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Will Crop Over see a recession?

6/16/2009

Creative solutions needed

WHAT should we expect for the 2009 Crop Over season given the ongoing financial crisis, as well as the concerns that have developed surrounding the emergence of the H1N1 influenza virus?

From the onset of the crisis there have been predictions made that the local tourism industry would be negatively impacted given the reduction in the disposable income of persons living abroad, due in most part to rising employment, and in other cases, a loss of assets caused by the financial collapse.

After 18 months the economic downturn is still prevalent, with financial experts constantly trying to analyse developments to determine when a rebound may actually occur.

At present no time table has been agreed upon, with most persons sharing the view that a turnaround will not be seen until 2010 or later. As a result, projections for the local tourism industry have been tempered, with fewer visitors expected to come to the island this year, even during the peak winter season, which starts December 15th.

Added to this is the spread of the A (H1N1) influenza virus, which has made its way onto the island with a few confirmed cases being made public in the last few weeks.

Around the world the spread of this virus has resulted in a number of travel advisories being issued, leading to a downturn in activity. In addition, due to the general fear of contracting the virus, persons have taken the decision to cancel or suspend travel plans, which, for countries like Barbados that depend heavily on tourist arrivals, compounds the problem already created by the economic crisis.

Impact

Getting back to the issue of the economic downturn, there is also another side that needs to be explored, and this relates to the impact that this downturn can have, and is having on the business aspect of the festival.

Indication has already been given that a number of traditional sponsors have pulled out of providing support to some of the local bands that take to the road every Kadooment Day, citing financial constraints has a major impediment.

This, in addition to a lack of funds in general, has resulted in some band leaders choosing not to participate in the festivities this year, which, despite leading to a reduction of the bands on the day, could be beneficial to some of the remaining bands that may able to attract persons looking for someone to “jump” with.

With the season now really beginning to get underway, it is left to be seen what impact all this will have on the various number of events scheduled to be held during this festival period, as it could be expected that the issue of sponsorship will surface again.

Given the importance of the festival to the overall tourism industry, and the role that it plays for a number of businesses, particularly small to medium-sized operations that earn revenues directly from activity associated with the season, the Government may have to look at ways to encourage sponsors to maintain their traditional levels of participation. Similar to the NIS loan facility proposed in this year’s budget, there must be some level of creativity seen in an effort to preserve the prosperity of this annual festival.

Indices

as of close 9/15/2009


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