Meeting News - September 22, 2008 - (Page 38) Destination Insider: Bermuda Edited by William Ng william.ng@nielsen.com Downturn in Meetings Blamed on U.S. Economy, Election Year Bermuda has experienced a decline in meetings and convention business that mirrors a downturn in overall tourism to the island, and officials are pointing the finger at the U.S. economy and presidential elections rather than at any intrinsic weakness in Bermuda’s tourism product. Visitor arrivals to the island were down about 8 percent in first-quarter 2008, according to the Bermuda Ministry of Tourism. During the same period, group arrivals slid from 3,863 in 2007 to 2,261 in 2008. However, tourism officials noted that 2008 has been a record-breaking year for the two large Fairmont properties on the island. “The first-quarter visitor statistics reveal Bermuda is not immune to the economic slowdown in the United States,” said premier Ewart F. Brown. “Fortunately for us, our core market remains affluent travelers who have proven less susceptible to an economic slowdown. If not for that silver lining, I suspect the first-quarter statistics would have been worse.” It’s been decades since a large property has opened in Bermuda, but John Harvey, CEO of the Bermuda Hotel Association, dismissed the notion that meetings offerings have grown stale,noting that properties like the Fairmonts continue to pour millions into renovations. “The island has seen steady growth in the meetings and incentives market over the past few years,” added Karin Darrell, Bermuda Department of Tourism’s regional sales manager. “Only this year have we seen a downturn, which Bookings at Fairmont Hamilton Princess are said to be going is not uncommon with gangbusters, but tourism on the island is down. Shelly Meszoly, regional director of sales and an election year,” when Americans have historically traveled less overseas.“Whenever there is a down- marketing for Fairmont Bermuda, said, historicalturn, the first area that notices the change is the ly “a lot of companies don’t plan meetings during group market—which is not unique to Bermuda.” an election year,” adding that planners appeared to grow more cautious about scheduling meetings as the real-estate crisis began to bite last fall. “We knew we were going to struggle,”said Meszoly, who markets both the Fairmont SouthampHowever, large question marks hang over ton and the Fairmont Hamilton Princess as destimany of the projects. Bermuda officials acknowl- nation properties. “We had some really large edged in mid-September that the developer of groups in the first quarter of 2007 that went away.” the Park Hyatt had not secured financing for the The upside, said Meszoly, is that there is “lots of project, and Park Hyatt declined to comment, space available in 2008-09.” Meszoly noted that saying it was “not part of our signed agreements.” groups looking at between mid-November and While the tourism ministry counts a 202- early March can expect to get “five-star resorts for room Ritz-Carlton hotel on the former Golden three-star prices” and said that while beach weathHind resort site among new developments, a er may extend only into December,weather for golf Ritz-Carlton spokesperson said the project is is great year-round. (Bermuda markets November “not on our radar screen for now.” through March as “Golf & Spa Season.”) A plan to build a 325-room luxury Jumeirah Bermuda also has extended its Group Delegate resort seems further along, but local opposition Program for off-season meetings through March sunk plans to build it at Southlands. In April, the 2011. Under the program, groups staying at pargovernment said the hotel would instead be built ticipating hotels get $200 per delegate credited at Morgan’s Point, a former U.S. Navy base, but back to the master account. The Fairmonts, the project remains in the discussions stage. which participate in the program, also offer a 10“The Bermudean developers, along with the percent credit for a future meeting when 50 government, have been looking at a different room nights or more are booked for a meeting site,” according to a recent statement from in 2008-09. Under corporate parent Fairmont’s Jumeirah Group.“We continue to be committed Meetings That Matter initiative, the value of the in Bermuda.” —Section by Bob Curley credit also can be donated to charity. r www.meetingnews.com Multiple Hotel Projects Still Stuck on the Drawing Board The 593-room Fairmont Southampton and 410room Fairmont Hamilton Princess resorts represent one-third of Bermuda’s room inventory and host most of the meetings on the island. That domination could change dramatically in a decade if the major hotel projects currently in the proposal stages become reality. That’s a big if, however. Bermuda tourism officials boast of having 15 major hotel projects under way, representing a total of $2.2 billion in investments. Most of them have meeting and convention facilities, some geared to small meetings and others to large conventions, said Karin Darrell, regional sales manager for the Bermuda Department of Tourism.“We anticipate that the first will open in late 2011 or early 2012.” Also, in April, the government announced that the former Club Med resort in St. George’s would be redeveloped as a 100-room Park Hyatt property with a 12,000-sf spa, an 18-hole Nick Faldo golf course, five restaurants, and “extensive meeting and function space.” 38 MeetingNews September 22, 2008 http://www.meetingnews.com
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