WILLEMSTAD- As with other industries, your business is as good as the data you possess. With this in mind CHATA invited Smith Travel Research (STR) to its quarterly member meeting on May 30th to give an insight into the hotel performance for the coming 18 months. In addition to this, CHATA also invited KPMG to give more information on the recent introduction of the General Data Protection regulation that went into effect on May 25th. The meeting took place at CHATA member Hilton Curaçao.
Every quarter CHATA organizes a member meeting where members get the opportunity to educate themselves on various topics, connect with other members and share their knowledge and experiences. This quarter CHATA invited STR and KPMG to provide an update on various topics.
Forecast 2018/2019: Curaçao Hotel Industry Overview(STR)
CHATA Invited STR to provide an insight into local and regional hotel performance. STR is the source for premium global data benchmarking, analytics and marketplace insights of the hospitality industry.
Hotel Performance 1st Quarter 2018
In the first quarter of the year, Curaçao recorded an occupancy of 79.1%. This is a decrease of 2.2% compared to 2017. The ADR in the first quarter was $189. This is an increase of 15.3% compared to 2017. The RevPar also recorded a growth of 12.8% resulting in an ADR of $149.
Hotel Performance Forecast
STR also gave insights into their forecast of Hotel Performance for 2018. The forecast of STR is based on historical performance data, current developments such as the additional airlift in the destination and current trends that are of influence on the hospitality industry. According to STR, hotel occupancy in Curaçao will remain flat by the end of 2018 with 68.7%. This is a slight decrease of 0.8% in comparison to 2017. Furthermore, STR predicts an increase in ADR of 7.6% resulting in an ADR of $157,-. This leaves us with a RevPar of $108,- which is an increase of 7.4% in comparison to 2017.
When you look to the Caribbean as a region you will notice that the hotels in the Caribbean are also expected to have a slight decrease in occupancy of 0.1%. ADR is expected to grow with 0.6% and RevPar is expected to increase by 0.5%. Furthermore, STR also expects demand for accommodation in the region to increase by 0.7%.
GDPR: Data Protection & The Human Factor (KPMG)
With the collection of data comes big responsibility, the protection thereof. On May 25th a new data protection regulation came into effect for the protection of personal data of all European Union citizens named the General Data Protection Regulation (GDPR). This new regulation protects the data of European citizens regardless of where the data is being stored. Meaning that business on Curaçao storing data from European Union citizens also have to comply to this regulation. In their presentation KMPG provided an overview of how this regulation affects the local tourism industry and how to adequately prepare ourselves.
CHATA did a survey to gain insight into the hotel investments that are planned for the upcoming 18 months. In total 16 CHATA properties participated in the survey that CHATA conducted. In total the hotels are investing 49 million guilders in renovations and expansion of their property in the coming 18 months. This amount is excluding the current renovations taking place at the Marriott Hotel. Of the 49 million guilders that will be invested in the next 18 months, 42% will be invested in renovations of hotel rooms, 7% in expansion and 21.4% in both expansion and renovation. Our hotel room supply will increase with 188 rooms in the next 18 months. The majority of these rooms will be ready in time for the Winter season 2018. The main reason for investing is to refresh their property and ultimately increase revenue.
Furthermore, CHATA also gave an update on current projects and the impact of the dive sector in the destination. CHATA is convinced that the diving industry has great potential. The daily investment of every diver is about $ 100. This means that the sector generates approximately $ 12,410,000 (NAFL 22,089,800) annually. The diver spends an average of $ 150 daily on accommodation, leading up to $14,499,625 yearly. Figures collected indicate that the diver spends about $ 100 on food and beverage; another $ 12,410,000 annually. When diving lessons, accommodation, food and beverage, car rental, the sale of equipment and airport tax are added together, we concluded that the diving industry contributes with approximately $ 41,319,914 annually to the local economy.
For more information on developments within the tourism sector please follow CHATA on www.facebook.com/ChataCuracao