Brexit and Zika fears hit Barbados luxury market
Brexit fears and the Zika virus have dampened demand for luxury hotels in Barbados, one of the most popular Caribbean islands for British holidaymakers, said Elegant Hotels.
The owner of six upscale properties on the island said it had suffered weaker demand as a result of political uncertainty in the UK and room cancellations and competitor discounting due to Zika fears over the past few months.
However, overall, Barbados has seen a 10% increase in visitors from the UK during the early part of this year.
Elegant Hotels said it was hopeful the negative impact it has epxerienced would be short-lived, but chief executive Sunil Chatrani said the Group’s full-year earnings would be hit.
Occupancy during the first half of the year fell to 69% from 71% last year, although this was compensated for by an increase in the average daily rate from US$450 to $464. However, the Group said these factors, combined with the increase in cheaper accommodation options in Barbados, had had a knock on effect on bookings for the second half of the year.
It expects full-year like-for-like sales to be slightly down year on year, with adjusted earnings before interest and tax down from $22.2 million in 2015 to between $20 million and $21 million.
Its pr-retax profit in the six months to March 31 grew to $17 million from $12.1 million in the same period the year before, as revenue rose very slightly to $36.5 million from $36.4 million on the back of a small increase in revenue per available room to $320 from $319.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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