Bermuda National Tourism Master Plan
Townhall Presentation
11 June 2012
Index
What are the opportunities?
How will it be achieved?
Whats in it for you? Now what?
Bermuda National Tourism Plan
What are the opportunities?
Bermuda National Tourism Plan 3
Opportunitues
The Master Plan defines implementable solutions and opportunities for Bermudians
Diagnostics
Strategy
Action Plan
Consultation with more than 200 stakeholder groups
Bermuda National Tourism Plan
Opportunitues
Stakeholders across the Tourism Value Chain have an important role to play in the implementation of the Plan
Travel organization & booking
Transportation
Accommodation
Food & Beverage
Handicraft & Shopping
Tourism assets
Leisure activities
Support services
The Tourism Plan creates opportunities for employment and entrepreneurs throughout the sector
Bermuda National Tourism Plan
Challenges
The major shift from to cruise visitors over the past 30 years has had a major impact on the whole sector; hotel supply decreased by 44% in the past 30 years
Arrivals
700,000
Peak 1987 Air 76% Cruise 24% 630,296
545,594 641,717 663,767
Peak 2011
Air 36% Cruise 63% 655,236
600,000
608,951
500,000
491,035
476,859
354,024
415,711
336,299
332,191
400,000
300,000
298,973
200,000 117,916 100,000
5,522 6,445
305,548
207,881
153,437
236,038
4,195
5,141
4,654
5,073
3487
0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
Air
Cruise
Yacht
Total
Air
Cruise
Yacht
2011
GDP:$297 MM (5%)
Jobs: 5,594 (9%)
Expenditure: $421 MM
Arrivals: 655k
6
Bermuda National Tourism Plan
Challenges
Bermuda is highly seasonal (average occupancy 56%): limited business, limited job opportunities
Air Arrivals 35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
January February March April May June July August September October November December
2011
Bermuda is highly seasonal, with May to August having the highest average occupancy rates of 70 80%; occupancies from December to February are lower than 30%
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Challenges
Top challenges for tourism development in Bermuda:
1. Lack of clear positioning and brand identity
2. High competition
3. Limited demand drivers 4. Highly seasonality; low occupancy rates 5. Air vs. cruise imbalance and lack of focused market strategy 6. Limited quality of products and services 7. Limited local human resources capacity and lack of pride in sector 8. Transportation challenges: air lift, land and water circulations 9. Need for further inter-ministerial co-operation, continuity and PPP 10. Low investment appeal: high investment costs and high operational costs
Lack of real value in tourism industry: for international visitors and local community
Bermuda National Tourism Plan
Opportunities
Top strengths which need to be leveraged:
1. Historical legacy as high-end destination
2. Unique cultural and natural resources with international appeal
3. Distinctive tourism hubs 4. High end market appeal 5. Strong cruise market arrivals; yachters and boat market with high potential
6. Business reputation, developing products for business tourists
7. High repetition rate 8. Successful collaborations and PPP 9. Close proximity to major key source markets 10. Passionate people
Bermuda has many opportunities to further develop its brand and tourism offering in order to regain its international appeal and increase market share
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How will it be achieved?
What is T&L Europraxis doing about innovation in tourism??
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8 Startegic Objectives
8 Strategic objectives of the Master Plan to reinvent the tourism industry:
1
Build unique and create competitive positioning
5
Improve quality throughout Tourism Value Chain
2
Create new demand and reduce seasonality
6
Build pride and create jobs 6,157 direct jobs by 2022
3
Rebalance air vs. cruise 52% air and 47% cruise by 2022
7
Support business development and attract investment
4
Increase visitor spending $1,471MM by 2022
8
Create economic ($513MM by 2022), social and environmental sustainability
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5 Programmes for Implementation
5 Programmes with implementable solutions
5 Programmes
Implementable solutions New positioning New niche marketing Build pride campaign New destination hubs New products Total quality solutions New training solutions New infrastructure solutions Protection of natural and cultural resources New support for small business New supportive governance structure
1
Marketing Programme
Product and Destination Development Programme Total Quality Management Programme Infrastructure Programme Global Governance Programme
4 5
5 Programmes with actions: Quick Wins, medium to long term actions
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Marketing Programme
Leverage Bermudas unique and internationally competitive assets to build competitive advantage and highlight its authenticity
Physical elements
Underwater heritage: Mary-Celestia Healthy Coral Reef: Sargasso Sea Bermuda Moon Gate
Emotional elements
Bermudian Artistic Expressions
St George UNESCO World Heritage Site
Maritime Heritage
Bermuda Iconic Architecture
Pink beaches
Leverage Bermudas physical and emotional attributes to create a place with uniquely Bermudian experiences emotional elements create the soul of the place
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Marketing Programme - Position and Vision
Bermuda has a real opportunity to position itself as uniquely different from the Caribbean and other competitive destinations
Exotic
St Thomas St Lucia Turks & Caicos Barbados
Standard
Bermuda 2015
Luxury
Bermuda NOW
Newport Martha's Vineyard Charleston Nantucket
Familiar/Comfortable
The positive attributes of familiarity and comfort should be transformed into a real competitive advantage
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Marketing Programme - Position and Vision
Aspirational vision statement and underlying values
Bermuda is an innovative, modern and sophisticated year round destination The treasure of the Atlantic
With enchanting natural beauty and cultural heritage
Which leverages its unique resources To create authentic Bermudian experiences A secret place where you have time to discover and build unforgettable memories Where you feel at home in a world away, closer than you imagine
The vision statement presents the imagine of how Bermuda, as a tourism destination, will be regarded by the international community, what it has to offer to the guests, and what kind of experiences will be gained by visitors in 2015 and beyond
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New Destination Hubs
Bermuda has 5 distinct tourism hubs, or centres of characterized tourism interests, which offer unique and attractive destinations
Royal Naval Dockyard
Hub 1
Hub 4
Hub 2
St George & St Davids Island
South shore Bermuda City of Hamilton
Hub 3
Offshore Bermuda offers a unique concentration of cultural and natural tourism attractions important enough to become a stand-alone tourism hub
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New Destination Hubs
Hub 1 - St. George World Heritage Destination & St. David's Island
A World Heritage Destination
Connecting the past and present
Destination Concept
Colonial architecture and cultural heritage Current artistic expressions and activities Enjoyment of the natural environment
Business Opportunity
Walking tours Boutique retail Outdoor dining, Artisans and craft makers markets Heritage museums Live entertainment Waterfront experiences Sailing and yachting Pristine nature
A World Heritage charming village with Bermudian artistic expressions
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New Destination Hubs
Hub 2 - Hamilton City
Vibrant and dynamic modern city
Destination Concept
Business community and visitors needs Connects authentic Bermudian flare with state of the art modern facilities
Business Opportunity
Conference facilities and services Performing arts, Signature restaurants High-end retail Live entertainment Nightlife venues Waterfront enjoyment
An iconic modern city with Bermudian flare
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New Destination Hubs
Hub 3 - South Shore Area
Attractive natural open spaces
Destination Concept
Offering excellent services Diverse day activities and gastronomy as a remedy for stress
Business Opportunity
Sun and beach activities and facilities Signature golf Recreational sports First-rate restaurants Cultural programs
A special place with island beauty and active experiences
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New Destination Hubs
Hub 4 - Royal Navy Dockyard
Multi-purpose recreational and edutainment hub
Destination Concept
Multiple leisure activities Authentic Bermuda cultural heritage
Business Opportunity
Retail (duty free) Edutainment centers/programs Heritage museums/itineraries Artisan workshops Bermudian gastronomy Water sports Boating and sailing
A versatile and fun place in a distinctive Maritime setting
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New Destination Hubs
Hub 5 - Offshore Bermuda
A Fascinating eco-destination set in the most northerly coral reef system in the world
Destination Concept
Unique underwater heritage system of shipwrecks Pristine coral reef dive sites Internationally recognized sports fishing sites Shipwreck diving Game fishing Whale watching Snorkeling Water sports Yachting Sailing Glass bottom boats
Business Opportunity
A fascinating and unspoilt marine destination to discover
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New Product Development
The Product Development Strategy is focused on the development of 7 tourism products in order to create demand drivers and reduce seasonality
Leisure & Entertainment
Cultural Tourism
Cruise Tourism
Core Products Business & MICE
Sports Tourism
Eco-Beach & Nature
Nautical Tourism
Quickwin opportunities in: Luxury, Events, Groups and continuous innovation by product portfolio
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New Product Development
Core: Cultural Tourism
Product Portfolio Bermudas architecture British colonial heritage Linkages to USA history Ship wreckages Watercolor artistic legacy Gastronomy Lifestyle Music Dance Handicraft
New Business Development St. George World Heritage Destination Underwater Heritage Interpretation center
Performing Arts Centre
Cultural heritage trails
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New Product Development
Core: Business & MICE (Meetings, Incentives, Conferences, Events)
Product Portfolio Executive business meetings market Improve MICE services Small conferences State of the art facilities and services Extended stay of business and MICE visitors
New Business Development Extend existing conference and meeting facilities and services New Conference Center facility
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New Product Development
Core: Sports Tourism
Product Portfolio Competitive sporting events Expanding key niche sports: Golf , Diving, Game fishing Development of infrastructure and tailored services and marketing actions. Attract new markets
New Business Development Multisport Training facility development Niche sport facility development (Diving/Sports Fishing/Golf)
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New Product Development
Complementary: Leisure and Entertainment Tourism
Product Portfolio High quality Leisure & Entertainment product Authentic Bermudian entertainment L&E experiences: shopping, dinning, gaming and other Attract new market segments Attract new players to the industry
New Business Development Hamilton Waterfront Development Shopping Tourism Development
Hamilton High-end retail hub St. George Boutique shopping hub Dockyard Duty-free shopping
High-end Gaming facility
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New Product Development
Complementary: Nautical Tourism
Product Portfolio System of mix development marinas Specialized yacht services International events Become a must-stop hub for the yachters market Become a recognized boat charter destination
New Business Development Full service marina with commercial and residential component Yachters support services Network of full service Marinas
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New Product Development
Complementary: Eco-beach & Nature Tourism
Product Portfolio Combine the rich and vast natural assets in both inland and shore areas
Develop the beach and nature product
Offer beach shore activities and nature experiences Maintain the integrity of the resource
New Business Development Coopers Island Nature Reserve
Non-Such Island Living Museum
Castle Island exclusive itineraries
Beach Experience development
Active beach facilities Network Pristine beaches Network
Island wide Nature trails
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New Product Development
Complementary: Cruise Tourism
Product Portfolio Expand the luxury cruise market Improve Transportation system efficiency Develop tailored programs and events for visitors Contain accelerated cruise tourism growth Increase daily expenditure
New Business Development Cruise Visitor Management Plan
New modes of transportation and de-concentration options
Pocket cruise tourism development in St. George
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Marketing Programme - Commercialization
Product development and commercial efforts will focus on key luxury segments, niche markets and groups and events
Product Development Bureaus
Groups
Events
Luxury
Niche Markets
Product Innovation
Strategies across all Products Portfolios
Groups and Events will play a key role in reducing seasonality
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Total Quality Management Programme
A Total Quality Management (TQM) system will be developed in order to guarantee quality, build competitiveness and create value
Physical Facilities and Services
People
Quality guarantees of physical facilities/services and human capacity throughout the Tourism Value Chain is critical
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Total Quality Management Programme
The people of Bermuda have a key role to play in the development of the Tourism Plan; training and awareness programmes are a key
People Build pride
How?
Create awareness
Provide skills and training
Develop business incubators
The plan will need skilled people to implement it
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Infrastructure Programme
New infrastructure solutions are needed to support the Tourism Plan; resources need to be managed in a sustainable manner
Infrastructure & Sustainability How?
Manage sustainable resources
New national connectivity transportation solutions New infrastructure solutions
Airport, new transportation solutions, signage Pier and marina development
Protect and preserve resources Capacity management and land/marine usage planning Awareness and incentives
Sustainability is a core element in the new model of tourism development for Bermuda
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Governance Programme
Support business development and create investment opportunities
Planning and Support
Strategic Alliances and Partnership - PPP Investment attraction and facilitation Business Development Incubators
Travel organization & booking
Transport
Accommodation
Food & Beverage
Handicraft & Shopping
Tourism assets
Leisure activities
Support services
Opportunity and Wealth Generation Business Opportunities Job generation Productive infrastructure
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Governance Programme
Governance model requires policy, strategic and operational support; through increased inter-ministerial collaboration and PPP structures
Ministry of Business Development and Tourism
Leadership
Policy
Cabinet Committee Coordination & Tourism Development Cooperation (CCSHD)
Investor One-stop-shop
Investment Funding Opportunity Management
Coordination & Cooperation
Bermuda Destination Management Organization (BDMO)
Branding & Market Intelligence Product to Market
Strategic
Bermuda Tourism Board
Marketing Strategy
Total Quality Management Strategy
Information Strategy
Product Development Strategy
Destination Development Strategy
Project Prioritization
Leadership
Operational
Bermuda Department of Tourism (BDOT) And new operational units
Marketing Unit
Total Quality Management Operations
Information Unit
Product Development Bureau
Destination Development Unit
Project Planning & Funding Unit
Destination Coordinators
St. George Municipality
Corporation of Hamilton
West End Corporation
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Tourism Awareness
Multiple levels of tourism awareness campaigns are introduced through the Tourism Plan
Tourism Awareness How?
International brand awareness Local tourism awareness of tourism benefits Tourism job opportunity awareness
Sustainability awareness and incentive
programme
Awareness and stakeholder engagement in all levels of tourism development is key success factor
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Whats in it for you?
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Whats in it for you?
Rebalance air and cruise arrivals, grow yacht: more demand for goods and services, business, new jobs, more activities
2022 Arrivals
1,000,000 900,000 800,000
725,825
Air arrivals 2015 Cruise Arrival Air arrivals Cruise Arrival 43% 57%
52% 47% 919,088
2022
Total arrivals reach new record
700,000
608,951 630,296
663,767 655,236 2015 2022 Air arrivals reach1994 level
600,000
491,035
2011
Air arrivals 415,711 354,024 Cruise Arrival 375,000 36% 63% 413,438
Cruise reach new peak record
500,000
400,000 300,000
481,715
476,859
428,127 305,942
305,548
2015 236,038 Air arrivals reach 2007 level
2022
200,000 100,000 0
153,437
Cruise arrivals reach new peak record
117,916 3,487 1980 1987 1990 1994 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 6,445 2016 2017 2018 2019 2020 2021 9,246 2022
Historic* *Source: BDOT
Projection
Air
Cruise
Yacht
Total
Air arrivals surpasses cruise arrivals by 2021 and reaches 52% market share by 2022
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Whats in it for you?
Reduce seasonality: Longer season, longer employment, new products, new business
Air Arrivals by month 60,000
Marketing and Promotion now Organisation of resources
50,000
40,000
30,000
2022 air arrivals: 481.715
20,000
10,000
Quick wins
0
January February March April
New brand and positioning Product development (Events and Groups) Niche marketing Training and awareness
May June July August
2015 air arrivals: 305.942
Quick wins
September October November December
2011 air arrivals: 236.038
2011
2015
2022
Reduce seasonality through new products, new positioning, new niche marketing Focus on Groups and Events
Bermuda National Tourism Plan 39
Whats in it for you?
Visitor expenditures to grow from $422MM in 2011 to $1,471MM in 2022: More people spending more money during a longer season
Visitor Expenditures ($US)
1,471 1,321 1,187 1,066 959 863 765 678 602 534 422 474
2011
Baseline
2012
2013
2014
2015
2016
2017
Projection
2018
2019
2020
2021
2022
Air
Cruise
Air arrivals expenditure: increase from $357 MM to $1,355MM by 2022 ( $1,511 to $2,814 per trip*) by 2022 Cruise arrival expenditure: increase from $65MM to $115MM by 2022 (from $156 to $263 per trip),
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Whats in it for you?
Tax income contribution is expected to grow to $100MM by 2022: More tax revenues to benefit tourism sector
Tax Income Revenues ($US MM)
94 84 79 73 68 100
64
59 55 50 45 46
2011
Baseline
2012
2013
2014
2015
2016
2017
Projection
2018
2019
2020
2021
2022
Air
Cruise
Yacht
CAGR: Compund Annual Growth Rate
Air tax revenues is expected to reach $68 MM by 2022 Cruise tax revenues is expected to reach $29MM by 2022
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Whats in it for you?
Direct contribution to GDP is expected to increase from $300MM to $513MM by 2022 (5% yearly growth)
Tourism Direct contribution to GDP
6.3% 489 6.4% GDP %
5.2%
5.3%
5.4%
5.5%
5.6%
5.7%
5.8%
6.0%
6.1%
6.2%
513
300
315
331
347
365
383
402
422
443
465
2011
Baseline
2012
2013
2014
2015
2016
2017
Projection
2018
2019
2020
2021
2022
Masterplan GDP Contribtion $MM
Masterplan GDP Contribtion %
GDP organic growth rate is expected to increase at a 3%* steady rate, meaning that the tourism industry would grow at a higher rate and therefore its contribution to the economy will increase from 5.2% to 6.4%
* source: World Bank /US CIA projections Bermuda National Tourism Plan 42
Whats in it for you?
Direct job positions supported by the Tourism Industry are expected to increase from 3,600 in 2011 (9% of job pool) to 6,157 by 2022 (15% of job pool)
Tourism Direct Job positions and % of Job Pool
15% 15% 13% 13% 14% 5,864 6,157
9% 3,600
9%
10% 3,969
10%
11% 4,376
11%
12%
4,595
4,824
5,066
5,319
5,585
4,167
3,780
2011
Baseline
2012
2013
2014
2015
2016
2017
Projection
2018
2019
2020
2021
2022
Tourism job positions
Contribtion to job pool
60% of the expected jobs are in hotels 40% of the jobs are across the industry
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Now what?
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Now what?
The Tourism Plan reinvents and reenergizes the tourism industry Bermuda
New opportunities: New positioning, new products, new destination hubs, new niche markets
Reduce seasonality and realigns air vs. cruise
Build pride in tourism sector
Improves quality Makes business sense: supports business Sustainable: social, environmental, economic
Creates value
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Now what?
Where should you start?
Dont need major investment to start
Need Quick Wins
Investment in people and organisation of current resources
Collaboration, organisation, common objectives
People with energy and determination
The Tourism Master Plan is achievable and implementablea great opportunity for Bermuda
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Contact Person
Nanita Ferrone Project Manager Tourism & Leisure Eurporaxis T +34 93 206 43 43 nferrone@ tladvisors.com
Thank you
Bermuda National Tourism Plan 47
