An increase in air arrivals spurred growth of 31.7 percent in the vacation home rentals market during the busy Easter season, statistics from The Central Bank of The Bahamas’ (CBOB) Monthly Economic and Financial Developments report for April reveal.
The report notes that the “off-resort” accommodations sector firmed by 18.7 percent year-on-year.
It adds that hotel accommodations and ‘entire place at vacation home rental locations’ saw their selling pace increase over the four months by 22 percent and 18.3 percent, respectively.
“A breakdown by market, showed that the cumulative growth in room bookings was underpinned by a 51.4 percent expansion in demand for accommodation in Exuma, while New Providence, Abaco and Grand Bahama accounted for smaller increases of 14.5 percent, 6.8 percent and 2.5 percent, respectively,” the report states.
“In terms of pricing, the average daily room rate (ADR) of the entire place listings — which is generally more comparable across periods — firmed by 3.8 percent to $398.75, due mainly to gains in room rates in Exuma; however, the ADR for hotel comparable listings declined by 6.2 percent to $159.24, as average prices for accommodation in Grand Bahama and New Providence contracted.”
The government revealed in its budget communication that it will begin collecting value-added tax from this growing accommodations sector.
According to the MEFD, there was sustained growth in the important air arrivals category in April given the Easter holiday traffic.
The MEFD data gleaned from the Nassau Airport Development Company Ltd. (NAD) shows that departures at the Lynden Pindling International Airport, net of domestic passengers, increased by 18.3 percent year-on-year – more than double the previous year.
It added that growth in the U.S. segment grew to 21.3 percent from 6.8 percent, while the non-U.S. international component shrank to 2.8 percent from 14.3 percent gain in the same period last year.
“Similarly, over the first four months of the year, aggregate departures strengthened by 21 percent, outpacing 2018’s 12.1 percent improvement,” the MEFD states.
“This outturn reflected an increase in the U.S. component by 23.1 percent, overshadowing the prior year’s 11.3 percent expansion. In contrast, gains in the non-U.S. segment narrowed by 5.8 percentage points to 10.4 percent.”
Education: Florida International University, BS in Journalism