Tourism Performance past 50 Years Tourism has grown significantly since independence

Tourist arrivals have increased from a modest 35,000 in the 60’s to 591,000 in 2015

Cruise passenger arrivals have also seen tremendous growth over the period to also register around 586,000 annually

Recent performances The island in 2015 saw over 1 million visitors

Tourist arrivals recorded the highest level ever in 2015 with 592,000 tourists

Arrivals for 2015 increased by 13% compared to the previous year

2016 is set to also be a record breaking year and for the first time the island will eclipse the 600,000 mark

Arrivals to June have shown an increase of 5 % compared when compared to 2015

Cruise passenger arrivals increased by 5% in 2015 to total 586,000 cruise visitors

Distribution of Tourists 2015 Barbados has been

working on diversifying its market base

Initiatives have been made in the USA with a significant increase in airlift which has resulted in an increased share from this market to 25% from 21% in previous years

Efforts have also been made to tap into the South American markets

UNITED STATES

25%

CANADA 12%

UNITED KINGDOM

37%

GERMANY 2%

OTHER EUROPE

4%

TRINIDAD & TOBAGO

5%

OTHER CARIBBEAN

11%

BRAZIL 1%

OTHER CENTRAL &

SOUTH AMERICA

1%

OTHER 2%

Falling accommodation room stock

Based on research of the properties closed over the past 15 years, a total of 2055 rooms have been put out of circulation or have been converted to villa/ condo type accommodation.

The island’s room stock has been growing less rapidly compared to its Caribbean counterparts.

In fact there has been a fall-off in inventory for 2014. Room inventory on the island stood at 6700 in 1980, while in 2014 that number was just over 5,900.

CLOSED PROPERTIES # ROOMS

Almond Beach Village 330

Sam Lord's castle 239

Club Rockley 152

Amaryllis 145

Silver Sands 130

Sandy Bay 129

Glitter Bay 68

The Regent 61

Kings Beach 57

Caribbee 55

Coconut Creek 53

Tropical Escape 52

Allamanda 49

Rainbow Beach 43

St Lawrence Apartments 42

Other Smaller properties 450

Total 2055

Hotel plant in need of restructuring • It is generally accepted that the hotel plant in

Barbados is tired and in need of infrastructural investment reflecting the market demands. – Market asking for medium to large hotels. – All inclusive product offering – Family oriented product development – Development of ultra-luxury boutique hotels – Development of an adequately sized conference facility within

close proximity to accommodations – Development of remote areas to accommodate tourism

product

• The past 15 years prior to 2015 have seen 5 investments in new or fully renovated hotel projects which account for 800 rooms.

Tourism over the next 10 years Addition of one to two new build or restored properties each year to the

productive capacity of the tourism industry from 2015 to 2025

Secure investment to the tune of US$2 billion over the next 10 years

Increase the level of tourist on the island to around 1 million annually by 2025

Doubling of the tourism receipts to US$2 billion annually by 2025

Introduction of 4000 new rooms by 2025 of which 1740 rooms will be within the Carlisle Bay Area

Employment of an additional 7500 persons directly in accommodation establishments by 2025 and a further 16,800 persons indirectly.

7

Future Tourism Development

Tourism development will be pursued with the preservation of the environment and local community at its core

Maximizing the benefits to the economy of future initiatives

Encourage the utilization of photovoltaic and other systems to reduce foreign import bill

Will reflect latest and future trends in tourism development

Standards and quality of the hotel plant on the island must be of world class standards

Due to the nature of the tourism industry, where it draws on many other sectors of the economy, the Integration of the other productive sectors of the economy is paramount and will be actively pursued

Three phases to the development Phase 1

Expanding the tourism base across wider Barbados

Phase 2

Development of Bridgetown and its Garrison i.e Carlisle Bay Corridor

Phase 3

Development of Harrisons Point

A Revitalized Tourism Industry Return of the closed inventory to productive capacity

in the tourism sector

Facilitate investment in new hotel plant improving the quality of Barbados’ product offering

Spreading the benefits of tourism and infrastructural development across wider Barbados

Encourage the operation of international brands on the island while promoting investment in local brands and the development of luxury boutique hotels

Forge deeper linkages between the productive sectors of the economy and tourism

Development 2015 2016 2017 2018 2019 Type of Property

Sandals Casuarina 280 All-Inclusive

Amaryllis/Sugar Bay Barbados 150 All-Inclusive

Sandy Bay/Beach Start Date 153 All-Inclusive

Sandals Casuarina Expansion Start Date 220 All-Inclusive

Downtown Hyat t Hotel (Bay Street) Start Date 190 European Plan

Wyndham Samlord's Castle Start Date 450 European Plan

Foulbay St Philip Start Date 309 European Plan

Sandals Beaches (Heywoods) Start Date 400 All-Inclusive

Other Planned Developments Start Date 150

TOTAL ROOMS

ADDED

Total 280 303 220 640 859 2302

Planned and Targeted Hotel development 2015-2019

Planned Investment Initiatives - 2019 • US$1 billion in investment from 2015 - 2019

– Addition of 2300 rooms to the rooms stock of the island – Spread the benefits of tourism across the island – Mix of EP and All Inclusive product – Majority of product will be new rooms – Return of over 800 rooms closed in the last 10 years to productive capacity – Injection of a further US$540 million through visitor spend

Economic Impact on the Barbados economy

Direct contribution to GDP of US$262.7 million

Direct jobs 4528

Total contribution to GDP of US$876 million

Total employment of 14800

Short term impacts to 2019 In keeping with the Barbados Growth and Development

Strategy (BGDS) 2013-2020, Based on the direct impact of these investments to GDP of

US$262 million (based on WTTC economic impact model 2014) and consequently the indirect and induced impacts, GDP is expected to grow at over the 4% projection as required in the BGDS in 2020.

The strategy also calls for the reduction of the unemployment rate to below 7% by 2020. The over 4600 jobs plus an additional 10,000 jobs due to the indirect and induced impacts have the potential for full employment by 2019.

An increase in the economic base will also reduce the debt to GDP ratio of the country

Carlisle Bay Proposed Development

Iconic conference facility

Additional 1400 rooms (5 new hotels)

Marine facility

Entertainment facilities

Bridgetown to be the most vibrant city within the Caribbean

Carlisle Bay Development Proposal:

Projected Accommodation

US$1 billion in investment

Iconic Performing Arts / Convention Center

1400 new rooms

Enhancement of shopping, dining and entertainment experience

Carlisle Bay Development Proposal:

Turnover and Facilities

1. Visitor exports $ 338.00

Domestic expenditure

2.

(includes government individual spending)

$ 42.71

3. Internal tourism consumption

(= 1 + 2 ) $ 380.71

4. Purchases by tourism providers, including imported goods

(supply chain) $ (216.25)

5. Direct contribution of

Travel & Tourism to GDP

(= 3 + 4)

$ 164.45

Other final impacts

(indirect & induced)

6. Domestic supply chain

$ 200.77

7. Capital investment $ 50.87

8. Government collective spending $ 35.60

9. Imported goods from indirect spending $ (4.08)

10. Induced $ 100.72

11. Total contribution of

Travel & Tourism to GDP

(= 5 + 6 + 7 + 8 + 9 + 10)

$ 548.33

Employment impacts ('000)

12. Direct contribution of Travel & Tourism to employment2,940

13. Total contribution of Travel & Tourism to employment 9,471

Economic Impact Of Carlisle Bay Project Based on WTTC Model 2014 (US$ millions)

Bridgetown the capital city The developments in the Carlisle Bay area will provide

the daily traffic for Bridgetown to be bustling with activity with over 4000 visitors daily in the direct environs looking for shopping entertainment and dinning

Traffic will create the demand for additional services to support tourism activity thereby creating an entrepreneurial class of persons to supply services to visitors

PHASE 3: THE NORTH Further Possibilities

International Airport

North

Atlantic Ocean Caribbean

sea

PHASE 3 Harrison’s Point

Harrison Point-St Lucy

• 83.4 acres located in the northernmost area of the island

• Formerly the home of a USA Naval base, decommissioned in 1979

• One of the most secluded areas in the country

• Home to one of three active lighthouses on the island built in 1925

• Area designated for tourism development

• Outline town planning approval already given fro tourism project

• BTI is willing to work with investors to make hotel and or other development at this site a reality

• Tax and other concessions available

Northern Barbados

The Vision • Consist of two

waterfront real estate development projects

• Harrison’s Point South – Ecopark attraction and Hospitality

• Harrison’s Point North- Luxury Residential and Mixed use accommodation

Welcome to the islands

Purely Conceptual, will require all regulatory approvals

Purely Conceptual, will require all regulatory approvals

Purely Conceptual, will require all regulatory approvals

Purely Conceptual, will require all regulatory approvals

Purely Conceptual, will require all regulatory approvals

Conclusion Tourism is the economic future of the Barbados

economy

The growth of tourism will provide the platform for growth in every other sector of the economy

Without diminishing the importance of the UK market, the market base will be diversified via the introduction of international brands

These development plans will pave the way for the next 50 years of development in Barbados