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OLIVER
JORDAN
President and CEO of the Barbados Tourism Authority
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Q:
What are the strengths and competitive advantages of
the tourism sector here in Barbados?
A:
One of the strengths is the fact
that Barbados is seen as a world class destination,
one of the premier destinations in the region. The demographics
of our visitors stand to match that, and the fact that
we tend to attract higher yielding visitors than other
destinations. 40% of our business is out of the UK market
because of the traditional links between Barbados and
the UK, and we have been able to build on that over
the years. So, I think one of the main strengths is
that we a pretty upscale market, obviously we have had
challenges in the last two years, given the issues for
September 11th, but I think one of our strengths is
that we have been able to rebound from that and as you
said the growth in our visitors has been just under
7%.
We
here in Barbados represent a somewhat more expensive
destination, and because of that we position ourselves
at the higher end of the market.
Q:
After a strong 2003, What are the forecasts for the
sector over the short to medium term?
A:
The forecast for 2004 is of 5%
growth. I think the last two months of the last year
were very strong, and this is what pushed it up 6.6%.
So, we are probably expecting more, however we cautiously
say we will have a 5% growth this year.
Q: In your opinion, how will the next five years
go?
A: The next five years,
I think will be pretty good, going up to 2007, year
where we will host the Cricket World Cup. Over the next
few years you will see significant upgrading in the
accommodation plant in Barbados, both towards 2007 and
maintaining our competitive advantage. So I think we
will have a growth of at least of 5%.
Q: Is Barbados unique in the region, or are there
other competitive countries in the region?
A: There are other countries
with different types of advantages. Trinidad for instance,
they obviously have the energy; they are not so big
as Barbados in tourism. Jamaica, is probably a closer
example to Barbados with a fairly strong tourism industry,
but again the Jamaica's tourism industry tends to focus
more to the US market, which represents 70% of their
business, whereas we tend to focus in other directions,
with a 40% out of the UK.
Q:
What do you think the sector needs?
A: The biggest thing is
more investment. We probably don't have enough room
stock at this point to match a future growth needs.
I know the government is taking a very active role in
ensuring we attract enough investment to this sector.
Q:
I read an article on the local newspaper where the writer
was complaining that there the marketing budget for
Barbados was not enough. How do comment on this?
A: Well, people complain
there is never enough. If you look at the investment
that the government has made in this industry in the
last two, three years has been quite significant. The
challenge for us is to deploy that capital in the way
we get the greatest return. We can always all do with
more money, but there are other sectors in the economy
that need to balance with the money the government is
funding with. We have been fairly blessed in terms of
support from the government, so I am not as concerned
about that as some other people. In terms of bureaucracy,
most of our business is conducted outside of Barbados
so it does not really represent an issue for us. As
our job is to promote Barbados overseas, 80% of our
budget is spent outside of Barbados.
Q: Can you describe to the USA Today readers
the aims of the BTA and the methods you employ to achieve
those?
A:
The primary aim of the BTA is to promote Barbados as
a tourist destination in all of our major source markets.
Building on that, what we have had to do in the last
few years is to really look at some of the issues that
we faced. Even before September 11th, there were some
structural issues in the industry that were affecting
us as a loss in the key markets. So our focus over the
last two or three years has been threefold: one, we
have gone after additional air services into Barbados
and we have been pretty successful, we have attracted
a number of new carriers from the U.S. market, US Airways,
Continental and we are in discussions with a number
of other airlines from the U.S. to bring additional
services to Barbados. With been able to get additional
services out of the UK, Canada and out of continental
Europe. And then, with the additional funding we have
been able to do stronger marketing programs to support
the airlifts, as we need to ensure that the planes come
and that are full.
And we have changed in the last two or three years,
in terms of restructuring in order to be more flexible
and have less bureaucracy: in the tourism business is
very competitive and you need to make decision quickly.
Q:
What are going to be the main points on your agenda
for 2004?
A: 2004 is really going
to be about building on the successes of last year.
We are looking at a number of new services out of Portugal
and couple of new services out of the U.S. and British
Midland has announced a new service out of Manchester
to Barbados. So we are going to build those and we are
going to look at some of the markets where we haven't
been successful and assess if we have to redirect those
resources to other new areas like South America. As
I said, its really just building on the successes of
last year to sustain the 5% growth.
Q:
What is the customer profile you are looking for?
A: Because we are a more
expensive destination we need to position ourselves
as a higher class destination. There is also a range
of properties in Barbados that accommodate for almost
any kind of budget. Take the example of Paris. People
see Paris as a place of romance but you can go from
20 euros a night to up to 2000 euros a night. Positioning
the destination as one thing doesn't mean you only want
certain types of customers. Generally we have to attract
more customers at the higher end than the lower end.
I think that naturally, we will attract wealthier visitors,
because of the higher costs to reach the island. Take
for example visitors coming over from New Jersey with
the Continental service. Because Barbados is so far
south the cost is more expensive than flying to Jamaica
so naturally you're going to attract consumers who can
afford it.
Q:
With regard to your marketing strategy and branding,
what has it been and what will it be?
A: We are actually in the
middle of re-branding. Our new tag line will be: "Barbados.
The last authentic Caribbean experience." The previous
tag line was: "Barbados, just beyond your imagination."
It has just recently been approved and its going to
be launched now. In the U.S. it will be launched with
a new television campaign.
Q: Corporate travel represents a large portion
of world travel, and it is very sought after by many
countries as revenues are significantly higher than
those of leisure travel. How important is this segment
in Barbados, and what are your personal views regarding
this market?
A: We will take it where
we can get it. Its not something that we are actively
in pursuit, because generally people travel for business
reasons not because they saw and ad. I think that provided
that we provide the necessary services, then those businesses
will come.
I would say that conferences, is more significant for
us. We have an incentive program working with the Sherbourne
conference centre, to go into the U.S. market to attract
more conferences to Barbados. Especially with the Hilton
coming on board in November, its going to attract additional
conference facilities. Infact the World Travel Awards
will be held here in Barbados in November.
Q: What other market segments are you expanding?
A:
Golf is one of them we are focusing
on heavily. We have a partnership with the major golf
clubs on the island promoting Barbados as a Golf destination.
We are looking at the Diving market. There is a big
market for diving in the world and we are aiming at
expanding even further are offer. Another one is weddings
and honeymoons which we will be working on.
Q:
In 2001, year of the September 11 attacks, arrivals
from the U.S. were over 100,000, with a 21% of the total
market share in arrivals. Would you say that the U.S.
traveller confidence has started to build up to the
levels it was before?
A: I would say it has started
to build up, but I wouldn't say it is back to normal
yet. Obviously there are still many security concerns,
BA is cancelling some of its flights at the moment.
So, with of all of that stuff going around the media,
there still is some sense that something could happen.
But generally, the issues of the past are beginning
to fade and people are ready to travel again. In January
alone, business from the U.S. was up 10% and due to
the additional airlift, U.S. market share is going up
above 20%, so I think eventually it will come back.
Q:
Could you expand a little more on the programs to attract
more visitors specific to the U.S.?
A: One of the things that
we launched over the last two years is the "Best
of Barbados" program which involved 200 U.S. aircredit,
plus free breakfast at hotels and discounts off attractions
of the island. That did fairly well, as I said one of
the issues in the U.S. is because we are so far south,
the tickets are more expensive than some of the northern
destinations. And especially in times when people were
a little reluctant to flight, price was really driving
everything. Through the "Best of Barbados"
we were able to be more competitive.
Q:
What does it mean to you to be voted, out of hundreds
of thousands of votes the Caribbean's Leading Tourist
& Convention Bureau. At the World Travel Award,
what many in the industry consider as the best endorsement
that any travel product could receive?
A:
It meant a lot to us and to the
entire country. It means that people outside of Barbados
actually recognise what we are doing, under very challenging
times, as I said the last two or three years have not
been very easy. A lot of people here in Barbados have
been working very hard. A fantastic feeling.
Q: I would like to invite you to give a message
to all of the USA Today readers out there in the world.
Something that you personally feel they should know.
A:
"A little bit further to
get to, but a whole lot harder to leave."
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