RE-DEFINING ANGUILLA&#8217;S TOURISM

Some three weeks ago, a sizeable number of public and private sector stakeholders scratched their heads at a forum at Paradise Cove Resort to find answers and solutions to Anguilla’s declining tourist industry. It is a great pity that after a most successful performance of this national economic venture for many years, probably at the envy of some of our Caribbean neighbours, we should now find ourselves in the unfortunate position of struggling to keep this vital industry alive and profitable.

The President of the Anguilla Hotel and Tourism Association reported that the island’s overall occupancy level had dropped from 45% to 35%. There is hardly any comfort in the once higher percentage in that both figures are in fact woefully low for a high-end destination like Anguilla, home to some of the best luxury accommodation and dining properties in the region. Of course there are resorts on the island which, individually, have boasted up to 90% or more occupancy mainly at the peak of the season, but when examined across the board the figures are in bad need of beefing up.

Commentators have expressed the view that with the start of the 2011-2012 tourist season, only just over two months away, the brain-storming forum should have been held earlier. This would have undoubtedly presented both the public and private sector representatives with a better opportunity, and more time, not only to examine what the problems in the industry are, but to devise and implement, as far as possible, new strategies to address the situation.

One of the possible causes in the decline of visitors was identified as airlift difficulties following the departure of the American Eagle. The fact is, however, that the airline had previously, on its own volition, substantially reduced its flights to Anguilla as part of its cost-cutting measures along its routes. It is of note that no mention was made during the forum about a reported joint undertaking by the Government and the Hotel and Tourism Association to entice the Eagle to resume its flightsby paying for a specified number of seats.

Another negative issue had to do with the operational costs faced by hoteliers due to certain taxes, coupled with the fact they were obliged to reduce their accommodation and other prices to satisfy the demands of their guests. There are now rumours of a restaurant levy to add to the malady. This burden is not a good experience for these industry partners. At the same time it is also difficult for Government to provide easements on some of the taxes payable by properties when there is such a great dependence on tourism revenue to sustain the economy. Hoteliers argue that there is much merit in their complaints about a situation where the Government extracts the lion share of their profits and that there is a need to consider whether a more equitable tax arrangement can be arrived at.

One of the other drawbacks affecting tourism in Anguilla was pinpointed as insufficient marketing funds. It was reported at the forum that the current approved overall budget for the Tourist Board (covering operational costs and marketing) amounted to EC$8.5 million dollars, down from 10 million.
The view was expressed that the money cannot adequately market the island and that, compared with other neighbouring islands, Anguilla’s marketing budget was extremely insignificant, if not embarrassing. The saving grace, however, is that, unlike the very small properties, including the so-called “charming escapes”, the large hotels and other sizeable accommodation facilities are in a fairly good position to fund their own marketing programmes. For instance, there were some persons at the forum who spoke about Viceroy’s success in attracting many more guests than the other resorts as a result of its ability to meet the high cost of marketing.

There is a move to implement a common tourism marketing strategy for the OECS sub-regional group of islands. But one wonders how this would really succeedwhen each island has its own national interests to protect and support.

Tourism is the heartbeat of Anguilla’s economy, the livelihood of many of its people as well as being critical to the functioning of business in general. There must of necessity be a significant amount of apprehension not only among stakeholders, but the entire population, about the plight of the industry and an economy in which we have all of our “eggs in one basket”.

The stakeholders went away from their forum to consider a number of possible strategies and scenarios and to arrive at workable solutions and decisions. Their task, but more so that of the Government, is to re-define Anguilla’s critical tourist industry, and re-kindle the fire and influence the island once had as a competitive and compelling destination. The hope is that they will succeed for the sake of the economic survival of the island and its people.