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(CNS): The number of overnight guests visiting the Cayman Islands this year is now close to pre-pandemic levels, providing a welcome increase in government revenue, which has been boosted by inflation that has led to an increase in hotel room rates. Tourism Accommodation Taxes and Fees have already surpassed the annual budget forecast in the first six months, according to the Ministry of Tourism, and based on this trend, total revenue this year is expected to surpass the total for 2019, which was the highest on record.
Between 1 January and 30 June, revenue from tourism taxes amounted to CI$28.8 million, which is CI$12.4 million more than the mid-year projection figure in the budget, and around CI$3 million over the target for the whole year, which means that the government has already collected more money in six months than it expected for the twelve months of 2023.
The growth was said to be due to both marketing and the support and commitment from tourism partners and stakeholders. But it is also helped by an increase in the average cost of tourism accommodation. But although Cayman is one of the most expensive Caribbean destinations, the rising room rates do not seem to be putting visitors off just yet.
In a release from his ministry, Tourism Minister Kenneth Bryan said that between January and June, 235,370 stayover guests visited the Cayman Islands, which is 84% of the number of overnight visitors in the first six months of 2019, Cayman’s busiest year to date.
“Tourism performance over the first half of the year has surpassed expectations and underscores the significant rebound in our tourism industry,” he said. “Revenue collection influenced by the increase in the Average Daily Rate (ADR) of accommodations over the past year is indicating a strong and sustained interest in the Cayman Islands as a premier travel destination.”
Efforts to improve air connectivity have also paid off significantly, the ministry stated ahead of Monday’s announcement that Cayman Airways would be offering flights to Barbados. According to the MoT release, additional new flights and direct connections have resulted in increased bookings.
Over 83.6% of guests came from the United States, 7.5% from Canada and 4.4% from Europe, similar to figures recorded in 2019. Over at the port, cruise passenger arrivals for the first half of the year amounted to 738,462 passengers, or 73% the pre-pandemic visitor numbers of 2019.
Overall, the re-growth of tourism has been bolstered by robust performance in traditional source markets and emerging regions, as well as inflation. Tourism Director Rosa Harris said the revenue collections demonstrated the resilience and adaptability of the Cayman Islands tourism industry.
“I am thrilled to see the numbers are ahead of our projections for the first half of 2023, particularly since revenue and visitation targets for 2022 were also exceeded,” she said. “As we look ahead to the remainder of 2023, I am optimistic about sustaining this positive growth trajectory and maintaining the Cayman Islands’ position as a leading travel destination in the Caribbean. The Department of Tourism is also working hard to build on this momentum by continuing to implement innovative strategies to attract more visitors to our shores.”
Despite the healthy revenue collected from tourism, the opposition has criticised the government for its failure to roll out a clear cruise policy, given the expected decline in the headcount of cruise visitors. Deputy Opposition Leader Joey Hew said the ministry has no real idea what to do about the decline and no strategy to manage it.
“The minister sees no need to develop a fully considered cruise tourism strategy during a decline in the cruise business, with the jobs of several thousand families dependent on cruise tourism at risk,” he said. “It is very likely that the decline will be more than 25% and will last longer than… three years.
Hew stated that if the Progressives were returned to office, they would begin a review and a national discussion about the future of the sector in their first year. Falling short of saying they would re-start their previous plans for a cruise port, which proved to be extemely controversial and ultimately very unpopular, he said they would identify the changes that are necessary in the short term and the long term to plug the gap.
Speaking on Radio Cayman last week and in a video message on social media, Hew added that the minister did not appear interested in a national conversation about cruise tourism. He also took aim at the numbers, stating that it was not hard to surpass targets that are set so low.
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