Hoteliers, Stop Fearing AI - You're Missing the Real Opportunity
CHTA President argues AI enhances rather than replaces human hospitality, sharing practical implementation examples from Bay Gardens Resorts.
By Sonovnik Destang, President, CHTA
Opinion Articles
Crafting Magical Events at the Rosewood Baha Mar with Tekeyo Bodie
Each of us remembers that one event we attended where every detail was flawlessly executed and the setting was so perfect that, in hindsight, the only word that describe it all is ‘magical’. Behind the scenes, as anyone working in hospitality knows, the crafting of a lifelong memory for attendees requires meticulous planning that starts months, or even years, ahead of the big day or multi-day conference.
By Adam Mogelonsky and Larry Mogelonsky
Caribbean Investment Opportunities: USVI's Hotel Development Act Offers Attractive Incentives
The Hotel Development and Finance Program Act (HDA) is a program created by the U.S. Virgin Islands (USVI) government through its Virgin Islands Economic Development Authority (USVIEDA). The USVI is a territory of the United States located in the Caribbean Basin and includes the four main islands of St. Thomas, St. John, St. Croix, and the smaller Water Island, as well as dozens of other minor islands. To be eligible for HDA benefits, a project must be located on one of the four named islands.The first benefit available through the HDA is the hotel occupancy tax (HOT) rebate. Hotel guests on the Islands are currently charged a 12.5% tax on rooms revenue, and investors can apply to receive an annual rebate of half or all of that tax for up to 30 years.Another incentive available to properties with a gaming operation is the Designated Casino Tax rebate. Properties that generate revenues through gambling offerings are subject to taxes of 8.0% of gross revenues from gaming operations in years one and two, 10.0% in years three and four, and 12.0% thereafter. Similar to the HOT, investors can apply for a rebate of either half of the casino tax or the full amount for up to 30 years.The third component of the HDA is the Economic Recovery Fee (ERF). The ERF incentive was added to the HDA following the particularly devastating impacts of Hurricanes Irma and Maria in 2017. Investors can apply to have an ERF tax (up to 7.5% of rooms revenue) added to their property’s guest bills. This tax would then be returned to the investor annually as a rebate for up to 30 years.These incentives are intended to offset development costs (including redevelopment, renovation, and new construction) incurred by investors in hospitality projects (largely hotels and resorts) on the Islands that are oriented towards tourists and visitors. Thus, the HOT, Designated Casino Tax, and/or ERF benefits will expire after either ownership’s recoupment of the property’s development costs (excluding operating costs and owner-funded capital improvements after the initial investment), or a maximum period of 30 years.
By Kannan Sankaran, Managing Director of the HVS Consulting & Valuation practice in Washington, D.C, HVS
Sun, Sand, Sea, and Luxury: The Rebound of Barbados Following COVID-19
Barbados is an independent English-speaking Commonwealth country and the easternmost island of the Caribbean. It is one of the most mature tourist destinations in the Caribbean. The island is known for offering some of the most serene beaches in the world, as well as an abundance of dining options, local shopping experiences, outstanding golf courses, and numerous other attractions. According to Barbados Tourism Marketing Inc. (BTMI), approximately 80% of visitors to the island come for vacation or tourism purposes. The following graph shows the historical stopover visitation data for Barbados.
By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS
The U.S. Virgin Islands: An Anticipated Record-Breaking Year
After the devasting impacts of Hurricanes Irma and Maria in 2017, the U.S. Virgin Islands, which comprise the islands of St. Thomas, St. John, and St. Croix, faced a significant rebuilding effort to reopen their hotel inventory. As the renovations and reopenings from the 2017 hurricane season were nearing completion, COVID-19 began to affect the islands. However, the U.S. Virgin Islands have a significant competitive advantage over the other islands in the Caribbean because they benefit from U.S. territory status. As a result, the U.S. Virgin Islands avoided the complicated COVID-19 travel restrictions that existed in other Caribbean destinations, allowing the islands to increase visitation numbers after 2020 significantly faster than other Caribbean islands.
By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS
The Development Boom in the Dominican Republic
The Dominican Republic is one of the fastest growing economies in the Caribbean and the most popular tourist destination in the Caribbean region. Its tropical climate, white-sand beaches, diverse mountainous landscape, and colonial history attracts visitors from around the world. The country has 28 provinces spread across six main regions, with the East & Southeast region, which encompasses the cities of Punta Cana and Bávaro, serving as the most popular tourist destination and offering nearly 50% of all hotel rooms in the country.
By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS
Using Creative Solutions to Highlight the Diversity of the Dominican Republic
Like other locales hard-hit by the events of the past 18 months, the Dominican Republic is focusing on rebuilding and recovering. The summer travel season may be behind us and we have headed into cooler months, but that doesn’t mean travel has to slow down. In fact, destinations in the Caribbean are very attractive all year round due to their warm weather and turquoise blue beaches. In this post we look at how, with the help of Expedia Group Media Solutions, the Dominican Republic continues to entice travelers no matter the season.
By Ana Paradela, Director, Business Development, Expedia Group Media Solutions
Cuba - A land that time forgot…
Have you ever fantasized what it would be like to be a Band member of the Buena Vista Social Club, take part in an episode of Lost, or go on a wild ride in Dr. Who's Tardis - because that's how a trip to Cuba would feel? As soon as one steps off the plane, the sights, sounds and smells of this place will whisk your senses away to a land that time forgot. Being stuck in a track of a vinyl record or a time vortex is what Cuba feels like.
By Terence Ronson, Founder & Managing Director, Pertlink Limited
Want Better Reviews? Forget your building, its all about your people!
Our plane touched down on a beautiful little island in the Caribbean. Having never been to this country before, our excitement and anticipation swelled as we taxied toward the terminal. After a quick run through customs and short taxi ride we arrived at a sleepy little resort on one of the world's most beautiful beaches.
By Joshua Evans, Founder & CEO, Enthusiastic You!
ZIKA - Let’s Get the Facts Straight
'Ground Zero?' 'Pandemic?' 'Hundreds of thousands of cases of Zika virus in Puerto Rico this year?' 'Puerto Rico is not prepared!'. None of the s 'tatements above reflect the situation on the ground in Puerto Rico. So why doesn't the CDC stick to just facts? That's all we are asking. The CDC has an obligation to report factual, relevant information to "protect America from health, safety and security threats, both foreign and in the US." As the CDC states in its mission, it saves lives and protects people from health threats. Nowhere in its mission, however, does it state that its objective is to be accomplished through fear.
By Clarisa Jiménez, President & CEO, Puerto Rico Hotel & Tourism Association
Interview with Director of Jamaica Tourism Board
I recently had the opportunity to briefly interview Mr. Paul Pennicook, the Director of Tourism for the Jamaica Tourism Board ("JTB"). Along with his team of officials, their initiatives have helped promote the Island's brand and focal point as a major tourist destination. The interview offers insights to interested investors and travelers alike about a Country that has experienced significant increases in tourism (one of four Island countries to exceed the two million visitor mark in the Caribbean), recent tourism-related openings (i.e. the Marriot Courtyard, Moon Palace Jamaica Grande, Hospiten Montego Bay) and foreign investment developments (i.e. Karisma Resorts, Harmony Cove & Celebration Limited) as well as some of the challenges they face (i.e. infrastructure, eastern international exposure).
By Renese Johnson, CEO/President, Vanguard Leisure Consulting LLC, Vanguard Leisure Consulting
Trending Issues and Challenges Facing Caribbean Hospitality Development
The Caribbean hospitality industry continues to strengthen as hotel operating fundamentals have exhibited continuous growth following the global economic downturn that began in the last decade. The Caribbean hotel market has shown steady improvements in average rate, occupancy and RevPAR since 2010. As STR shares, Caribbean-wide average daily rate increased every year since 2011 and notably by 4.3% year to date through June 2015, compared to same period last year. And Caribbean-wide RevPAR improved every year since 2011. These trends are driven mainly be the increases in average daily rate. Moreover, with limited new supply scheduled to enter the market coupled with a favorable forecast for higher levels of tourist arrivals, the overall market is expected to continue to strengthen even further. However, the one major challenge still facing the region is the limited amount of financing available for new construction, which in turn limits opportunities for developers to build new hotels.
By Parris Jordan, Managing Director at HVS - Caribbean, HVS
Cuba’s Future Hospitality and Tourism Business: Opportunities and Obstacles
Executive Summary: Resumption of diplomatic relations between the United States and Cuba may open opportunities for hospitality and tourism industry investors in the island, which is the largest in the Caribbean. Although the U.S. economic embargo continues (and can only be removed by an act of Congress), executive actions could ease some travel and trade restrictions. Although Cuba offers considerable potential for hospitality and tourism investors, economic, legal, and practical questions and barriers remain, starting with the central control maintained by the Cuban government. Foreign hospitality and tourism companies seeking to do business in Cuba must navigate the requirements of the Cuban authorities, while operating in the shadow of the U.S. embargo. The following four issues may hamper international investors: (1) finance and banking availability is lacking; (2) the Cuban government must be a partner in every foreign enterprise; (3) labor availability and terms are controlled by the government; and (4) the nation lacks credible dispute resolution entities (courts or arbitration).
Cuba: The Legendary Queen of the Caribbean Approaching a Monumental Opportunity
Cuba. It is now six years since I first started to take a personal interest in the country and when I began to travel there. I wanted to explore the traditional destinations and attractions and meet the important decision makers at the Ministry of Tourism. I've also had the opportunities to meet the premier players in hospitality in Cuba and the Cuban hotel companies. For the largest island in the Antilles, the one-time "Queen of the Caribbean," changes are becoming significant and, in terms of the travel industry, they are even greater than expected.
By Arturo Garcia Rosa, President & Founder of SAHIC, SAHIC - Latin American Hotel & Tourism Investment Conferences
DOMINICAN REPUBLIC - a 2014 snapshot, and business scenarios for 2015 and beyond
Every year, the hotel experts and analysts at Horwath HTL worldwide produce a series of mini-country reports exclusively for The Hotel Yearbook. Each report focuses on just two things: first, a quick snapshot of the country’s current economic and hotel market situation, and second, the outlook for the year ahead, highlighting specific events that are anticipated to have an impact on the health of the country’s hotel business.
By Sotero Peralta, Executive Director of Horwath HTL, Dominican Republic, Horwath
Cuba Si?
The good folks of the Mafia have fond memories of Havana when it was Las-Vegas-by-the-Sea: the showgirls, the fancy hotels, the nightclubs, the restaurants, pristine beaches and the illegal pleasures that come with it. The Batista régime did its utmost to encourage vice and the US were only too happy to see those activities take place away from the mainland.
By Benoit Gateau-Cumin, Chief Recruiting Officer, The Boutique Search Firm