Barbados Cruise Tourism Strategy Case Study Prepared by Egret Communications/ARA Consulting As a part of the Juneau Tourism Management Planning Process July 2001

Overview of the Tourism Sector Barbados attracted almost one million tourist and cruise passenger arrivals in 1999. A popular cruise destination, the country had 406 cruise ship calls in 1999 with about 430,000 cruise passenger arrivals (58% in the winter season). The country has a thriving tourism industry, with tourism arrivals of over 500,000 (1999), complementing the cruise industry arrivals. Tourism is an important economic sector for Barbados and the country of 267,500 allocated US$18.3 million for its tourism budget, the majority of which is devoted to marketing the destination. Tourism Highlights for 1999 – Barbados Visitor Arrivals Tourist Arrivals Summer Winter

517,870 64% 36%

Cruise Passengers Summer Winter Cruise Ship Calls

432,854 42% 58% 406

Visitor Profile Average Length of Stay (nights) Tourist Arrivals by Purpose of Visit Holiday Business Other

10.1 85% 10% 5%

Tourist Arrivals by Place of Stay Hotels Guest House/Apartment Private/Unregistered Other

73% 15% 12%

Tourism and Other Related Economic Statistics Total Expenditure (US$ millions) Average Daily Expenditure (US$) Tourism Budget (US$ thousands)

$677.2 $139.9 $18,331

Accommodation Statistics Rooms Room Occupancy Rates

Hotel and Restaurant contribution to GDP GDP at Factor Cost (US$ millions) Consumer Price Index (% ch. 1998/97)

11.2% $2068.9 1.6%

Socio-Economic Statistics 5,643 55.9

Land Area (square kilometres) Population (thousand mid year 1999)

432 267.5

Source: Caribbean Tourism Organization, Caribbean Tourism Statistical Report, 1999-2000.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 1

Barbados Cruise Tourism Strategy As past of an overall review of its tourism sector, Barbados commissioned the preparation of a cruise tourism strategy in 1996. At that time, cruise passenger arrivals were about 510,000 with 528 cruise ship calls in 1996. Part of the motivation for this strategy related to the clear indications that Caribbean nations were competing aggressively for cruise ship calls and that the traditionally strong position of Barbados (with its port facilities and long history of tourism activity) would lose market share. As its statistics indicate, there has been an almost 15% decline since 1996. Part of this is the increased competition Barbados expected. In addition, repositioning of cruise ship routes and itineraries has also contributed to the decline. The industry is always looking for new destinations to appeal to its markets (particularly repeat cruisers) and Barbados has the added disadvantage of being one of the oldest cruise destinations in the Caribbean. Of particular interest is the approach Barbados took in developing its cruise strategy. While cruise passenger arrivals declined in 1999, some believe that the partnership approach Barbados took in developing the cruise strategy helped to avoid an even greater decline.

Cruise Strategy Approach The key theme in the Barbados cruise strategy approach was a consultative and partnership oriented relationship with the cruise industry. Barbados went into the strategy with a conviction that the cruise industry was good for the country and that management and shaping of its benefits to complement Barbados’ expectations for tourism sector benefits was the objective. With the cooperation of the cruise industry, Barbados undertook the following consultations as part of its cruise strategy development: • Interviews with cruise line executives, those responsible for itinerary development, cruise ship directors and tourism industry representatives in Barbados; • Surveys of cruise ship passengers and crew. This included consultations with the Cruise Line International Association (CLIA) as well as individual interviews with cruise line representatives.

Key Findings Some of the key findings shaping the resulting cruise tourism strategy are described below. (These are excerpts from the 1997 Cruise Tourism Report prepared by ARA Consulting Group for the Barbados Tourism Development Programme and report on surveys conducted in 1996.) Perceptions of Cruise Line Executive From the point of view of cruise line executives, Barbados gets generally high markets. It enjoys very good market recognition, is well known, gets good reviews from passengers,

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 2

provides good ground tours, and is above average in terms of safety. It has a good image, a high profile, and is considered a good traditional destination. It has potential for “attracting up-market cruise passengers for high quality shore excursions like nature tourism, heritage tourism, golf, and similar activities.” The cruise lines believed that services provided by the Barbados Port Authority are more than adequate and that the current cost structure is acceptable, although there is concern about cost increases. In general, they have little concern with congestion problems except for the typical mid-week situation when more than one or two large ships arrive. They were interested in finding ways in which greater volumes can be accommodated without congestion by cooperative rescheduling of itineraries. Perceptions of the Barbados Tourism Product In terms of Barbados’ land product, operators felt it is of good quality and more diversified than many other destinations. It is handled by good agents and tour operators, and transportation is reasonably well controlled and organized, although there is considerable concern about the taxi situation at the port. There is an opportunity to add more active, experiential, cultural and heritage shore experiences. While the Barbados shore excursion product shows better diversification than many islands, some attractions were felt to be poorly delivered – Harrison’s Cave is consistently mentioned by operators as being very popular but poor in terms of waiting times and congestion. Cruise ship representatives indicated that most passengers go ashore – from 80% to 95%. With respect to those who undertake shore excursions, the answers varied considerably but the average appeared to be about 50%. Popular land-based excursions included a visit to Harrison’s Cave, various tours of the island featuring a variety of attractions, and helicopter tours. For tours presold aboard ship before arrival in Barbados (estimated at 40% to 45% of all passengers who disembark) the mark-up varied from ship to ship, averaging about 40%. Strengths and Weaknesses In response to questions about their own and their passengers’ perceptions of Barbados’ strengths and weaknesses as a destination, cruise line representatives were more positive than negative about the port. They placed a large value on access to good guides, good product, and well run excursions and transportation. They thought highly of island tours, the generally welcoming attitude of Barbadians, the beautiful beaches, and generally positive experiences. When asked about weaknesses, they cited high costs, the taxi situation at the port, Harrison’s Cave, and insufficient facilities at the port. The survey of passengers revealed that the majority reported being very satisfied (57%) or satisfied (37%) with Barbados as a destination. Passengers cited friendly and honest people, convenient shopping, beaches and water sports, cleanliness, the use of English as a working language and good cruise terminal facilities as positive aspects of the experience.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 3

Barbados Tourism Industry Perceptions Tourism interests in Barbados have a business-like approach to the opportunity represented by cruise tourism. Most appreciate that Barbados is a small participant in a world wide market dominated by a few very large companies, and that its influence is not such that it can dictate which ships it will accept. On the other hand, they also recognise that business is business, that a good deal is a good deal if it benefits both parties, and that Barbados, with its strong, diverse onshore product and high profile within the industry, has a relatively strong base from which to promote its cruise tourism interests.

Cruise Tourism Strategy In explicit recognition of the contribution cruise tourism makes to the country, a cruise tourism strategy for Barbados was developed to attain two key goals: 1. To maximise value added from cruise tourism rather than focusing on the volume of cruise tourists visiting the Island; and 2. To maximise the rate of conversion of cruise tourists to stayover tourists. Attainment of these two goals would, in effect, extract increased benefits from an already valuable resource — cruise tourism — and transform a portion of that resource into an even more valuable commodity — stayover tourism. Maximizing value added: Cruise tourism in Barbados, as in most destinations, grew without significant effort or forward planning by any one agency within the country. Barbados, with its large, well developed port, its citizens who make guests feel welcome, and its diverse shore attractions, was well placed to participate in the cruise phenomenon. Growth in cruise tourism arrivals was substantial and remarkably consistent. But it was not planned. During the 1980s, public sector tourism interests (mainly the Barbados Tourism Authority) focused, appropriately enough, on stayover tourists. Cruise tourism was handled by the Barbados Port Authority (BPA), who developed good relations with the cruise lines, marketed the port, and saw increasing volumes as a result. It was natural for the BPA to focus on cruise tourism volume — to maximise port fees and head taxes as ways of financing the capital port investments required to serve the market. Specialty Cruises: The cruise industry has since matured. Cruise volumes in the region are at an all-time high and increasing. As lines fight for market share, there is increasing pressure to reduce fares (particularly on mid-sized lines operating smaller-than-average vessels). This has led to the rise of “niche” operators who attempt to distinguish themselves in by offering special cruise packages focusing on special interests — nature and heritage, sports (spectator and participative), chess, bridge, literature, science, or any number of special interests for which there may be a market. These special interest cruises attract higher income passengers who spend more while ashore. And on-shore expenditures are the real measure of cruise tourism’s contribution to the Island economy. Port fees of perhaps US $1,200 per visit for a 1,000 passenger vessel, when added to the $6.00

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 4

passenger head tax, generate only US $7.20 per passenger in foreign exchange, whereas passenger spending of even a “low-value” cruise tourist would be in the US $20 to US $30 per day range. Per passenger spending of US $90 or more by older passengers of nonNorth American origins is common — representing an excellent market by which to increase on-island cruise tourist spending. European Market: The European cruise market, estimated (in 1999) to represent about 17% of Barbadian cruise arrivals, is projected to increase to 23% or more of arrivals over the next decade. And Europeans generally spend more while ashore than do North Americans. In addition, Europe has a greater population than North America, a long maritime heritage, a well-educated population, and discerning consumers with high disposable incomes. This market presents another opportunity for Barbados to increase value added from cruise tourism. Home Porting: While the potential for Barbados to act as a home port for major US cruise lines is not great, the island is well positioned to offer European and smaller US-based cruise ship operators an excellent opportunity to home port their ships during the Caribbean cruising season. From the point of view of image and market positioning, it is better for a European cruise operator to establish its own identity in a port such as Barbados rather than to become a small player in the large US port. As well, Barbados is closer to Europe than is San Juan or Miami. While the frequency and capacity of scheduled flights between Europe and Barbados are insufficient to handle a significant amount of home porting traffic from Europe, charter flights could take up the volume. The fact that the European cruise business is growing faster than the North American product, coupled with the fact that European operators generally bring higher spending passengers on smaller ships than do North America-based operators, suggest a thrust on home porting of European ships would bear fruit. Maximizing Cruise-to-Stayover Conversions: Maximising the rate of conversion of cruise tourists to stayover tourists would have an even greater impact on the Barbadian economy than maximising cruise tourist on-shore ex penditures. While a typical cruise tourist might spend US $40 or US $50 while ashore on a one-day visit, a typical stayover tourist will spend over US $100 for each of the 11 days he or she will spend on the Island — more than 20 times as much. In 1996, roughly 510,000 cruise passengers arrived at Barbados. An analysis to account for those who stay aboard and those who only stay in the terminal area suggests that an estimated 45% of arrivals are good candidates for a cruise-to-stayover campaign. In the case of 1996 arrivals, this represents 230,000 passengers. The cruise passenger survey conducted as part of the assignment contained questions relating to passengers’ intentions to return to Barbados for a stayover vacation. Fifteen percent of respondents indicated they planned to return. Discounting this by a factor of two or three would produce intention estimates of 5% to 10%. If only 5% of the 230,000 cruise-to-stayover candidates decided to visit Barbados on a stayover basis, the island would see an additional 11,500 stayover tourists spending roughly US $13.7 million.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 5

Key Considerations for Juneau The case of Barbados is yet another example in the Caribbean of destinations attempting to shape the benefits from an important segment of the tourism sector to meet destination objectives for contribution to economic, social and heritage/cultural values. For Barbados, this meant focusing on value-added from cruise tourism as well as converting cruise passenger arrivals to stayover markets in the future. Barbados regards the cruise tourism market it enjoys as a very important resource for its country’s development. Barbados also sees continuing consultation and partnership efforts with the industry as central to a successful cruise tourism sector. A full listing of the Barbados cruise tourism strategy recommendations is provided in Attachment 1.

Sources The primary source for this case study was the Barbados Cruise Tourism Strategy, prepared in 1997 by the ARA Consulting Group as part of the Barbados Tourism Development Program: ARA Consulting Group, Barbados Cruise Tourism Strategy, 1997. Caribbean Tourism Organization, Caribbean Tourism Statistical Report, 1999-2000

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 6

ATTACHMENT 1 Barbados Cruise Tourism Strategy Recommendations

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 7

Barbados Cruise Tourism Strategy Recommendations Category

Recommended Actions

General Marketing

Recommendation 1: Barbados should establish a cruise tourism marketing programme operated jointly by the Barbados Port Authority and the Barbados Tourism Authority in concert with Barbadian shipping agents. Recommendation 2: The cruise tourism marketing programme should be a mixture of promotion of Barbados as a destination to the cruise lines by the Port Authority, and promotion of Barbados in general by the Tourism Authority.

European and Specialty Cruising Focus

Recommendation 3: The Port Authority should strongly consider appointment of agents to represent Barbados in European markets.

Home Porting

Recommendation 5: Barbados should promote the benefits of using Bridgetown as a home port to European and smaller US cruise lines. The promotio n should include reductions in marine charges and head taxes. The Barbados Cruise market agent for European markets should be an integral part of the strategy.

Marketing on Board

Recommendation 6: . Barbados should develop a promotional programme to ensure that cruise directors are provided with the best possible information about Barbados and about what is available during shore excursions. The programme should include a high quality publication outlining the Barbados shore excursion product to be distributed to all passengers prior to arrival. Production of an appropriate video for viewing by passengers should also be considered.

Cruise-toStayover Conversion

Recommendation 7: . Barbados should design and undertake surveys to establish baseline conditions and the current conversion of cruise tourists to stayover tourists. The present tourist exit survey administered at the airport includes some appropriate questions – other information sources should include surveys at hotels and attractions, and surveys of cruise tourists.

July, 2001

Recommendation 4: Barbados should include in its cruise tourism marketing programme a component focusing on specialty cruises and on attracting European cruise lines.

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 8

Category

Recommended Actions Recommendation 8: . Barbados should re-site and expand the Tourism Authority Visitor Centre in the cruise terminal, with a strong and pronounced focus on influencing those who visit to consider a stayover vacation in Barbados next year. Recommendation 9: . Barbados should strongly consider construction of an interpretive centre celebrating the island, its people, its history, its achievements, its aspirations, and the wide range of activities and attractions available for both residents and visitors.

Reception (General)

Recommendation 10:. Make the port areas through which cruise passengers pass more pleasant, with building -sized murals of appropriate scenes on the sides of sheds and other structures, light landscaping in the form of planted areas, painted walkways, shaded benches for relaxing, and similar amenities. Recommendation 11:. Examine all signage for quality of presentation, adequacy of size of both the signs and the symbols and the text thereon, and their location. Recommendation 12:. Broaden interpretation services in the port area to include at least Spanish, French, and German, and ensure that the services are well-promoted and easily available. Recommendation 13:. In co-operation with the Barbados Tourism Human Resource Council (See recommendation from study component Barbados Tourism Human Resource Council), design and deliver a “port area training programme” for all personnel in the area (terminal staff, security, customs, police, other) in attitudes, deportment, and hospitality. Recommendation 14:. Provide a shuttle service (either free or charged back to the cruise ship) between the ship and the passenger terminal.

Circulation

Recommendation 15:. Create an additional paved parking lot. Recommendation 16:. Paint the parking area with well-marked lane lines for buses and taxis. Recommendation 17:. Create an additional paved parking lot. Recommendation 18:. Resolve the issue of buses being turned back at the port gates.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 9

Category

Recommended Actions Recommendation 19:. Develop a system to allow coastal cruise operators to pick up cruise passengers directly from their ships rather than from the congested port gate area.

Passenger Information

Recommendation 20:. Prepare and distribute from the Tourism Authority Visitor Centre and other locations maps of the immediate port area, the walking route into Bridgetown, the locations of key services in the area (banks, telephones, taxi stands), historic and other attractions in the Bridgetown area (Parliament Buildings, historic sites and monuments, churches), shopping and dining establishments nearby, and other points of interest to a short term visitor. Recommendation 21:. Prepare and distribute a similar type of map illustrating island-wide attractions and their locations. Recommendation 22:. Develop and maintain a Terminal Newsletter with items of interest to passengers, advertisements and coupons for attractions, shopping, arts and crafts, dining and other tourist facilities.

Taxis

Recommendation 23:. Establish standards of vehicle quality, dress, and driver attitude and knowledge consistent with the need for a quality destination reception and transportation service. Recommendation 24:. Develop training and seminar programmes for taxi drivers with a focus on the important position they maintain in the tourist services spectrum — the FCCA “Taxi Pride” Program is recommended. Recommendation 25:. Establish an appraisal system for drivers who complete the training programme. Recommendation 26:. Establish a complaints and merits bureau for taxi drivers. Recommendation 27:. Provide improved assembly areas for taxi drivers in the port with protection against inclement weather and direct sunlight. Recommendation 28:. Consider a two colour lane system within the port (one for short taxi trips to downtown Bridgetown, and one for taxis offering island tours or transportation to specific attractions outside Bridgetown) where vehicles would rotate between the two types of lanes — and ensure sanctions are in place for misuse of the system.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 10

Category

Recommended Actions Recommendation 29:. Either include at the terminal more information about taxi fares from the port to different destinations (and make handouts readily available), or consider a requirement that taxis serving the port must employ meters. Recommendation 30:. Improve the dispatch function of taxis within the port by providing uniforms for dispatchers, ensuring that dispatchers present a welcoming and helpful attitude (and not one overconcerned with ensuring that taxi drivers mind their places), and providing disp atchers with language training — provision of a female taxi dispatcher might reduce occasional rowdiness in the dispatching area. Recommendation 31:. Consider provision of limited secretarial and administrative support for the two taxi associations to help in communicating with their members. Recommendation 32:. Offer a programme of small business management and operation to interested drivers.

Shore Excursions

Recommendation 33:. Work with cruise lines to include in itineraries a chance to attend spec ial Barbadian events where passengers could experience in a more leisurely fashion, culture, local food and craft products. Recommendation 34:. Harrison’s Cave, the single most popular attraction in the country, was cited by cruise line executives, onboard ship representatives, passengers, and representatives from the Barbadian tourist sector as requiring substantial improvements. The tour through the Caves itself remains a popular and outstanding experience, but the long delays, the occasional offhand management attitudes at the attraction, trolleys which are perceived to break down frequently, and a poor audio system on the trolleys, all contribute to making many passengers’ visits to the Caves memorable for the wrong reasons. Recommendation 35:. Upgrade the appearance of the Princess Alice Highway between the port and downtown Bridgetown from both an aesthetic and a safety (uneven and broken paving stones) point of view. Recommendation 36:. Take steps to make Bridgetown more pedestrianfriendly in terms of sidewalk design and repair, clear and visible signage, and dealing with the congestion in the taxi parking area on Lower Broad Street — one passenger described the whole of Broad Street as a large parking lot moving slowly toward Nelson’s monument.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 11

Category

Recommended Actions Recommendation 37:. Consider development of a special heritage package as part of a Bridgetown tour which could include establishment of a circular tourist shuttle connecting the port with key attractions like the Museum, Tyrol Cot, Government House, The Garrison, St. Michael’s Cathedral, the Synagogue, and other points of interest. Recommendation 38:. Consider provision of public washroom facilities in downtown Bridgetown for tourists on walking tours. Recommendation 39:. Consider a tourist information centre or kiosk in Bridgetown to provide maps and advice to both cruise and stayover tourists. Recommendation 40:. Establish an area in Bridgetown or near the port to showcase performing arts and other aspects of local culture — this might tie in with the welcome and interpretation centre previously mentioned, or have a link to a much -improved Pelican Village. Recommendation 41:. Work with the banking community to establish foreign exchange booths. Recommendation 42:. With respect to coastal excurs ions, encourage the Port Authority and coastal cruise operators to allow the operators to pick up passengers directly at their ships rather than at the port gate.

Independent Activities

Recommendation 43:. Consider establishing an additional beach within relatively easy reach of the port for those who find existing beaches too congested — a problem apparent primarily during mid-week in the winter. Recommendation 44:. For those cruise lines which currently have laterthan-normal departures or who may be convinced to delay departure times, arrange with local restaurateurs and tour operators for special “early” dining experiences. Recommendation 45:. Develop a list of “cruise friendly” properties (hotels, resorts, beach areas) who welcome cruise passengers and provide services to them — food and beverages, changing facilities, towels and beach chairs. This approach would also be of interest to those orchestrating a cruise-to-stayover conversion programme.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 12

Category

Recommended Actions

Independent Activities (Shopping)

Recommendation 46:. Develop a better understanding of markets and their expectations for shopping experiences and goods. Recommendation 47:. Simplify sales transactions to introduce a more effective transaction system for duty-free purchases that is seamless from the customer’s point of view. Recommendation 48:. Review the in-bond system list and rationalise it to maximise benefits to Barbados. Recommendation 49:. Address the continuing deterioration of Pelican Village — comments of knowledgeable observers range from making substantial alterations to removing it entirely.

Independent Activities (Handicrafts)

Recommendation 50:. Consider a market or similar facility to Pelican Village to showcase Barbadian arts and crafts, including exhibitions of craft production - might tie in with the proposed interpretation centre mentioned earlier.

Independent Activities (Food and Beverages)

Recommendation 51:. Encourage duplication of the Friday night fish dinner experience in Oisten’s.

July, 2001

Barbados Cruise Tourism Strategy Case Study Juneau Tourism Management Project – Egret Communications/ARA Consulting

Page 13