COVID RESPONSE
MITIGATING THE
PANDEMIC IMPACT
TOURISM STATUS
As of June 2021, The Caribbean and North American regions continue to be adversely affected by the pandemic – in terms of both the public health impacts and the continuing damage being caused to the economies of those regions; and there are indications of slow recovery as lockdown periods end and global vaccination programmes continue. Delivery and uptake of vaccines in the neighbouring United States is high.
The Bahamian Government has expressed confidence that the tourism sector will recover quickly from the pandemic and that the historic upward trend in visitors to The Bahamas will return. In order to protect The Bahamas against the spread of the virus, and to provide a safe environment to stimulate the recovery of the tourism sector, the Bahamian Government have implemented a number of measures that include:
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a curfew and limitation on social gatherings as well as mandatory face masks in all public spaces and social distancing.
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strict testing requirements for all foreign nationals and Bahamian citizens traveling into and around the islands of The Bahamas.
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a Bahamian travel health visa alongside a tiered testing and quarantine system that allows vaccinated holidaymakers to easily access tourist destinations in and around The Bahamas.
As a result of the policies and practices adopted by the Bahamian Government, positive changes are being seen as the number of reported infections continue to decline week on week and there is optimism that the nation is “starting to come out” of its third wave, according to former Health Minister Dr Duane Sands
(http:/www.tribune242.com/news/2021/jun/10/were-emerging-third-wave/).
Improvements are also being seen in the Bahamian tourism industry and Dionisio D’Aguilar (the Bahamian minister for tourism and aviation) has said that “the trajectory is starting to go back up” in terms of visitor arrivals to The Bahamas
(http:/www.tribune242.com/news/2021/may/20/major-resorts-back-60-christmas/).
Mr. D’Aguilar and the Ministry of Tourism had been “taken aback” by the surge in Bahamas travel demand in recent months.
The vaccination programs underway across the Caribbean and North American regions are expected to help to control and significantly reduce the spread of the virus and to regain increasing levels of “normality”. In particular, the hospitality industries in those regions are expected to recover quickly from the pandemic and, in relation to The Bahamas, its government is predicting that the historic upward trend in visitors to The Bahamas will shortly return.
The Developer has taken advice from Highgate, the Resort operator selected by the Developer, and Highgate have expressed confidence that the travel industry in the Caribbean and North America will return to normal by the end of 2021.
“We anticipate a strong pickup in travel. Once consumers feel safe, they will travel again. Studies further indicate there is significant pent-up demand for holiday travel. How confident is Highgate that this will be the case? Highgate just invested $3bn to buy 197 hotels and expects to purchase more hotels in the very near future. We believe it is not a question of “if” we get back to normal but a question of “when”, Mike Register, Highgate.
IMPACT OF THE PANDEMIC ON THE RESORT
Travel habits and safety precautions worldwide continue to adapt and respond to the pandemic with many holidaymakers preferring to vacation closer to home. Due to Great Exuma being “close to home” for visitors from the USA – the main target market for the Resort – the island is expecting an early recovery in visitor numbers. Flights from the USA to Great Exuma are expected to be regarded as similar in distance and duration to internal flights for US holidaymakers. The anticipated cruise industry downturn is also considered likely to drive an increase in demand for resort-style vacations.
Given the estimated design and construction period for the Resort and given that vaccines will soon be available, the negative impacts from the pandemic on tourism to Great Exuma are expected to be “historic” at the time the Resort opens in 2024.
Highgate has advised Waterside to increase the original pro forma forecasts for the Resort, which were compiled before the pandemic. Highgate estimate that demand for the Resort will be higher for the first two years of operation following opening and that this will drive an increase in the Resort’s average daily room rates. Higher growth rates are expected due to the recovery of the market after the pandemic and because of the Resort’s ramp up period, which is higher as a result of the resort being branded by one of the world’s leading hotel brands.
Furthermore, it is anticipated that the Resort will incorporate a range of design features and operational processes that have been and continue to be developed by the brand franchisor – to include appropriate health and safety features for Resort guests.
June 2021