1 / 29

2001 Market Review

2001 Market Review. HSMAI Chapter Presentation Aruba Statistics Prepared by Michele Olivier, SunSpree & Dyane Vis, AHATA. 2001 Regional Segmentation. Market Changes 2000. Market Changes 2001. United States Market. Latin America. Colombian Market. Current Economic Situation

lotus
Download Presentation

2001 Market Review

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2001 Market Review HSMAI Chapter Presentation Aruba Statistics Prepared by Michele Olivier, SunSpree & Dyane Vis, AHATA

  2. 2001 Regional Segmentation

  3. Market Changes 2000

  4. Market Changes 2001

  5. United States Market

  6. Latin America

  7. Colombian Market • Current Economic Situation • GNP down 1.7% • Unemployment is >20% vs. 12.45% 1997 • Inflation rate 2000 8.8% • Main exports of gas and coffee are down • Small exports up 17% • Devaluation of currency • Ps.2,088 to US$1 2000 average; • Ps.2,298 to US$1 Sep 3, 2001 • Ps.2,374 to US$1Mar 7, 2002

  8. Market History In summer 2001, long before 911, Colombia was showing it’s worst year in the last 6. The economic crisis began in the summer, at the same time as insurrections and guerrilla activity in and around the capital of Bogota.

  9. Tourist Departures For 2001, internal tourism in Colombia decreased by 1%; pre 911 internal travel was up by 5%. International Tourist Departures have decreased by a marginal 2.3%. This presents a clear picture of market share lost to other destinations. Cuba and the DR have been extremely aggressive in their marketing efforts and in their product pricing.

  10. The same number of people are traveling, but the destinations have changed.

  11. Market Capture At Year End 2001, Aruba is 18% down in Nights occupied by Colombian Tourists; air seats to the island are down 27%. Business travel is down 62%, which does distort the island statistics slightly.

  12. Forecast & Action Plan • As of June 2002, the government of Aruba must institute a visa requirement for Colombian visitors to Aruba. This will severely impact the Colombian market. It is not a requirement of Aruba, but rather of Holland. • The Aruban Minister of Tourism has publicly expressed that he is not in agreement with this policy. • Using our own circles of influence, we may be able to impact the requirements and ease of obtaining the visa.

  13. Other Latin Market History In 1999, there was a charter from Brazil and more scheduled air. The charter went away. Business from this segment over the last two years is 70%+ Argentina and Peru.

  14. Other Latin Markets • Argentina represents the largest contributor to this segment, with 34% of the nights occupied. Brazil constitutes 16% and Peru 17%. • However, as a point of reference the entire market represents 2.6% of all night occupied in hotels in Aruba.

  15. Forecast • When the President of Argentina admits the country is broke, it does not bode well for the future. The proposed “Pesofication” may protect citizen’s from the worst of the devaluation effects, but businesses will suffer. Assuming the world economy begins to recover in mid-2002, Argentina may return to modest growth in 2003. • Politically, Peru is unstable, but the economy is in somewhat better shape. Unemployment is high, and will remain around 10%. Zero GDP growth in 2001 is expected to increase to 3% for 2002.

  16. Venezuelan Market • Current Economic Situation • GNP up 3.2% • Unemployment is >12% vs. 14.9% 1999 • Inflation rate 2000 16.2% • Devaluation of currency • Bs. 679.96 to US$1 2000 average; • Bs. 743.10 to US$1 Oct 27, 2001 • Bs.1087.8 to US$1 Mar 07, 2002

  17. Market History

  18. Market Capture CarnivalMoved to March YTD, the island is flat to LY. Air seats are down 3.6%, so load factors are better this year. A full 15% of this market is VFR and not using hotel rooms. SunSpree and Sonesta own 12.8% of this market. Wyndham & Marriott are a close second with 9% and 8%, respectively.

  19. Forecast & Action Plan Oil & Gas represent 84.4% of national exports. Oil prices have decreased and there is a high risk that this will continue. OPEC production restraints undermine Venezuela’s fiscal position. GNP is not expected to grow, inflation has stabilized; high unemployment will not change. The somewhat caste system and the 80:20 rule will not change. Our focus is then on that portion of the market that can travel. • Public/Private Cooperative Actions Planned • High visibility in upper-end press & publications • Create and promote a variety of packages – dive, shopping, romance • “Hug & Hold” program to encourage repeat guest business.

  20. Hotel Statistics Update HSMAI AHATA Statistics

  21. Average Occupancy - all

  22. Large Hotels 74.76%

  23. Small Hotels 74.25%

  24. Time Share 80.44%

  25. ADR (Average Daily Rate) $129.56

  26. ADR (Average Daily Rate) $106.58

  27. Revenue per Available Room

  28. Revenue per Available Room

  29. Brainstorming • Advertising • Packages • Special Events • Other?

More Related