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LETTER TO THE EDITORSpending marketing dollars in the most cost-effective wayMonday, April 17, 2006Dear Sir: For a long time I have questioned whether ‘we’ are spending the millions of dollars allocated to marketing Barbados in the most cost-effective way. In the last Parliamentary budget debate, a figure of US$43 million for fiscal year 2006-2007 was quoted as being specifically allotted to tourism, of which US$30 million is going directly to the Barbados Tourism Authority. Just for a moment look at the figures in a different if not slightly radical way. Barbados has roughly 6,500 registered hotel, guest house and apartment rooms. In 2004 Barbados recorded its highest ever number of long stay visitors but only achieved an average accommodation occupancy rate of 49.7 per cent. Therefore on a per room basis that means the taxpayer is spending US$13,310 per occupied room per annum. Or put another way, US$73.54 for each night that room is filled. A small hotel like ours with 21 rooms would then theoretically have US$279,510 each year spent by Government on persuading sufficient long stay visitors to choose Barbados against other destinations. At the other end of the scale, the new Hilton with its 354 rooms would amount to US$4.7 million. Looking at this from a private sector commercial standpoint, it simply wouldn’t make sense. In our case spending around 25% of our annual turnover in marketing and advertising is not a viable option. The time has come to take a completely new look at how ‘we’ market destinations and where huge amounts of monies are spent to obtain the best results. At least in my humble opinion is does not make any economic sense to spend nearly as much as the nightly room rate simply to boost the arrival numbers. Adrian Loveridge Most popular articles: viewed, printed and e-mailed
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