Despite visitor traffic only being 58 per cent of the 2019 first-quarter (January – March) figures, Dolphin Cove Limited (DCL) is spending heavily across its various locations at the island as it gears up for the busy year ahead.

DCL is a hospitality company which operates marine parks and adventure programmes which includes dolphins, nurse sharks, stingrays, rabbits and an ostrich. Its dolphin attraction revenue grew 253 per cent to US$1.32 million ($202.39 million) with the ancillary attraction rising 241 per cent to US$1.25 million in the first quarter (Q1) of 2021. While the company’s total revenue of US$2.56 million was above the 2021 Q1 figures, it is still 34 per cent behind the US$3.89 million earned in Q1 2019.

However, the company was able to earn US$781,143 ($120.12 million) in profit before taxation which was 16 per cent below the US$927,727 earned in Q1 2019. The net profit of US$795,554 represented 94 per cent of the US$842,801 earned in 2019 when they still benefited from a 50 per cent tax remission.

“Our profitability has recovered far better due to higher spending by visitors at the parks and the improvements in efficiency that were occasioned by the pandemic and now in large part permanently built into our operations. Our marketing has embraced the advantages of social media and enhanced our local market penetration significantly at low cost,” stated founder and Chairman Stafford Burrowes in an e-mail with Jamaica Observer.

According to the quarterly report, the company had a decline of nearly US$1 million of expenses when compared to 2019, reflecting the efficiencies which have been baked into its operational structure. DCL incurred US$1.52 million in expenses for Q1 2021 relative to the US$2.51 million in 2019.

Burrowes explained that this was as a result of a higher revenue per guest derived from the investments made to improve the experiences at all its parks. This included the addition of eight new buggies and three ATV’s (all terrain vehicles) in 2021 at Yaaman Park. The Ocho Rios and Hanover locations saw replacement of furniture and fixtures along with the addition of new food and beverage areas plus photo spots.

“We invested in improvements to the facilities in all our parks including refurbishment works and purchase of furniture and fixtures, important additions at Yaaman park such as zip line, F&B area and improvements for guest area at the secret river. On the other hand, we invested in vet equipment and other equipment necessary to ensure the well-being of our dolphins and other species under our care,” Burrowes added on the US$184,629 spent during the quarter on property, plant and equipment.

When asked about the deal between Dolphin Cove (Negril) Limited and Reserve Investments Limited (RIL), he stated that the company was planning to have the option renewed with RIL. RIL is a subsidiary of an international hotel developer which had paid US$100,000 to get the rights to develop a hotel at the 23-acre property which houses the marine park. This option was renewable in 2021 at the same price.

When asked about the company’s stance regarding the rising levels of inflation, the conflict in Eastern Europe and new variants of COVID-19, Burrowes said, “All the situations outlined above had, have and will have an impact not only for Dolphin Cove but for the global economy. We have been performing under unprecedent conditions over the past two years and Dolphin Cove has adapted its execution to successfully operate under the current environment, which give us the confidence to continue delivering great results in the following months.”

He added that the outlook for the rest of 2022 and the following season is very promising for the Caribbean, based on conversations with cruise lines.