October 14, 2003
Hmmm, Maybe We Should Read That Tourism Report
According to the General Manager of a prominent Bahamas hotel, it is a difficult environment for big hotels to make money here, and a lot less money is being made in the Bahamas compared with other Caribbean destinations.
He cited things like wage costs, productivity, electricity prices among the contributing factors, which results in The Bahamas not doing as well as destinations like the Dominican Republic, Jamaica and Cancun.
Echoes of the Report on Trade Liberalisation for the Tourism Taskforce?
The report, compiled by Nassau Institute Economist Ralph Massey for the Tourism Taskforce on Trade Liberalisation, found that although the average room rate of $131 per night for the Nassau hotel was comparable with the $129 and $115 rates for its Caribbean and US competitors, "the shocker is the bottom line".
The operating profits achieved by Nassau hotels are 59 per cent and 74 per cent lower than their counterparts in the Caribbean and the US, a report on the tourism industry's competitiveness revealed, with high labour and utility costs, pilferage, and low productivity key factors in making The Bahamas a high cost destination that is becoming increasingly uncompetitive.
Right-Click here to download the complete (738Kb) report from the Nassau Institute Web site. (Windows users)
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Posted by admin at October 14, 2003 10:59 PM