Tourism Performance past 50 Years Tourism has grown significantly - PowerPoint PPT Presentation

Tourism Performance past 50 Years  Tourism has grown significantly since independence  Tourist arrivals have increased from a modest 35,000 in the 60’s to 591,000 in 2015  Cruise passenger arrivals have also seen tremendous growth over the period to also register around 586,000 annually

Recent performances  The island in 2015 saw over 1 million visitors  Tourist arrivals recorded the highest level ever in 2015 with 592,000 tourists  Arrivals for 2015 increased by 13% compared to the previous year  2016 is set to also be a record breaking year and for the first time the island will eclipse the 600,000 mark  Arrivals to June have shown an increase of 5 % compared when compared to 2015  Cruise passenger arrivals increased by 5% in 2015 to total 586,000 cruise visitors

Distribution of Tourists 2015  Barbados has been OTHER working on diversifying CENTRAL & BRAZIL OTHER its market base SOUTH 1% 2% OTHER AMERICA  Initiatives have been CARIBBEAN 1% 11% made in the USA with a UNITED significant increase in TRINIDAD STATES & TOBAGO 25% airlift which has resulted 5% in an increased share OTHER from this market to 25% EUROPE CANADA from 21% in previous 4% 12% years GERMANY UNITED 2%  Efforts have also been KINGDOM 37% made to tap into the South American markets

Falling accommodation room stock CLOSED PROPERTIES # ROOMS  Based on research of the properties Almond Beach Village 330 closed over the past 15 years, a total of Sam Lord's castle 239 Club Rockley 152 2055 rooms have been put out of Amaryllis 145 circulation or have been converted to Silver Sands 130 villa/ condo type accommodation. Sandy Bay 129  The island’s room stock has been Glitter Bay 68 growing less rapidly compared to its The Regent 61 Kings Beach 57 Caribbean counterparts. Caribbee 55  In fact there has been a fall-off in Coconut Creek 53 inventory for 2014. Room inventory on Tropical Escape 52 the island stood at 6700 in 1980, while Allamanda 49 in 2014 that number was just over Rainbow Beach 43 St Lawrence Apartments 42 5,900. Other Smaller properties 450 Total 2055

Hotel plant in need of restructuring • It is generally accepted that the hotel plant in Barbados is tired and in need of infrastructural investment reflecting the market demands. – Market asking for medium to large hotels. – All inclusive product offering – Family oriented product development – Development of ultra-luxury boutique hotels – Development of an adequately sized conference facility within close proximity to accommodations – Development of remote areas to accommodate tourism product • The past 15 years prior to 2015 have seen 5 investments in new or fully renovated hotel projects which account for 800 rooms.

Tourism over the next 10 years  Addition of one to two new build or restored properties each year to the productive capacity of the tourism industry from 2015 to 2025  Secure investment to the tune of US$2 billion over the next 10 years  Increase the level of tourist on the island to around 1 million annually by 2025  Doubling of the tourism receipts to US$2 billion annually by 2025  Introduction of 4000 new rooms by 2025 of which 1740 rooms will be within the Carlisle Bay Area  Employment of an additional 7500 persons directly in accommodation establishments by 2025 and a further 16,800 persons indirectly. 7

Future Tourism Development  Tourism development will be pursued with the preservation of the environment and local community at its core  Maximizing the benefits to the economy of future initiatives  Encourage the utilization of photovoltaic and other systems to reduce foreign import bill  Will reflect latest and future trends in tourism development  Standards and quality of the hotel plant on the island must be of world class standards  Due to the nature of the tourism industry, where it draws on many other sectors of the economy, the Integration of the other productive sectors of the economy is paramount and will be actively pursued

Three phases to the development  Phase 1  Expanding the tourism base across wider Barbados  Phase 2  Development of Bridgetown and its Garrison i.e Carlisle Bay Corridor  Phase 3  Development of Harrisons Point

A Revitalized Tourism Industry  Return of the closed inventory to productive capacity in the tourism sector  Facilitate investment in new hotel plant improving the quality of Barbados’ product offering  Spreading the benefits of tourism and infrastructural development across wider Barbados  Encourage the operation of international brands on the island while promoting investment in local brands and the development of luxury boutique hotels  Forge deeper linkages between the productive sectors of the economy and tourism

Planned Investment Initiatives - 2019 • US$1 billion in investment from 2015 - 2019 – Addition of 2300 rooms to the rooms stock of the island – Spread the benefits of tourism across the island – Mix of EP and All Inclusive product – Majority of product will be new rooms – Return of over 800 rooms closed in the last 10 years to productive capacity – Injection of a further US$540 million through visitor spend Planned and Targeted Hotel development 2015-2019 2019 Type of Property Development 2015 2016 2017 2018 Sandals Casuarina 280 All-Inclusive Amaryllis/Sugar Bay Barbados 150 All-Inclusive Sandy Bay/Beach Start Date 153 All-Inclusive Sandals Casuarina Expansion Start Date 220 All-Inclusive Downtown Hyat t Hotel (Bay Street) Start Date 190 European Plan Wyndham Samlord's Castle Start Date 450 European Plan Foulbay St Philip Start Date 309 European Plan Sandals Beaches (Heywoods) Start Date 400 All-Inclusive Other Planned Developments Start Date 150 TOTAL ROOMS ADDED 2302 Total 280 303 220 640 859

Economic Impact on the Barbados economy Direct  contributio n to GDP of US$262.7 million Direct jobs  4528 Total  contributio n to GDP of US$876 million Total  employmen t of 14800

Short term impacts to 2019  In keeping with the Barbados Growth and Development Strategy (BGDS) 2013-2020,  Based on the direct impact of these investments to GDP of US$262 million (based on WTTC economic impact model 2014) and consequently the indirect and induced impacts, GDP is expected to grow at over the 4% projection as required in the BGDS in 2020.  The strategy also calls for the reduction of the unemployment rate to below 7% by 2020. The over 4600 jobs plus an additional 10,000 jobs due to the indirect and induced impacts have the potential for full employment by 2019.  An increase in the economic base will also reduce the debt to GDP ratio of the country

Carlisle Bay Proposed Development  Iconic conference facility  Additional 1400 rooms (5 new hotels)  Marine facility  Entertainment facilities  Bridgetown to be the most vibrant city within the Caribbean

Carlisle Bay Development Proposal: Projected Accommodation US$1 billion in  investment Iconic  Performing Arts / Convention Center 1400 new rooms  Enhancement of  shopping, dining and entertainment experience

Carlisle Bay Development Proposal: Turnover and Facilities Economic Impact Of Carlisle Bay Project Based on WTTC Model 2014 (US$ millions) $ 338.00 1. Visitor exports Domestic expenditure $ 42.71 2. (includes government individual spending) 3. Internal tourism consumption $ 380.71 (= 1 + 2 ) 4. Purchases by tourism providers, including imported goods $ (216.25) (supply chain) 5. Direct contribution of $ 164.45 Travel & Tourism to GDP (= 3 + 4) Other final impacts (indirect & induced) $ 200.77 6. Domestic supply chain 7. Capital investment $ 50.87 8. Government collective spending $ 35.60 9. Imported goods from indirect spending $ (4.08) 10. Induced $ 100.72 11. Total contribution of Travel & Tourism to GDP $ 548.33 (= 5 + 6 + 7 + 8 + 9 + 10) Employment impacts ('000) 2,940 12. Direct contribution of Travel & Tourism to employment 13. Total contribution of Travel & Tourism to employment 9,471

Bridgetown the capital city  The developments in the Carlisle Bay area will provide the daily traffic for Bridgetown to be bustling with activity with over 4000 visitors daily in the direct environs looking for shopping entertainment and dinning  Traffic will create the demand for additional services to support tourism activity thereby creating an entrepreneurial class of persons to supply services to visitors

PHASE 3: THE NORTH Further Possibilities North PHASE 3 Harrison’s Point Atlantic Ocean Caribbean sea International Airport

Harrison Point-St Lucy • 83.4 acres located in the northernmost area of the island • Formerly the home of a USA Naval base, decommissioned in 1979 • One of the most secluded areas in the country • Home to one of three active lighthouses on the island built in 1925 • Area designated for tourism development • Outline town planning approval already given fro tourism project • BTI is willing to work with investors to make hotel and or other development at this site a reality • Tax and other concessions available

Northern Barbados