St. Croix Hotel & Tourism Association BRIEFING Frank J. Comito, - - PowerPoint PPT Presentation

st croix hotel tourism association
SMART_READER_LITE
LIVE PREVIEW

St. Croix Hotel & Tourism Association BRIEFING Frank J. Comito, - - PowerPoint PPT Presentation

St. Croix Hotel & Tourism Association BRIEFING Frank J. Comito, CHTA CEO and Director General May 17, 2017 CHTA BRIEFING Wha hat Well Cover .. .. About CHTA . Areas of of Focus Key Regional Da Data The Sharing


slide-1
SLIDE 1
  • St. Croix Hotel & Tourism Association

BRIEFING

Frank J. Comito, CHTA CEO and Director General

May 17, 2017

slide-2
SLIDE 2

CHTA BRIEFING

Wha hat We’ll Cover….. ..

  • About CHTA….
  • Areas of
  • f Focus
  • Key Regional Da

Data

  • The Sharing Economy
  • A Bit

it About Cuba Cuba

  • A St
  • St. Croix

ix Perspective fr from a Former Cru rucia ian

  • Lo

Lookin ing Ahead

slide-3
SLIDE 3

THANK YOU FOR YOUR SUPPORT AND ENGAGEMENT

Hotel CHTA Representative The Buccaneer Vicki Locke Caravelle Hotel & Casino Karen Beagles Club Comanche Jack Pickel Divi Carina Bay Beach Resort & Casino Andreas Conhoff Hotel on the Cay Anestine Etienne The Palms at Pelican Cove Julie Printy Renaissance St. Croix Carambola Rick Carrington Sand Castle on the Beach Simone Palmer Sugar Beach Condo Resort Christopher Pollock Tamarind Reef Resort Rosalie Toussaint-Lewis

slide-4
SLIDE 4

ABOUT CHTA An Association of Associations

  • 1,000 hotel and Allied Members
  • A Federation of 32 National Hotel & Tourism

Associations throughout the Region

  • Representing Caribbean Tourism Interests

Regionally/Globally

  • Historically has been a major player in developing

tourism in the Caribbean

slide-5
SLIDE 5

CHTA VOLUNTEER LEADERSHIP

Key Committees, Board and Affiliated Organizations

  • Executive Committee
  • Standing Committees : Advocacy, Marketing, Membership,

Sustainable Tourism (CAST), Caribbean Travel Marketplace, People Development

  • Board of Directors
  • National Hotel and Tourism Associations
  • Caribbean Society of Hotel Association Executives
  • Caribbean Tourism Development Company
  • CHTA Education Foundation
slide-6
SLIDE 6

President:

  • Karolin Troubetzkoy, Jade Mountain & Anse Chastanet Resorts, St. Lucia

Vice Presidents:

  • Stuart Bowe, Atlantis, Bahamas
  • Karen Whitt, Regent Palms, Turks and Caicos
  • Patricia Affonso-Dass, Ocean Two Resort, Barbados
  • Wayne Cummings, Sandals Resorts Int’l, Jamaica
  • Pablo Torres, San Juan Hilton, Puerto Rico
  • Tim Thuell, Nisbett Plantation Resort, St. Kitts
  • Jose Rivera Campos, AMResorts, Cancun
  • Bill Clegg, Choice Hotels Group, Regional
  • Karine Roy-Camille, KRC Consulting, Martinique
  • Cedric Nubul, Hilton, Curacao

Past President and Chairman:

  • Richard Doumeng, Bolongo Bay Resort, U.S.V.I.

Treasurer

  • Jim Hepple, Aruba Hotel and Tourism Association, Aruba

CHTA Volunteer Leadership

slide-7
SLIDE 7

CHTA Staff Leadership

Frank J. Comito Director General & CEO Vanessa Ledesma COO Matt Cooper CMO Adriana Serna Director of Communications Gabi Doria Marketing & Commerce Manager Alain Gonzalez Bookkeeper & Operations Coordinator Martha Valdivia Director of Membership Alejandra Calvillo Events Associate

slide-8
SLIDE 8

ORGANIZATIONAL PARTNERS

  • Caribbean Tourism Organization
  • CARICOM
  • World Travel and Tourism Council
  • United Nations World Tourism Organization
  • American Resort Development Association
  • Organization of Eastern Caribbean States
  • Caribbean Public Health Agency
  • Caribbean Council
  • Caribbean Central American Action
  • International Air Transport Association
  • Florida Caribbean Cruise Association
  • Caribbean Institute for Meteorology and Hydrology
slide-9
SLIDE 9

OUR LIFELINE

The lifeline of CHTA is the two-way connection between the national hotel and tourism associations, with CHTA at the hub and the NHA’s connected regionally thru CHTA and locally to the various destination stakeholders.

NHTA NHTA NHTA

slide-10
SLIDE 10

Strategic Partners & Key Supporters

slide-11
SLIDE 11

SEVEN CORE OBJECTIVES DRIVE OUR EFFORTS

  • 1. Advocacy and Representation
  • 2. Marketing and Business Development
  • 3. Developing Our People
  • 4. Sustaining Our Industry
  • 5. Data and Intelligence
  • 6. Value and Service to Our Members
  • 7. Operating a Fiscally Sound, Future-Oriented

Organization

slide-12
SLIDE 12

Shaping a Regional Caribbean Tourism Initiative

  • Working with Heads of Government, Industry Leaders, Government

tourism entities to advance:

  • Marketing the Caribbean Brand
  • Implementing a Regional Marketing and PR Effort
  • Improving the Cost and Ease of Travel
  • Developing Human Capital
  • Improving Research and Data Showing Tourism’s Impact
  • Developing and Marketing Product Differentiation
  • Creating a Sustained Funding and Management Structure

to Support Regional Effort

FOCUS AREA

Advocacy and Government Affairs

slide-13
SLIDE 13

Precedent Exists for Successful Regional Public-Private Sector Collaboration to Increase Tourism Arrivals and Occupancies and Address Issues… With Regional Public and Private Sector Leadership…

  • 1990s Regional Marketing Campaign
  • 2001 – Post 9/11 Collaborative Marketing
  • 2011 – UK APD
  • Opportunity to Learn From Other Successful

Collaborations

slide-14
SLIDE 14

When We’ve Marketed the Caribbean Brand…We’ve Seen Results…

slide-15
SLIDE 15

Addressing Ongoing Concerns…

  • Regularizing the Sharing Economy (Airbnb, HomeAway,

VBRO) with CHTA White Paper… Guidelines for Governments and Associations…

  • Improving US-Caribbean Relations
  • Cuba Engagement
  • Supporting local efforts to address taxes-duties-fees increases
  • Working with TripAdvisor and Expedia on industry concerns
  • Focus on Energy Cost, Efficiency and Climate Change
  • Crisis Management and Mitigation - Zika…Sargassum…

Hurricanes …Health and Safety

CHTA FOCUS AREA

Advocacy and Government Affairs

slide-16
SLIDE 16

FOCUS AREA

Marketing and Business Development

  • Caribbean Travel Marketplace: Region’s largest B2B gathering.

New buyers, more supplier options, greater niche focus, building MICE component, more connectivity and training. (Every January)

  • Caribbean Hotel & Resort Investment Summit (CHRIS):

Largest gathering of investors, owners, lenders, developers, hoteliers, government tourism and investment officials to consider and advance

  • deals. ‘Deal Hall’ component for hoteliers, timeshare operators looking to

expand, renovate, retro, sell or brand their property.

  • Caribbean Hospitality Industry Exchange Forum (CHIEF):

Year three moves to Miami, with Taste of Caribbean. Networking, best practice sharing, in depth look at issues, professional development.(June)

  • Shaping Brand Caribbean Marketing and PR Initiative:

Digital media campaign, enhance caribbeantravel.com to drive bookings and referrals, initiate Caribbean PR campaign, consortium approach to PR, expanded consumer trade show participation, targeted road shows.

slide-17
SLIDE 17

HUMAN CAPITAL DEVELOPMENT

People Development Initiative Established

  • Education and Training Partnerships: Johnson & Wales, FIU, ARDA,

STR, Forbes, Springboard Caribbean.

  • Caribbean Hotel & Tourism Association Education Foundation:

Academic scholarships, training and credentialing support.

  • Tourism Awareness Initiatives in Schools and Communities:

Tourism is Key Support Info and Best Practices.

  • Professional Development of Hotel & Tourism Association Executives with

ARDA Support.

  • Certification, Credentialing and Leadership Training: Presently
  • ffered at CHIEF, Food and beverage and HACCP offered.
  • Taste of the Caribbean Culinary Development Event: Over 2,000

Chefs Since Inception.

  • Recognition Programs: CHIEF Awards; Allied Member of Year; Hotel &

Tourism Association Executive of Year; Employee, Supervisor and Hotelier of the Year.

slide-18
SLIDE 18
  • Caribbean Alliance for Sustainable Tourism (CAST):

Building volunteer base, formalizing nonprofit status.

  • Hotel Energy Efficiency Initiatives: CHENACT, CARCEP projects,

new online info and tools.

  • Sargassum Seaweed Guide: to assist hotels and governments.
  • Zika Resource Center with tools, info, training sessions, advocacy,
  • utreach to industry and travel industry partners.
  • Webinar Training: Online sessions available, quarterly sessions for

members

  • Insurance Policy Review and Claim Representation: Cost-

savings service to members.

  • Hurricane/Disaster Readiness and Response: Support

annual training by CCAA/Tropical Shipping

  • Partnerships and Online Resources

FOCUS AREA Sustainable Development

slide-19
SLIDE 19

→ Industry Data Center on CHTA Website → Knowledge Center → Ongoing Communications → Webinars → CHIEF….Marketplace….Member Briefings and Information DATA Partners…..

FOCUS AREA Data and Business Intelligence

slide-20
SLIDE 20

SOURCE: CARIBBEAN TOURISM ORGANIZATION

7th Consecutive Year

  • f Growth

OVERALL ARRIVALS Up 4.2% to Record 29.3 Million ESTIMATED SPENDING Up 3.5% to Record $35.5 Billion ARRIVALS

US Up 6.3%; Canadian Down 3.4%; UK Up 4.1%; EU Up 11.4%; South American Down 10.6%; Intra-Regional Up 3.6%

GROWTH FACTORS

Healthy US economy, displacement from Europe, sharing economy, Cuba

INHIBITING FACTORS:

Exchange Rates, Zika, political uncertainty, warm winter.

2017 ARRIVALS FORCAST Up 2.5-3.5%

2016 CARIBBEAN STOPOVER ARRIVALS PERFORMANCE

slide-21
SLIDE 21

SOURCE: STR

Indicator 2016 USVI 2016 Caribbean 2017 Caribbean Forecast Occupancy 77.2% +1.1 pts 66.7% -1.6 pts 66.3% -.4 pnts ADR $335.66 +4.4% $201 -.3% Down .2% RevPar $259.19 +5.5% $134 -2.6% Down .9% Room Supply Down .9% Up 1.2% Up .7%

2016 CARIBBEAN AND BVI

HOTEL PERFORMANCE AND FORCAST

slide-22
SLIDE 22

OVERVIEW:

CHTA Annual Industry Performance & Outlook Study

Hotel Performance in 2016 vs. 2015

  • Even Split on Revenue: Total Revenue Up for 47% of Hotels, Down

for 47%

  • Employment Levels Increase for 28% of Hotels; 17% Report Decline
  • Profit Picture Improves: Fewer Hotels Report Net Loss Than Did Last

Year; 78% Anticipate Net Profit, 22% Report Net Loss

  • Increased CapEx: 55% Increase Capital Spending with One in Four

Increasing Expenditures by More Than 10%

  • Room Occupancy Down for 51% of Hotels; 29% Report Increase in

Occupancy

  • Rates - Reduced by 45% of Hotels; 42% Increase Rates
slide-23
SLIDE 23

USVI vs Caribbean vs Global Tourism GDP Annual Growth Rate – Direct/Indirect

% GROWTH Source: World Travel Tourism Council

3.7 3.6 3.6 3.9 3.4 3.5 3.6 3.7 3.8 3.9 4 2017 2027 WORLD CARIBBEAN

USVI Tourism Annual GDP Growth

  • Forecast for 2017 is 1.2%.
  • Forecast by 2017 is 2.4%

Note: The USVI is Ranked #19 in the World in Relative Importance of Travel & Tourism Relative to Size of GDP

slide-24
SLIDE 24

USVI vs Caribbean vs Global….Annual Tourism-Related Employment Growth Rate

% GROWTH Source: World Travel Tourism Council

1.9 2.5 3.1 2.1 0.5 1 1.5 2 2.5 3 3.5 2017 2027 WORLD CARIBBEAN Note: USVI % of Tourism- Related Jobs Direct Indirect

  • 2017 = 12.7% 28.5%
  • 2027 = 13.5% 29.5%
slide-25
SLIDE 25

OVERVIEW:

CHTA Annual Industry Performance & Outlook Study Looking Ahead to 2017

  • Revenue: More Than Two-Thirds (67%) Hotels Anticipate Increase
  • Employment: Most Hotels (55%) Will Maintain Employment

Levels; 17% Will Reduce Employment, 28% to Add Employees

  • Profits: 55% Expect Slight Improvement; 22% Anticipate a Drop
  • Occupancy: Two-Thirds of Hotels Expect Room Occupancy to

Increase

  • Average Daily Room Rates - Expected to Increase Slightly for

55% of Hotels; 15% Expect Slight Decline in Rates

slide-26
SLIDE 26

The Sharing Economy: Opportunity or Threat?

slide-27
SLIDE 27

First….Understand the Drivers….

  • Consumer Driven – cost…choices…new experiences
  • Technology Enabled
  • Fueled by the Great Recession and Entrepreneurial

Spirit

  • More People Want in on the Action….Piece of the Pie
slide-28
SLIDE 28

Sharing Economy: Opportunity or Threat?

slide-29
SLIDE 29

Sharing Economy: The Evolution

slide-30
SLIDE 30

Consumers Want Choices…. My Dog Won’t Have It Any Other Way

slide-31
SLIDE 31

Let’s Understand the Motivations….

  • f travelers want to explore

a specific neighborhood

79%

  • f travelers want to

“live like a local”

91%

  • f Airbnb properties are
  • utside the main hotel districts

74%

slide-32
SLIDE 32

Sharing Economy: Opportunity or Threat? Challenges Presented by the New Sharing Economy:

  • Governments Need to Level the Playing Field with Hotels
  • Taxation
  • Standards
  • Data and Reporting
  • Complaints and Dispute Resolution
  • Destination Reputation
slide-33
SLIDE 33

It Should Be Understood, While There Are Upsides….

The Economic Impact of a Visitor Staying in a Shared Economy Accommodation is Far Below That from A Hotel Stay…

  • Per Visitor Spend is Estimated at 1/4
  • Tax Revenue Realized is Far Lower
  • Multiplier Effect Far Lower
  • Significant Difference in Employment Generated

Word of Caution to Governments: Don’t Jeopardize Hotel’s Viability….It’s Your Mainstay

Sharing Economy: Opportunity or Threat?

slide-34
SLIDE 34

Leveling the Playing Field

CHTA Developed a Resource Guide for Public-Private Sector

1. Identified Key Issues, Impact Regionally and Globally 2. Offer Solutions and Approaches for National Hotel and Tourism Associations and Governments to Consider for Regulating and Regularizing this Emerging Industry 3. Set the Stage for Engaging the Emerging Sector

slide-35
SLIDE 35

Caribbean Airbnb Host Property Listings

865 554 62 2,908 117 809 443 603 288 405 94 2,123 73 114 24 1,490 1,470 101 17 151 334 2,626 110 1,144 500 1,000 1,500 2,000 2,500 3,000 3,500

Airbnb Listing of Properties in the Caribbean, February, 2016

slide-36
SLIDE 36

Other Caribbean Sharing-Economy Accommodations Listings

September 2015

543 548 144 2,317 230 1,747 596 518 338 646 64 1,882 129 2,229 5 917 2,632 1,781 24 140 407 2,416 170 2,242 500 1,000 1,500 2,000 2,500 3,000 3,500 Anguilla Aruba Bermuda Barbados Bonaire Bahamas Belize British Virgin Islands Curacao Cayman Islands Dominica Dominican Republic Grenada Guadeloupe Haiti Jamaica Puerto Rico Martinique Montserrat Trinidad and Tobago St Lucia St Martin-Sint Maarten St Vincent and Grenadines US Virgin Islands VRBO HomeAway Flipkey

Note: It is not uncommon for properties to be listed on several hosting platforms. It should be noted that since this data was gathered, most

  • f the below destinations have seen on

average a 5 percent growth in listings.

slide-37
SLIDE 37

Opportunities….

  • Opportunity for Greater Local Ownership of Tourism

Industry

  • Opportunity to Capture New Markets and Broaden

Destination Market Appeal

  • New Factor to Generate Airlift
  • Opportunity to Strengthen Linkages and Community

Tourism

  • Opportunity for Hotels to Assess Market Shift and Adapt
slide-38
SLIDE 38

Typical Hotel Licensing Requirements and Hotel-Related Taxes in the Caribbean

slide-39
SLIDE 39

Typical Standards for Vacation Home Rental Providers

Typically legally required to meet building code and safety regulations applicable to residential properties Hosting platforms like Airbnb have hospitality standards beyond those required for residential use which generally address:

  • Property and Liability Insurance
  • Cleanliness - General guidelines are recommended.
  • Safety – General guidelines are recommended.
  • Cancellation Policies and Security Deposits – Requirements are

established to provide transparency to protect guests and home owner.

  • Truth in Advertising – To ensure the online listings of offerings and

amenities are aligned with what is provided to the guest.

slide-40
SLIDE 40

In Many Destinations Hotels Are Contributing to the Greater Good

Hotels, Hotel Associations, Industry Enhancement Funds Contribute Significantly to:

  • Marketing
  • Airlift Support
  • Research
  • Education and Training
  • Beautification and Product Improvements
slide-41
SLIDE 41

Recommendations to Caribbean Tourism Stakeholders

  • Destinations throughout the region are presented with a unique
  • pportunity to help regularize and engage the sharing economy.
  • National Hotel and Tourism Associations, Boards and Ministries of

Tourism can serve as catalysts in bringing together public and private sector stakeholders to:

  • Review and Modify Existing Laws and Regulations on Taxes, Health

and Safety Requirements, and Standards

slide-42
SLIDE 42

Recommendations to Caribbean Tourism Stakeholders

Continued… Engage All Relevant Stakeholders, including:

  • Ministry of Finance or Related Government Area
  • Ministry of Tourism or Related Government Area
  • Hotel Licensing Department or related area
  • National Hotel and Tourism Association or Related Area
  • Real-Estate Association Representative with Short-Term Vacation

Home Rental Property Management Expertise

  • Owner of an Existing Short-Term Vacation Home Rental Property
  • Hosting Platform Company (Note: Airbnb is a willing partner re

taxation, but will likely resist regulatory requirements)

slide-43
SLIDE 43

Turning a Threat to Opportunity

If You Can’t Beat Them…..Hoteliers Can Benefit by….

1. Offering Services and Facilities to Host Property Clients

  • Spa Offers
  • F&B
  • Fitness and Wellness Facilities and Programs
  • Entertainment
  • Day Passes

2. Offering Services to Nearby Host Properties

  • Housekeeping
  • Grounds Maintenance
  • Laundry Services

3. Offering Appropriate Accommodation Offerings Thru Sharing Economy Platforms

slide-44
SLIDE 44

Powered by

Sharing Economy Survey of Caribbean National Hotel & Tourism Associations

Conducted by CHTA March, 2017 Results Based Upon 18 Responding Jurisdictions

slide-45
SLIDE 45

Q1: Have you, as a private sector entity or your national government, signed an MOU or similar agreement with a ‘sharing economy’ company (e.g. – AirBnB, Uber, FlipKey, Home-Away)?

slide-46
SLIDE 46

Q2: Does your government currently have legislation, licenses or regulations in place for short term rental accommodations (not for hotels, timeshares, or

  • ther accommodations traditionally regulated) to establish policy regarding

the ‘sharing economy’ business model?

slide-47
SLIDE 47

Q3: Is your government working on developing legislation, licenses or regulations for short term rental accommodations to establish policy regarding the ‘sharing economy’ business model?

  • Answered: 18 Skipped: 0
slide-48
SLIDE 48

Q4: Do the legislation, licenses or regulations address issues of standardization and taxation?

  • Answered: 18 Skipped
slide-49
SLIDE 49

Q5: How involved have you been, as a private sector entity, in the process of developing the legislation, licenses or regulations that are in place or being developed?

  • Answered: 18 Skipped: 0
slide-50
SLIDE 50

The Sharing Economy: Opportunity or Threat?

IT IS OURS TO DETERMINE

slide-51
SLIDE 51

THE CUBA FACTOR

slide-52
SLIDE 52
  • Record 4 Million Arrivals in 2016
  • Growth of 14.5%
  • Forecasted to increase 200,000 this year
  • Canadian visitor arrival declines of over

300,000

  • More than offset by European and US

arrivals growth

  • Since announcement of move toward

normalization with US…. Cuba’s welcomed over 1 million more visitors

CUBA 2016 UNPRECEDENTED GROWTH

slide-53
SLIDE 53
  • 52,000 Americans in 2009
  • 91,000 in 2014
  • 147,000 in 2015
  • 285,000 in 2016 – up 76 percent
  • In January 2017 Cuba reported a 125%

increase in American visitors

  • 19% of all American Adults Would Consider

Travel to Cuba in two years MMGY 2016

  • 82% of Affluent Americans Plan to Travel to

Cuba in Future Travel and Leisure Affluent Traveler Survey 2015

CUBA 2016 AMERICAN ARRIVALS

slide-54
SLIDE 54
  • 110 Available Daily Flight Slots from US

Carriers Offered in 2015

  • JetBlue, American, Southwest, Spirit,

United, Delta, Alaska Airlines, Silver, Frontier….

  • Excess Capacity; Low Loads Forcing

Reshuffling

  • Silver, Spirit and Frontier Out – announced

in March/April dropping all planned routes

  • American Reduced Daily Flights to Smaller

Cities from 13 to 10 with some smaller planes

  • JetBlue Took out 300 Seats/Day with

smaller planes

CUBA 2016

US CARRIERS PROPELLING US ARRIVALS

slide-55
SLIDE 55

Nine ships from Eight Cruise Lines sailing from South Florida now offer Cuba Itineraries

CRUISELINES STEP UP CALLS

slide-56
SLIDE 56

BUT FOR HOW LONG?

  • US Policy Implications under Trump

Administration Uncertain – Definite Slow Down on Lifting Embargo; possible reversal (not likely) – Possible Tightening of Travel Eligibility

  • Does Limin on Varadero Beach

Qualify as Non Tourism?

US POLICY IMPLICATIONS

slide-57
SLIDE 57

US Policy Implications under Trump Administration Uncertain, But US business interests may weigh heavy on policy decisions… “I don’t actively worry about this Administration turning back the progress on Cuba. You don’t hear them saying much about Cuba. You don’t hear a lot

  • f debate in the political environment about Cuba.”

Arne Sorenson CEO, Marriott Corporation, Feb 16, 2017

US POLICY IMPLICATIONS

slide-58
SLIDE 58

Despite Uncertainty, Cuba's Tourism Growth is Certain, With or Without the US.

  • Government Views Tourism as Essential

Socio-Economic Development Vehicle – Foreign Exchange Earner – Employment Generator – Acceleration of Commitments to Tourism

CUBA’S TOURISM GROWTH

slide-59
SLIDE 59

Cuba Tourism Growth

CUBA “CUBED”

CUBA TOURISM OVERVIEW

slide-60
SLIDE 60

Cuba’s Accommodations Growth

# Hotel Rooms

  • 63,000 in 2014 to 66,547 2016
  • Expect more than 3,000 more this year
  • Project 20,000 more by 2020
  • Planning 104,000 by 2030
  • Shortage of quality hotel rooms in Havana, major urban areas

B&B’s and Airbnb

  • Over 16,000 privately run B&B rooms available to international tourists
  • Over 4,000 Airbnb listings today

Timeshare/Vacation Clubs in their infancy Plus major investments in marinas and golf courses Over 2,500 paladares emerged in 10 years

CUBA “CUBED”

CUBA TOURISM OVERVIEW

slide-61
SLIDE 61
  • Historical Arrivals Growth Primarily on 2-4 Star All-Inclusive Packages
  • Escalating Prices – 100% to 400% past two years
  • Spotty Product and Service
  • Decline in Visitor satisfaction and likelihood to recommend
  • Low Spend per Tourist
  • Needs Product Diversification – Luxury, condos, timeshare
  • Poor Infrastructure – Roads, Ports, Electricity, Communications
  • Bureaucratic Obstacles – prolonged, layered
  • Laws and Regulations – Labor Management, Tax, Transactional, Foreign

Investment…Property Ownership

  • Unresolved US-Cuba Appropriations and Sanctions Restitution

CUBA’S GROWTH CHALLENGES

slide-62
SLIDE 62
  • National Commitment to Develop Tourism – 2030 Plan
  • Cuba’s 4 C’s Advantage – Closeness, Curiosity, Culture, Cost?
  • Capitalize on Traveler Bragging rights – Trophy destination
  • Market Appeal and Market Diversification to Capitalize on Opportunities….

CUBA’S GROWTH CHALLENGES

Adventure Eco-Nature Sports Arts Health and Wellness Affinity Personal Development Professional Development Business Development Celebrations Education Culture and Heritage

  • Cuban Diaspora Investing – estimated $1-$2 billion annually in remittances,

increasingly to support investments in paladares and casas particuilares.

slide-63
SLIDE 63

CARIBBEAN TOURISM CHALLENGES

Lack of Regional Marketing Emerging Destinations Cuba Education Unemployment Tourism Awareness Product Differentiation and Authenticity Investment Initiatives Ease of Travel Inter-Regional Airlift Airlift & Airfares: Connectivity and Taxation Tourism Intelligence (data, Forecasting and Satellite Accounts) Economical (Brexit, Oil, Exchange Rates) Crime and Harassment Zika and Health Threats

slide-64
SLIDE 64

BUSINESSES CHALLENGES

Aging Tourism Plants High Business Acquisition Cost High Operating Costs Comparative Productivity Energy Efficiency and Water/Waste Management Linkages High Import Bill Sharing Economy Access to Capital Training & Development Customer Service Standards Competing Destinations with High Product Quality and/or Aggressive Pricing

slide-65
SLIDE 65

65

COMPETING DESTINATIONS

High Product Quality • Aggressive Pricing

slide-66
SLIDE 66

SHIFTING CONSUMER PREFERENCES

  • Thirst for New and Different Experiences
  • Cookie-Cutter Accommodations Don’t Cut it for Millennials
  • Growing Desire for Local Connect
  • Mobile Dominating
  • Shopping for Deals
  • Content is New SEO
  • Multi-Channels to Connect
  • Re-Emergence of Travel Agents
  • Concierge Apps
  • More Interest in International Travel
  • Safety Becoming Predominate Concern
  • Creeping Concerns About Where to Travel Internationally
slide-67
SLIDE 67

67

ARE YOU READY FOR THESE CHALLENGES?

CHTA Mission: To make the Caribbean the most desirable place in the world to visit and operate a tourism business.

slide-68
SLIDE 68

OPPORTUNITIES FOR CARIBBEAN TOURISM ENTERPRISE

Incredible Product Strength and Product Potential

  • 1. Proximity
  • 2. People
  • 3. Beauty
  • 4. History
  • 5. Culture
  • 6. Creative Arts
  • 7. Diversity
  • 8. Brand “Caribbean”
slide-69
SLIDE 69

Imagine a Caribbean….

  • Easily Accessible and Affordable to Most Travelers
  • Consistently High Year-round Visitor Arrivals
  • Highly Productive, Consistently Exceptional Service
  • Red Carpet Treatment Instead of Red Tape
  • Operationally and Competitively Profitable
  • Where Financing is Readily Available for Viable Projects
  • Environmentally Sound, Pristine and Clean
  • Manageable Diseases and Disasters
  • Promoting more than Sand, Sun and Sea
  • Celebrating Cuisine, Culture and Creative Arts
  • Aggressively Marketed by the Region, Individual Destinations and Businesses to

savvy Consumers

  • Where Public and Private Sector Work Together on Marketing and Marketability
slide-70
SLIDE 70

KEY CHTA EVENTS

The Caribbean Hotel & Resort Investment Summit (CHRIS) is the Caribbean’s most noteworthy hotel investment conference. With

  • ver a decade of experience in bringing the hotel/tourism

investment community together in the Caribbean, the host of CHRIS has created a conference which is innovative, timely, and focused. April 26-28,2017 JW Marriott Marquis Miami

slide-71
SLIDE 71

Thursday, May 25, 2017

11:00am - 11:45am EDT Speakers:

  • Fig Cakar, Director, Siteminder
  • Ashwin Kalmani, VP, Kognitiv
  • Matt Cooper, CMO, CHTA

Register Online www.caribbeanhotelandtourism.com/optimizeOTA

FREE WEBINAR

slide-72
SLIDE 72

Taste of the Caribbean provides a forum for gathering practical information, developing skills, sampling, purchasing and strengthening established supplier relationships, as well as exciting educational sessions for food and beverage professionals that promise to enhance individual skills.

KEY CHTA EVENTS

slide-73
SLIDE 73

Business Operations Sales & Marketing Sustainability Social Responsibility

KEY CHTA EVENTS

slide-74
SLIDE 74

FOCUS AREA

HUMAN CAPITAL DEVELOPMENT

  • All of the flavors of the Caribbean will be on full display and coming to

Miami at Caribbean305 taking place at Jungle Island on Saturday, June 3, 2017.

  • South Floridians will have the opportunity to savor all of the diverse

gastronomic delights the Caribbean has to offer at one extraordinary culinary and cultural celebration.

slide-75
SLIDE 75

KEY CHTA EVENTS

The Caribbean's largest and most important marketing event, where tourism suppliers have the opportunity to meet face-to-face with wholesalers from around the world selling Caribbean vacation travel

  • ver the course of two days of business meetings.

Unique Sales, Marketing and Professional Development Opportunities

San Juan, Puerto Rico - late January/early February 2018

slide-76
SLIDE 76
slide-77
SLIDE 77

THANK Y THANK YOU! OU!

Frank Comito Frank@caribbeanhotelandtourism.com www.caribbeanhotelandtourism.com www.caribbeantravel.com