Identifier
Created
Classification
Origin
08NASSAU765
2008-10-30 15:47:00
UNCLASSIFIED
Embassy Nassau
Cable title:  

TOURISM LEVELS DROP IN BAHAMAS FOLLOWING ECONOMIC

Tags:  ECON ELAB BF 
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R 301547Z OCT 08
FM AMEMBASSY NASSAU
TO SECSTATE WASHDC 5847
UNCLAS NASSAU 000765 


STATE FOR WHA/CAR

E.O. 12958: N/A
TAGS: ECON ELAB BF
SUBJECT: TOURISM LEVELS DROP IN BAHAMAS FOLLOWING ECONOMIC
DOWNTURN IN U.S.

UNCLAS NASSAU 000765


STATE FOR WHA/CAR

E.O. 12958: N/A
TAGS: ECON ELAB BF
SUBJECT: TOURISM LEVELS DROP IN BAHAMAS FOLLOWING ECONOMIC
DOWNTURN IN U.S.


1. Summary: Tourist numbers in The Bahamas have decreased
following the recent economic downturn in the U.S. Newly
released visitor arrival numbers show a 9.6% drop in overall
numbers for the first half of 2008. The economy of The
Bahamas is dependent on tourism, which accounts for nearly
70% of the work force. Hotels are reporting low occupancy
rates, many below 35 percent. As a result several have had
to reduce staffing hours or lay off employees. Local media
report that this downturn in the tourism sector is the &true
category six hurricane8 for The Bahamas. End summary.

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Significant Drop in Tourist Arrivals
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2. Recently released visitor arrival numbers from the
Ministry of Tourism and Aviation show a 6% drop in visitor
numbers in July and a 9.6% drop in overall numbers for the
first half of 2008. Tourist numbers traditionally drop
during the months of September and October but this year is
lower than average due to the three hurricanes that passed
through the Caribbean region in September and the economic
downturn in the U.S. In addition, travel from The Bahamas to
the U.S. has declined by 30% according to the Department of
Commerce. This decline can also be attributed to the recent
economic downturn in the U.S


3. Hotels have reported low occupancy rates and some are
unable to continue operating at current staff levels.
Occupancy at The British Colonial Hilton has dropped 8
percent from 2007 levels; overall occupancy rates in Nassau
have dropped 21 percent. Many resorts have cut back work
hours for each employee to two or three days a week so that
workers can remain on staff and receive a minimal paycheck.
Cruise ships, which make up a large portion of the tourist
market, are also reporting low occupancy levels. The hotel
industry blames the economic downturn in the U.S. for the
fall in tourism, saying American citizens are not planning
vacations when they are worried about retirement funds.
Despite the increase in numbers of European and Latin
American travelers to The Bahamas this year, the nation is
still dependent upon the millions of U.S. citizens who visit
every year.

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Ministry Challenges Service Industry to Raise Standards
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4. Director General of the Ministry of Tourism and Aviation,
Vernice Walkine, publicly pushed tourism sector employees to
provide better service to the fewer tourists still coming to
The Bahamas. Walkine also made the politically incorrect
assertion that service quality would be higher if hotel jobs
were given to third country nationals. It is clear the GCOB
is nervous about the future of the economy and is encouraging
Bahamian citizens to take responsibility for their part in
providing tourists to the island a quality experience that
will encourage repeat visits.


SIEGEL