Travel Markets Insider Duty Free • 2014 CARIBBEANREVIEW MontBlancEmblem_ADV_129_216x279.4_UK.indd 1 30/01/2014 18:08 One of the ancient canons from the battlements that overlook the historic harbor in San Juan, Puerto Rico. The battlements have been designated a United Nations World Heritage Site. Photo Courtesy of SMT Duty Free DUTY FREE CARIBBEAN REVIEW 2014 TRAVEL MARKETS INSIDER DUTY FREE An Examination and Analysis of the factors affecting CARIBBEAN REVIEW 2014 Tourism in the Caribbean What Lies Ahead? 2-17 PUBLISHER Lois Pasternak Bahamas 2 EDITOR Barbados 4 Lois Pasternak At the Point of Sale: Nassau, John Bull 5 EXECUTIVE EDITOR Michael Pasternak Bermuda 5 PRIMARY WRITER At the Point of Sale: Curaçao, The Yellow House 6 Larry Luxner Dominican Republic 6 GRAPHIC DESIGNER Chris Hetzer Grenada 8 Cover Photo: San Juan Cruise Port Courtesy: SMT Duty Free Guadeloupe 8 PRINTER The Printer’s Printer Haiti 10 Directory Coordinator: Michael Pasternak At the Point of Sale: Guadeloupe Crafts Village 11 Jamaica 11 Pasternak Communications, Inc. 255 NE 3rd Ave No. 312 Puerto Rico 12 Delray Beach, FL 33444 At the Point of Sale: TAG Heuer, St. Thomas 14 Tel: 1 561 908-2119 Fax: 1 561 908-2257 St. Kitts & Nevis 14 www.travelmarketsinsider.net St. Maarten 14 www.travelmarketsinsider.net St. Vincent & The Grenadines 15 The Retailers list is available on a compact disk for $25 U.S. At the Point of Sale: Little Switzerland, St. Thomas 15 Mail your check and request to Pasternak Communications, Inc. USVI 16 All contents © COPYRIGHT 2014 Pasternak Communications. All rights reserved. Any use of the contents of this publication without express written permission is Caribbean Retail Directory 19 strictly prohibited. Caribbean Suppliers Directory 31 Travel Markets Insider DUTY FREE CARIBBEAN REVIEW 1 Photo by Chris Hetzer. Paradise Island, The Bahamas What Lies Ahead? The Caribbean will enjoy steady With the exception of Cuba, which global cruise market is gradually shrinking. growth in its all-important tourism sector remains subject to a U.S. embargo more Industry statistics show that in 2010, 41% as the U.S. economy continues its recovery, than half a century after its enactment, the of all cruise itineraries were to Caribbean but serious issues — ranging from Caribbean region depends on the American destinations. By 2011, it had fallen to 39%, violent crime in some destinations like travel market — and that region’s booming and in 2012, the Caribbean’s share had the Bahamas and Trinidad to the widely cruise ship industry has helped cement declined further, to 37%. despised U.K. air passenger duty — could Miami’s position as the world’s busiest Here’s a look at the latest prevent the region from realizing its full cruise port. In late December, port director developments in the region’s top 13 potential in 2014. Bill Johnson announced that Miami had tourism markets: The biggest challenge, say hotel and added two new cruise brands — Regent tourism executives throughout the region, Seven Seas Cruises and Disney Cruise Line is increasing airlift — whether it’s bringing — and that more than 5 million passengers BAHAMAS tourists from around the world or getting will use the port in fiscal 2014, up from just On Oct. 23, Nassau’s Lynden Pindling residents from one Caribbean island to over 4 million in fiscal 2013, which ended International Airport officially opened another. Sept. 30. its new terminal for domestic flights and “Airlift is basic. The islands that will During the 2011-12 season, cruise international departures, marking the deliver the most returns are the ones that ship tourism generated nearly $2 billion completion of a four-year, $409 million have the most airlift,” said Frank Rainieri, in direct expenditures, more than 45,000 redevelopment of the country’s largest vice-president of business development and jobs and around $728 million in employee airport. real estate for Grupo Puntacana, speaking wages among the 21 destinations included LPIA, measuring 606,000 sqf, will at a November 2013 tourism conference in in an exhaustive survey conducted by the be able to accommodate more than five the Dominican Republic. Florida-Caribbean Cruise Association. million passengers a year — 50% more “We see a bright future because The FCCA said five destinations than before. They will enjoy 24 retail investors are investing in hotels, banks enjoyed direct cruise tourism expenditures locations and 16 restaurants, bars and are lending again, and brands are starting of $100 million or more in 2011-12: lounges. to do things they haven’t wanted to do in Bahamas ($393.8 million); St. Maarten Outside, an additional one million the past,” Rainieri told Hotel News Now, ($356.2 million), U.S. Virgin Islands square feet of aircraft operating surface noting that a 13% jump in the number of ($339.8 million); Puerto Rico ($186.6 has the capacity for A380 jumbo jets seats flying into Punta Cana has been a million) and Cayman Islands ($157.7 and other large aircraft. Officials of the huge boost to the hotel sector. million). Combined, these five destinations Nassau Airport Development Co. (NAD) Expect to see the largest hotel ever with $1.43 billion in direct spending designed the new airport with 10 aircraft built in the Caribbean — the 2,900-room comprised 72% of total cruise expenditures bridges and 30 aircraft ground loading Baha Mar resort in the Bahamas —open among the 21 destinations surveyed by positions that can handle up to 12 U.S. jets this year. The planned December 2014 the FCCA (the Caribbean’s largest island, simultaneously. inauguration of the $3.5 billion project Cuba, wasn’t included in the report). When it comes to cruise ships, the means an additional 260,000 [air] seats will The next nine destinations, with Bahamas leads the rest of the Caribbean be needed to fill all its rooms, says Vincent expenditures between $25 million and $100 in sheer numbers. The FCCA study says Vanderpool Wallace, the country’s former million, accounted for 23% of total cruise just over 4.4 million passengers and crew tourism minister and now principal of tourism spending — ranging from $30.3 arrived aboard cruise ships during the Nassau-based Bedford Baker Group. million in the British Virgin Islands to 2011-12 cruise year, up 87% from the 2.4 “We should figure out some ways that $70.6 million in St. Kitts-Nevis. In addition million who came during the 2008-09 the cost of air transportation coming into to St. Kitts, Aruba ($63.7 million), Turks season. the region is as low as possible,” Wallace & Caicos ($60.6 million) and Barbados Of the current total, 90% disembarked said. “We need ways to fill the rooms we ($53.7 million) all had total cruise tourism and visited the Bahamas. Along with crew have in the Caribbean that aren’t filled expenditures exceeding $50 million. members, they spent a combined $393.8 more than we need more rooms.” Yet the Caribbean’s share of the million — up 60% from $246 million in 2 Travel Markets Insider DUTY FREE CARIBBEAN REVIEW Travel Markets Insider DUTY FREE CARIBBEAN REVIEW 3 2008-09 — though crew members spent International would operate the all- BARBADOS an average $110.00 each, as opposed to inclusive $3.5 billion resort. The luxury Economic difficulties in Europe and $64.81 per passenger. Despite the generally project, which encompasses 1,000 acres the ever-increasing air passenger duty upbeat numbers, per-passenger spending including 3,000 feet of oceanfront, is 12 (APD) imposed by the British government declined by 23%, particularly on food and minutes from Nassau International Airport. have combined to dampen expectations for beverages, jewelry and local crafts. The new destination will offer more than an improvement in the Barbados tourism All told, cruise ships contributed 2,900 hotel rooms and luxury residences. sector for 2014. $146.2 million to the Bahamian economy Amenities include the 100,000-square-foot Barbados, in fact, is the only country in 2011-12 and employed 8,668 people casino, an 18-hole, 72-par Jack Nicklaus in the Western Hemisphere whose economy — the highest figure for any Caribbean golf course and more than a dozen pools. is predicted to shrink this year, according to country. A convention center will provide 200,000 the International Monetary Fund. The latest Getting to the Bahamas — at least square feet for meeting facilities. IMF projections show the island’s overall the resort island of Bimini — got easier in The Bahamas government also signed GDP declining by 1.1%. 2013 with the inauguration of the Resorts a deal with a major resort line for a $90 The latest increase in the air passenger World Bimini SuperFast ship in July. million refurbishment and expansion duty is being blamed for a 10.7% decline The 32,000-ton ship, which carries 600 project at Columbus Isle Village, and in U.K. arrivals during August 2013 alone. passengers, makes the 50-mile voyage on adjacent land in San Salvador. Prime The APD — supposedly an attempt to from the Port of Miami in two hours Minister Perry Christie said the agreement fight global warming by taxing airline and is owned by Genting, a Malaysian with Club Mediteranee and Sand & passengers for long-haul flights — now conglomerate that also plans to build a 300- Ocean Investments Ltd. would include adds £332 to the cost of a Barbados holiday room resort on Bimini. Day and evening existing guest rooms, buildings, grounds, for a family of four flying from any British cruises are available and cost $99 round- mechanical plant and the creation of a airport, or £664 when flying in premium trip.