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Struggling Economy, Fewer Flights Worry Hoteliers

June 19, 2008 — While the summer season looks hit or miss when it comes to hotel occupancy rates, some hoteliers are worrying more about the upcoming winter season.
"A terrible winter season — nobody would want to live through that," Richard Doumeng, chairman of the V.I. Hotel and Tourism Association board and manager of the 65-room Bolongo Bay Beach Resort on St. Thomas, said.
While the economy on the U.S. mainland is a concern, Doumeng said that the reduction in airlift to the territory is a bigger problem. Without seats, visitors can't fly in.
Even after the terrible winter season that followed 1995's devastating Hurricane Marilyn, airlines didn't cut flights to the extent they're doing now in response to the ongoing escalation in fuel prices.
Doumeng pointed out that flights from New York's JFK Airport to St. Thomas will drop from seven days a week to one come September. He said that even in the worst of times there were flights at least four days a week.
He and other hoteliers hope airlines will add flights again once the winter season nears.
For a number of years, vacationers have been booking at the last minute. However, it makes it hard for hoteliers to predict their occupancy rates. Doumeng said it's not unusual for someone to call on a Wednesday to book a room for a Friday arrival even if they are flying in.
He's not sure how the reduction in the number of flights will affect late bookings since airplane seats will be harder to come by.
"All we can do from our end is to continue to build demand for our destination, to keep making people pick up the phone or go online and say take me to the Virgin Islands," he said.
Doumeng said if the demand is there, the airlines will find a way to get the customers to the territory.
Joel Kling, who on St. Thomas manages the 90 rooms at Best Western Emerald Beach and the 51 rooms at Best Western Carib Beach, is concerned that he'll lose business because American will fly only Saturdays from JFK and Spirit Airlines Saturdays from Fort Lauderdale.
"In the winter guests typically come for four to five days," he said.
Kling noted that if visitors have to tack on another three days to their visit to meet flight schedules, they'll add at minimum another $1,000 to their vacation tab when they include lodging, food and extras.
"That will be another $1,000 they don't have," Kling said.
He's also worried that the economic crisis on the mainland will convince people to stay home.
Kling suggested that vacation clubs and timeshares will survive the flight schedule problem because their guests typically book for a week from Saturday to Saturday.
Pat Henry, manager of the 246-room Divi Carina Bay Resort and Casino on St. Croix, acknowledged that his hotel is in for some belt-tightening.
"The average Bob and Betty are not spending their disposable income coming to St. Croix. They're going to Wisconsin Dells or Six Flags," he said.
However, he doesn't see the situation as all gloom and doom. He said the territory has to be proactive to bring tourists and more flights to the territory as well as explore new markets like Europe and elsewhere in the Caribbean.
Roger Carrington, who owns Carrington's Inn on St. Croix, isn't worrying yet about the winter season. Instead, hurricane season is his No. 1 concern.
"Hopefully, we'll have good weather during hurricane season," he said.
Carrington's Inn is already booking for the winter season. The five-room bed and breakfast has a wedding party and even has bookings into September.
"But I'll be doing my maintenance in October and November," he said, adding that he has no bookings for those months.
With lower prices than St. Croix's larger resorts, Carrington wondered if visitors were looking to spend less on accommodations so they opted for his bed and breakfast rather than a larger property.
Carrington is also worried about the increase in V.I. Water and Power Authority rates, but said he hopes to be able to absorb the increased cost and not raise his room rates.
Robin Clair, manager at the four-unit Estate Zootenvaal on St. John, said that the summer is slow, but she's happy to have about three bookings a month.
"And I've even had somebody call about September," she said, referring to the peak of hurricane season.
As for the winter, she said she's booking up with repeat guests, but that she hasn't heard from any of them who need to change their reservations because of flight issues.
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