CARIBBEAN TODAY ELEANOR M. WILSON In spite of belated protests mounted by Caribbean tourism organizations, the much-maligned Western Hemisphere Travel Initiative (WHTI) went into effect last January. Its mandatory passport requirement for re-entry into the United States resulted in a five percent Smith decrease in U.S. visitors across the region January through April. This issue has been a hot topic at Caribbean confer- ences for months now. However, not everyone is blaming the WHTI for the decline. When approached, Caribbean tourism offi- cials and executives in the industry ? responded with thought provoking Forstmayr observations and opinions on the down- ward spiral. The Bahamas, so close to the U.S. east coast for con- venient getaways, has felt the pinch. Arrivals decreased 11.7 percent the first four months of 2007 against the same peri- od in 2006, in spite of an aggressive campaign by the Nassau/Paradise Island Promotion Board that reim- bursed passport fees to more than 8,000 visitors. On the bright side, length of stays increased from 6.4 to 6.6 nights and hotel revenue post- ed a 0.3 percent gain. Jamaica suffered a 13 per- cent decrease in U.S. stayover arrivals January through April, a particularly bad blow now that there are 1,200 more rooms to fill than were avail- able in 2006. During January to April last year, arrivals increased 16.9 percent. Basil Smith, director of tourism for Jamaica, com- mented: "Cruise ship book- ings are also down, although cruise passengers are not required to produce passports on re-entering the United States until June, 2009. Destinations exempt from the new rule (USVI and Puerto Rico) are showing decreases as well. I think this indicates that other factors are in play here, such as a declining U.S. economy." The U.S. Virgin Islands hotel occupancy does show a 6.5 percent drop in U.S. guests January through March against that period in 2006. While popular St. Thomas slumped, St. Croix visitors increased 9.4 percent, with a 23 percent jump occur- ring during the second Issa quarter. Was that due to an existing island promotion, off-season rates, or visitors switching their usual Caribbean destinations to one where no passport was needed? OFF TARGET Some target markets have been hit worse than others by the regulation and application backlog. John Lynch, execu- tive vice president of sales worldwide for Sandals Resorts, estimated that the Caribbean overall would lose -10 percent of its business in the first half of 2007. He said the high cost of passports is especially impacting the fami- ly and mass markets pack- age tours and students on spring break. Sandals caters strongly to honeymooners, who traditionally celebrate the momentous occasion with a trip abroad. One sure industry sign of 'traveler angst' is advance bookings occurring closer and closer to departure dates. "This was our first red flag last fall," said Mike Norton, former vice president for sales at Air Jamaica Vacations who is now at Sandals Resorts. "People aren't as sure about spending their money. So the visitor slowdown becomes an econo- my issue as well." Norton also had a ques- tion: When those massive backlogged applications are finally filled, will regular Caribbean visitors return to the region, or go to Europe or Asia now that they have the entry document that has always been required there? The luxury market seems to remain constant through wars, recessions and passport dilemmas. "My guests at Round Hill Resort are seasoned travelers who already have passports," Josef Forstmayr observed, "so we're not experiencing any significant occupancy change." He did express concern that the U.S. accounts for 70 percent of Caribbean visitors, "...a huge market we cannot afford to lose. We all need to take a much more aggressive approach to overcome this passport obstacle, and the joint Caribbean Hotel Association/Caribbean Tourism Organization is working toward that goal." PROMOTION SuperClubs didn't wait for those organizations to pave the way. At first announcement, the marketing division correctly perceived the WHTI as a huge problem and initiated its own promo- tion to circumvent the issue. When guests book "Passport Included" for a minimum four nights, documented new or renewed passport costs are deducted from the all-inclu- sive package rate. At $97 for adults, $82 for children and $67 for renewals, a family of four reaps an impressive reward. As of Sept. 9, approximately 6,000 SuperClubs guests had taken advan- tage of this Perez promotion. The latest Oct. 31, 2007 expiration date is now undergoing quarterly review. According to Chairman John Issa, it will probably be extended again for at least two months, cov- ering travel through Dec. 2008. "We are proud of this success," said Issa. "Not only have we helped travelers obtain passports, but during the first month of the initia- tive, bookings increased 15 percent at our six Jamaican properties, while all around us, Caribbean hotel occupan- cy levels were dropping signif- icantly." Hoteliers were hesitant to predict what kind of winter season they're facing. That late booking syndrome is still in effect. Esmeralda Perez, marketing director for Puerto Rico Hotel & Tourism Association, where passports are not required but numbers are down, reported that it is too early to forecast for leisure properties. "...But I can tell you that Puerto Rico is looking at a very healthy group and corpo- rate booking chart," he said. "This is an excellent indicator that the season will be good." MIXED BAG A random sample of U.S. Virgin Islands hoteliers targets' "The Next Generation: Learning From The Past, Preparing For The Future" will be the theme of the 30th annual Caribbean Tourism Conference (CTC) to be held this month in Puerto Rico. The business meetings will be held Oct. 19-21 and the conference sessions Oct. 21-24. For the third year in a row, conference participants will earn continuing educa- tion credits through George Washington University for attending the CTC master classes. Master classes involve in-depth study of top- ics affecting the tourism industry using case studies and best practices. They are designed for travel agents as well as general delegates. Other scheduled program highlights include hotel and site inspections for travel agents, destination spotlight presentations for agents, spe- cialized workshops, and the Cond6 Nast Traveler "My Caribbean Essay CIIIL I and the Travel + Leisure "Youth Congress". TOURS In addition, there will be guided product tours for del- egates, media activities pre- BRIDGETOWN, Barbados, CMC St. Vincent and the Grenadine's tourism sector pumped over EC$350 million ($131 million) into that Eastern Caribbean country's economy last year, an official has disclosed. Minister of Tourism Vincent Beache said the sector accounted for more than 60 percent of the country's gross domestic product in 2006 and after a sluggish performance in the early part of this year, should end 2007 in an even better financial position. "We have a slight decline in stay over which is something I don't like to see," Beache, who was in Barbados last month as part of a regional tourism thrust, told the Caribbean Media Corporation. "We also have a slight decline in same day visitors which is expected because of the high airfares. "In our yachting sector, which is always our bii,-LI, sector, we are up about 14 to 15 percent approximately so that as usual is a big strength US. vTheCUaR I S M / T R AVIE U.S. visitor arrivals in the Caribbean dip Caribbea sented by the host venue and other Caribbean Tourism Organization (CTO) member countries, and awards events - including the "Fifth Annual Travel Writer and Photographer Awards" and the "Third Annual Creativity in Travel Awards" for travel agents. A series of business meetings involving ministers and commissioners of tourism, the board of direc- tors and various CTO com- mittees will precede the con- ference beginning on Oct. 19, with the conference opening keynote address taking place on Oct. 21. The conference is the Caribbean region's premier caucus of tourism decision- makers and an important event on the calendar of tourism practitioners and individuals doing business with the Caribbean. This year, CTO expects to host over 600 tourism industry officials representing Caribbean governments, hotels, airlines, cruise lines, travel agents, tour operators, strategic partners and media representatives from around the world. 0 for us, but we also need to look at our I cruise ship passengers that have been up and contin- ue to rise. "As a Beache "As a matter of fact for this upcoming season we are on point to have the bionwl season we ever had so things are on the up and up in tourism in St Vincent and the Grenadines." COMMON THRUST He identified the need for a common Caribbean market- ing thrust where the region could be offered as a common destination. "It is time we realize that we are really not in competi- tion with each other, that every other country in the world wants the tourism dol- lar and they are going for it," Beache said. (CONTINUED ON PAGE16) n tourism confab Next Generation' as passport re-entry requirement takes toll St. Vincent's tourism sector making contribution ~ minister October 2007