Meat price rise could impact hospitality industry

By Marlon Madden

Tourism industry executives said Thursday they are bracing for likely price hikes in poultry and other meat products that could have a significant negative impact on an industry trying to regain its footing.

But Chief Executive Officer of the Barbados Hotel and Tourism Association (BHTA) Senator Rudy Grant said he would not suggest that there would be any price increases among hoteliers since “it is a matter of having the dialogue” at this stage.

The tourism and hospitality industry depends heavily on local farmers for poultry and other meat products.

Grant told journalists: “It is an environment I don’t know for certain what is happening with the prices. As I said, I heard the Minister of Agriculture make some comments as to how he would wish to deal with some aspects and we were told about some recent price increases which he communicated are now on hold.”

He was responding to questions during a BHTA quarterly media update regarding planned animal feed price that could be as high as 26 per cent.

Pinnacle Feeds Ltd. announced that it would be increasing its prices in line with rising global prices.

While farmers have since indicated that they would be seeking to minimize the impact by pooling resources and buying more of their raw materials in bulk, Minister of Agriculture Indar Weir has been meeting with the feed company in a bid to work out a solution and minimize the impact from the prices increases.

Senator Grant told Barbados TODAY any increase at this stage would only serve to make Barbados less competitive than other destinations.

He stressed the need for a wider discussion about price competitiveness in the tourism industry, while placing greater emphasis on enhancing the value for money proposition so that even if prices go up, consumers did not mind paying more because of an excellent experience and value for money.

“There is a utilization of a lot of local products. Many of the hotels buy directly from farmers who supply them on a weekly basis. The issue of the increases will have an impact on our price competitiveness, and it is something that we need to dialogue about a little bit more,” Grant said.

“As we look to contain any increases in prices, I also think we should be giving some attention to how we can enhance our value for money proposition so as to ensure that while persons are spending a little bit more, what they are getting in terms of value of their trip and the experiences that they get, that those are exceptional.

“And it requires not only the BHTA, the Ministry of Tourism and the other entities like the Barbados Tourism Marketing Inc. to be involved in that process; it also requires Barbadians to have a better understanding of the industry and be committed to ensuring that we are able to fully exploit the opportunities we have in this industry.”

BHTA Chairman Geoffrey Roach pointed out that the imminent price increases must be “addressed in a creative way” so as to minimize the impact on the tourism industry that was now seeking to recover from the ravages of the COVID-19 pandemic.

He told reporters: “The truth is that the increases that we are seeing, if not addressed in some creative way, will definitely have an impact on the industry. This industry requires a significant amount of inputs and a lot of those inputs will be impacted by the increases. So I think as an industry we have to have a discussion on it because I have heard what I consider some creative solutions being mooted elsewhere, which I think we need to have some discussions on.

“It is a necessary conversation because we know that Barbados is viewed as a high-priced destination, and while some of those costs are likely to be impacting multiple destinations in the same way, we are still seeking to compete for the same tourist dollar and every additional layer of cost to the industry makes us a little less competitive,” Roach added.
(marlonmadden@barbadostoday.bb)