Maroc - NEWSDAY.CO.TT - A la Une - Hier 10:51

Rebuilding visitor confidence

Tourism – long touted as a pillar for TT’s economic diversification – is facing one of its toughest seasons yet. A mixture of new taxes, a prolonged state of emergency (SoE) and rising regional tensions following US military action have shaken confidence in the sector, with hotel occupancy in Tobago plunging by nearly 40 per cent ahead of the Christmas season. President of the Tobago Hotel and Tourism Association (THTA), Reginald Mac Lean, said some of his members have already complained about losing business since the recent developments. "Our occupancy from two months ago for Christmas into New Year's has dropped by about close to 40 per cent because of what’s happening with the SoE and Venezuela," he told Business Day in an interview on October 29. He said the issue has been standing since the declaration of the December 30, 2024, SoE and has been exacerbated by recent developments, resulting in the industry losing millions of dollars. "I appreciate that the government is addressing crime in this way because we can’t continue as we are going, losing 600 plus of our citizens per year. The drugs are terrible. I appreciate what the US is doing. "Whether they are doing it the right way or the wrong way is not for me to decide but it is having a very negative impact on tourism in Tobago." He said not just hotels are affected, but businesses such as guest houses, restaurants, boat tour operators and hiking tour guides are all affected. "The losses are all around and it has taken a big toll on Tobago. And I suspect this year’s numbers will probably be less than last year." He said the western side of the island did experience some boost for Tobago carnival but there were still challenges. Dianne Joseph, president of the TT Coalition of Services Industries (TTCSI), also noted the effects of recent changes on the industry and consumers. "The current geopolitical climate, characterised by 'rumours of war,' can trigger a chilling effect on international travel. [caption id="attachment_1187545" align="alignnone" width="1024"] SPORTS TOURISM: A foreign competitor dives off the Charlottesville jetty in the Dods World Championship 2025 held in Tobago for the first time. -[/caption] "Potential visitors, particularly those from key source markets in North America and Europe, may reconsider long-haul travel due to a heightened sense of caution or general anxiety," she said "This is not necessarily due to a direct threat to TT itself, but to the broader psychological impact of global instability. "For an industry that thrives on the perception of safety and carefree enjoyment, a global sense of unease is a major headwind." She said any further escalation could also disrupt global supply chains, air travel logistics, fuel costs and ultimately, the affordability of flights to the Caribbean. Mac Lean said that although Caribbean Airlines added more flights to Tobago for the October 22-29 period, it didn’t quite solve the issue of connectivity. "Even though a lot of flights were put on, we don’t have the inter-airline capability yet with other airlines. "If you book for Europe, for example, you won’t see ways to get directly to Tobago. You might get to Barbados or Grenada, but you can’t get to Tobago. "Yes, it's gotten a bit better between TT with flights, but if you’re coming out of the US or Canada for example on a three or four-day holiday, you don’t want to spend a day in Trinidad changing flights and all that." Paradise taxed Mac Lean also spoke on the added weight of a 100 per cent increase in duties on alcohol that has led to major price hikes. Based on the Legal Notice No 376, excise duty on alcoholic beverages went from $5.14 to $10.28 per litre. This immediately took effect on local alcohol, pushing companies like Carib Brewery to raise prices for Carib, Stag and Guinness, among others. On October 29, there was a majority Senate vote to approve the hikes. "We have all-inclusive packages that we have signed contracts with operators in different parts of the world and we can’t change those prices." "A bottle of the cheapest prosecco now might be $110 or $120 for us to buy, that’s now going to be close to $300. "If you look at a bottle of Johnny Walker Black for $240, that’ll go up by $200. "We can’t compete now with all the other countries in the Caribbean." He said even prior to the changes, the price of local black label rum was 50 per cent cheaper in Grenada than in TT. Joseph said that this is most critical for the Christmas and Carnival seasons, where social gatherings and celebrations are central to the experience for both locals and tourists. "For bars, restaurants and event promoters, the impact is two-fold. First, they face increased wholesale costs, which they must either absorb, squeezing already thin profit margins, or pass on to consumers. Second, the resulting price hikes could alter consumer behaviour. Locals and visitors, particularly those on tighter budgets, may shift their spending towards cheaper alternatives or reduce their consumption altogether. "This could dampen the festive atmosphere and impact overall revenue for a wide range of businesses, from high-end hotels to small food vendors." Mac Lean said maintaining competitiveness in these circumstances is a challenge. "I understand what the government is trying to do in the sense that we’re too much of a drinking country, but the prices aren’t going to change that. "People are going to find the money to do it. But it’s going to hamper business in tourism, so right now we’re not sure how Tobago is progressing." The ripple effect Mac Lean also lamented the effect of these combined impacts on establishing international relationships in the tourism industry. [caption id="attachment_1187544" align="alignnone" width="1024"] SUN, SAND & SEA: In this file photo, tourists and visitors flock to Store Bay, Tobago for the Christmas holiday. -[/caption] From November 4-6, the World Travel Market will be held in Excel, London, providing a platform for delegates from over 180 countries to connect. Although TT will participate, Mac Lean said the opportunities in that event will be limited by the current circumstances. "It’s very costly to do these shows and when we get there, some of the questions we’re going to be asked by the people we deal with that bring us business, is how are we going to cope with the increases, what are we doing about the SoE, how is crime? "We have to get it under control…but at the same time, how many businesses are going to go out of business because of it?" Director of the Tourism Industry Association of TT and general manager of the Cascadia Hotel, Barry Bidaisee, said activity for the upcoming Christmas and Carnival season looks more promising in Trinidad. While acknowledging the anxiety among some customers and stakeholders, Bidaisee said the situation is being monitored. "As of today we have no fallouts at this time. My colleagues have indicated business as usual and I have been receiving continued reservations for Carnival 2026." He said his colleagues are experiencing a high 90 per cent occupancy currently and anticipate a high occupancy for 2026. Christmas bookings, he said, are also steady and occupancy is expected to increase in December. However, Joseph noted, "While recent reports have indicated optimism for increased Carnival 2025 visitor arrivals, based on prior years' momentum, these predictions were made against a different geopolitical backdrop. "The current uncertainty demands a re-evaluation of assumptions and a proactive stance to maintain visitor confidence." In relation to alcohol prices, Bidaisee said each owner will have their own way of combating the challenge. "Each property has its own markup percentage on alcohol. It will be a skillful exercise to ensure that you retain market share and not outprice yourself. The market is very price sensitive but I foresee no major fallouts at this time." Building on resilience Bidaisee said following recent budget announcements, stakeholders are awaiting the rollout plans for the tourism industry. "We are also looking forward to moving the tourism industry in new and positive directions as it has been labelled as a pillar for diversification." He especially welcomed the Finance Minister’s announcement that the Hotel School in Chaguaramas, which closed down during the covid19 pandemic, would reopen. "This is long overdue and it means a lot to us in training. We welcome the development of sports tourism in the budget presentation, as this is a niche market that can bring major success to us. It's a market that we currently have but we can build on it to make us one of the leaders in the Caribbean." He said developments in cruise tourism and other aspects of the hospitality industry are also on the agenda. "Our tourism people in TT are resilient and passionate about and we will work hard to build this industry in the face of any adversity." Joseph echoed this sentiment saying while TT’s current challenges are formidable, the country has a remarkable spirit of resilience "in the face of adversity, from economic volatility to pandemics. By combining strategic foresight, agile adaptation, and the collaborative spirit that defines the Christmas and Carnival seasons, businesses can navigate this storm." "The goal is not merely to survive but to reaffirm the enduring spirit of TT, proving once again that its culture and celebrations are too vibrant to be dimmed by the uncertainties of the world."   The post Rebuilding visitor confidence appeared first on Trinidad and Tobago Newsday.