Minister leading talks on way to soften blow of rising prices on tourism sector

As operators in the tourism sector brace for increased commodity prices and further disruption to supply chains due to the ongoing war in Ukraine, they are being given the assurance that help is on the way.

In fact, Minister of Tourism and International Transport Senator Lisa Cummins disclosed that she has started discussions with regional chambers of commerce, in her role as Chairman of the Caribbean Tourism Organisation (CTO) Council of Ministers, to look at how best measures can be put in place to cushion the impact.

She also gave the assurance that Government has been working to expand airlift and diversify the island’s tourism source market into non-traditional regions and countries to help bolster the island’s tourism product.

“I know that there is concern about what is happening in Europe. We don’t have any control over those things, and if COVID has taught us anything it is that we don’t have control over some of the things that will happen in our industry. But what we do have control over is our response to those things and our ability to put mitigation strategies in place,” Cummins said.

Her comments came on Wednesday, as she gave a sneak peek into what she said would be “a far more comprehensive approach to tourism” in Barbados, which includes diversification of source markets, and how the island will be marketed as it emerges from the ravages of the COVID-19 pandemic.

Cummins was addressing tourism industry officials during the virtual Barbados Hotel and Tourism Association (BHTA) first quarterly general meeting for 2022.

“Your costs are going to likely be impacted by the increasing cost of your supplies and goods that you import. Even with the concessionary framework . . . we still have to be able to look at the costs that are not captured, including freight and shipping and those kinds of things.

“So we are going to be working under the umbrella of the Ministry, which is both tourism and international transport, and that captures both the Bridgetown Port for maritime shipping – where the 90 per cent of our goods that service your industry come from – as well as the Grantley Adams International Airport – where the perishables, in particular, tend to come in – and see how we can work with those partners who are shipping and who are part of the supply chain to ensure that we one, have a continuous supply of all of the goods you require to service your property and, secondly, look at the question of what those goods are going to cost you,” the Tourism Minister explained.

Experts have predicted that the continued Russian invasion in Ukraine will drive up oil and other commodity prices globally, given the sanctions being imposed on Russia, one of the world’s largest producers of oil, wheat, fertilisers, and other products.

Chief Executive Officer of the BHTA Rudy Grant expressed concern on Wednesday that just when the island’s tourism sector appeared to be emerging from the turbulence brought on by the COVID-19 pandemic, the Russia-Ukraine war would create a dark cloud over the industry.

“It appears that our turbulent rollercoaster that started in March of 2020 with COVID and was complicated by Hurricane Elsa, the La Soufrière ash fall, the freak storm, will now likely be invigorated by the war in the Ukraine,” he said, as he delivered his report.

However, pointing to the need for deeper partnership with the BHTA, Cummins gave the assurance that a comprehensive approach will be taken by Government to help sustain and grow the tourism industry in the face of challenges.

“I give you the commitment that, certainly from the Ministry’s perspective, our conversation with you is never just going to be about arrivals and concessions or just about occupancy rates. We know we have to have a far more comprehensive approach to tourism and that is what we are doing at a ministry level,” Minister Cummins said.

In relation to airlift, she noted that several discussions have already started with airlines and others would come on stream soon.

She reported that Government was preparing to sign an air services agreement with Qatar while reviewing the existing air services agreement with the United Arab Emirates (UAE), as discussions continued with Emirates Airlines. Government is also in the process of finalising an agreement with Saudi Arabia.

In addition, Cummins said authorities here will be engaging Ethiopian Airlines, while talks have already begun with Kenya Airways to open the African market.

She also noted that work was being done to get flights out of Latin America and Quebec in Canada.

“Those are the things we are working to make sure that we diversify our source market base and not have an extensive dependence only on one region of the world, and we would really like to partner with the BHTA to get it done,” she said.

Cummins also indicated that authorities will be seeking to gather more quality data to help carry out more targeted marketing, and there will also be a review of the Tourism Development Act (TDA) to make sure it is more effective.

Meanwhile, Grant said despite the concerns regarding expected continued fallout from the Russia-Ukraine war and low bookings for the upcoming summer period, he remained optimistic of a full rebound of the sector as stakeholders draw on experiences over the past two years to tackle new and emerging challenges.

He reported that there were already some green shoots, with occupancy rates averaging just over 60 per cent. However, he said projections for the months of July and August were 38 per cent and 33 per cent, respectively.

Grant said he hoped the Barbados Tourism Marketing Inc. (BTMI) summer marketing campaign, which is to be launched on Friday, will “assist in creating greater demand for our destination”.
marlonmadden@barbadostoday.bb