Barbados Arrivals expected to improve in 2007

Jason · January 15, 2007

Barbados Arrivals expected to improve in 2007[/size]

Source: Barbados Advocate

ONE of the challenges Barbados has going forward in 2007 will be to grow its cruise ship passenger arrivals. The numbers had declined in 2005 and again last year although not to the extent of 2005.

On that occasion the country mustered around $72.5 million in revenue from the cruise sector which according to the Central Bank of Barbados Balance of Payments (BOP) survey was significantly lower than at any time recently. However, there is optimism of an improvement this year. Senator Rudy Grant, the Parliamentary Secretary in the Ministry of Tourism said recently that the numbers are expected to improve in 2007 on account of some positive initiatives undertaken by Government.

One initiative last year was the conclusion of an agreement with a cruise line which will guarantee more cruise ship passenger arrivals to this country. The year has already started on a very positive note with encouraging arrivals. The decline in the 2005 numbers stemmed from higher oil prices which affected almost everything and forced many ships to reduce their long haul voyages for closer destinations in the USA. The dip in financial performance of major companies like Carnival bore testimony to this.

Cruise ship passenger arrivals in Barbados have averaged about 500 000 over the period. Central Bank of Barbados figures show that cruise ship passenger arrivals topped 533 000 in 2000, reached 559 119 in 2003, increased to 721 270 the following year before declining to 563 588 in 2005.

The BOP shows earnings growing from $104 million in 2001 to $144 million by 2004, before plunging to the $72.5 million in 2005. The publication said that the decline took place while the long stay arrivals surged. Preliminary estates suggest that higher spending occurred last year. In reviewing the economy for the nine months January to September 2006, Central Bank Governor Dr. Marion Williams had told newsmen that the sector had continued to struggle. However, the decline between January and September last year was 11 per cent, compared with about 20 per cent for the corresponding period. This performance is as a result of the challenges faced by the industry, Dr. Williams said at the time. Her outlook for 2007 is for improved visitor arrivals especially during the first half of 2007. Coupled with the initiatives referred to by Senator Grant cruise passengers should be on the rebound.