NEW YORK? Word is that business in the Caribbean is flat at best, but that depends on exactly whom you?re talking to. Upscale branded properties are reporting increases in business and are even set to expand, while the mid-market appears to be suffering. ?The overall business flow into the Caribbean in 1999 has not been good,? said John Bell, director general/CEO of the Caribbean Hotel Association. ?I am convinced until we find a way to trumpet to everyone that we are the greatest beach destination in the world, that will continue.? Caribbean organizations have for some time been struggling to get all 35 jurisdictions in the region to pool their funds for a unified marketing campaign to promote the islands as a single destination, which is losing ground to Hawaii, Mexico and Florida, as well as the cruise lines. But operators of major hotel brands told HOTEL BUSINESS? that their Caribbean business is growing for the most part, as they rely less on destination marketing and more on the power of their brands to lure visitors. ?There?s no doubt the individual chains are better postioned,? said Bell. ?They have their own reservations systems, corporate advertising campaigns and when you put a flag on a hotel you are buying real muscle.? ?When you bring in a new resort and it has a strong brand name like a Westin on it, it gets instant credibility, instant recognition,? said Allison Fogarty, senior manager at Ernst and Young in Miami. Brands can be created seemingly overnight by aggressive consumer marketing. Indeed, one of the Caribbean destinations that is showing an increase in visitors this year is the Bahamas, thanks to the strong consumer marketing campaign launched by Sun International for Atlantis, the new property on Paradise Island. Hyatt Resorts, with properties on Aruba, Puerto Rico and Grand Cayman, has benefited from a branding campaign launched a few years ago, according to Victor Lopez, divisional vp/resort division for Hyatt Resorts. ?We as a company didn?t market our brand for a long time, but three years ago we embarked on the Hyatt Resorts brand campaign, and we are pleased with it,? he said. He noted the campaign allows Hyatt to show the consumer its portfolio of resources and also allows for cross-promotions and creates brand loyalty that sends consumers to other Hyatt Resorts. ?Our customers are loyal. The person going to Aruba today will go to [a Hyatt resort in]Grand Cayman [next],? said Lopez. Lopez said so far with the exception of Dorado Beach, ?business has been good. We had a good winter, spring was a little softer,? he said, noting that the challenge in the Caribbean is always filling rooms the second half of the year. Small group business can also be challenging with the the mergers going on, and the leisure visitor?s booking window is becoming shorter and shorter. Rosewood Resorts, which has properties on St. John, Virgin Gorda, Vieques Island and will soon open on St. Lucia, agreed that consumers are booking closer to their actual trips, which makes it tough to forecast the future. ?A reservationist this morning told me she had taken in a slew of business for the rest of this month,? said Peter Shaindlin, regional vp of Rosewood Resorts. ?Rosewood?s business in the Caribbean is very healthy despite the challenges overall that the region is experiencing,? said Shaindlin, who is also the managing director of Little Dix Bay on Virgin Gorda. ?Over the last five years we have seen 12 to 14 percent growth in occupancy.? Rosewood reacts to fluctuations in the marketplace by thinking of how to improve business in the long term, he said. Rosewood, which in the past didn?t encourage kids on its upscale properties, is now family-friendly, thanks to a program it created to grow its business. Today, family business accounts for 15% of the brand?s business, he said. Shaindlin believes it?s the two and three-star market in the Caribbean that is suffering the most because it is competing on price with
