Caribbean Tourism Covid-19 Business Impact & Recovery

Caribbean Tourism Covid-19 Business Impact & Recovery Survey Results

March, 2021

Covid-19 Business Impact and Recovery Survey ResultsMarch, 2021

Background

The Caribbean Hotel and Tourism Association continues to survey tourism-related employers servicing the region to better understand the impact which the Covid-19 pandemic is having on the tourism industry, its employees, and the broader economy.

This is the third in a series of survey’s CHTA has undertaken since March, 2020 to better gauge the impact of the pandemic on tourism and to help guide the industry, policy makers, and support institutions as they consider policies, operational practices, marketing and communications strategies, training and support efforts aimed at accelerating and stimulating tourism’s recovery

The survey was conducted between February 15th and 24th via email.Approximately 255 businesses completed the survey.


Summary of ResultsBusiness Operations

• 67% of Caribbean’s Tourism-related Businesses are Presently (end of February, 2021) Fully Operational; 17% reported being partially open; 16% of businesses remained closed; of those partially open or closed, 56% expect to be fully open by June.

• Caribbean Tourism Industry Reports a 74% Loss in Revenue in 2020 Against Forecast prior to the pandemic.Impact is even more significant when considering the industry’s robust performance in January and February, 2020prior to the pandemic.

• 14% of Caribbean’s Tourism-Related Businesses are Highly Likely or Likely to Permanently Close as a result of the pandemic;49% are not likely to permanently close and 37% said it is still possible that they could permanently close.

• 49% of Tourism-related Employers Expect Labor Costs to Increase ultimately to support additional health safety measures.

Employment-Related• Caribbean’s Tourism’s Employment Levels were Reported to be 43% of Pre-pandemic levels as of February, 2020,

indicating some level of activity and high level of employers are retaining employees despite low level of tourist activity

• 38% of Employers are Able to Continue to Pay a percentage of Employee’s salary for Employees who are StillEmployed But are Not Working (furloughed, laid-off, on leave, etc), while 62.5% are unable to do so.

• The Average Percentage of Salary being Paid by those able to do so is 55%. Most employers who are assistingwith employee salaries and benefits expect to no longer be able to do so in the coming months.


Summary of Results continued

Health Safety• Nearly All Caribbean Tourism-Related Companies Invest Significantly in New Health Safety

Protocols, Technologies and Operations to protect employees and guests.• Three in Every Ten Employers Covering Costs for Employee and Guest Testing.• Thirteen percent of Employers Indicate they Are Covering or Will Cover Costs for Employee Vaccine

shotsif not already covered. More Employers Would Consider.

• 24% of Employers Offering or Plan to Offer Covid-19 Testing on site.

• 54% Express Interest in Securing Special Pricing for Covid-19 Testing for employees and guests through a CHTA recognized vendor.

• All Employers Indicate They Intend to Continue to Adhere to Face Coverings and Physical DistancingProtocols for Employees and Guests.


Summary of Results continuedRecovery Support• 77% of Employers Are Not Receiving any Government Support to Assist with the Retention of Employees.

• Of the 23% of employers receiving Government support to retain employees, 42% of that support came in the form of lending subsidies while 32% reported that direct subsidies were provided to employees by the Government.

• Only 11 percent of employers report receiving tax or duty relief to support purchase of new health- safety-relatedequipment, materials and supplies

• Government, Utilities, and Financial Institution Support Provided in Some Jurisdictions. Continued support andadditional support needed to stimulate recovery. Tourism industry identifies key measures important to stimulatingrecovery.

• Employers Advocate that Highest Priorities to Support Recovery should be placed on:(1) Marketing and Public Relations campaign by public and private sectors;(2) Support for Furloughed Employees and Stimulus for Rehires;(3) Electric Utilities Relief;(4) Stimulus to Rebound Airlift;(5) Tax Relief;(6) Flexible Banking Arrangements.

• One-Third of Tourism-related Businesses Willing to Contribute Room Inventory or other services (if not a hotel) in support of a destination or regional recovery marketing and public relations campaign. Fifty- four percent are

open to consider this type of support but would like to know more before deciding.

Covid-19 Business Impact and Recovery Survey Results

March, 2021

Sector Representation Based Upon 255 Company Survey Respondents:

56%

13%

6%

6%

3%

2%

10%1%

Accommodations

Ground Transportation/Excursion

Attraction

Restaurant

Retail

Wholesale

Marketing Services

Airline

Advertising/PR

Other

Accommodations 56%

Ground Transportation/Excursion 13%

Attraction 6%

Restaurant 6%

Retail 3%

Wholesale 2%

Marketing Services 2%

Airline 1%

Advertising/PR 1%

Other 10%

2%1%


Are you presently open and conducting business?

Yes No

Fully or Partially

Open

0%

10%

50%

40%

30%

20%

80%

70%

60%

83%

17%16%Partially

Open


If not presently open, when do you expect to reopen or fully open this year?

March April May June July August September October NovemberDecember Plan to Reopen in

2022

0%

5%

10%

15%

20%

25%

22%

9%

17%

7% 6% 6%7%

6%

11%9%


When do you expect your business to recover financially from the impact of the pandemic?

ByDecember,2021

By June,2022

ByDecember2022

By June,2023

ByDecember,2023

Don’t Expect toRecover

Other0%

5%

10%

20%

25%

30%

16%15% 14%

27%

7%

19%

3%

14%


How likely is your business to permanentlyclose as a result of the pandemic?

HighlyLikely

Likely Possible Not Likely

0%

10%

20%

30%

60%

5%9%

50% 49%

40% 37%


March, 2021

Employers Retain 43 Percent of Employees, February 2021

Please estimate the total number of employees workingin your business now vs. prior to pandemic…

43%


March, 2021

For those employees who are still employed but are not working (furloughed, laid-off, on leave, etc), are you continuing to pay a percentage of their salary?

Yes No0%

10%

20%

30%

40%

50%

60%

70%

38%

62%

If yes, pleaseindicate whatpercentage: 55%


Is Government providing support to assist in your retention of employees?

Yes No0%

10%

50%

40%

30%

20%

60%

90%

80%

70%

32%

78%


If yes, how?

Direct payments toemployees by Government

Tax offset or creditprovided to employer

Other (i.e. loans, financing, waivers)

0%

5%

10%

15%

20%

25%

30%

45%

40%

35%

32%

42%

5%

21%

Payment Subsidy provideddirectly to employer


Please estimate your company’s revenue loss against budget forecasts prior to the pandemic incurred in 2020 due to the pandemic:

Average 2020 Revenue Loss:Down 74%(Note: This factors in January and February, 2020, when revenue was not impacted by the pandemic)


March, 2021

Please identify those areas where your operating costs have increased or are expected to increase as a result of implementing health safety protocols due to the pandemic:

NewTechnology to

Support Health Safety

Measures

Construction, Materials and Furnishings to Retrofit Public

Areas (i.e. reception,

restaurant….)'

Purchase of Personal

Protection Equipment

and Supplies for Employeesand Guests

Purchase ofCovid- 19

Testing Equipment and

Supplies

Covid-19 Testing Costs

for Employees and Guests

Other0%

10%

20%

30%

40%

50%

70%

60%

80%

90%

52%42%

9%

49%

82%

30% 30%

13% 11%

Purchase and Labor Costs

to Installation of New Support

Additional Ventilation Equipment

Health Safety Measures

Vaccine shots for

employees


March, 2021

Have you received tax or duty relief to support purchase of new health-safety-related equipment, materials and supplies?

Yes No

10%

0%

40%

30%

20%

50%

70%

60%

80%

100%

90%

11%

89%


March, 2021

Is Government presently considering providing tax or duty relief to support your purchase of new health-safety-related equipment, materials and supplies?

Yes No Don'tKnow

Relief Support is Already in Place

0%

10%

20%

30%

40%

50%

60%

53%

10%

34%

3%


Please indicate the level of importance you place on the followingpotential stimulus measures:

Measures Important to Stimulate Tourism's Recovery Weighted Average

Increased Marketing and Public Relations: By Government 4.15

Increased Marketing and Public Relations: Collaboratively by Public and PrivateSectors

4.15

Increased Marketing and Public Relations: By Industry 4.12

Unemployment Support to Furloughed Employees 4.11

Utilities – Electricity Relief 4.11

Utilities – Electricity Peak Demand Adjustment 4.03

Stimulus Support to Generate Airlift 3.96

Bank – Soft Loans/Low Interest 3.8

Tax Relief – Other 3.76

Tax Credits for Employee Retention 3.76

Working Capital Support 3.75

Bank Loan Payment Deferral 3.72

Employment Tax Credits or Payroll Support for Early Rehires 3.65

Tax Relief – VAT 3.59

Aviation and Airline Related Fees Reduction 3.55

Tax Relief – Corporate Income Tax 3.5

Suppliers – Discounts, Deferred Payments 3.45Tax Payment Deferral 3.4


March, 2021

Has your government, utilities or financial institutions provided support in the following areas:

Yes No Don'tKnow

Tax Relief – VAT 11% 67% 22%

Tax Relief – Corporate Income Tax 9% 67% 24%

Tax Relief – Other 10% 61% 29%

Tax Payment Deferral 17% 59% 24%

Bank Loan Payment Deferral 48% 32% 20%

Bank – Soft Loans/Low Interest 28% 46% 26%

Tax Credits for Employee Retention 7% 63% 30%

Employment Tax Credits or Payroll Support for EarlyRehires

5% 63% 32%

Unemployment Support to Furloughed Employees 39% 38% 23%

Utilities – Electricity Relief 18% 66% 16%

Utilities – Electricity Peak Demand Adjustment 3% 71% 26%

Aviation and Airline Related Fees Reduction 2% 59% 38%

Increased Marketing and Public Relations 22% 38% 40%

Stimulus Support to Generate Airlift 10% 45% 40%


What are your company’s plans regarding your marketing andpublic relations budget expenditures for the remainder of 2021:

No Change in Budget for 2021Marketing/PR

Plan to Increase 2021 Marketing/PR Budget

Plan to Decrease 2021Marketing/PR Budget

5%

0%

10%

20%

15%

25%

30%

35%

50%

45%

40%

47%

17%

35%


Would you be willing to contribute room inventory or other services (if not a hotel) in support of a destination or regional recovery marketing and public relations campaign?

Yes No Need to Know More

0%

10%

20%

30%

40%

50%

60%

34%

54%

12%


Are you offering or do you plan to offer Covid-19 testing on-site?

Yes No Don'tKnow

0%

10%

20%

30%

40%

50%

60%

24%

56%

20%


If Yes, would you be interested in special pricing fortests through a CHTA recognized vendor?

Yes No42%

44%

46%

48%

50%

52%

54%

56%

54%

46%


Please indicate the value level which you place on the following subject matter areas for training and information sharing to support your company’s ongoing recovery efforts:

Digital Marketing Strategies in a Covid-19 Environment 69%

Health Safety Training for Front Line Workers 69%

Reducing Employer Risk/Liability Due to Potential Virus Exposure 67%

Effective Customer Service - Social Distancing in a Social Business 65%

Marketing Strategies in a Covid-19 Environment 65%

Best Public-Private Sector Practices to Support Tourism’s Recovery 64%

Maintaining Rate Integrity Thru a Crisis and Beyond 58%

Communications and Public Relations StrategiesNow and Thru Recovery

57%

Supervisory and Management Leadership to Guide Recovery andBeyond

53%

Strategies for a Caribbean Brand Marketing Approach 52%

Labor Management Thru the Crisis 49%

Leveraging Resources to Conduct Destination Marketing 48%

Market Differentiation Out of a Crisis 48%

Stress Management Training for Employees 48%

Bank Lending, Refinancing and Debt Restructuring 42%

Renegotiating Tour Operator Contracts Post Recovery 40%

Caribbean Tourism Covid-19 Business Impact & Recovery Survey Results

March, 2021For Additional Information Contact [email protected]

mailto:[email protected]

Documents

Caribbean Tourism Covid-19 Business Impact & Recovery