THE ISLANDS OF THE BAHAMAS ARRIVALS REPORT July 2009 Ministry of Tourism Research and Statistics Department 2 TABLE OF CONTENTS Page No. 1. TOURISM REVIEW a. Market Analysis 3 3 2. MARKET FACTS 7 3. MARKET INFORMATION JULY YTD 2009 a. Foreign Arrivals b. Cruise Arrivals 12 12 13 4. MARKET INFORMATION JULY ONLY 15 5. APPENDIX 16 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 3 TOURISM REVIEW Market Analysis Is Cruising the New Vogue of Travel Everyone knows that cruising has been popular for years. It seems that once some people get hooked on cruising it becomes the only way to travel. Is cruising the new vogue of travel? Has Cruise Tourism taken over the lion’s share of business from the land based accommodations like hotels and the like? Do cruise lines in general and land based accommodations in the Bahamas share the same source markets? Is it possible for land based hotels to benefit from Cruise Tourism? Why take a cruise anyway? Why would someone choose to take a cruise over a land based vacation stay? Does value for money play any role in the success of the tourism sector? Cruise Tourism has definitely grown over the years not only in the Bahamas but around the world. Over the last few years the cruise industry around the world has experienced more than an 8% annual growth rate.1 The Bahamas has not had an annualized growth rate of 8% but between 1989 and 2008 Cruise Tourism in the Bahamas has grown by 74%. By July 2009, cruise arrivals for the year were already above the level of cruise arrivals for the whole of 1989. Cruise Tourism is obviously an Industry that is here to stay. It is a very lucrative business and as such newer, larger and more luxurious ships are being built by every major cruise line that wants to capitalize on the incredible growth potential of the industry and grab a piece of the savory pie. Has Cruise Tourism taken over the lion’s share of business from the land based accommodations like hotels and the like? In 1971, air arrivals (includes many of the hotel visitors) to the Bahamas had the lion’s share (66.3%) of the visitor arrival base and sea arrivals made up 33.7%. In the early 1980’s the tides of tourism to the Bahamas and in the world began to change. The mix of business between air and sea arrivals began to flow in a different direction and what was once on top had ebbed with the tide to the bottom. Over the years both air and sea arrivals have grown incrementally but Cruise Tourism to the Bahamas has grown far more rapidly. By 2008, the lion’s share (68.3%) of the visitor arrival base was sea arrivals namely cruise instead of air arrivals and the market share of air arrivals had shrunk to 31.7%. Cruise Tourism has grown in part because of the source markets that the cruise lines have been able to penetrate. The cruise passenger source markets and the source markets for land based vacationers to the Bahamas are closely intertwined. According to the 2009 CLIA Cruise Market Overview report based on 2008 and 2007 data, the 10 most popular sources of business for cruise ship passengers from the United States in 2008 included the following States: 1. Florida, 2. California, 3. Texas, 4. Massachusetts, 5. New York, 6. Pennsylvania, 7. Illinois, 8. Arizona, 9. New Jersey, 10. Georgia. The 5 most popular provinces that provided business from Canada included: 1. 1 Source: Paul Durante “Why Cruise?” Worldpress.org, November 1, 2006 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 4 Ontario, 2. British Columbia, 3. Quebec, 4. Alberta, 5. Manitoba. The cruise lines received 92.96% of their North American business from the United States and Puerto Rico and 7.04% from Canada. Of their total cruise business, 72.1% of the cruise passengers were from the United States, 5.5% from Canada and 22.4% from Other Countries.2 It is interesting to note that the most popular source states for cruise business are also the top 10 source states for land based travel to the Islands of the Bahamas with only one exception, Arizona. Arizona is number 26 in the list of states that provide stopover visitors to the Bahamas while Virginia is number 9. Of all the cruise passenger source states in the US mentioned already Illinois, Arizona and Georgia are the only ones that do not have cruise ports yet and that is possibly because most of them are not located on the coastline. Americans and Canadians now have many (over 30) cruise ports within driving distance of where they live. These close ports have made it easier and more convenient for North Americans to hop on a cruise and go. According to CLIA (Cruise Lines International Association, Inc.) 2009 Cruise Market Overview, 72% of Americans indicated that they were more likely to cruise within the next three years because of the convenience of these cruise ports. The CLIA report also said that “Over the next three years, 51 million North Americans indicate intent to cruise. To date, approximately 19.9% of the US population has ever cruised.”3 What does this mean? It means that not only is Cruise Tourism here to stay, but there is lots of money still to be made in this business. What does all of this mean to the Hotel Industry? Will Cruise Tourism wipe out land based vacation stays? No they will not. There are many people who go on cruises and use them to sample destinations where they may want to go later on a land based vacation stay; 80% of cruisers said this.4 It is important to note however that hotels have to begin to think of how they can reinvent themselves so that they do not have to always compete head on with this thriving industry but feed off of it. How can hotels in the Bahamas cash in on this lucrative Cruise Tourism Industry without having to enter the cruise line business themselves? Is it possible for hotels in the Bahamas to create on property attractions that are so unique and interesting that they not only have their guests spending time on property but they have cruise passengers lining up to buy a tour to their hotels. This is not a novel idea there is at least one major hotel in the Bahamas that is already doing this. Diversification can often be the catalyst to renewed success. The success of any business often comes from knowing the current and potential customers inside out. Land based accommodations like hotels can learn much from their luxurious floating counterparts. One of the most important tantalizing tidbits of information that hotels can learn and then use is why do people take cruises? Knowing the answer to this question is one of the gilded keys to success for any hotel that has to compete with the cruise lines for business and improve their bottom line. 2 Source: “The Overview” 2009 CLIA Cruise Market Overview, Statistical Cruise Industry Data Through 2008 Source: “The Overview” 2009 CLIA Cruise Market Overview, Statistical Cruise Industry Data Through 2008 4 Source: CLIA 2008 Cruise Market Profile Study 3 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 5 There are many reasons why people take cruises. Cruises are a great way to see multiple exotic destinations without having to hop on a plane to get to each of them. They are a fun way to travel, socialize and meet a ton of new people all in one trip. They can be very relaxing or action packed, the passengers decide on the pace of their trip. They can be purchased at very good prices online or with a travel agent. Most cruises are booked using a travel agent while many land based vacation stays are booked online. Cruises offer great value for money because accommodations, entertainment like world class shows, luxury “perks” like spas and fitness rooms, meals and nonalcoholic beverages, and free child care services are all already included in the cost of the tickets and do not have to be purchased separately. Some cruise ships even have high speed Internet access and satellite phones in the cabins. On the other hand many of the large hotels have the same or similar amenities but each “perk” has to be paid for separately which makes the cost of enjoying those amenities far more costly. Another gilded key that every hotelier should have within their grasp is the answer to the question, what possible benefits could people who take cruises obtain that land based vacationers may have trouble receiving in their hotels? According to the CLIA 2008 Cruise Market Profile Study, cruisers (people who had ever been on a cruise) rated a number of core items higher than other types of vacations taken. These core items were some of the benefits of cruising. They included: “Chance to visit several locations, relax, being pampered, fine dining, explore vacation area, offers something for everyone, luxurious, variety of activities, hassle free, easy to plan and arrange, unique & different, high quality entertainment, exciting and adventurous, fun vacation, good value for money, reliable, romantic getaway, makes me feel special-rich & famous, good vacation for entire family, safe, cultural learning experience, comfortable accommodations, good activities for children, participate in sports you enjoy.”5 It is clear that value for money plays a major role in the two gilded keys mentioned, why do people take cruises and the benefits of cruising. In addition to offering good value for money, cruise lines have very high levels of satisfaction. According to the CLIA 2008 Cruise Market Profile Study, 95% of cruise passengers were satisfied with their cruise experience and of that percentage 44% of them were “extremely satisfied.”6 Fifty-seven percent (57%) of the land based vacationers including boaters/yachters (not including cruise arrivals) to the Bahamas were satisfied with their Overall Bahamas experience (21% of the 57% were very satisfied). Thirty-four percent (34%) thought that it was the same as they had expected it to be. Cruise lines have learned the importance of offering good value for money. Sixty-nine percent (69%) of cruisers thought that the value for money received was very high or somewhat high and only 4% thought that it was low.7 Value for money has been a weakness of the Bahamas for 5 Source: CLIA 2008 Cruise Market Profile Study Source: CLIA 2008 Cruise Market Profile Study 7 Source: CLIA 2008 Cruise Market Profile Study 6 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 6 many years now. According to the latest Exit Statistics, 27% of the stopover visitors (includes land based vacationers) thought that the value for money in the hotels was much better or better than expected and 23% thought that it was not as good or worse than they had expected it to be. Thirtynine percent (39%) thought that the overall value for money for the Bahamas was much better or better than expected and 18% thought it was not as good or worse than they had expected it to be. It is well known to Bahamians and repeat visitors to The Bahamas that the destination is an expensive place. When a destination is expensive should not the island amenities, the hotel “perks”, the hotel service, hotel rooms, hotel food, attitude of the people in general, food in restaurants, service in restaurants all be superb because together they all equal good value for money? Could that be a reason why the Bahamas has seen a large increase in Cruise Tourism to the Bahamas but a decline in the demand for land based accommodations? Has land based vacation stays missed the “boat” on value for money? Each hotel that caters to the tourists in the Bahamas must ponder the point “are we providing excellent value for money through our product offerings and service. How can we improve our value for money and thereby improve our bottom line?” Hotels all over the world including in the Bahamas have had to reduce their hotel rates. But reducing hotel rates by itself does not automatically guarantee improved hotel value for money. Because of the current economic recession hotels and cruise ships have slashed their prices tremendously in order to keep people travelling. Most people know that cruise lines will offer huge discounts on their cruise vacations before they let that cruise ship cruise empty. They operate in similar ways to the all-inclusive properties in that profits are in part based on passenger volumes. Cruise arrivals to the Bahamas have done very well for the year so far. The Bahamas has benefited significantly from the growth in Cruise Tourism. Cruise arrivals to the destination have been a major source of generating foreign exchange into the Bahamian economy. It has helped to keep the taxi drivers, surrey drivers, straw vendors, hair braiders and others afloat. It has helped to keep many Bahamians in the retail sector employed during these hard economic times. The hard economic times are not about to vanish into thin air. The United States is on the cusp of recovery. The recovery process is harder than any other recession since the Great Depression. Cruise Tourism to the Bahamas has done well to the Bahamas despite the recession. The success of Cruise Tourism has not come without a price. Cruise lines have had to slash prices sharply to keep people travelling. Hotels all over the world including in the Bahamas have had to reduce rates as a result of the recession. All in all though, the cruise lines to the Bahamas have successfully filled their ships to the Bahamas. The Bahamas does have one enigma though. How can the Bahamas help to parlay the success of Cruise Tourism into the success of the hotel sector? Marrying Cruise Tourism with land based vacation stays is indeed a challenge. It is not impossible, and has been done already. The question is how does the Bahamas improve upon this formula that works and use it to benefit all of the major stakeholders? Market Update Research & Statistics Dept. Ministry of Tourism July 2009 7 MARKET FACTS o The All-inclusive properties in the Bahamas are always within the top 5 preferred hotels on any given island. o March and April (Spring-Break months) are popular months for travel to the Bahamas for stopovers. o The winter months are the most popular months for travel to the Bahamas for Canadians. o The summer months of July and August are popular months for travel to the Bahamas from European visitors. o On average Americans get less vacation time than their Canadian and European counterparts and this is one of the reasons that they often take shorter vacations. The average length of stay of an American visitor is 6 nights, Canadian visitors 7.9 nights, and European visitors 9.7 nights. o In September 2008, the United States experienced a financial meltdown that sent the country into an economic tailspin. The rest of the world quickly followed suit. o The United States and many countries in the world were and still are in an economic global recession. o The recession in the United States began in December 2007 although most people did not notice it until September 2008. o Job losses continued in July 2009 as thousands more persons were laid off in the troubled US economy. The number of persons being laid off however has stabilized and begun to fall. The amount of persons laid off did slow down in April and this slow-down continued in July 2009. o In January 2009, 741,000 persons (revised) lost their jobs in the United States. In February 2009 another 651,000 jobs were lost and the unemployment rate climbed to 8.1% bringing the number of people out of work in the United States to 3.3 million over the last six months.8 In March 2009, 699,000 (revised) Americans lost their jobs. By April 2009, the number of job losses had slowed. In April 2009, 504,000 persons (revised) lost their jobs in the United States.9 By May 2009 the number of job losses had slowed even more since April 2009. Approximately 322,000 jobs (revised) were lost in May 2009 bringing the unemployment rate in the United States to 9.4%.10 The steady decline in the number of job losses hit an unexpected speed bump in the month of June 2009 as the job losses for the month climbed higher than expected. In June 2009, 443,000 persons (revised) lost their jobs in the United States. During the first half of 2009 alone, over 3 million persons lost their jobs and the unemployment rate climbed to 9.5%.11 In July 2009, 247,000 persons lost their jobs in the United States. The unemployment rate also fell back down to 9.4% possibly due to persons retiring, persons going back to school or discouraged job seekers who would not have been 8 Source: “2 million jobs lost so far in ‘09” by Chris Isidore, CNNmoney.com, Senior writer, April 3, 2009. 9 Source: “Jobs: A little less bleak” by Chris Isidore, CNNmoney.com, Senior writer, May 8, 2009. 10 Source: “Job losses slow dramatically” by Chris Isidore, CNNmoney.com, Senior writer, June 5, 2009. 11 Source: “Job market takes a turn for worse,” by Chris Isodore, CNNmoney.com, Senior writer, July 2, 2009 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 8 o o o o o o o o o counted in the unemployment statistics. 12 The number of people unemployed since September 2008 rose to over 5 million. Some of the major countries of the world are starting to see signs of economic recovery. The Purchasing Managers Index (PMI) is “an indicator of economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.” A PMI above 50 indicates expansion in the Manufacturing Industry while a PMI below 50 indicates a contraction.13 China (3rd largest economy in the world) is recovering fairly well after the government stimulus of $585 billion was pumped into their economy in November 2008.14 One of the reasons for China’s recovery hinges on the fact that it has a very big manufacturing industry and is one of the largest exporters of goods in the world. In July 2009, China’s PMI was 53.3 which indicated that its Manufacturing Industry had expanded. In June 2009, China’s PMI was 53.2.15 India has seen good signs of recovery in its manufacturing industry as well. Its PMI was 55.3 in June and stayed the same for July 2009.16 According to a 2008 list by the International Monetary Fund and a 2008 list by the CIA World Factbook, the largest economies of the world (based on GDP) include the United States (no.1), Japan (no.2), China (no.3), and Europe namely Germany (no.4), France (no.5), the United Kingdom (no.6), Italy (no.7), Russia (no.8) and Spain (no.9). Brazil is ranked 10th, Canada is ranked 11th and India is ranked 12th. Some of the largest economies of the world are responsible for providing the Bahamas with the greatest supply of visitors to the destination. The United States which is the largest economy in the world is the largest supplier of business to the Bahamas. Over 80% of the visitors to the Bahamas come from the United States. The United Kingdom which is the 6th largest economy in the world provides the Bahamas with approximately 2.6% of the stopover business. In 2008, Canada had the 11th largest economy in the world but provided the Bahamas with 8% of the stopover business. It is only 2nd to the United States in providing visitor arrivals to the Bahamas. In 2007, Canada was ranked 9th in the world with the size of its economy. 12 Source: “Jobless rate down for first time in a year,” by Chris Isodore, CNNmoney.com, Senior writer, August 7, 2009 13 Source: “Chinese, Indian Manufacturing Expands While Rest of World Tries to Catch Up” by Bob Blandeburgo, Associate Editor, Money Morning, July 1, 2009 14 Source: “Chinese, Indian Manufacturing Expands While Rest of World Tries to Catch Up” by Bob Blandeburgo, Associate Editor, Money Morning 15 Source: “Chinese, Indian Manufacturing Expands While Rest of World Tries to Catch Up” by Bob Blandeburgo, Associate Editor, Money Morning, “China’s PMI of manufacturing sector rises to 53.3% in July”, editor: Wang Guanqun, source: Xinhua, August 1, 2009 16 Source: “Chinese, Indian Manufacturing Expands While Rest of World Tries to Catch Up” by Bob Blandeburgo, Associate Editor, Money Morning, “PMI steady in July, expands for 4th month, BS Reporter/New Delhi, Business Standard, August 4, 2009 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 9 o The Euro which is the common currency for many European countries experienced difficulties after the financial meltdown of September 2008. Many European countries were then faced with a credit crisis.17 o By July 2009, was still relatively low compared to the same period of 2008, a good thing for the average consumer in the United States however in the Bahamas, the lower oil prices did not seem to trickle down to the average consumer. In July 2009, the average price of oil a barrel was $64.15 compared to $133.37 in July 2008. In July 2008 before the fateful financial meltdown of September 2008 the price of oil per barrel was at a high of $147.27 before it slipped to $125 during the same month. In June 2009, the average price of oil a barrel was $69.64 compared to $133.88 in June 2008. In May 2009, the average price of oil a barrel was $59.03 compared to $125.40 in May 2008. In April 2009, the average price of oil a barrel was $49.65 compared to $112.58 in April 2008. In March 2009 the average price of oil a barrel was $47.94 and $105.45 in March 2008. Oil prices in 2008 had fluctuated like a rollercoaster with highs and lows. After the financial meltdown of September 2008, the price of oil plummeted to below $70 in October and averaged $76.61 for the month before it continued that downward spiral.18 The downward spiral in oil prices could be attributed to the falloff in world demand. o The decline in oil prices that occurred after the financial meltdown was just a little too late for high oil prices had already helped to weaken and wreak havoc in the global economy. However the good news was that if the low oil prices were prolonged they could of course begin to assist the economy in its recovery. o The Consumer Confidence Index which is highly influenced by consumer feelings, (“The US Consumer Confidence Index (CCI) is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending.”19) declined in July 2009 to 47.4 from 49.3 in June. It was 54.9 in May, 40.8 in April, 26.0 in March 2009, 25.3 in February 2009 and 37.7 in January 2009.20 o According to the Commerce Department consumer spending in the US rose slightly in July 2009. The cash for clunkers programme (which began on July 1, 2009) that allowed persons to purchase newer more fuel efficient cars by trading them in may have influenced this increase. Consumer spending in the US had also risen slightly in June 2009 although it was still low. This increase was primarily due to the consumer spending on non-durable goods. Consumer spending was down for much of 2008. Consumer spending although up slightly continued to be plagued by the high number 17 Source: forexblog.org/2009/01). 18 Source: Cushing, OK WTI Spot Price FOB (Dollars per Barrel),“Price of Petroleum”, Wikipedia, the free encyclopedia, en.wikipedia.org/wiki/price_of_petroleum, 19 Source: Wikipedia, the free encyclopedia 20 Source: Consumer Confidence Board “The Conference Board Consumer Confidence Index Bounces Back, August 25, 2009. The Conference Board “The Conference Board Consumer Confidence Index Retreats Again”, July 28, 2009, “Consumer Confidence: Biggest jump in 6 years,” money.cnn.com/2009/05/26/news/economy/consumer_confidence.ret/index.htm May 26, 2009, Consumer Index sinks to all-time low, by Catherine Clifford, CNNmoney.com staff writer, January 27, 2009, “Consumers slightly more confident,” by Ben Rooney, CNNMoney.com staff writer, March 31, 2009. Market Update Research & Statistics Dept. Ministry of Tourism July 2009 10 o o o o o o o o o o o of people unemployed, declining housing prices, and reduced personal incomes. In addition, there is an indication that people are trying to save more in order to replenish depleted savings. The US debt was and still is high and the debt of the regular American Consumer was also high. Credit card debt in the United States is still very high and many people are defaulting on their credit cards. The US government passed legislature that will protect consumers from unfair credit card practices. Some of the effects of this legislature came into effect in 2009 and some will not take effect until 2010. In February 2010, credit card companies will no longer be able to freely raise interest rates and make customers pay their bills via phone. This new legislature hopes to ensure that the credit card companies also make customers aware of how long it would take to pay off a credit card debt if they are only paying the minimum balance.21 The legislature will include many features to protect the consumers. There was some good news with regard to new home sales in July 2009. New home sales in the United States increased by 9.6% in July 2009.22 This was a good sign for the economy. New home sales rose by 11% in June 2009 compared to May 2009. They were still down 21% when compared to June 2008.23 The housing market in the United States however was still in crisis and people in our primary DMA markets and top producing states were still losing their homes every day. Florida, California, Las Vegas and Arizona still have large amounts of excess inventory of houses due to foreclosures. Visitor Arrivals for the month of JULY 2009 were UP when compared to the same period of 2008 because sea arrivals were UP considerably for the month. Air arrivals to the destination were however weak. Air arrivals to Nassau/Paradise Island have definitely improved since the financial meltdown of September 2008. The island of Grand Bahama has had good performances with sea arrivals especially cruise arrivals from the month of February 2009. Cruise arrivals to the island have been up solidly during that time. Air arrivals to the island continue to struggle and arrivals to the island were only up because of the favourable increase in cruise arrivals. All of the Islands of the Bahamas were not up for the month of July. Stopover arrivals to the Bahamas from most of the major markets were still down in July 2009. Cruise arrivals have done well for the Bahamas. Cruise arrivals to the Bahamas overall were only down in September 2008 and February 2009. Since March 2009, cruise arrivals to the destination have been up considerably in comparison to the same period of 2008. Cruise arrivals to the Bahamas up to July 2009 are even better than in the same period of 2007. 21 Source: “Credit Card Fees Curbed” by Sudeep Reddy, Wall Street Journal, May 21, 2009 Source: “July New Home Sales” Briefing.com, Inc. Sept. 1, 2009 23 Source: “New home sales: Really good news” by Les Christie, staff writer, CNNMoney.com, July 27, 2009 22 Market Update Research & Statistics Dept. Ministry of Tourism July 2009 11 o Cruise arrivals to the Bahamas Overall were up significantly during the month of JULY 2009 by 32.4% (1st Port of entry only). o Cruise arrivals to Nassau/Paradise Island (1st port of entry) were up by 36.8% in JULY 2009. o Cruise Arrivals to Grand Bahama (1st port of entry) were up by 13.0% for the month of JULY. o Cruise Arrivals to The Out Islands were up by 34.9% (1st port of entry) in JULY 2009 compared to the same period of 2008. o Air Arrivals for July 2009 were still weak down by 13.7%. Even though air arrivals were weak in July they still showed improvement since the fateful financial meltdown in the US of September 2008 (-52.6% in September 2008, -32.5% in October 2008). o By the end of July 2009 YTD (January to July), total visitor arrivals to The Bahamas Overall were up by 4.2% (air was down 13.7% and sea was up 13.8%). Market Update Research & Statistics Dept. Ministry of Tourism July 2009 12 MARKET UPDATE JANUARY TO JULY 2009 FOREIGN AIR AND SEA ARRIVALS TO THE BAHAMAS 1ST PORT OF ENTRY ONLY JANUARY TO JULY 2009 Nassau/Paradise Island Grand Bahama Abaco Andros Berry Islands Bimini Cat Cay Cat Island Eleuthera Exuma Half Moon Cay Inagua Long Island San Salvador Bahamas Overall 2009 2008 2009/2008 Air and Sea % Chg Air/Sea 1,655,265 1,542,908 7.3% 337,550 335,761 0.5% 132,495 158,503 -16.4% 6,358 7,244 -12.2% 251,323 248,804 1.0% 34,086 32,143 6.0% 8,023 7,743 3.6% 1,444 2,382 -39.4% 153,164 168,829 -9.3% 13,876 22,480 -38.3% 226,862 178,031 27.4% 467 1,073 -56.5% 522 645 -19.1% 9,564 11,126 -14.0% 2,830,999 2,717,672 4.2% 2009 2008 Air Only 620,203 679,731 82,153 113,287 51,692 68,767 6,143 7,058 4,714 6,457 9,847 10,864 3,233 3,024 1,430 2,358 18,643 26,471 13,364 21,837 50 97 454 623 9,470 10,933 821,396 951,507 2009/2008 % Chg Air -8.8% -27.5% -24.8% -13.0% -27.0% -9.4% 6.9% -39.4% -29.6% -38.8% 0.0% -48.5% -27.1% -13.4% -13.7% Source: Immigration and Customs various ports of entry in the Bahamas. Princess Cay, Eleuthera w hich normally closes in May for a few months closed at the end of April & w as closed in July 2009. All numbers are subject to revision. OVERALL VISITOR ARRIVALS (JANUARY TO JULY YTD 2009) ISLANDS UP Nassau/Paradise Island Grand Bahama Berry Islands Bimini Cat Cay Half Moon Cay ISLANDS DOWN Abaco Andros Cat Island Eleuthera (especially Princess Cay) Market Update Research & Statistics Dept. Ministry of Tourism July 2009 13 Exuma Inagua Long Island San Salvador CRUISE ARRIVALS TO THE BAHAMAS 1ST PORT OF ENTRY ONLY 2009 July January to July YTD Nassau/Paradise Island Grand Bahama Abaco (Castaway Cay) Andros Berry Islands Bimini Cat Cay Cat Island Eleuthera (Princess Cay) Exuma Half Moon Cay Inagua Long Island San Salvador Bahamas Overall 2008 2009 Cruise Arrivals YTD 856,181 1,029,963 160,972 199,916 83,507 76,754 241,801 245,820 142,008 133,935 178,031 226,862 1,913,250 1,662,500 2009/2008 % Chg 20.3% 24.2% -8.1% 0.0% 1.7% 0.0% 0.0% 0.0% -5.7% 0.0% 27.4% 0.0% 0.0% 0.0% 15.1% 2009/2008 2008 2009 % Chg Cruise Arrivals July Only 36.8% 93,081 127,337 13.0% 28,322 32,007 26.0% 10,581 13,328 0.0% -8.1% 27,698 25,448 0.0% 0.0% 0.0% 0.0% 0.0% 104.3% 18,507 37,811 0.0% 0.0% 0.0% 32.4% 178,189 235,931 Source: Immigration and Customs various ports of entry in the Bahamas. Sea Landed arrivals are not listed above. 2nd and 3rd port of call cruise arrivals are not listed in the above table. Princess Cay, Eleuthera w hich normally closes in May for a few months closed at the end of April & w as closed in July 2009. All numbers are subject to revision. CRUISE ARRIVALS (JANUARY TO JULY 2009 YTD 1ST PORT OF ENTRY) ISLANDS UP Nassau/Paradise Island Grand Bahama Berry Islands Half Moon Cay ISLANDS DOWN Abaco (Castaway Cay) Eleuthera (Princess Cay) Market Update Research & Statistics Dept. Ministry of Tourism July 2009 14 CRUISE ARRIVALS (JULY 2009 ONLY, 1ST PORT OF ENTRY) Cruise arrivals to the Bahamas Overall were up significantly in JULY 2009. Cruise arrivals to many of the major islands in the Bahamas like Nassau/Paradise Island, Grand Bahama, Abaco (Castaway Cay), and Half Moon Cay were up for the month of July 2009 compared to 2008. Cruise arrivals to the Berry Islands were down (1st port of entry). The cruise port in Princess Cay, Eleuthera closed at the end of April and was still closed in July 2009 as the Princess Cruise Ships were re-routed outside of the Bahamas as usual. Cruise arrivals to the Bahamas Overall were up during the month of JULY 2009 by 32.4% (1st Port of Entry Only). One of the reasons for the increase in cruise arrivals in July 2009 compared to the same period of 2008 was because cruise lines made more calls during the month than in the same period of 2008. In July 2009, many of the Carnival Cruise line ships brought in more passengers than in the same period of 2008. Carnival Cruise’s ships like the Carnival Conquest, Carnival Destiny, Carnival Freedom, Carnival Miracle, and Carnival Pride, came into the Bahamas in July 2009 but did not come in during the same period of 2008. Moreover, the Carnival Glory, Carnival Liberty, Fascination, Imagination, and Sensation all made more calls on the Bahamas and hence brought in more passengers. In addition Disney Cruise line’s Disney Magic was not re-routed outside of the Bahamas in July 2009 like in July 2008. This obviously meant that the Disney Magic brought in more passengers in July 2009 than in July 2008. Norwegian Cruise line was another big reason for the increase in the number of cruise arrivals to the Bahamas. In July 2009, The Norwegian Sky made many more calls on ports in the Bahamas than in the same period of 2008. Only Royal Caribbean International made less calls and brought in fewer passengers to the Bahamas in July 2009 than in the same period of 2008. Cruise arrivals to Nassau/Paradise Island (1st port of entry) were up by 36.8% in JULY 2009 because all of the major cruise lines like Carnival Cruise lines, Disney Cruises, and Norwegian Cruises all brought in more cruise passengers than in the same period of 2008. Carnival Cruise lines made far more calls on Nassau/Paradise Island and the Out Islands than in 2008. In July 2009, Carnival Cruise line’s ships Carnival Freedom, Carnival Pride and Imagination all made calls on the port of Nassau as a 1st port of call when they had not done so in the same period of 2008. In addition, Carnival Glory and Sensation in July 2009 all made more calls on Nassau/P.I. and brought in more passengers than in July 2008. In July 2009, the Disney Wonder made more calls on the port of Nassau/P.I. as a 1 st port than in the same period of 2008 when the ship was sometimes sent to Castaway Cay Abaco first because the Disney Magic had been re-routed outside of the Bahamas. Moreover, the Norwegian Sky made more calls on the port of Nassau in July 2009 than in July 2008. NOTE: If you look at Nassau/Paradise Island in isolation and not at the Bahamas as a whole you may then take all the ports of call for the island into consideration. Cruise Arrivals to Grand Bahama (1st port of entry) were up by 13.0% for the month of JULY 2009 because major cruise lines to the island like Norwegian Cruises (Norwegian Sky) and Market Update Research & Statistics Dept. Ministry of Tourism July 2009 15 Discovery Cruises (the Discovery Sun) brought in more passengers to the island as a 1st port of call than in the same period of 2008. NOTE: If you look at Grand Bahama Island in isolation and not at the Bahamas as a whole you may then take all the ports of call for the island into consideration. The Out Islands were up by 34.9% (1st port of Entry) in JULY 2009. Major cruise lines to the Out Islands made more calls on these islands in July 2009 than in the same period of 2008. Carnival Cruise lines (Carnival Destiny, Carnival Miracle, Carnival Pride and Fascination) to Half Moon Cay and Disney Cruise line’s Disney Magic to Castaway Cay brought in more passengers in July 2009 than in the same period of 2008. NOTE: If you look at The Out Islands in isolation and not at the Bahamas as a whole you may then take all the ports of call for the Out Islands into consideration. FOREIGN AIR AND SEA ARRIVALS TO THE BAHAMAS 1ST PORT OF ENTRY ONLY JULY 2009 Nassau/Paradise Island Grand Bahama Abaco Andros Berry Islands Bimini Cat Cay Cat Island Eleuthera Exuma Half Moon Cay Inagua Long Island San Salvador Bahamas Overall 2009 2008 2009/2008 Air and Sea % Chg Air/Sea 227,724 198,376 14.8% 53,644 54,363 -1.3% 23,932 22,849 4.7% 968 875 10.6% 26,590 28,863 -7.9% 9,020 8,472 6.5% 1,530 1,418 7.9% 113 214 -47.2% 2,363 3,314 -28.7% 1,256 2,640 -52.4% 37,811 18,507 104.3% 46 101 -54.5% 51 53 -3.8% 1,443 1,426 1.2% 386,491 341,471 13.2% 2009 2008 Air Only 99,723 104,390 11,533 15,413 9,577 10,877 958 847 959 1,053 1,880 2,157 490 489 113 214 2,288 3,254 1,207 2,605 3 12 46 52 1,437 1,408 130,214 142,771 2009/2008 % Chg Air -4.5% -25.2% -12.0% 13.1% -8.9% -12.8% 0.2% -47.2% -29.7% -53.7% 0.0% -75.0% -11.5% 2.1% -8.8% Source: Immigration and Customs various ports of entry in the Bahamas. All numbers are subject to revision. OVERALL VISITOR ARRIVALS (JULY 2009 1st PORT OF ENTRY ONLY) ISLANDS UP Nassau/Paradise Island Abaco Andros Bimini Market Update Research & Statistics Dept. Ministry of Tourism July 2009 16 Cat Cay Half Moon Cay San Salvador ISLANDS DOWN Grand Bahama Berry Islands Cat Island Eleuthera Exuma Inagua Long Island APPENDIX: DEFINITIONS A cruise stopover is a person who comes to the destination on a cruise ship, stays in the destination for 24 hours or more and does not use the cruise ship for accommodation (primarily seen in Grand Bahama). A cruise stopover is not the same as a cruise arrival who does use the ship for accommodation purposes. Cruise stopover visitors, other sea landed visitors/sea stopovers [i.e., boaters/yachters] and cruise arrivals make up the sea arrival numbers. 1st Port of Entry refers to the first port of call in the Islands of the Bahamas for a cruise ship. Some ships make more than one stop in the Islands of the Bahamas. The second stop is the 2nd Port of Entry and refers to the second port of call in the Islands of the Bahamas for a cruise ship. If a cruise ship makes a third stop in the Bahamas this 3rd stop is the 3rd port of entry and refers to the third port of call in the Islands of the Bahamas. In this report we have concentrated on 1st port of entry numbers, because the report is based on the Overall Bahamas. If a person wanted to get a total count of the number of cruise visitors to the island of Nassau/Paradise Island only, they would have to add 1st, 2nd and 3rd port together. If you have any questions regarding this report, please contact: Georgina Delancy Research & Statistics Dept. The Bahamas Ministry of Tourism Reginald Court, George Street P.O. Box N-3701 Nassau, Bahamas Phone: 242-302-2094 Fax: 242-328-7991 www.tourismtoday.com www.bahamas.com Market Update Research & Statistics Dept. Ministry of Tourism July 2009