BERMUDA: Spend More To Boost Tourism, Says Hanbury

Greater financial resources need to be put into the Island’s tourism industry for it to be competitive, according to Bermuda Tourism Authority CEO Bill Hanbury.

The latest tourism statistics indicate that the authority’s 2014 budget of $23.1 million represented just 12 per cent of the $194 million in tax revenues generated by the Island’s tourism industry.

Meanwhile, the BTA’s 2015 budget of $21.7 million was 57 per cent less than the 2000 allocation to the industry from the government at the time.

“We need more financial resources to be competitive,” Mr Hanbury said.

“Our budget is way below what is an acceptable budget elsewhere. When we first started working there was a lot of things we needed to rebuild.

“All of these new partnerships, redeploying our sales staff, it has all taken money and takes resources, and we have got to have more resources.

“In real dollars this year we have 57 per cent less than the high water mark was in the 2000 tourism budget. Other jurisdictions are pouring money into tourism, we need to do the same.”

Opening this week’s Tourism Summit, the BTA’s chairman, David Dodwell, revealed that in 2014 the tourism industry had contributed $260 million to the gross domestic product.

He told The Royal Gazette: “The 12 per cent in tax revenues reinvested into the BTA and tourism promotion each year is to sustain and grow the industry, thus ensuring an expanded contribution to Bermuda’s economy in the future.

“Obviously, the budget process is just beginning within Government, but there has been work done within the BTA to justify a return to the levels of 2014 if not more.

“It is our job to justify that and show Government that a dollar invested will pay dividends, not just in terms of revenue and visitors, but the trickle-down effect on business and employment.

“I would very much like more but we need to show there is a good return on investment.

“I am optimistic that the track record shows we have done things properly and we have a credible organisation ready to take us to the next level.”

The tourism budget for 2000 was $50.7 million (adjusted to include inflation), which dropped to $42 million in 2007. In the past five years there has been a 43 per cent reduction in the tourism budget.

Mr Dodwell added: “We need to compete with the Martha’s Vineyards, the Cape Cods and the Hilton Heads, but more broadly we need to be able to compete with the world.”