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 Caribbean Hotel Association Moves Forward to
Steer Hospitality Industry Through Crisis

SAN JUAN, Puerto Rico (November 29, 2001) -- The terrorist attacks in the United States on September 11th, 2001, have sent shockwaves around the globe.  The uncertainty that followed continues to reverberate throughout the world, impacting every major industry and in particular, the travel and tourism industry.  Further, the crash of the American Airlines flight from New York to the Dominican Republic on November 12th indicates that from now on safety and security will always be on the forefront of the traveling public�s minds.  As a result, the normally resilient Caribbean tourism industry is suffering from all
of this, and occupancy and average rates are well below expectations.  The Caribbean Hotel Association (CHA) is moving forward on certain initiatives to steer the Caribbean hospitality industry through the crisis.

Marketing 

Perhaps the most significant step forward is the approval by the Caribbean Community (CARICOM) of a US$18 million public/private sector emergency tourism promotion program to rebuild tourism in the Caribbean, and fill our airplanes and hotel rooms.  The initiative will be spearheaded by CHA and branded �Great Places of the Caribbean.�  �This is the opportunity for the hospitality industry to take charge of its own fate and market the region as one, following on the steps of similar successful private/public sector efforts by such popular destinations as Florida, Hawaii, and Canada,� said Ralph Taylor, President of CHA.  �Private sector leadership of the regional marketing initiative will enable us to raise additional sponsorship and funding.  The formula of Great Places is based on the premise that �you must pay to play.�  The countries and companies that contribute will be highlighted in the campaign promoting the region as one destination,� added Allen Chastanet.

In addition, with the industry at a crossroads and in recovery since September 11th, it is imperative that the Caribbean gets back to the business of doing business.  Now more than ever, CHA Marketplace, to be held January 13-15, 2002 in Cancun, Mexico, is one of the most important tourism marketing fora for Caribbean suppliers, hotels, airlines, car rental companies, etc., and buyers (tour operators/wholesalers) from worldwide markets to meet and create business opportunities for the coming season.

�As a result of �911,� the Caribbean is emerging as an alternative destination, especially for Europeans that traditionally travel to destinations in the Indian Ocean, the Gulf States, and North Africa, as well as the Latin American traveler who normally goes to the United States,� explained John Bell, director general and CEO of CHA.  �This will provide Caribbean suppliers with a broader database of buyers � therefore, more business opportunities,� he added.  To maximize the opportunity, for the first time in 2002, incentive buyers, meeting planners, group buyers and dive shop owners will also be able to attend the marketing event as qualified buyers.

On the consumer front, despite the significant decline, people continue to travel.  �We do not know how long this will last, but we do know that there are educated consumers who will look to the travel industry for 'deals,�� explained John Bell.  �Destinations are in the news, and therefore it is the most critical time for hotels and destinations to be back in the marketplace.�  In an effort to create a unified message from the many resorts and hotels in the Caribbean, and, ultimately, increase the number of travelers from the United States to the region, CHA is serving as a clearinghouse of discounts and travel packages being offered by its members in the region for dissemination to the trade and consumer press.  The initial public relations effort in October received excellent response from the media and coverage was garnered in a variety of trade and consumer publications in the United States and Canada.  It will be followed by periodic efforts targeting different niche markets, such as romance, family travel, diving, etc.

Advocacy 

CHA looks forward to the Caribbean Tourism Summit Conference to be held December 8 and 9th, in the Bahamas.  The Caribbean hospitality industry will be able to table its concerns directly with the heads of government of the Caribbean islands, with one strong, clear voice.  �This summit will be critical in making our industry stronger and more competitive, especially if we are able to come out of it with clear decisions and strategies to resolve outstanding critical issues in areas such as safety & security; human resource development; tourism & taxation; environmental protection; linkages with other sectors and investment,� said Ralph Taylor.

One of the most pressing concerns in the aftermath of September 11th is the announced redeployment to the Caribbean of as many as 18,000 berths, mostly sold at drastically-reduced prices well below the break-even point of Caribbean hotels.  The cruise industry currently has almost as many berths in the Caribbean as there are hotel rooms;  however, cruises only generate 7% of tourism revenues, compared to 93% generated from hotel-based tourism.  The cruise lines enjoy a privileged business arrangement, with allowances and financial opportunities that give them competitive advantage over Caribbean hotels. 

�CHA, its member associations, and the tourism private sector it represents, have no quarrel with the Cruise Lines.  They are good businessmen who have succeeded in creating a virtually tax-free environment within which to do business,� added Ralph Taylor.

�However, competition, while healthy, must also be fair - and so we appeal to Caribbean governments to help us protect the much wider and deeper economy and employment structure of those Caribbean nationals who earn a living in land-based tourism.  It is time that the cruise industry contributed properly to the economic development of the Islands from which they profit so handsomely,� he concluded.

Further, while the Caribbean tourism industry is the most important economic activity and principal foreign exchange earner for the region, there is still a need to increase the awareness of the Caribbean people of the importance of this industry to the economic and social well being of the region.  CHA firmly believes that it is critical for the tourism private sector to work very closely with Caribbean governments to develop policies that foster the sustainable development of tourism, which is so critical to the Caribbean, and too often taken from granted by all concerned.

With that in mind, CHA has embarked on two initiatives designed to collaborate with the Caribbean press in order to enhance awareness and involvement:  the first, an annual Tourism Media Awards program
open to all journalists working for print, radio, tv, and internet outlets in the Caribbean.  The aim of the program is to recognize and foster excellence in tourism reporting.  In addition, CHA has kicked off in November a series of monthly print features on Caribbean Tourism, titled �Tourism Talk�, to help educate and inform the public on the importance of Tourism to the individual economies of Caribbean States and the Region as a whole.  CHA hopes that the Caribbean media will join CHA in this effort and consider publishing the series on a regular basis.

�CHA recognizes that these are difficult times and is convinced that it is critically important that all in the Caribbean tourism industry show unity and leadership and remain committed to surviving the crisis as one,� concluded Ralph Taylor. 

Caribbean Hotel Association is dedicated to excellence in hospitality, leadership in marketing, and sustainable growth in tourism, to the benefit of its membership and that of the wider Caribbean community. The members of CHA represent the entire spectrum of hospitality industry�s private sector, from over 1,100 member hotels in 35 national hotel associations, to allied members including airline executives, tour operators, travel agents, trade and consumer press, hotel and restaurant suppliers, and others. CHA is headquartered is in San Juan, Puerto Rico, and maintains an office in Miami, Florida.

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Contact:

 Caribbean Hotel Association
Lorraine Ortiz
tel. 787.725.9139
[email protected]
www.caribbeanhotels.org

Also See Caribbean Hotel Association Takes Action On Behalf of Regional Tourism Industry / Sept 2001  


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