ST. LUCIA:
A CHTA study revealed increased occupancies and arrivals, increased employment, and that capital expenditures and investments in hotel properties were up.
Caribbean hotels are expecting improved business in 2016 after the tourism industry showed improved performance last year based on an Industry Performance and Outlook study by the Caribbean Hotel and Tourism Association (CHTA).
The study aimed to help the CHTA gain a better understanding of the tourism economy, its outlook, and the degree to which factors impact or may affect the industry.
The research found that more than half of the hotels reported strong to moderate performance in 2015, increased occupancies and arrivals, increased employment rolls, while capital expenditures and investments in hotel properties were up.
Despite improved performance, the profit picture was unsettling; nevertheless, the outlook for 2016 remained positive.
“The good news is that hotel occupancies and average daily rates increased in 2015 for the majority of hotels, and employment has grown along with it,” Frank Comito, CHTA Chief Executive Officer and Director General, said. “On the flip side, hotels identified high operating and air travel costs as major growth deterrents, as the industry struggles to compete for markets that are unwilling to bear significant rate increases.”
The study also found that a more positive cash flow resulted in greater investments, with more than 68 percent of hoteliers reporting an increase in capital expenditure.
“These investments have broader economic reach, as hotel expenditures for construction, supplies and materials stimulate greater local spending, positively impacting local businesses, employment and tax revenue,” the CHTA said.
Approximately 67 percent of hotels reported a net profit in 2015, and 33 percent a net loss.
The industry performance and outlook study was conducted in January.
The study aimed to help the CHTA gain a better understanding of the tourism economy, its outlook, and the degree to which factors impact or may affect the industry.
The research found that more than half of the hotels reported strong to moderate performance in 2015, increased occupancies and arrivals, increased employment rolls, while capital expenditures and investments in hotel properties were up.
Despite improved performance, the profit picture was unsettling; nevertheless, the outlook for 2016 remained positive.
“The good news is that hotel occupancies and average daily rates increased in 2015 for the majority of hotels, and employment has grown along with it,” Frank Comito, CHTA Chief Executive Officer and Director General, said. “On the flip side, hotels identified high operating and air travel costs as major growth deterrents, as the industry struggles to compete for markets that are unwilling to bear significant rate increases.”
The study also found that a more positive cash flow resulted in greater investments, with more than 68 percent of hoteliers reporting an increase in capital expenditure.
“These investments have broader economic reach, as hotel expenditures for construction, supplies and materials stimulate greater local spending, positively impacting local businesses, employment and tax revenue,” the CHTA said.
Approximately 67 percent of hotels reported a net profit in 2015, and 33 percent a net loss.
The industry performance and outlook study was conducted in January.
