Premier tells public to brace for tourism downturn

Bermuda Premier, Dr. Ewart Brown

“Bermuda Tourism will suffer in a global economic downturn, especially since the United States is feeling the brunt of that downturn and eighty-five percent of our visitors are from the US market,” Brown said in the address.

In expounding upon the statement, he said that the downturn would mean “lower or stagnant visitor arrivals, hotel occupancy rates and retail sales” and may make “matching the statistical performance of prior years” an impossibility.

While the arrival of guests in the 2009 season is sure to be high on the list of concerns, many tourism stakeholders have stated that their greater interest lies in the viability of the many proposed hotel developments across the island.

Among those are high-end establishments like the Park Hyatt, Ritz-Carlton, Jumeirah, a Scout Real Estate resort and a Grand Atlantic resort. The Premier, however, attempted to allay fears that any serious slow down in development would be taking place in the near future.

“Only one project has indicated new challenges with getting started as planned. The others appear to be on track and haven't indicated that they expect trouble with financing.”

In spite of the grim forecast for the immediate future of the tourism industry, Brown said that he believed Bermuda’s other ‘economic pillar’, insurance sales, would remain strong.   ~~Adz:Right~~

“The Bermuda international business sector, cemented in insurance and reinsurance is well-managed and continues to play a vitally important role in the world of risk management…[and] I am encouraged by one simple fact: the world needed to buy insurance yesterday and it will need to buy insurance tomorrow.”

Though the country may have a reduced gross domestic product in the coming years, Brown said his government had no intention of cutting funding to “progressive social programs” such as income-based child care, free tuition to Bermuda colleges and free public transport for students.

To curb costs in these trying times, the Premier said the government would be placing a “moratorium on all non-essential government travel for the next six months”.

According to The Royal Gazette, “budget figures reveal Government travel has trebled in a decade, from $2.2 million in 1998/99 to $7.4 million this year”, and the proposed reduction in government travel is the first phase of a three-pronged cutback plan.