Good afternoon.

It’s a pleasure to welcome you to the Quarterly Tourism Address, now minus the lunch in our belt-tightening times. When the new fiscal year began, with a smaller budget for tourism, lunches for the press and Tourism industry partners were sacrificed at this event. However I don’t anticipate too much of a protest because I know all of you attend this address to chew on the numbers, not the chicken.

So then, let’s get to it.

Total visitors to Bermuda in the second quarter of 2008 declined 4.29% when compared to the same period last year. We slipped from 232,806 visitors to 222,821 visitors… about 10,000 fewer people spread over three months.

Statistically the decline is due mostly to air visitors from the United States… off 14 and a half percent.

Meantime, air arrivals from other destinations were consistently UP in the second quarter. Canada up 6%, the United Kingdom up 5.9% and the rest of the world up 12.1%. This is very encouraging news as we nimbly adjust to the scope of the economic slowdown in the United States and the rising cost of fuel.

As you will know, in the face of tough economic times in the United States, it has been difficult in this calendar year to keep pace with our blockbuster performance of ’07. At one point last year we had ten consecutive months of year over year occupancy growth at our hotels. That act is difficult to follow, especially when the country which supplies most of our visitors finds itself struggling economically.

These are the issues we will tackle on August 15th when I convene a Tourism Summit with about 20 of our industry partners. We’ll talk about the U.S. economy and discuss to what extent we need to shift additional resources to Canada, the United Kingdom and Europe where economic conditions are healthier, but airlift is limited. I look forward to the challenges and solutions we will contemplate next month.

Almost immediately we’ll be looking to implement selected recommendations from the summit, and rest assured our approach will be aggressive.

The second quarter statistical data also shows a slight dip in cruise arrivals, down less than one-percent from 130,304 to 129,344… about 1,000 people fewer.

As our new cruise ship policy takes hold the industry should be prepared for lower cruise arrival numbers because fewer ships are scheduled to come to our shores this year and in the near future. We have opted instead to attract itineraries that bring ships to stay longer, paving the way for cruise visitors to spend more days in Bermuda, and as a result, spend more money in Bermuda.

Overall, the second quarter was rather inconsistent. Arrivals in April were UP almost 27%, while arrivals in May were down 23%, and in June the end result was about even with a 2 and a half percent dip.

Nonetheless, the 2nd Quarter ended with a bang thanks in large part to the Newport Bermuda Race. This biennial Department of Tourism sponsored event brought upwards of 3,000 people to our shores. The Bermuda Hotel Association properties reported hotel occupancies north of 95% for five consecutive days when the sailors and spectators converged here at the end of June. In the days before the race it was virtually impossible to find a room.

Local restaurants were full, Hamilton city streets were bustling and many commented on the buzz of activity at Barr’s Bay Park for days on end. It is clear: whenever this sports tourism event comes to Bermuda it stimulates the tourism industry. Our support for this event is critically important and it will continue.

In Newport, on the eve of the race, we made a special pitch to hundreds of Captains and Navigators. We told them we would like to see them in Bermuda more often than once every couple of years. We told them we would especially like them to sample our events outside of the summer like the Bermuda International Love Festival, the PGA Grand Slam of Golf, the Gold Cup and the Bermuda Music Festival. We told them how important they are to our economy, how appreciated they are. We also told them about the progress we’re making in our consistent march upward to the Platinum Period.

Close followers of the local tourism industry will know what the Platinum Period is all about.

We are now taking steps to ensure those outside the hospitality inner circle also understand what the Platinum Period is about because we think it is critical to the future of the industry and critical to the resurgence of our country’s second economic pillar. We want every Bermudian to believe in what the Platinum Period represents – to support it, to help it succeed.

The Platinum Period is the top-to-bottom improvement of the Bermuda tourism product. It’s about taking us to the next level. We are focused on encouraging upgrades in the hotel product, enhancements in the golf product and we’ve stepped up transportation offerings as well.

We know these are things every Bermudian sees happening around the country, but we want them to also understand these enhancements are part of their Government’s visionary strategy.

As we have said many times, we are a travel destination targeting the affluent traveler, but of course, we are not the only travel destination targeting the affluent traveler. The competition is fierce. We need to focus on providing the best possible luxuries and experiences for our visitors. We need to be unmatched.

In the second quarter our tourism partners could be seen answering this call. In April, the spectacular property at Newstead was reborn and the second birth is more splendid than the first. From top-to-bottom the property is 100% platinum – stunning views, immaculate rooms, a spectacular spa, a beautiful harbourfront restaurant… I can go on and on. I would like to congratulate Bermudian Kevin Petty and his team for what they’ve done at Newstead. It is nothing short of marvelous! If you agree let me hear you with a round of applause.

The Fairmont Hamilton Princess also showed strong strides to meet the platinum standard in the second quarter. The historic hotel disproved a cliché. You CAN teach an old dog new tricks!

The stodgy old Bay Wing has been refurbished with an investment of more than $100,000 per room. Today the Bermudiana House stands where the Bay Wing once did and guests are in for a treat. I was there during the renovations, but haven’t seen the final product. Judging from all accounts I’ve heard, this upgraded section of the hotel has never looked better. I congratulate the new owners at the Fairmont Hamilton Princess, Jon Crellin and the entire staff for the new standard for quality they’ve built at our country’s premier downtown hotel. I think they too deserve a round of applause.

Of course, the Platinum Period movement goes much farther than just those two properties. The resurrection of the Club Med site, the improved Port Royal golf course, the future of the old Wyndham, and so much more, all qualify – but I thought it was important to pay special attention to those specific 2nd Quarter Platinum Period movers.

The preparation stage of the upgrade process also gets underway today at the St. George’s Golf Course. That facility will be temporarily closed starting this afternoon, and then transformed from what it is now to a Nick Faldo-designed Championship course.

Let me state unequivocally: the St. George’s Golf Course belongs to the people of Bermuda, and as long as I have a say in the matter, it will always belong to the people of Bermuda. Our modus operandi here is clear and simple: uplift the Old Town of St. George’s to its rightful place in the Bermuda Tourism experience.

Allow me also to thank the 15 hard-working employees at the St. George’s Golf Course. We are assisting all of them to find new work and will not stop until that task is complete. A handful of them have already been retained to maintain the course over the interim period. Once again my thanks to the staff at the St. George’s Golf Course.

In the Transport half of the Ministry we have also seen a significant contribution to the Platinum Period with the new agreement between our Government and the Department of Homeland Security in the United States. Secretary Michael Chertoff and I have signed a letter of intent, which, when fully materialized, will allow private jet passengers to pre-clear U.S. Customs here in Bermuda. This move will significantly reduce the wait time for non-commercial fliers and significantly raise convenience.

As we consistently raise the bar to a higher standard in the Platinum Period, it makes sense to also raise our attractiveness to affluent travelers. All of it is part of a coordinated visionary strategy.

I am also pleased to tell you today about a new event on the Tourism calendar which I believe is equally inline with the platinum level guests we aim to attract to Bermuda.

Former Washington D.C. Mayor Sharon Pratt is the driving force behind this big idea called 2008 OFC Bermuda Forum. OFC stands for the Opportunity Funding Corporation.

This is a non-profit organization in the United States which promotes capitalism and entrepreneurship in communities of color. OFC wants to use its Bermuda Forum as a think tank – attracting minority leaders in business, government, entertainment and academia into a lively discussion about spreading economic development throughout the African Diaspora.

Mayor Pratt tells me she already has spoken to the likes of former NBA star and entrepreneur Magic Johnson, actor Chris Tucker, and former media mogul Bob Johnson. She says all of them have voiced their intention to be in Bermuda for this important Forum. The team at Tourism has been helping Mayor Pratt finalize details during the 2nd Quarter of this year. The event will take place in the 4th Quarter at the Fairmont Southampton from November 20th to 23rd.

We expect about 200 visitors to attend, specifically invited to participate by the Opportunity Funding Corporation. They will come to stimulate discussion about economic development in America, but by being here they will also stimulate the Bermudian economy and that is our aim at the Department of Tourism. Just like everything we do at Tourism we have insisted on allowing an opportunity for Bermudians to participate as well.

I want to talk for a moment about the timing of the OFC Forum because it is significant for two reasons. First, it is in November a soft time of year for our tourism product. We are constantly trying to change that and our sponsorship of this high profile event in November proves our commitment in this area.

Secondly, this will happen just after the U.S. Presidential election, where, if you believe the polls, Americans are about to elect their first ever Black President. Imagine the implications of that for a moment.

I’m quick to tell anyone who will listen: you can’t always trust the polls, but if the polls are correct on this occasion, I expect the OFC Bermuda Forum will have added significance on the world stage in the wake of a landmark U.S. election. Should that be the case, I expect this Forum would provide greater exposure for our country and our tourism product. We are well positioned.

While on the topic of winter visitor numbers, I should mention my live television interview during a broadcast of a New York Mets game in May. It is part of our robust marketing partnership with the baseball team. About 325,000 fans watched on television during that chilly night in New York. The pitch was simple – in November, once the baseball season is over, come to Bermuda and enjoy our golf and spa season. It’s a pitch I make whenever the opportunity presents itself and I’m confident our industry performance between November and April is poised to improve.

Also in the 2nd Quarter New York Giants Superbowl Champion Antonio Pierce became an official member of the “Feel the Love” team. The Department of Tourism supported his local football camp and scholarship drive and now he will support us by using his celebrity status to market our product overseas. Whenever there is an opportunity to advance Bermuda Tourism while also benefiting our young people – we are willing to listen, and where appropriate, we are willing to partner.

Speaking of partnerships, the Department of Tourism has shown the power of partnering with our Department of Labour and Training. We’ve recruited four college students enrolled in Labour and Training’s summer employment program. They’ve been working with us as guerilla marketers, marching the Northeast Corridor as Ad Walkers.

Ad Walkers hit the streets specifically to meet people, carrying mini television screens. Those screens display images of Bermuda, information on upcoming Bermuda events and other relevant tidbits about our island.

These young and professional Ad Walkers are also out there to capture data. Every conversation they have is with a potential visitor, so we ask to capture detailed information and we use that data to communicate with those potential visitors in the future. It’s an excellent use of technology to advance Bermuda Tourism.

I’m also proud of the way our people have looked to Labour and Training for resources. That department does great work and is a great help to our guerilla marketing efforts in North America.

Here at home we brought back the Moonlight Movie Series during the second quarter. It has evolved from a once a year event to become a summer-long smash hit that dazzles visitors and residents alike. We are always pleased when we can meld our guests with our greatest resource for a fabulous nightlife experience.

So far Moonlight Movie Series has visited the Arboretum, Snorkel Park, Clearwater Beach, Victoria Park and Horseshoe Bay Beach. Turnout has been between nothing short of blockbuster… anywhere from 400 to 3,000 people depending on the location and weather conditions. The event features a massive 40-foot screen, state of the art audio and projection, food vendors and family friendly activities.

The feedback has been so outstanding, my wife and I have put it on our calendar for next month. We look forward to the continued popularity of this event. Remember there are only seven weeks left this year to enjoy the Moonlight Movie Series.

Back to Transport for a moment to discuss the fast moving progress at the Transport Control Department. The North Street Safety and Emissions Inspection facility is ahead of schedule. How’s that for a good story? If behind schedule gets a newspaper headline, I think ahead of schedule should as well. The completion date was set for March 2009 and we expect to beat that forecast. Kudos to my colleagues in Transport who are moving things forward and getting things done.

Similarly, Transport recently launched its EVR system… the first countrywide electronic vehicle registration launch in the world. It’s designed to catch those who cheat the system by not properly registering their vehicles. The system has shown us unlicensed vehicles have driven by our readers almost 2,000 times already. Before long, this innovative system will pay for itself because more vehicle owners will be in compliance with the law and paying their fair share.

And this is a warning for those who continue to flout the law. The grace period for motorists to have their EVR chips on their vehicles ends today. I can assure you that TCD’s Traffic Officers as well as members of the Bermuda Police Service will be out in full force this Cup Match holiday period enforcing this new law and any other road violations.

At the end of the second quarter the Trucks Advisory Committee advised we extend the moratorium on truck permits past July 1st, 2008… and we have done so. The extended moratorium will last until the second quarter of 2009. At that time I expect the Advisory Committee will also have completed its comprehensive review of truck categories and will make recommendations accordingly. This move – along with ferries, free transport for school kids and eliminating assessment number loopholes – is part of our coordinated approach to tackle congestion. No single pronged approach will succeed; we must be strategic across many areas.

Meantime, there is exciting news to share from the Maritime Administration in Transport. When the Paris Memorandum of Understanding Committee on Port State Control met in the second quarter of this year it decided Bermuda should be on the “White List” for Port State Control. That puts Bermuda in the highest possible category of performance – right alongside France and China. The Department of Maritime Administration should feel tremendously proud of this outstanding achievement.

I must also mention that the Department is under the new leadership of John McPartland, a man with more than a decade of experience in the field. I fully expect the department will thrive further under his direction.

In the Ministry of Tourism and Transport we strive for high standards consistently – in every quarter, in every month, on every day. I imagine we will fall short on occasion, but as long as our mission is to be innovative and strategic and hard-working… I know the end result is something all of us can be proud of.

Thank you very much and to my fellow Bermudians I wish you a happy and safe Cup Match Holiday.

I am happy to take your questions.

Premier Dr. Ewart F. Brown
Minister of Tourism & Transport