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Tourism
Planning to become a ‘true’ destination
The number of people staying overnight locally has fallen almost 5% in the decade to 2014 and although Ostuni suspected 2015 will have seen some growth overall, it is “certainly not enough to sustain a 50% increase in the bedroom stock” to reach 515.
The €125m Sunborn yacht hotel at Ocean Village marina added 189 rooms when it opened in 2014 and whilst “technically in the 5-star deluxe market, the reality is that it’s competing in the core 4 star market at 4 star prices ... and has not grown the market” that for years had been shared locally by the Rock, Eliott and Caleta hotels, says Ostuni, who was chairman of the now defunct Gibraltar Hoteliers Association, that may now be revived.
Capturing corporates
Not so, says Sunborn marketing manager, Dylan Trenando, who revealed: “We have captured a lot of the corporate market with 80% of that business coming from the UK both in terms of bedroom bookings and conference facilities, and the balance locally.
“I agree Gibraltar has not been in the 5-star market previously and although it has been very difficult to attract people at 5 star prices, that is where we are at now. Whereas the 4-star hotels are charging £95-120 per night, we are in the £150-200 bracket, without breakfast!”
Formerly marketing manager for Gibraltar’s oldest hotel, the 84-room Rock Hotel built in 1932, Trenando joined Sunborn in 2014. He claimed the floating hotel had “opened up the market; in 2015 we achieved an average 60% occupancy on our 189 rooms and from forward bookings we expect to see a 20% increase in 2016.”
Statistics for 2015 hotel occupancy and other aspects of tourism are not available until summer, but Ostuni pointed out: “In 2014 occupancy for Gibraltar Hotels was 59.9% overall. The Caleta Hotel occupancy in 2015 was 15% down on the previous year as a result of increased competition, something that we were prepared for and budgeted accordingly.”
The Rock claimed room take-up last year was “good, and the first three months of this year were above expectations”. Charles Danino, general manager, said a £3m revamp of the iconic hotel completed last year saw no loss in business with prospects “very encouraging, particularly given the increase in flights to Gibraltar.”
In all, there were 444,000 airline passengers last year and Gibraltar’s Tourist
More tourists, more hotel bedrooms, more cruise liners calling and more aircraft landing all go to show that Gibraltar is proving an attractive destination, according to the government. But not everyone agrees
developing a short, a medium and a long term strategy.”
Annual business plans are being required of the Tourist Board; the medium term plan will cover five years and a longer term view to 2026 and beyond – “I have said specifically, I don’t want it to be a party political thing”, she declared. Tourism partners - hotels and business organisations locally, tour operators cruise companies and airlines – have been asked to submit their ideas.
Ostuni, who has been at the Caleta for 17 years and previously with leading hotel chains in France, Germany and the UK, said: “Hoteliers are not responsible for developing a destination or generating growth; generally hoteliers focus on trying to achieve the largest market share available to the destination.
“Personally, I feel that we [hoteliers] are not qualified, nor do we have the independency and the market knowledge of trends to formulate such strategy; I don’t think anybody has in Gibraltar.”
He called for professional market analysis - an individual or a body with specific skills, a proven track record and “the freedom and independence that cannot be provided within Gibraltar. The tourism marketing budget [of £1m] has been the same during all my time in Gibraltar, 1999 to date; if we do the maths the budget is worth half of what it used to be.”
Outsourcing possible
Sacramento declared: “If we see that [submissions] are limited then I don’t object to outsourcing it to somebody else, but I want to be satisfied that we have done the job internally first “to take tourism to the next level.”
As for the budget, she stated: “It doesn’t necessarily need to be more to get further. It just needs to make sure we spend it on the things we have planned to prioritize for this year.”
Gibraltar in recent years, according to Ostuni, has seen the corporate market “becoming more and more sophisticated, requesting better products and facilities. The leisure market on the contrary, has become very price driven.”
Camp Bay, Gibraltar
In all, The Rock received 12m visitors last year, with the vast majority – 10m+ crossing the border and showing an
upward trend again, according to official statistics, after well-publicised long frontier queues in 2014 caused by Spanish action.
However, Lucienne Mosquera, manag- ing partner of Gibraltar-based Hospitality Business Development, believes the number of ‘true tourists’ is closer to 1m a year, and opportunities to develop the sector’s contribution to the economy – presently estimated to be about 20% - are being missed.
That’s also the view of Franco Ostuni, general manager of the 127-bed, 4-star Caleta Hotel on Gibraltar’s east side. “The reality is in fact that the alternating of various Governments and government ministers in the last 15 years has not produced a vision or a strategy for the industry; our tourism strategy today is the same as it was 15 years ago with the exception of event led tourism, which has been developed with success,” he said.
It’s a point well-made according to Samantha Sacramento, Tourism Minister, who told Gibraltar International: “A strategy is a cornerstone, so I am happy to report that for the first time we are working on
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Gibraltar International
www.gibraltarinternational.com