With six months left before the convention tax break aspect of the TIEA (Tax Information Exchange Agreement) signed with the United States in 2002 comes on stream, the Ministry of Tourism has stepped up initiatives to take advantage of this huge economic opportunity.
As a first step, the Ministry of Tourism hired James Malcolm, a veteran in the international group travel market. Mr Malcolm is charged with preparing the local tourism industry to take advantage of the tremendous opportunity that will be presented once Article 5, Convention Tax Treatment of the TIEA comes into effect.
This portion of the TIEA will allow U.S. taxpayers, including corporations, to deduct costs incurred for attendance at conventions held in The Bahamas in the same way they are currently allowed to deduct for conventions held in the United States.
In his 2005 Budget presentation to the House of Assembly, Tourism Minister, Obie Wilchcombe told parliamentarians that with the planned elimination of the convention tax in 2006, The Bahamas will be in a prime position to re-establish itself as a group-friendly destination. He described increased group bookings as an important factor in the successful “yield management” of large hotels.
To this end, the Minister and his new leadership team at Tourism are very focused on expanding group business to The Bahamas. Already onboard, Mr Malcolm, the new director of groups plans to spend the next 30 days researching the current group industry in the islands with a view to presenting a plan to the new Director General, Vernice Walkine, for moving this aspect of the tourism industry forward.
Mr Malcolm, a Bahamian, worked most recently at Missouri-based Maritz Travel, the largest travel incentive company in the United States. Maritz Travel has 1,600 offices and affiliates in over 60 countries worldwide; he worked at the Atlanta office as an account executive for the last seven years.
Outlining his plans, Mr Malcolm said: “I really want to get my fingers on the pulse of what’s going on.”
After this, the new Groups Director plans to form a team made up of industry partners and vigorously assault the groups market.
“We are going to get the word out that The Bahamas is really re-dedicated to serving the groups market and there will be personnel at the ministry that can serve their needs,” he said. “My aim is to work both sides, the supplier side and with customers with the aim of doing nothing more than bring more business to the country.”
Mr Malcolm also plans to place significant emphasis on bringing groups to the Out Islands. He noted that many of the hotels in these islands that have the potential to do very lucrative group business have never fully tapped into this market.
Citing the advantages to be had with group travel, Mr Malcolm explained that groups tend to book a lot further in advance than ordinary travelers and overall, they tend to have a greater economic impact.
“In addition to the spending by the group on activities for the event, there is also individual spending to take into account which at times can be significantly higher than the ordinary traveler given the fact that everything has already been paid for,” Mr Malcolm said. “And there is also the added advantage that group members can be enticed to return for individual visits.”
Mr Malcolm is also of the opinion that The Bahamas has chosen an opportune time to concentrate on the groups market. He noted that regionally, competition for these types of visitors was becoming a lot more aggressive, and with the convention tax incentive and its geographical positioning, The Bahamas has an added advantage over other countries in the Caribbean.
From The Nassau Guardian
