Bahamas Hoteliers Predict Higher Occupancy Rates in 2012

Bahamas-based hoteliers are looking forward to increased occupancy in 2012, as 85 percent expect higher levels in 2012, according to a Smith Travel Research report commissioned by the Bahamas Hotel Association.

The report surveyed 22 large and small hotels in Nassau, Grand Bahama and the Family Islands. The hoteliers predicted the 2012 increase one year after 70 percent reported higher occupancy in 2011 compared with 2010 levels.

The higher levels also come on the heels of extremely challenging years in 2009 and 2008, when hoteliers reported occupancy declines of 85 percent and 78 percent respectively.

"While we are encouraged, it is clear that many businesses are not yet out of the woods,” said Stuart Bowe, BHA's president. “The profitability picture is further constrained because higher airfares have forced hoteliers to restrain from increasing prices, and to invest more resources in marketing and promotional offers. Had we not invested more in marketing and promotions during the past year, we would not have seen the reported incremental improvements in business.”

The report also found that 55 percent of properties realized increase revenues in 2011, while 72 percent predict continued growth in 2012. The renewed revenue growth represents a reversal of the results from 2009, when 85 percent of those polled reported a decline in revenue and 62 percent said revenue declined significantly.

While only 9 percent of the hoteliers were able to increase room rates in 2011, some 50 percent say they are targeting price rises in 2012, according to the report.

"Since 2010, the industry has recorded marginal gains in revenue, occupancy and customer satisfaction,” said Bowe. “This is most evident in 2011 performance reports and projections for 2012 improvements in sales, occupancy, room rates and capital spending, as well as, reports by some hotels of increased employment levels. We are clearly moving in the right direction."