- St. Croix Hotel & Tourism Association
BRIEFING
Frank J. Comito, CHTA CEO and Director General
May 17, 2017
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
Frank J. Comito, CHTA CEO and Director General
May 17, 2017
CHTA BRIEFING
Wha hat We’ll Cover….. ..
Data
it About Cuba Cuba
ix Perspective fr from a Former Cru rucia ian
Lookin ing Ahead
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
ABOUT CHTA An Association of Associations
Associations throughout the Region
Regionally/Globally
tourism in the Caribbean
CHTA VOLUNTEER LEADERSHIP
Key Committees, Board and Affiliated Organizations
Sustainable Tourism (CAST), Caribbean Travel Marketplace, People Development
President:
Vice Presidents:
Past President and Chairman:
Treasurer
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
ORGANIZATIONAL PARTNERS
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
SEVEN CORE OBJECTIVES DRIVE OUR EFFORTS
Organization
Shaping a Regional Caribbean Tourism Initiative
tourism entities to advance:
to Support Regional Effort
FOCUS AREA
Advocacy and Government Affairs
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…
Collaborations
When We’ve Marketed the Caribbean Brand…We’ve Seen Results…
Addressing Ongoing Concerns…
VBRO) with CHTA White Paper… Guidelines for Governments and Associations…
Hurricanes …Health and Safety
CHTA FOCUS AREA
Advocacy and Government Affairs
FOCUS AREA
Marketing and Business Development
New buyers, more supplier options, greater niche focus, building MICE component, more connectivity and training. (Every January)
Largest gathering of investors, owners, lenders, developers, hoteliers, government tourism and investment officials to consider and advance
expand, renovate, retro, sell or brand their property.
Year three moves to Miami, with Taste of Caribbean. Networking, best practice sharing, in depth look at issues, professional development.(June)
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.
HUMAN CAPITAL DEVELOPMENT
People Development Initiative Established
STR, Forbes, Springboard Caribbean.
Academic scholarships, training and credentialing support.
Tourism is Key Support Info and Best Practices.
ARDA Support.
Chefs Since Inception.
Tourism Association Executive of Year; Employee, Supervisor and Hotelier of the Year.
Building volunteer base, formalizing nonprofit status.
new online info and tools.
members
savings service to members.
annual training by CCAA/Tropical Shipping
FOCUS AREA Sustainable Development
→ 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
SOURCE: CARIBBEAN TOURISM ORGANIZATION
7th Consecutive Year
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
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
OVERVIEW:
CHTA Annual Industry Performance & Outlook Study
Hotel Performance in 2016 vs. 2015
for 47%
Year; 78% Anticipate Net Profit, 22% Report Net Loss
Increasing Expenditures by More Than 10%
Occupancy
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
Note: The USVI is Ranked #19 in the World in Relative Importance of Travel & Tourism Relative to Size of GDP
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
OVERVIEW:
CHTA Annual Industry Performance & Outlook Study Looking Ahead to 2017
Levels; 17% Will Reduce Employment, 28% to Add Employees
Increase
55% of Hotels; 15% Expect Slight Decline in Rates
First….Understand the Drivers….
Spirit
Sharing Economy: Opportunity or Threat?
Sharing Economy: The Evolution
Consumers Want Choices…. My Dog Won’t Have It Any Other Way
Let’s Understand the Motivations….
a specific neighborhood
“live like a local”
Sharing Economy: Opportunity or Threat? Challenges Presented by the New Sharing Economy:
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…
Word of Caution to Governments: Don’t Jeopardize Hotel’s Viability….It’s Your Mainstay
Sharing Economy: Opportunity or Threat?
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
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
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
average a 5 percent growth in listings.
Opportunities….
Industry
Destination Market Appeal
Tourism
Typical Hotel Licensing Requirements and Hotel-Related Taxes in the Caribbean
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:
established to provide transparency to protect guests and home owner.
amenities are aligned with what is provided to the guest.
In Many Destinations Hotels Are Contributing to the Greater Good
Hotels, Hotel Associations, Industry Enhancement Funds Contribute Significantly to:
Recommendations to Caribbean Tourism Stakeholders
Tourism can serve as catalysts in bringing together public and private sector stakeholders to:
and Safety Requirements, and Standards
Recommendations to Caribbean Tourism Stakeholders
Continued… Engage All Relevant Stakeholders, including:
Home Rental Property Management Expertise
taxation, but will likely resist regulatory requirements)
Turning a Threat to Opportunity
If You Can’t Beat Them…..Hoteliers Can Benefit by….
1. Offering Services and Facilities to Host Property Clients
2. Offering Services to Nearby Host Properties
3. Offering Appropriate Accommodation Offerings Thru Sharing Economy Platforms
Powered by
Conducted by CHTA March, 2017 Results Based Upon 18 Responding Jurisdictions
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)?
Q2: Does your government currently have legislation, licenses or regulations in place for short term rental accommodations (not for hotels, timeshares, or
the ‘sharing economy’ business model?
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?
Q4: Do the legislation, licenses or regulations address issues of standardization and taxation?
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?
IT IS OURS TO DETERMINE
THE CUBA FACTOR
300,000
arrivals growth
normalization with US…. Cuba’s welcomed over 1 million more visitors
CUBA 2016 UNPRECEDENTED GROWTH
increase in American visitors
Travel to Cuba in two years MMGY 2016
Cuba in Future Travel and Leisure Affluent Traveler Survey 2015
CUBA 2016 AMERICAN ARRIVALS
Carriers Offered in 2015
United, Delta, Alaska Airlines, Silver, Frontier….
Reshuffling
in March/April dropping all planned routes
Cities from 13 to 10 with some smaller planes
smaller planes
CUBA 2016
US CARRIERS PROPELLING US ARRIVALS
Nine ships from Eight Cruise Lines sailing from South Florida now offer Cuba Itineraries
CRUISELINES STEP UP CALLS
BUT FOR HOW LONG?
Administration Uncertain – Definite Slow Down on Lifting Embargo; possible reversal (not likely) – Possible Tightening of Travel Eligibility
Qualify as Non Tourism?
US POLICY IMPLICATIONS
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
Arne Sorenson CEO, Marriott Corporation, Feb 16, 2017
US POLICY IMPLICATIONS
Despite Uncertainty, Cuba's Tourism Growth is Certain, With or Without the US.
Socio-Economic Development Vehicle – Foreign Exchange Earner – Employment Generator – Acceleration of Commitments to Tourism
CUBA’S TOURISM GROWTH
Cuba Tourism Growth
CUBA “CUBED”
CUBA TOURISM OVERVIEW
Cuba’s Accommodations Growth
# Hotel Rooms
B&B’s and Airbnb
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
Investment…Property Ownership
CUBA’S GROWTH CHALLENGES
CUBA’S GROWTH CHALLENGES
Adventure Eco-Nature Sports Arts Health and Wellness Affinity Personal Development Professional Development Business Development Celebrations Education Culture and Heritage
increasingly to support investments in paladares and casas particuilares.
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
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
65
High Product Quality • Aggressive Pricing
SHIFTING CONSUMER PREFERENCES
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.
OPPORTUNITIES FOR CARIBBEAN TOURISM ENTERPRISE
Incredible Product Strength and Product Potential
Imagine a Caribbean….
savvy Consumers
KEY CHTA EVENTS
The Caribbean Hotel & Resort Investment Summit (CHRIS) is the Caribbean’s most noteworthy hotel investment conference. With
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
Thursday, May 25, 2017
11:00am - 11:45am EDT Speakers:
Register Online www.caribbeanhotelandtourism.com/optimizeOTA
FREE WEBINAR
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
Business Operations Sales & Marketing Sustainability Social Responsibility
KEY CHTA EVENTS
FOCUS AREA
HUMAN CAPITAL DEVELOPMENT
Miami at Caribbean305 taking place at Jungle Island on Saturday, June 3, 2017.
gastronomic delights the Caribbean has to offer at one extraordinary culinary and cultural celebration.
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
Unique Sales, Marketing and Professional Development Opportunities
San Juan, Puerto Rico - late January/early February 2018
Frank Comito Frank@caribbeanhotelandtourism.com www.caribbeanhotelandtourism.com www.caribbeantravel.com