Special Report
Cayman Islands
Tourism Overview
Angela Martins, Directorof Tourism
In 2000, total international arrivals into the Cayman Islandsfrom all tourism markets totaled 1,437,477 people, increasing0.5% from the previous year. Air arrivals from tourism marketswere 406,620, increasing by 3.1% from the previous year, whileCruise arrivals totalled 1,030,857, decreasing 0.5% from 1999.
Cruising, All-inclusive Vacations and theexplosive growth of Information Technology/the Internet are allimportant trends that have impacted Cayman Tourism. Over 38%of stay over visitors found the Internet either 'extremely orfairly important' in making their travel decision (Source: CaymanIslands Air Exit Surveys 2000). Acting proactively, The Departmentof Tourism continued in 2000 its aggressive web development program,continually honing both of the Department's consumer web sites,www.caymanislands.ky and www.divecayman.ky. Our online marketingefforts were recognized as www.divecayman.ky was awarded the DEMASplash Award for Best Internet Marketing of 2000.
As a whole, 2000 was an odd year for Caribbeandestinations such as ours that cater predominantly to the Americanmarket. Issues such as the scare and partial panic of the Y2Kbug, to an exciting and close major US Presidential election allimpacted people's propensity to travel. Nonetheless, Cayman'sland-based tourism for the year-end 2000 increased by 3.1% over1999 (representing a net gain of 12,086 international stay-overarrivals).
Arrivals from Cayman's major markets - theUSA, Canada, Great Britain and Europe, collectively posted anincrease of 3.89% from 1999 to 2000, increasing from 333,621 airarrivals to 346,598. These markets are unique environments, andthe Department of Tourism conducts different operations to maintainits competitive advantage within each of these key areas.
Aggressive Caribbean ad campaigns, particularlyfrom the Bahamas and Dominican Republic, have competed directlywith Cayman's marketing efforts in our main US markets: the Northeastand upper Midwest corridors. However, Continental's new air servicefrom Newark and Delta's expanded service from JFK should havea positive impact on us in 2001.
Looking specifically at the US region, totalair arrivals in 2000 were 293,019, (an increase of 3.14%, or netgain of 12,759 people over 1999). The Department of Tourism'scontinued aggressive marketing to travel agents via ongoing developmentof its Travel Agent Specialist program and its strong partnershipswith travel wholesalers contributed to this increase. Supportfor on-island dive businesses continued at major events such asDEMA 2000 in Las Vegas. Dive and other joint public and privatelypartnered Co-Op advertising projects continued to be successfuland of extremely good value in the combined use of public andprivate sector funds.
Arrivals in 2000 from New York (representing22.8% of total US Arrivals) increased by 8.13% over 1999, whilearrivals from Chicago (representing 17.9% of total US Arrivals)increased by a moderate 0.72% over the previous year. Together,these two regions represented a net gain of 7,506 people overprevious year).
Arrivals from the Miami region (representing13.6% of total US Arrivals) posted a marginal year-end increaseof 0.13%, or net gain of 74 people over last year.
The Houston and Los Angeles regions (togetherrepresenting 23.8% of total US Arrivals) showed increases of 6.51%and 10.18%, respectively, for 2000 over previous year. Combined,these regions had a net gain of 5,180 people.
Overall, air arrivals from Canada increasedby 11.59% to 21,045 in 2000 over 1999. Canadian stay-over touristscontinue to take advantage of strong charter services, and theDepartment's Canadian activities have included: a successful travelagent specialist programme in which travel agents receive trainingin the Cayman Islands product, a very well-received "People"advertising campaign, using local personalities to accuratelyportray the diversity and nuances of Cayman, as well as closework with tour and charter operators.
Air arrivals from the UK and ContinentalEurope, combined, declined by 5.7% to 32,534 people this yearcompared to 1999. Air service is a key factor for success to theCayman Islands and it continues to change. British Airways' 777service was discontinued in March 2000, resulting in a 30% reductionin seating capacity to the Cayman Islands'. The Department'sUK office took an aggressive stance in 2000 and introduced a programmeof integrated consumer marketing, including mainstream advertising,public relations and third party consumer promotions in an attemptto stimulate travel. Successful activities included nationwidein-store promotions with 136 BHS (British Home Stores) departmentstores, combining the aspirational features of a holiday in theCayman Islands with Nivea sun lotion in order to increase awarenessof the Cayman Islands. The Department of Tourism also increasedits exposure in Berlin at ITB (International Tourism Exchange),the world's largest travel trade show, and WTM (World Travel Market)in London as well as with high profile television exposure forholiday programmes and the introduction of sales incentives tothe travel and dive industry.
The booming cruise industry continues tofind the Cayman Islands a favourite destination. In 2000, 1,030,857people came ashore to experience a little piece of Cayman. Dueto several long periods of inclement weather, cruise arrivalsactually decreased marginally by 0.5%, a net loss of 4,665 passengersfrom the previous year. However, cruise arrivals have more thandoubled since 1991, and the sheer volume suggests a healthy andgrowing cruise industry both internationally and locally in theyears to come.
Tourists are continually becoming more andmore "value-oriented." Evidence of this trend can befound not only in the increasing cruise numbers, but also in thedemographics of the stay-over tourists who come here. In 2000,13.8% of tourists staying in the Cayman Islands stayed in privatehomes. People staying in condominiums in 2000 represented 28.2%of air arrivals, a 3.4 percentage point increase from the previousyear. Together, 170,826 people stayed in private homes or condosin 2000, increasing by 11,165 people (7.0%) compared to 1999's159,661. Hotel stayovers in 2000 represented 58% (235,794) ofair arrivals, compared to 59.5% (234,873) in 1999, a net increaseof 921 people, or 0.39%.
Length of stay data for the first threequarters of 2000 show an average length of stay of 4.9 days forthe hotel sector and 7.3 days for tourist apartments. This isup 0.3 days from the hotel sector's 1999 length of stay of 4.7(Jan - Sep) and up 1.4 days from 1999 tourist apartment lengthof stay of 5.8 days.
First time visitors to the Cayman Islandsin 2000 represented 27.1% of total air arrivals, a 19.4% decrease(26,490 people) compared to 34.6% in 1999. Preliminary researchsuggests that younger, adult travelers are making travel plansbased on value for money spent. Additional research is beingconducted to better determine all factors for this dramatic shift.
In age demographics, there is a distinct11-year trend where a smaller and smaller proportion of peoplesaged 26-49 years are visiting the Cayman Islands. In 1990, approximately61% were aged 26-49 years compared to 54.7% in 2000. Likewise,there is a growing proportion of air arrivals aged 50 and over,representing 23.8% of visitors in 2000 and 16% in 1991.
As the Department of Tourism continuallymonitors competing destinations, developing situations, demographicsand trends, marketing and public relations projects are currentlyin place and working to build additional recognition to and awarenessof the Cayman Islands with compelling reasons to visit.
The Sister Islands in 2000, received highvisitor ratings of good or excellent from 96.0% of visitors whoresponded to the Sister Islands Air Exit Survey.
Little Cayman's Booby Pond, Tarpon Lakeand Bloody Bay Wall continue to top the charts in approval ratingsas well. Over the past three years of surveying visitors to theSister Islands, 98.7% of those experiencing Bloody Bay Wall and89.8% of those visiting Booby Pond rated their experience as goodor excellent!
In addition, Cayman Brac and Little Caymanhave received outstanding visitor ratings on value for money spent. According to results from the Department of Tourism's SisterIslands Air Exit Surveys, 59.5% of those who stayed on the SisterIslands found excellent value for money. This helps explain theincrease in traffic to Cayman Brac and Little Cayman over thelast several years. The Department of Tourism continued its effortsin partnership with SITA in additional marketing and promotionalopportunities.
Air Exit Survey respondents rated four watersportsattractions very highly. They are: Stingray City, snorkelling,diving and Seven Mile Beach. The quality and service of our watersportsindustry continues to draw enthusiasts from across the globe -from the snorkelling beginner to the most experienced divers.Also, world-renowned Seven Mile Beach, a particular favouriteof visitors, continues to attract lovers of sun, sand and sea.
The allure of Cayman as one destinationwhich offers the consumer three unique experiences spanning threevery different islands, is a great strength of the Cayman Islands'tourism product. This wide diversity of attractions, and the overwhelmingpopularity of these sites is a major factor contributing to why,in year 2000, over 73% of tourists who come to the Cayman Islandsare 'repeat visitors'.
The Cayman Islands continues to adapt tothe rapidly changing world. On-going efforts include the strengtheningof the accommodation licensing process to support sustainableproduct delivery. This increased focus on quality is a proactivecampaign to ensure product delivery in a world where there isan ever-increasing visitor and industry demand for high qualityservices.
Public relations activities aggressivelysupport all markets with editorial placement in major magazines,including diving and snorkeling, romance, family travel as wellas other niche markets.
Other vital product development activitiescarried out in 2000 were:
* Aggressive training programmes for bothpublic and private sector entities,
* Year-round tourism education in schools,
* Annual tourism scholarships, and
* Continual tourism awareness programmesfor all three islands.
Visitors consistently rate their 'CaymanIslands experience' very positively, a factor that we know iscritical to driving people to return again for another visit.Based on our 2000 Air Exit Surveys, we can report that:
* 65% would "very likely" or "definitely"return for another visit,
* 97% stated Cayman is warm & friendly,
* 95% said Cayman could be recommended withconfidence,
* 97% stated Cayman is suitable for a familyvacation,
* 95% claimed Cayman as high quality, and
* 97% rated Cayman as a safe destination.