We've been meeting with other consultants who work in the Caribbean and what constantly comes up in conversation is how the current development of luxury condo-hotels, resorts and fractional ownership has an impact in the region.
Part of the 'charm of the Caribbean' has always been the small hotels, funky resorts, island culture and 'island time' that often caused tourists to complain. But once they got used to the fact that they were in a different world - they eventually calmed down, chilled out and grew to love the unique madness that Herman Wouk so wonderfully describes in
'Don't Stop the Carnival'.Any hotelier and most guests to the Caribbean could read
'Don't Stop the Carnival' and swear that they had experienced exactly the same charming clash of cultures, resources and attitudes against a backdrop of stunning natural beauty that used to be the hallmark of Caribbean travel. For better or worse, life under the Caribbean Sun was unlike anything else on earth.
With the huge increase of luxury hotels, condo-hotels, condos, fractional ownership and the commerce that follows - are the islands starting to look alike? Cable TV has reduced accents, local cafe's can't compete with fast food chains and upscale clients demand instant service and 'international standards'. Starbucks is the first choice for tourists - where they buy Kenya Gold Decaf or 'Bold & Beautiful Blend' even on islands famous for their own coffee!
Tourists and the new 'owners' demand the same standards they have 'at home' but want it enhanced by the Caribbean and the label of 'luxury', 'prestige', 'exclusive' and 'privileged' that is promised in the sales brochures.
In the short term - its bringing more business as construction booms and new properties come online....
In the longer view.... will we all start to look the same?
Is the Caribbean starting to look a lot like Florida?
How do we differentiate our products - our islands, culture & experience... so that the 'luxury living box on the beach' in St. Lucia, Provo or Aruba is worth a premium over the same physical accommodations on Florida's Gulf Coast - which is easier to get to and doesn't require a passport.
With high fuel costs, limited airlift, service issues, customs, departure tax, imported food & beverage, hotel taxes, etc. is the resort in the islands competitive in the price/value/experience equation....
This will be the main issue for hotels/resorts/destinations in the next few years as travel planning moves almost exclusively to the internet and our product becomes 'globalized'.
We're looking at ways for our clients to easily position themselves in the global market - now that our competition is not necessarily another island in the region - but Florida, Hawaii, Las Vegas, Mexico, Fiji or anywhere in the world that builds a compelling tourism product at an attractive price.
Everyone in the tourism industry should ask
'why should someone want to come to my island?'but then calculate the price of the visit against other destinations/products worldwide...
and see if they have a competitive product and a compelling story to command a premium in price and travel time.
In today's tourism market - you're just one more product on the shelf of the travel store...
In a market filled with expert shoppers - how can we close the sale?
And what will happen once Cuba is added to the product mix for the US market?
Caribbean Consulting is encouraging our clients to start thinking about this now....
since we're seeing consumer buying habits changing much faster than destination marketing strategy on most islands....