Stakeholders agree that 2021 has been a challenging year for tourism in T&T as the sector continues to grapple with the ravages of the COVID-19 pandemic.
However, the World Travel and Tourism Council (WTTC) recently reported that the Caribbean is recovering faster than any other region in the world, with tourism’s contribution to GDP expected to rise more than 47 per cent in 2021,
But UWI lecturer and tourism expert Tenisha Brown-Williams noted this has not been the reality for T&T since tourism does not appear to feature as an economic priority compared to other Caribbean islands.
However, she admitted, there was likely an increase in arrivals in 2021 compared to 2020, a year where for the most part, international and regional travel was halted.
“Indeed, with the reopening of the T&T borders from July 2021, regional and international arrivals would have increased but certainly would not reflect pre-pandemic arrival levels,” Brown-Williams explained.
Further, she added, that the sector in Trinidad continues to be negatively affected by unsettled institutional arrangements, which have resulted in little progress in product development and marketing initiatives.
According to Brown-Williams the industry remains mainly unregulated with the continued absence of the Trinidad and Tobago Tourism Regulatory Licensing Authority announced since 2017.
Further, she said, while crime against tourists in T&T is low compared to other Caribbean islands, this country’s overall crime rate negatively influenced traveller perceptions.
“Recent travel advisories continue to give potential visitors reasons why they shouldn’t travel to T&T, and there is a void in our promotional activities to counteract these negative sentiments strategically,” Brown-Williams said.
She noted that regionally, many destinations had adapted well to the current situation with new tourism offerings, but there were existing challenges with the reconceptualisation of Caribbean tourism, primarily away from the traditional sun, sand, and sea tourism.
And despite the growth of the tourism sharing economy and increased demand in Airbnb bookings with ensuing experiences, there is still a heavy focus on enclave tourism with minimisation of robust economic benefits for local communities, Brown-Williams added.
Meanwhile, Trinidad Hotels, Restaurants and Tourism Association President Hassel Thom said the entire tourism value chain had suffered through a second consecutive year that for many, saw the international borders closed to regular commercial travel for 198 days.
With tourism being an export industry, he said, this country was the last Caribbean destination to reopen its international border.
This, Thom added, was fuelled by the cautious approach taken by the Government stemming from COVID-19 and within the pandemic being “vaccine inequity” experienced by many developing nations.
He noted, however, that some of the more recognised hotels partnered with the Health Ministry as a survival strategy and in so doing chose to operate as State-supervised quarantine facilities, catering to returning T&T citizens who were stranded abroad for an inordinate period of time that was in part compounded by Government’s COVID containment strategy of managed border entry.
“Hotels that did not subscribe to State-supervised quarantine type operation and chose to cater to the local market (staycations) soon realised that this target market was an non-viable option and would have subsequently opted to temporarily close to the public, as it was more costly to remain open and operate on single digit occupancy coupled with lower nightly room rates,” Thom said. He added further, that during the second quarter of 2021 through “a Government issued mandate designed to protect its hydrocarbon interest,” the multinational corporations were required to have all personnel undergo self-isolation and testing prior to accessing off-shore platforms and drill rigs.
According to Thom, this mandate which took effect from May 2021 presented a significant opportunity for properties that had the capacity to cater to short to medium term occupancy demand.
But he said tour operators, tour guides, destination management operators, tourist centric taxis operators and the related tourism membership association were forced to collapse their operations, as Trinidad stakeholders received no support from the Government, unlike counterparts in Tobago.
Further, he said, other obstacles which the sector faced during 2021 included no moratorium on payment of taxes required to be paid on every dollar of revenue generate (VAT, Business Levy, Green Fund); no rate reduction on state driven utilities (electricity/water) temporary or otherwise; increased cost of operating (working replacement /consumable); limited to zero international airline carriers that translates to significantly reduced international travellers; very recent negative travel advisory and high vaccine hesitancy stemming from poor public sector driven influencing strategies to encourage higher vaccine uptake.
Success despite obstacles
However, according to Dr Acolla Lewis Cameron of the UWI Department of Tourism, despite the many challenges, the periods of lock down allowed destination T&T to engage in significant tourism product enhancement.
Notably, she said, the accommodation sector, through the Government’s Tourism Accommodation Upgrade Programme (TAUP) focused on major upgrades to the physical infrastructure.
Alongside the physical upgrades, the Tobago Tourism Agency (TTAL) launched a destination wide customer service training programme which is facilitated by the renowned UpService Company.
The aim is to target 12,000 service champions across the tourism touch points eg customs, immigration, supermarkets, cafés etc.
Further, Lewis Cameron said, in keeping with the sustainable tourism thrust for destination Tobago, the Top Catch boat operator was the first boat operator in the Caribbean to be awarded Blue Flag certified status in November.
This award, she described, was significant as it sent a signal to travellers that the island is a safe and clean destination.
This Blue Flag status follows the recent award of four Green Key certified properties including Bananaquit, Shepherd’s Inn, Native Abode and Adventure Eco Villas.
Further, in Tobago alone, there are over 200 properties that have acquired the World Travel and Tourism Council Safe Travel logo, one of the highest in the region.
This, Lewis-Cameron added, gives the destination leverage as a safe travel destination where many businesses are practising and complying with international safety standards.
But Brown-Williams believes that success is relative to the stakeholder group.
For the Government, she said, achievements such as the return of KLM airlines and the announcement of various hotel construction projects may be highlighted.
She also agreed with Lewis-Cameron that for civil society groups and tourism professionals, especially in Tobago, the UNESCO Man and the Biosphere Designation for north-east Tobago and other greening initiatives for the Tobago tourism sector such as Blue Flag and Green Key have been vital successes.
However, for some stakeholders in the tourism value chain on both islands, eg, hotels, tour guides, tour operators, successes may not be easily identified due to the continued financial challenges and overall business decline, Brown-Williams noted.
For Thom however, success for 2021, like 2020 cannot be measured by annual occupancy level or profitability but simply the ability to persevere and keep the doors open and to continue playing the role of good corporate citizens to keep as much of its human capital asset off the breadline.
He noted that hotels in Trinidad experienced similar results of reduced occupancy by approximately 70 per cent, adding that average daily rate ranged from 40 per cent to 60 per cent and individual earning was between 45 to 65 per cent (by virtue of fewer days worked).
“All of these are compared to 2019 markers. For tour operators and tour guides business demand activities ranged from zero to single digit demand,” Thom added.
Moving ahead
So how can T&T’s tourism sector be strengthened to make it economically viable once again?
Invest in new niche products recommended Lewis-Cameron.
She cited a recent Booking.com report which pointed to the rise of the conscious traveller, someone who is “far more discerning” about the journeys they go on, are willing and able to be away from home for longer, more appreciative of local people and are less reckless in their spending.
According to Lewis-Cameron these individuals want more unorthodox experiences that involves engagement with local communities in a safe and respectful manner; are driven by a need to volunteer and give back to a worthy cause and truly desire the “off the beaten path” experiences that enhances their health and wellness, and which provides a greater connection to people, the environment and life on a whole.
Further, she said visitors to the Caribbean are no longer fully satisfied with laying on a beach with a Caribbean rum punch in their hands but instead want simple but authentic and unique experiences.
“The sustainability of the sector depends heavily on the extent to which the region can respond accurately to the changing consumer preferences and the new operating context by creating innovative experiences,” Lewis Cameron added.
But according to Brown-Williams progress will only be realised through open and honest deliberations with all stakeholders and an evaluation of the country’s current position related to tourism development as a multi-tourism destination.
“We need to address issues as they are and not as we want them to be. There were significant issues pre-COVID-19, and the pandemic has created even wider gaps in the sector.
“The reality is that the tourism sector by nature is already complex and fragment, which is further exaggerated if each stakeholder fails to understand and fulfil their respective roles,” Brown-Williams said.
As a country, she noted, tourism as a diversification tool from a public sector perspective has been discussed but primarily “ lip service” has been paid since the financial investments are significantly lower than our Caribbean counterparts.
“The most important criterion for success is the political will to make tourism a priority for revenue earning by any government in power. Outside of this, we will continue to experience a trickle of the vast economic benefits tourism can bring to the T&T economy,” Brown-Williams advised.
And in sharing his strategies to enhance the industry, Thom recommended leveraging T&T’s sporting infrastructure through collaboration with sporting bodies to hosting high-capacity sporting events.
He also suggested that there ought to be increased and sustained investment into an international destination promotion/public awareness programme in existing and new markets as well as creating new sites and attraction “similar to the process of buying original local art.”
Further, Thom said there should be the expansion of the Tourism Upgrade Programme (TAUP) to include mandatory ‘Green’ element as well as a full return of a standard measure such as the Trinidad and Tobago Tourism Industry Certification (TTTiC) which ought to be made mandatory.
Additionally, Thom said there should be a national regulatory tourism legislative programme following a meaningful comprehensive consultative and collaborative approach with a set time-line for implementation.
Thom also advised there should be long-term bond investment options for private sector investor to re-energize as well as a more supportive banking sector for the industry or moreover one that speaks to an increased risk appetite.
But, he added, this has to be supported through and by the Central Bank via policy revision that takes a medium to long term macro approach into consideration.