CHTA to end the year positively

by Marlon Madden

The Caribbean Hotel and Tourism Association (CHTA) is projecting a steep drop of about 60 per cent in income for this year, compared to 2019 figures.

Presenting the Treasurer’s report recently during the CHTA annual general meeting, James Hepple said the organisation was projecting income to fall from US$1.958 million to just over US$777,600 by the end of this year.

“This is because of firstly, a substantial 65 per cent drop in income from our partners, which is falling from $676,024 to a projected $234, 237,” said Hepple.

He said a decline in income from events including the annual CHTA Marketplace, which was held virtually this year, as well as the absence of Taste of the Caribbean, Caribbean Hospitality Industry Exchange Forum (CHIEF) and Caribbean 305, will all contribute to the overall decline in income for this year.

“Therefore, we saw a drop from US$830,231 in income from events in 2019 to just $149,365 in 2021, a drop of $680,866 or 82 per cent,” said Hepple.

There was also a decline of US$100,559 or
23 per cent in membership dues, to a projected $326,881 for 2021.

“At the beginning of the year we were aware these declines in incomes would take place and therefore expenses would have to be further reduced.

“So, expenses are projected to fall by 69 per cent in 2021, compared with 2019, falling from US$1.989 million to a projected US$624,368.

“As you can imagine, that’s had an enormous impact on the ability of our organisation to execute plans and programmes. We have to address that moving forward,” he said.

Staff related expenses were slashed by US$458,719 or 56 per cent, which included mostly payroll and related costs, going from US$816,131 in 2019 to a projected US$357,412 this year.

Event related expenses will see a projected
95 per cent reduction, with only US$40,009 projected to be spent on events this year.

Operations related expenses will also see a major reduction this year of about 81 per cent, to reach just about US$33,260. This reduction, according to Hepple, was primarily as a result of the CHTA being able to get out of the lease for its office in Coral Gables in Florida.

The CHTA is also forecasting a 38 per cent reduction in activities related to staff travel and board and committee meetings this year, down from the US$75,786 spent on those activities in 2019.

“So as a result of these cuts and as a result of income performing a little bit better than expected, we are projecting a surplus of US$153, 240 for 2021,” he reported, adding that while an initial 2021 budget was prepared in October last year, that budget had to be revised, and a new one was presented and approved in March of this year.

Provisional figures show that CHTA is expected to finish this year with cash flow of about US$132,380, more than double what it ended with last year (US$53,550).

Last year, the organisation recorded a 22.7 per cent decline in income, when compared to 2019. At the same time, expenses fell by 54.7 per cent last year to reach US$901,764, compared to the US$1.989 million in expenses for 2019.

“It is very important for members to understand that because the way in which the CHTA’s operations have been conducted over the years much of the money for 2020, the revenue income, is received in 2019 and a lot of that cash was used in 2019. So US$681,000 of 2020’s income was actually received in 2019,” Hepple explained.

The CHTA currently has investments valued at just over US$200,500.

marlonmadden@barbadostoday.bb