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Plans> NIDS> Background Papers> Challenges Facing BVI Tourism>


CHALLENGES FACING BVI TOURISM - Section III


Overnight Visitors:
More that 70% of the visitors who visit the territory are overnight holiday visitors. By comparing the overnight arrivals in 1990 and 1996 one will note that there was an increase of 37.9%. From 176,613 visitors in 1990 to 243,683 overnight visitors in 1996. Because of such an increase within a short time, there is a need to increase the number of facilities for the visitors in the near future. Such facilities include hotels, guest - houses, rental apartments, charters boats, etc. Overnight holiday visitors from the USA remained the dominant group of visitors, accounting for approximately 63 percent of the overnight visitors. Puerto Rico and USVI followed with 17%, Europe 9%, Caribbean 5% and Canada 3%.

Accommodation:
In general terms, accommodation forms a significant part of the tourism industry and brings in significant amount of revenue to the economy. It also creates employment opportunities when compared with other tourist facilities, such as shops, restaurants, transport, etc. Over 85% of visitors' expenditure are spent on accommodation. Accommodation for overnight visitors can be categorized into categories.

 

  1. Land base accommodation: This category includes hotels, guest - houses, villas and rental apartments. There are 41 hotels in the British Virgin Islands with approximately 1201 rooms available at the end of 1996. The hotels are distributed as follows: 22 on Tortola, 11 Virgin Gorda and 8 on the other islands. There are about 88 villas and several guest- houses and rental apartments. 
  2. Water based accommodation: This category is mainly comprised of the yacht charting industry, which deals with the renting of crewed yachts or bare boats. It also comprises of marina facilities for yachts not registered in BVI. Thirty-six companies in the B.V.Is. offer yacht chartering. The services offered include bare-boat, skippered and sailing charters. There are approximately 465 charter yachts, each has an average sleeping capacity of 5 persons. In most cases, more than half of all overnight visitors use yachts for accommodation. Among the 41 hotels, there are 8, which offer marina facilities.
Because accommodation is an important element in servicing the tourists who come to the BVI, the authorities should help the hotel owners to renovate and upgrade their existing accommodation facilities and there should be a property inspection programme to ensure that the standards are adhered. As for the yacht industry, the authorities should encourage the mega-yacht sector as a means of enhancing the overall yachting sub-sector. There is also a need of assessing the carrying capacity of charter boats is the territory. The Table 1.9 below shows the overnight visitors and type of accommodation. 

TABLE 1.9
OVERNIGHT VISITORS BY TYPES OF ACCOMMODATION, 1981 - 1996

YEAR

TYPE OF ACCOMODATION

 

HOTELS

BOATS

RENTED

OWN

FRIEND/NSD

OVERNIGHT HOLIDAY VISITORS

1981

31,756

61,230

2,509

10,036

-

105,531

1982

29,776

68,387

1,378

10,173

-

109,714

1983

30,973

72,597

1,026

11,423

-

116,019

1984

28,576

76,940

2,031

10,244

-

117,791

1985

29,054

84,604

1,698

10,647

-

126,003

1986

36,466

87,189

6,022

11,074

-

140,751

1987

43,620

93,593

17,720

17,791

-

172,724

1988

43,453

101,891

20,516

10,108

-

175,968

1989

42,221

105,841

14,858

14,154

-

177,074

1990

43,864

97,533

18,918

16,298

-

176,613

1991

36,266

61,555

13,937

14,506

20,766

147,030

1992

42,773

50,478

4,277

6,806

12,610

116,944

1993

71,782

71,712

3,814

767

52,099

200,174

1994

79,521

102,515

3,471

2,739

50,434

238,680

1995

68,536

101,360

2,091

1,310

46,213

219,510

1996

72,624

101,289

3,705

4,051

62,014

243,683

Source: DPU Statistical Abstract

Hotel and Charter Boat Occupancy:
Generally room and boat occupancy rates are high during the winter season (4months) and sharply decline in summer. In some cases, the summer occupancy rate is less than 50% of the winter season occupancy. The hotel room occupancy rate has been fluctuating over the last ten years. The period from October to May is usually considered the period of peak occupancy, with December being the best month. The Table 1.10 below shows the hotel and charter occupancy rates.

TABLE 1.10
HOTEL AND CHARTER BOAT OCCUPANCY RATES, 1980 - 1996

YEARS

1989

1990

1991

1992

1993

1994

1995

1996

Hotel Rooms

58.9

58.1

59.3

56.6

45

45

48.9

59.3

Hotel Beds

55.5

58.4

55.5

52.1

35.4

42.2

47.6

57.1

Boats

..

50.2

53.4

54.6

55.5

54.9

55.8

53.7

Source: DPU : Statistical Abstract

In order to increase the occupancy rates, marking efforts should be made to attract visitors from other parts of the world.

Cruise-ship Visitors
The British Virgin Islands has a long history of cruise-ship tourist arrivals. For the last five years, there have been fluctuations in the number of cruise-ship arrivals, mainly due to the occurrence of adverse tropical weather phenomena plus recession in the country of origin. The year 1993 was a successful year for the cruise-ship visitors compared to other years. For the first time in history, the cruise-ship visitor arrivals had exceeded 100,00 to reach 113,245 visitors. This increase represents an increase of 29.2% from the previous year. In 1994, visitor arrivals dropped again by 27.3% to register only 82,396 visitors. The cruise-ship study, which was done in 1992, indicated that the rates of growth of the cruise-ship industry would continue to outstrip that of the stopover business before the end of the century. There is a need for the government to implement the recommendations made in this study. The Table 1.11 below shows the cruise-ship calls and visitors by months.

TABLE 1.11
CRUISESHIP CALLS AND VISITORS BY MONTHS, 1990 - 1996

1991

1992

1993

MONTH

CALLS

VISITORS

CALLS

VISITORS

CALLS

VISITORS

TOTAL

256

94,295

255

87,551

265

113,245

January

33

12,901

36

11,359

42

16,545

February

29

11,608

39

10,740

36

13,400

March

29

10,857

40

9,968

40

18,437

April

33

9,174

28

10,184

35

16,675

May

17

2,849

18

3,658

10

4,730

June

10

5,569

13

3,588

7

3,215

July

10

5,018

7

4,651

7

5,857

August

8

5,284

6

4,008

7

4,601

September

6

2,936

5

2,830

10

5,641

October

17

8,342

7

5,473

12

6,788

November

33

10,817

21

5,862

18

4,869

December

31

8,940

35

15,230

41

12,487

1995

1994

1995

1996

MONTH

CALLS

VISITORS

CALLS

VISITORS

CALLS

VISITORS

TOTAL

196

82,396

220

122,054

203

134,744

January

36

13,585

29

16,685

41

21,470

February

28

7,746

23

11,840

23

14,654

March

35

9,425

23

7,695

31

22,590

April

15

7,098

16

11,301

25

22,533

May

7

2,400

7

3,977

7

6,865

June

2

1,259

8

971

4

1,009

July

5

2,616

9

1,830

2

230

August

7

4,560

7

4,243

3

2,621

September

6

4,233

14

8,637

4

3,960

October

14

8,463

19

11,466

9

6,883

November

18

8,985

28

14,873

18

11,598

December

23

12,026

37

28,536

36

20,331

Source: DPU Statistics

Tourism Market Composition:
For two decades now the United States has been the British Virgin Islands major tourist market. Other such markets are Europe, Puerto Rico and USVI, Canada, South America and the Caribbean. The Table 1.12 below shows the flow of tourist by country of residences.

TABLE 1.12
MARKET COMPOSITION OF VISITORS 1989-1996

COUNTRY OF RESIDENCE

1989

1990

1991

1992 1993

1994

1995 1996
United States 114,453

115,282

107,697

74,290

128,444

150,539

128,234

149,223

Canada 8,355

7,913

5,323

3,910

6,440 7,112

6,566

4,814

Europe 13,534

13,699

9,356

9,931

18,887

22,536

21,478

23,043

Caribbean* 9,078

7,444

6,472

5,432

9,486

10,775

12,287

13,572

Puerto Rico/USVI 27,729

23,686

15,677

12,836

31,903

40,660

44,199

43,302

Latin America 1,880

1,617

1,124

1,118

3,016

4,416

2,472

2,400

Other/Not stated 2,045

6,790

1,381

9,427

1,998

2,642

4,245

7,329

Total

177,074

176,431

147,030

116,944

200,174

238,680

219,481

243,683

Source: DPU Statistical

If you look at the table, you will note that there was a general increase of 19.2% of overnight visitors by comparing with 1993 figures. In 1994, Europe showed a sharp rise of visitors i.e. 193.6% increase, followed by Puerto Rico and USVI with 27% increase, followed by USA with 17.2% increase. Because of over-dependence on USA and fluctuations of tourism markets, there is a great need to study other possible markets and determine the type of promotion campaign necessary to overcome the over-dependence on the USA market. As mentioned earlier the Europe market and other markets have to be investigated immediately.

Tourist Expenditure:
'Tourist Expenditures Estimates’ provides valuable information about the channel through which the tourist dollar cycle generates income in the economy. Tourist expenditure naturally creates a flow off foreign currency into the economy.This inflow in turn creates additional business revenue, household income and government revenue. Since the 1980’s the estimated total visitors’ expenditure has increased at an average of about 20% annually. For the last seven years, 1990 – 1996 the visitors’ expenditure was US $132.6 million or a 5.9% increase over the previous year. In 1991, the expenditure was US $109.7 million a drop of 17.3%. In the 1992 there was another decline of 4.1% and again in 1995 a decline of 1.8%. The 1993 expenditure was US $185.1 million, a significant increase of 75.9% over the previous year. In 1994, the visitors spent US $215.0 million of 1.6% more over the previous year. Because tourist expenditure is essential for stimulating the economic and general development of BVI, a study should be made to increase areas of expenditure which is not yet exploited, e.g., conference centres, international sports events and other cultural activities which can be shared by the visitors and locals a like. The Table below shows the visitors expenditure from 1990 to 1996.

TABLE 1.13
VISITORS EXPENDITURE 1990 - 1996

1990

1991

1992

1993

1994

1995

1996

Visitors Expenditure $132,631

$109,746

$105,220

$185,122

$215,005

$211,045

$227,558

Average Visitors expenditure

418

372

377

556

654

578

552

Source: DPU Statistical

The Table below shows the visitors expenditure by type of visitor 1990 – 1996. From the table you will note that tourist and charter boats tourist are leading in terms of contribution to visitors’ expenditure.

TABLE 1.14
VISITORS EXPENDITURE BY TYPE OF VISITORS, 1990 - 1996 (US $ '000')

1990 1991 1992 1993 1994 1995 1996
Hotel Visitors 51,291 44,314

55,378

104,963 111,197 100,299 109,256
Charter Boat Visitors 63,840 43,034

36,001

60,453 84,866 90,119

91,010

Tourists in Rented Accommodations 8,495 9,298 2,728 2,559 3,225 1,999

2,182

Tourists in Own Accommodations 931 2,506 1,213 140 522 282 319
Tourists with Friends/NES 1,729 3,587 2,247 9,536 9,610 9,949 14,832
Cruise-ship Visitors 2,894 3,034 2,908

3,863

2,302 4,557 6,216
Excursionists (Day trippers) 894 981

1,399

177 198 568 218
All Other Visitors 2,557 2,992 3,346 3,431 3,085 3,272 3,525
Visitors Expenditure $132,631 $109,746 $105,220 $185,122 $215,005 $211,045 $227,558
Average Visitors expenditure $418 $372

$377

$556 $654 $578 $552
Source: DPU Statistical

In 1994 there were more visitors than 1993, visitors in the territory expended a total of US $215.0 million. In 1993, the expenditure stood at US $185.1 million. In 1996 tourist who stayed in hotel spent $109.3 million while in 1995, they spent $100.2 million. Tourist who stayed in charter boat type of accommodation spent $91.0 million, while in 1995 they spent $90.1 million or 6.1% more compared with the 1995 figures accommodation spent $15.1 million, which is more than 49.5% compared with the 1995 figures. There was also an increase in expenditure by cruise-ship visitors who spent $6.2 million, which is more than 34.8% in the previous year (1995). The excursionists spent $.2 million, which is less 66.7% from the previous year.

Continued>


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