Finance Minister predicts slower 2009 Tourism Season

By Melissa Bryant
Reporter-SKNVibes.com

Finance Minister Dr. the Hon. Timothy Harris

Dr. Harris made the declaration at a press conference held yesterday (Dec. 8) at the Ministry of Finance Headquarters on Church Street while addressing the impact of the global financial crisis on the economy of St. Kitts and Nevis.

The Minister explained that the loss of wealth and worldwide drop in consumer confidence are impacting negatively on consumer expenditure. He revealed that local hotels are currently experiencing lower bookings when compared with the same period last year, and that while cruise arrivals continue to be positive there has been a noticeable reduction in expenditure by passengers.

He also pointed to the temporary closure of the Four Seasons Hotel in Nevis as another factor for the proposed reduction in the growth of the tourism sector, noting both high-end and more economical-type hotels are experiencing soft and depressed fall seasons.

“The loss of the Four Seasons Hotel is significant not only for Nevis where it contributes near 70 percent of tourism expenditure, but to the entire Federation.

“With its 196 hotel rooms, Four Seasons was the second largest hotel in the Federation. Its high-end passengers were significant to the meeting of desirable seat occupancy levels with major airlines and contributed in no small way to the profitability of those routes,” Harris said.  ~~Adz:Right~~

He further stated that the decrease in arrivals and lower expenditure would likely lead to job losses in the tourism sector, a reduction in the work week for employees and lower revenues for government, given the multiplier impact of tourism expenditure across the economy.

He however offered counsel to tourism workers who may struggle during the impending trying times.
“Try to attain the highest level of performance and productivity. Be flexible enough to perform other tasks than those to which you were customarily assigned. Be flexible in the hours you are willing to work. Be prudent in your spending. Be encouraged to save. In the event of layoffs, make arrangements for rescheduling debt with your creditors,” he advised.

Dr. Harris also had words of wisdom for governments across the region.

“Every country that is serious about tourism knows it has to improve the marketing of their tourism product in this climate. Whether that means they may have to expend more on existing resources or instead look towards alternative markets from which tourists can come, it is obvious that much more targeting of expenditure needs to be done for the industry to persist during this economic meltdown,” he stressed.