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JHTA concerned about the rise of informal B&Bs and Cuba
MADDEN-GREIG... A real<br />focus must be put on<br />formalising a sub-sector that<br />is growing. At right: HAVANA, Cuba &mdash; This May 14, 2015 photo shows the view from the window of an Airbnb<br />apartment in Havana. In the two months since Airbnb started doing business in Cuba, listings<br />have ballooned to about 2,000, compared to about 800 in Jamaica. The website makes it<br />relatively easy to find lodging in a country that has largely been cut off from the online booking<br />systems most travelers take for granted. On the plus side: Airbnb is a great way to connect with<br />locals and see daily life up close. (PHOTO: AP)
Business
Karena Bennett | Senior Business Reporter | bennettk@jamaicaobserver.com  
June 11, 2015

JHTA concerned about the rise of informal B&Bs and Cuba

THE Jamaica Hotel and Tourist Association (JHTA) has expressed concern about the disruptive course that accommodations website Airbnb and the reopening of the Cuban market could have on Jamaica’s tourism sector.

President of the JHTA Nicole Madden-Greig stated that the accommodation website — which links international guests to various accommodations around the world — is dominated by listings for unlicenced rental agencies. A recent search of the website revealed a total of 746 rental spaces in Jamaica priced between US$10 (J$1,160) and US$1000 (J$116,000) per night, the majority of which were entire homes, apartments and private rooms.

“As of spring 2014, the platform had 10 million guests and 550,000 properties listed worldwide, along with a US$10-billion valuation — making Airbnb worth more than legacy players like Wyndham and Hyatt,” she said. “A real focus must be put on formalising a subsector that is growing.”

Speaking at the recently held JHTA Annual General Meeting, Madden-Greig stated Jamaica’s tourism appeal is also in limbo as more international guests look to Cuba as the preferred Caribbean destination. She added that it is vital for the country to reinvent itself as travel agents seek destinations where the culture is different, exotic and mysterious.

Her remarks were based on a report published by popular travel trade newspaper Travel Weekly, which stated that “Caribbean travellers want to do more than sit in the sun and drink rum punch.” The report focused on 100 agents at a travel seminar during the Caribbean Tourism Organisation’s annual Caribbean Week event, half of which indicated that they had clients who wanted to visit Cuba.

“It focused on the opportunities presented by the evolution of consumers’ desires for new and authentic experiences in the areas of Caribbean food, culture and nature,” Madden-Greig stated.

“Back in the day, the goal for most visitors was to stay in as nice a resort as they could afford, and in aggregate; the islands had properties that could accommodate people at any price point. People were satisfied with local colour rather than authenticity — according to the report, a limbo show often seemed to do the trick.”

Recently, President of the United States Barack Obama re-established diplomatic relations with Cuba, after ties were severed in 1961. Since then there have been discussions with Cuba and the US to re-establish an embassy in Havana.

The US plans on addressing matters of mutual concern that advance its national interests with Cuba including migration, counternarcotics, environmental protection, and trafficking in persons, among other issues.

Last month Miami-based Baja Ferries, which operates a passenger service based in Mexico, was issued a licence from the US Treasury Department to operate ferry services between the United States of America and Cuba. Another licence to operate a ferry service was also granted to the Puerto Rico-based American Cruise Ferries.

“Jamaica has all the elements but we must learn to present ourselves in the strongest possible way while continuing to reinvent ourselves. The new millennial traveller is seeking more than sun, sea and sand, or an all-inclusive experience,” Madden-Greig stated.

She added that more focus should be placed on high-end boutique hotels and European Plan (all-inclusive) hotels and resorts as demands grow for alternate accommodation choices, the country’s iconic attractions, music and entertainment.

“The meteoric rise of one major online travel site is testament to the demand for alternate European Plan accommodation choices,” she said.

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