Caribbean Net News

Reprinted from Caribbean Net News
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The constant of change in Caribbean tourism

Friday, August 26, 2005

NEW YORK, USA: Change is in the air in the Caribbean's travel and tourism industry, for better or for worse.

The price of fuel has forced many airlines to reconsider the way they do business. Continental Airlines, for example, has announced changes in its free checked-bags policy for international travel, imposing new weight limits of 50 lbs. each for up to two pieces.

To help customers through the transition to the new policy, Continental is waiving excess weight charges up to 70 lbs. each for up to two pieces of free checked baggage for international travel purchased through Sept. 6, 2005. But the excess baggage charges will be applied for international travel purchased on or after Sept. 7. The word in the skies is that other carriers are expected to follow in Continental’s wake.

Similarly, in response to the highflying oil prices, American Airlines recently announced increased surcharges on fares to and from most of its international destinations, as well as to and from Puerto Rico and the US Virgin Islands. The increase is $10 one way and $20 round trip to help offset the record high cost of jet fuel.

Despite fuel costs, the Caribbean is looking extremely attractive to Continental, American and other US carriers who are seriously looking to the "Third Border" to maximise profits.

Continental announced new services to Aruba, Curacao, Costa Rica, Punta Cana in the Dominican Republic and Ponce, Puerto Rico; while American Airlines announced it will introduce two new nonstop international routes from its hub in Dallas/Fort Worth, effective February 2006.

The new destinations from DFW are Montego Bay, Jamaica, and Guanacaste, Liberia, in Costa Rica. Even the cash-strapped Delta has increased St. Lucia service and is starting flights to Antigua, Barbados and Santo Domingo.

Then, there's the low cost carrier Spirit Airlines, which is looking seriously at more markets in the region. Spirit currently serves Cancun, San Juan, Santo Domingo and will start service to Montego Bay and Kingston, Jamaica in a couple of months. Just recently they announced a further expansion this fall with non-stop service between Orlando and Montego Bay.

And what about our Caribbean carriers? According to the Jamaica Observer, the airline, which returned to government hands last December when Gordon "Butch" Stewart resigned as chairman, has already lost US$72 million for the first six months of this year is set to record its largest loss to date at around US$160 million by year-end – in spite of cutting a number of Caribbean and US routes and reducing service frequency to other destinations.

As for Trinidad and Tobago's cash-strapped BWIA, its fate will be decided shortly, according to government sources. The government recently injected US$ 40 million to regain majority control of the airline.

Some good news for T & T is that seasoned tourism specialist, James Hepple has been named Director of Tourism. Hepple brings to the post a wealth of experience having previously served successfully as Executive Director for the Curaçao Tourist Board for four years based in Willemstad, Curaçao.

During his four year tenure as Executive Director the overall volume of stopover tourist arrivals increased by some 17%. Hepple’s former boss in the Bahamas, Vincent Vanderpool-Wallace, is now the Secretary General of the Caribbean Tourism Organisation and is on a mission to have CTO own the Caribbean brand and find ways to leverage the region’s advantages for the benefit of its people.

These are truly interesting times for the

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