Tourism Update :Tourism Update Bahamas Ministry of Tourism & Aviation September 28, 2009


Agenda :Agenda Business performance Review of Our Six Principal Strategies A. Reflect Proximity in Airfare and Travel Time B. Highlight Our Beaches and Our Oceans C. Highlight Our Collection of Diverse Islands D. Expand Use of Bahamas.com E. Extend Use of 1800-BAHAMAS F. Highlight Our People & Our Culture


Performance Overview :Performance Overview Business challenges and opportunities


Preliminary Figures – YTD July :Preliminary Figures – YTD July % Change over 2008 4


Stopovers by Major Destinations :Stopovers by Major Destinations Cumulative Change in Stopovers for each Island % Monthly Change over 2008 for each Island 5


Success of Cruise Travel :Success of Cruise Travel The cruise lines have made significant gains in recent years and have held many customers even in this current recession by offering high value and convenience. Cruise lines have expanded their ports of origination beyond Miami/Ft. Lauderdale, Los Angeles, New York and San Juan, offering guests embarkation options close to home and cutting the cost of airfare, in many cases, from the vacation calculation.


Homeport Cruising :Homeport Cruising


Bahamas Only Cruises :Bahamas Only Cruises


Why Not Reduce Costs To Compete? :Why Not Reduce Costs To Compete? Compared to The US and the Caribbean, the reduction in REVPAR (Revenue Per Available Room) has been low compared to last year


Cost of Doing Business :Cost of Doing Business


Energy Costs :Energy Costs


A. Capitalizing on Proximity :A. Capitalizing on Proximity Reflecting proximity advantage in airlift and pricing


Historical Performance :Historical Performance


New Airlift for The Bahamas :New Airlift for The Bahamas Affordable, accessible air service into The Islands Of The Bahamas is critical to capitalizing on the destination’s proximity to the U.S./Canada customer base. Grand Bahama Island West Jet: new twice-weekly service from Toronto Nov. 17 AA Eagle: increase from two to four flights daily from MIA Delta: new four times weekly service from JFK, Dec. 18 Spirit: successful low-cost service from FLL and plans to expand TOTAL ANNUAL INCREMENTAL SEATS: 39,520


Good Business Partners :Good Business Partners Grand Bahama Airport Company, Freeport Flight Services, the Ministry of Tourism and Grand Bahama Island Tourism Board have combined efforts to significantly reduce turn around cost for airlines at GBIA. Our efforts have also resulted in a lowering of customer fees leading to lower fares to Grand Bahama and increases in the level of air service. We are seeing a positive responses to these in spite of the prevailing tough economic climate.


Good Business Partners… :Good Business Partners… We acknowledge the cooperation we receive from the Grand Bahama Island Tourism Board and especially the Freeport Harbour Co. in supporting the continuation of Grand Bahama’s unique sea-lift vehicle Discovery Cruise Lines. Discovery will resume six times weekly service with a capacity of 1200 passengers to GBI year round, which amounts to some 420,000 'seats' to GBI to support Tourism as well as provide an essential service to the Grand Bahamian and Northern Abaco communities.


Family Island Airlift :Family Island Airlift The Ministry of Tourism and Aviation has worked with our partner carriers to provide marketing support, route development assistance and cost reductions to enable expanded service.


Family Island Airlift…. :Family Island Airlift…. AA Eagle: expansion to include new Family Island destinations of Treasure Cay, Governor’s Harbour, North Eleuthera effective Nov. 02; double Marsh Harbour to twice-daily service + resumption in Exuma Gulfstream Airlines/Continental Connection: continuance of service from their FLL hub to the Family Island destinations of Treasure Cay, Marsh Harbour, North Eleuthera, Governor’s Harbour, Rock Sound, Exuma, Bimini, Cat Island and Andros TOTAL ANNUAL INCREMENTAL SEATS: 65,520


Nassau/Paradise Island Airlift :Nassau/Paradise Island Airlift This destination has led the way within the Caribbean in attracting and retaining air service from a vast array of U.S. and Canadian carriers due to aggressive efforts NPIPB & MOTA. Jet Blue: new daily service from MCO and FLL Spirit Airlines: second daily service from FLL Air Tran Airways: new daily service from ATL and four times weekly from BWI and MCO Expanded American Eagle service Introduction of Condor service from Frankfurt TOTAL ANNUAL INCREMENTAL SEATS: 293,320


Slide 20:GRAND TOTAL INCREMENTAL AIRSEATS 383,280


Aviation Reform Initiatives :Aviation Reform Initiatives What is our goal for aviation reform? Improve efficiency and lower cost Rationalize domestic air service policy to advance economic development of the nation Spur growth of service to and between the Family Islands Develop effective Lynden Pindling International Airport (LPIA) hub with expanded service provided by Bahamian carriers Facilitate same day, Global Distribution Systems accessible, connecting service to Family Islands via LPIA and from key points in Florida


Aviation Reform Initiatives :Aviation Reform Initiatives BMOTA is advancing a full reform of The Bahamas Aviation infrastructure to include: Strengthened Civil Aviation Authority, responsible for technical regulation of the aviation sector Improved management of all international airports


New Lynden Pindling International :New Lynden Pindling International


Capitalizing on Proximity :Capitalizing on Proximity Importance of increasing cruise tourism


Cruise Tourism :Cruise Tourism The last time Nassau Harbour was substantially improved the steamship Yarmouth Castle still called on Nassau with about 500 passengers.


Cruise Tourism :Cruise Tourism In 1999 Royal Caribbean International launched their Voyager-class ships which carry 3,114 passengers and 1,176 crew, in 2006 the Freedom-class ships debuted carrying 3,634 passengers and 1,360 crew. The coming Genesis-class ships will hold 5,400 passengers and 2,165 crew*. *capacity based on double occupancy


Need for Harbour Improvement :Need for Harbour Improvement The Bahamas holds the largest share of Caribbean/Atlantic cruise tourism market because of proximity and diversity with seven ports located throughout five islands: Nassau/Paradise Island, Grand Bahama Island, Berry Islands, Eleuthera, The Abacos and Little San Salvador. But, the modern mega-ships do not presently call at Nassau because of its restricted depth and turning basin. Bahamas unique with large proportion of Bahamas only cruises


Economic Impact :Economic Impact Who will benefit from accommodating newer, bigger cruise ships? All Bahamians.


GBI Port Improvement :GBI Port Improvement In order to capitalize on GBI’s favoured location to the U.S. East Coast ports from Port Canaveral through to Boston (as nearest Caribbean port), the government, in cooperation with a strategic cruise partner, is embarking on what would be the development of the region’s newest cruise port. Project should break ground in early 2010 and be completed no later than Spring 2011. When operational, this facility will boost GBI’s cruise arrivals swiftly to the 1 million p.a. level vs. the less than 300,000 level today.


B.Our Waters & Our Beaches :B.Our Waters & Our Beaches Capitalizing on our beaches and our waters


Among the World’s Best Beaches :Among the World’s Best Beaches The BMOTA is working with renowned expert Dr. Beach (aka Dr. Stephen Leatherman) to visit, evaluate and promote the beaches of The Bahamas. He has just traveled throughout our islands to capture footage for a new cable series “In Search of the World’s Best Beaches” which will air in 2010. Bahamas already ranked third in the world in reputation for best beaches by FutureBrand.


Why Beaches? :Why Beaches? Because we all know that the beach is the icon for a relaxing vacation. We’ve got them. Vacationers want them. We have: beautiful, pristine, untrammeled, sparkling, soft, pink, luxurious, unspoiled, secluded, private beaches. Pick your island and your adjective AND they are just off the coast of Florida, not half a world away.


Visiting Journalist Program :Visiting Journalist Program Each year the BMOTA recruits and hosts more than 100 media persons through our various programs. These first hand experiences of the destination result in feature stories that give millions of readers and travelers around the world a glimpse of what we have to offer, like our beautiful beaches.


Slide 34:“What makes Cat Island, one of the two dozen or so quiet, yet inhabited, Out Islands, so special? Some say it’s the beaches: soft, white sand that stretches for miles. Some say the water: turquoise, calm and clear with great reefs and plenty of marine life.” – The Record


Slide 35:“For those who have never heard of this little-known gem, Cat Island offers a secluded, natural escape that’s the best-kept secret of The Bahamas. Here, one has the feeling of stepping back in time, to a place where there are no traffic lights and life moves at a relaxing pace. Strolling along pristine beaches, the only sound is gentle waves.” – Jamrock Magazine


Slide 36:“Dotted with small fishing villages and relatively few resorts and hotels, places like Harbour Island, Eleuthera, Andros, Bimini, the Abacos, and the Exumas boast a vibe not unlike the former fishing towns of Cape Ann – unfussy and authentic, with some of the best coastal stretches in the world.” – Boston Weddings


Slide 37:“Adventurous water lovers will find plenty to do – dive a blue hole off the Andros coast, swim with sharks off Long Island and experience some of the world’s best bonefishing in the Abacos. Your wedding will be equally pristine, whether you exchange vows on a strip of pink sand, atop a limestone cliff overlooking the sea or in one of the charming boutique hotels.” – Destination Weddings & Honeymoons


Slide 38:“All the beaches are free, and there are miles and miles of them. Pink Sand Beach on Harbour Island, where shining turquoise waters ripple over a rosy strand in a mesmerizing play of colors, deserves its reputation as one of the Bahamas’ loveliest.” – The New York Times


Slide 39:“Far south on 80-mile Long Island, an idyllic curl of beach embraces a monster. Snorkel over coral-sand shallows and suddenly the world drops away into a fathomless pit. …And most of the action on Long Island lies north of the line, where you'll experience shark dives, house-size coral bommies, startling white cliffs, productive bonefish flats and Cape Santa Maria Beach, another of the Out Islands' best stretches of sand. “ - Caribbean Travel + Life


Serving this Strategy: PR At a Glance :Serving this Strategy: PR At a Glance The BMOTA PR program is not just about projects like Dr. Beach or journalist visits, but includes an array of tactics to reach consumers and target groups including: UK film makers initiative Promotions such as Condé Nast Traveler Entertainment marketing and special events Let’s watch a few highlights


Condé Nast Traveler Insert :Condé Nast Traveler Insert The Bahamas for Everyone appeared in the September Power of Travel issue of Condé Nast Traveler. The 16-page guide outlined tips and travel options throughout the destination for 7.5 million readers of the magazine. Videos, photos and travelogues on the Concierge.com site brought the story to life for thousands more.


Miss Universe Marketing :Miss Universe Marketing We used advertising and PR to extend the media impact of Miss Universe beyond the broadcast event with: My Miss Universe promotion Miss University model search Visiting journalists from travel and entertainment Media pitching and b-roll distribution Post-event media outreach to travel trades, Meetings and Incentives publications


My Miss Universe Call for Entries :My Miss Universe Call for Entries E-mail blast


C. Differentiating the Islands :C. Differentiating the Islands One country, many destinations


Differentiating the Islands :Differentiating the Islands 14 British film makers will be selected to produce short films on 14 islands in The Bahamas. British tour operators to promote island-hopping packages. But the Miss Universe pageant was certainly the biggest and most impactful of our efforts to differentiate the Islands Of The Bahamas. Consider the impact of the following nine minutes of prime-time television on tens of millions of viewers in at least 84 countries around the world:


Miss Universe: Broadcast Message :Miss Universe: Broadcast Message Maps incorporated to illustrate geography. Verbal mentions reinforced proximity.


Miss Universe: Broadcast Message :Miss Universe: Broadcast Message


Miss Universe: Broadcast Message :Miss Universe: Broadcast Message Island identification used throughout broadcast for Nassau, Grand Bahama Island, Bimini, Exuma, Abaco, Cat Island, etc.


Miss Universe :Miss Universe The value of exposure from such a widely covered event as Miss Universe is always difficult to quantify. Just how do you place a value on the endorsement of the world’s most beautiful women? Nonetheless, we can give an indication of the scope, reach and value of the Miss Universe “effect”. From the Miss Universe P.R. efforts, The Islands Of The Bahamas had a total number of 647 media broadcast hits in North America alone, resulting in a total number of 115,936,797 audience impressions with a publicity value totaled at $5,248,455, not including the broadcast itself.


My Miss Universe Results :My Miss Universe Results Bahamas.com Statistics Aug. 22-23-24 traffic nearly twice the daily average w/20% of these visits sourced to banner on MissUniverse.com site Surge in visitors from non-US locations from 10% to 37% PR clippings highest ever. . .to date with more to come


Miss Universe Results :Miss Universe Results All of this for $5.8 million, including: All fees paid to Miss Universe, All transportation All hosting costs to the other islands of The Bahamas


New Commercials :New Commercials


D. Bahamas.com :D. Bahamas.com Bahamas.com and 1-800-Bahamas


Bahamas.co.uk :Bahamas.co.uk


Bahamas.com :Bahamas.com Bahamas.com has been redesigned to provide a more dynamic overview of our country and one that supports our campaign to differentiate the islands.


Slide 56:Trip Wizard usage up 63% Home page clicks to map up 87% Booking value of trips up 76% Increased traffic to Out Island pages from map


Bahamas.com Performance :Bahamas.com Performance 18 months ago the bounce rate was over 50%; now it’s at an all time low of 39% Number of unique visitors is up 45% Page views are up 28% More than 60K people have signed up for MyBahamas since Jan. 1 Onsite promotions succeeding Bahamas Bridal Bailout opt-ins 3X greater than projected Exploring the possibility of one of three finalist Bahamian companies maintaining Bahamas.com


Authentically Bahamian :Authentically Bahamian We have made great progress in the area of local manufacturing and souvenir production and we are committed to closer collaboration with BAIC to expose more of our people to training programs to develop their craft More opportunities have been created to give visitors better and more frequent access to these quality Bahamian-made products, through trade shows and exhibitions in addition to the Festival Place shops The Internet provides the best opportunity for sale of products to a global marketplace


Improved Bahamas.com Features :Improved Bahamas.com Features E-Commerce platform: move beyond logo items to the sale of music and all other appropriate items including Authentically Bahamian crafts. New People-To-People platform based on existing and familiar technology. New booking engine that can serve more properties throughout The Bahamas. Licensed Private homes to be bookable online for the first time over the course of the next year.


E. 1-800-BAHAMAS :E. 1-800-BAHAMAS Bahamas.com and 1-800-Bahamas


1-800-Bahamas :1-800-Bahamas Agreed in principle with COB to locate this centre close to COB to allow staffing by students. Model highly successful elsewhere. Discussing with a local partner the prospect of developing a booking system that is appropriate for all of the licensed hotels and carriers in The Bahamas. Will begin with English speaking staff only and move to other languages as demanded.


F. Our People and Our Culture :F. Our People and Our Culture Additional tourism projects


TourismToday.com :TourismToday.com Tourism matters a great deal to The Bahamas and we will continue the development of this site to serve our local needs better. BahamaHost development and online access Improved Statistics Greater use of rich media


Miss Universe :Miss Universe Outstanding presentation of Bahamian designers and Bahamas design through the Fashion show. Outstanding display of Bahamian organizational talent especially from Bahamian Destination Management Companies. Have an expanded portfolio of capabilities. Significant added value to the reputation of The Bahamas to handle large events and unsurpassed display of private/public sector cooperation. .


Sports Tourism :Sports Tourism Our new approach to Sports Marketing will support directly efforts of the Ministry of Sports and local sporting federations in order to: Go after amateur, high school and university groups that travel in North America primarily and attract them to The Bahamas Assist sporting federations/inbound groups in securing the best available group fares from BMOTA's airline and hotel partners, especially smaller properties Make bahamas.com available to local federations and inbound sporting groups as a strategic tool to get information out to participants about planned events in TIOTB Develop, with sporting federations, a schedule of sporting events to attract a wide array of participants Ensure that promotional efforts are focused upon sporting disciplines that could be supported by existing facilities


Medical Tourism :Medical Tourism My Ministry has already met with the Medical Association of The Bahamas to get agreement in principle on our suggested path to development of Medical Tourism in The Bahamas. The suggested approach will now be explored more in depth with the assistance of an international firm with a specialty in this area especially in light of the current debate in the U.S. on health care. We will issue our policy after the U.S. position is known more definitively.


Downtown Nassau Partnership :Downtown Nassau Partnership Our Mission: Recapture Downtown’s position as the centre of Bahamian culture and history. To make Downtown relevant to local residents, and to enrich the visitor experience, the Downtown Nassau Partnership will support efforts to reclaim Downtown’s position as a centre for arts and culture, and events that celebrate Bahamian heritage and pride. Celebrating arts, culture and heritage are key elements to a multi-faceted economic development strategy for Downtown plus it allows Downtown to regain it’s connection to local Bahamians.


Downtown Nassau Partnership :Downtown Nassau Partnership Downtown can foster its authenticity in a variety of ways, including: Creation of a Downtown Nassau image and branding campaign capturing both Downtown’s rich heritage and its prospects for the future Special events that showcase Bahamian culture and aim to attract local residents to visit and become reacquainted with Downtown Create an arts and entertainment district that showcases Bahamian culture Sustain an ongoing empty storefront window program that offers artist displays and promotions for cultural events Support the design, installation and maintenance of public art by local artists throughout the Downtown area Create incentives for entertainment venues to locate in Downtown


Downtown Nassau Partnership :Downtown Nassau Partnership


Thank You :Thank You