Hotel sector hit with closures

According to Senator Rudy Grant, CEO, Barbados Hotel and Tourism Association (BHTA), a survey undertaken by the entity had shown that as of February 24, 2021, four luxury hotels, six “A” Class hotels and four “B” Class hotels were closed.

Grant disclosed this information during his report at the BHTA First Quarterly Meeting, and went on to say that just a week and a half later the BHTA observed that more hotels also had to close their doors.

“While these fourteen (14) hotels represent a little less than eighteen percent (18%) of the hotel room stock of members with the BHTA it is likely that more hotels will close with their reopening occurring around October 2021,” said the CEO.

Senator Grant explained that the closure of hotels and other tourism businesses during the winter season was an unknown phenomenon. He highlighted that 25 to 30 years ago the inherited practice was for hotels to close during the summer months where there was emphasis on renovations and upgrades to properties with the winter season being the highest revenue earning time for tourism businesses.

With specific regard to the initial impact of COVID-19 on Barbados in March 2020, the BHTA CEO stated that tourism based enterprises had been blessed with three full winter months (December, January and February) and during March, had approximately 48.4% occupancy.

“Even though March 2020 was a month where there was significant fall off in business, there has not been a month since then where occupancy has reached the March 2020 level. The revenue cushion which hotels and other tourism enterprises had in 2020 is not now available.”

Though 2020 was indeed tough, Grant stated in his report that the latter part of the year showed signs of the tourism sector making a gradual recovery. He outlined that hotel occupancy increased from a low of 4.7% in June 2020 to 45.8% in December 2020. The senator also pointed out that while that occupancy was down by 39.4% when compared to December 2019 where occupancy was at 75.7%, there was an anticipation for a reasonable winter season which would allow tourism enterprises to continue to employ staff and to obtain much needed revenue dollars, which would assist in the survival during the summer in further anticipation for an even better winter 2021.

However, according to the BHTA CEO, on December 31, 2020, a further tourism setback in 2021 became evident with the COVID-19 transmissions and challenges which were announced by the government of Barbados.

He lamented the fact that in the twinkle of an eye the tourism landscape had changed and the prospect for a reasonable tourism performance in January, February, March and April 2021 were utterly shattered. The anticipated decline was observed in January 2021 where the occupancy recorded was 35.5% and there was an expected decline further in the winter months of February, March and April.

Despite the unexpected and unwelcome first quarter disruption, Grant contended that the BHTA has had to refocus, rethink and reconsider the critical issues and how through discussions, lobbying and collaborations guarantee the survival of tourism enterprises and the maintaining of jobs.