Comfort Suites.
In addition to global conditions,
costs of doing business in the Cayman Islands have increased by as much as 20
per cent to 30 per cent, said Peter Hillenbrand of the Southern Cross Resort on
Little Cayman.
“That makes it very hard at a time
when we can’t raise rates – I am still not confident that the market can take
any price raise. “The whole thing is in
a difficult cycle; the government needs money, we can’t raise rates, they’re
making it more expensive for us, and we’re the ones that are getting shafted –
it’s happening all over the world, not just the Cayman Islands.” Mr. Mason
added that there are other elements aside from financial incentives that need
to be addressed in order to continue to draw tourists to the Cayman Islands.
“We believe in Cayman as a
destination that is clean, safe and with the friendliest people in the region,
key things that the travelling public looks for,” he said.
However, Ms Spannheimer said,
guests’ feedback indicates that potential visitors are experiencing a
combination of the down economy and less disposable income. This, allied with
cheaper flights to other long-haul and local destinations, has meant that
repeat guests are tempted to either vacation elsewhere or even stay at home
entirely.
Michael Broderick at the Ramada
noted that the resort, like many others, is always supportive of initiatives
around special events such as Pirates Week, but that results were negligible.
“I have said for two years now – the biggest way to attract more volume here is
to make the air fares more attractive,” he said.
Intrusive security
Mr. Hillenbrand said that more
intrusive travel and security rules in the United States are likely to reduce
the number of people travelling abroad.
“It’s becoming more of a
frustrating experience for them, and at some point they’re going to reach the
threshold and say they’re going to visit Indianapolis, Indiana, rather than the
Cayman Islands,” he said.
Nonetheless, he said, things are
looking better for the holiday season going into 2011 than compared to the same
period last year.
At Cayman Villas, Penny Cumber said
bookings are becoming busy for the tourist season, but she added that it is
difficult to assess the relative reservation levels because the parameters of
measurement in the accommodation industry have changed.
“You can’t tell how the season has
been until it’s over, especially now, because ever since the recession started
people are booking at the last minute, demanding discounts and staying for
shorter periods.”
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