The dismal performance of the tourism industry in 2008 is being reflected in a newly released Bahamas Hotel Association (BHA) survey, which confirms that profits and staffing levels are being negatively impacted by current economic conditions.

During the mid-year assessment, 71 percent of hoteliers pointed to the slump in the U.S. economy as a primary factor affecting performance; 71 percent also pointed to the higher cost of air travel as a factor, and some hoteliers pointed to the coming U.S. election as a factor affecting travel.

The survey shows that confidence in the outlook this year has dampened as the year progressed, and more than seven out of every 10 hotels or 71 percent in the country do not expect to make a net profit in 2008. This is up considerably from the 48 percent of hotels that expected a net loss when asked the same question in April. The high cost of energy, combined with reduced bookings were cited as the key contributing factor to this.

BHA notes that hoteliers are implementing a number of strategies to mitigate the impact of the decline in sales and higher operating costs. One of the measures pointed to is "seasonal adjustments" in staffing. The report also refers to this as "staff realignments".

One of the hotels whose recent staff reductions were highly publicized was the Wyndham Nassau Resort, which laid off more than 40 staff members.

Another strategy being employed by hoteliers at this time is reduced and staggered working hours, the survey found.

BHA Executive Vice President Frank Comito told The Nassau Guardian yesterday that the survey results underscore how vulnerable and delicate The Bahamas tourism industry is.

"We're very much subject to external events that we can't control," Comito said. But he added there are things that The Bahamas can control.

"If indeed tourism is our bread and butter, we've got to do everything possible within our control in The Bahamas to ensure we're offering the best visitor experience we can offer," Comito said.

He confirmed that while the fall months are always the slowest period for tourism in the country, this year is slower than it has been in years.

According to the association, half of the responding hotels have in place an energy surcharge to mitigate the impact of high energy costs. The most common assessment is a fixed amount per person per room night, followed by a fixed amount per room per night.

In addition to staff adjustments, other "cost control measures" being implemented by most hoteliers include energy saving programs, better management of costs and inventory, longer closing periods than in previous years, partial closing of property and offering fewer rooms.

Recently, The Nassau Guardian revealed that Kerzner International was closing its 423-room Beach Tower at Atlantis from September though the end of October due to low occupancies.

The BHA pointed out that since the hotels were surveyed in July 2008, with the exception of the large number of Family Island hotels that close during September, hotels have experienced added impact of weather-induced sluggish sales and occupancy in September, adding to the anticipated reduction in activity during that time.

"We anticipated some softness regardless and certainly the storm activity didn't help," Comito said. "That has exacerbated the matter."

Last week, the Ministry of Tourism estimated that The Bahamas lost close to $1 million in room revenue as a result of cancellations due to Hurricane Ike.

The association conducted the survey "to better gauge the current and anticipated tourism climate in The Bahamas." It surveyed a sampling of member hotels in July 2008. According to the BHA, the results provide a fair representation from 21 hotels throughout The Bahamas with a balance of large, medium and small-sized hotels from Nassau-Paradise Island, Grand Bahama and the Family Islands.

Fifty-seven percent rated the second quarter as weak, with 29 percent characterizing it as moderate and 14 percent indicating it was strong.

Comito said the Ministry of Tourism, the tourism promotions board and individual properties are embarking on aggressive marketing.

"We're hoping that will mitigate some matters," he said.

The Bahamas Hotel Association said some hotels reported that they were planning on using the slow fall period for property refurbishment and staff training. It said two-thirds of respondents have revved up their sales and marketing efforts as well. Initiatives most frequently mentioned are stepping up offering of value packages and rebates; improving partnering with airlines and tour operators aimed at targeted promotions and more attractive packages; offering last-minute deals based on improved yield management strategies and adding amenities to the offer, including bar and restaurant specials.

By CANDIA DAMES