Essential Bermuda

Details of public holidays in Bermuda throughout 2011 are listed below:

As New Year’s Day 2011 falls on a Saturday, Monday January 3 is a public holiday.

As Christmas Day 2011 falls on a Sunday, Tuesday December 27 is a public holiday.

Good morning and thank you for joining me.

We’re just over 24 hours away from a New Year, and I thought what better way to usher in 2011, then by announcing in my view what I think is some very positive news as it relates to Bermuda tourism.

Since my appointment in early November, and the introduction of the new Ministry of Business Development and Tourism, I have made it my mission to ensure that residents understood the key importance of the goals and mandates of our Ministry.

Simply put, the Ministry of Business Development and Tourism has a broad mandate to advance economic growth, jobs and opportunities for the people of Bermuda. It has cross cutting responsibilities in the areas of financial services and other forms of trade; tourism; technology; and intellectual property.

Hence the services and products the Ministry provides touch the lives of all Bermudians.

And as I have continuously pointed out, there has long been a desire to better align these two sectors.

So our efforts of promotions, marketing and business development in the upcoming months will reflect the synergy of these two sectors.

Therefore it was only logical that we had a Tourism Board that mirrored our new Ministry. And so today, it gives me great pleasure to introduce to you the newest members of the Bermuda Tourism Board.

Standing with me today are individuals who represent our local business sector as well as our tourism sector.

They are:

• Tourism Board Chairman Mr. Malcolm Butterfield –Malcolm is the Managing Director for KPMG Financial Advisory Services Limited, Bermuda. He has extensive corporate recovery and restructuring experience, and has developed experience handling complex, cross-jurisdictional insolvency appointments with particular expertise in the financial services sector.

• Mr. Brian Duperrault – Brian is the President and CEO of Marsh & McLennan Companies, Inc. Mr. Duperreault is a 30-year insurance industry veteran who has served at the top of his profession in numerous leadership roles, including 10 years as chief executive officer of ACE Limited.

• Mr. Shine Hayward – Shine is Bermuda’s musical homegrown son – he is a respected music teacher, acclaimed saxophonist, a small business entrepreneur and a fine mentor to our young.

• Ms. Kelly Francis – Kelly is the President and Founder of Performance Solutions Limited, and brings 25 years experience in the areas of human resource and organizational change.

• Mr. Tony Brannon – who I like to refer to as Mr. Entertainment – Tony has amassed an international musical reputation, is a successful businessman, and is a fervent supporter of Bermuda’s tourism and local entertainment product.

• Deputy Tourism Board Chairman Mr. Jonathan Crellin – Mr. Crellin is the General Manager of Fairmont Hamilton Princess and was recently voted hotelier of the year by his peers. He brings a wealth of industry experience to the Board.

• Quinton Bean – Mr. Bean has been a dedicated taxi owner and operator for many years, and this makes him a wonderful tourism ambassador for our Island. He is also a staunch community supporter of our industry and we look forward to his service.

• Mr. Vincent Ingham – CEO of Belco and Ascendant Group, Mr. Randolph Horton MP Parliamentarian and Director of Learning for Fairmont Bermuda and Mr. Maxwell Burgess former Parliamentarian and local businessman round out the membership. These gentlemen were unable to be with us today.

All join returning members Michelle Cox, Sallie Singleton, Isabelle Braxton and Anthony Santucci on the Board.

As you can see these members criss-cross both industries.

And the marrying together of these individuals is indicative of the seriousness of our Ministry’s focus to ensure that the best opportunities are sought, developed and nurtured to sustain our tourism product.

Interestingly enough, the timing of today’s announcement coincides with the release of the Department of Statistics’ 2009 Tourism Satellite Account. There were some interesting statistics in the report relating to tourism – some of which I’d like to briefly highlight.

Without a doubt, tourism is an important sector of the global economy, and is still a critical component to Bermuda’s overall economy. Tourism is our second largest industry, behind international business. According to the latest statistics:

• It is estimated that 559,042 tourists arrived on our shores in 2009.

• Tourism contributed $231 million to our GDP in 2009, representing 4% of our total GDP.

• Visitors spent an estimated $350 million in Bermuda in 2009; and

• Tourism remained the number one private sector employer of Bermudians – this includes restaurants, hotel properties, etc. This represents 70 % of our labour force.

Some of these stats show a slight drop from the 2008 data. Obviously, Bermuda has not been immune from feeling the pinch of the economic slowdown brought about by the global financial crisis.

This has had trickle down effects on many areas, including international business, the real estate market, the construction industry, and yes tourism.

Yet I believe that despite the challenges, Bermuda can position itself to enjoy a stellar year.

And if we are to succeed, then we must explore and embrace different options if we are to remain viable.

We have a great opportunity having the twin pillars of our economy under one umbrella in order to ensure that Bermuda reaches and surpasses this success.

I believe that the new look of the Bermuda Tourism Board is a step in that direction.

These individuals understand Bermuda and what we have to offer.

They each have the passion, drive and experience to further shape our product and I am confident that their service to Bermuda tourism will lead to great things.

So to the new members of the Tourism Board, let me reiterate that I am excited about your willingness to contribute your time and energy to improving our tourism product.

I see a wealth of opportunity and potential.

Today’s announcement is a testament of how serious I personally am about seeing Bermuda become the envied tourist destination of the world.

I am sure you will all agree with me that Bermuda is indeed a gem in the Atlantic and the challenges that we face as a tourist destination are not unique to us… instead I believe that they only serve as an opportunity for us to be chiselled into an even more brilliant jewel.

And I see this being accomplished through the input of a diverse group of committed persons such as yourselves.

Thank you.

The Department of Statistics has today released the 2010 edition of the Bermuda Facts and Figures pamphlet that contains an array of statistical data and information pertaining to Bermuda’s economy. The pamphlet also highlights social, economic and geographic comparative data for the past 3 years from 2007 to 2009 and provides historical notes on the development of Bermuda from the 16th Century to the 21st Century.

Bermuda Facts and Figures is an ideal pocket publication for the business executive, sports representative and conference or meeting participant who might need to share current statistical facts about the Island while attending overseas international meetings or events.

Complimentary copies of this quick reference pamphlet can be obtained from the Ministry of Finance Headquarters, the Cabinet Office, the Bermuda Adult Library and the Visitor’s Service Bureau. Limited hard copies of the pamphlet are available from the Department of Statistics office on 3rd Floor, Cedar Park Centre, Hamilton, however, the general public may download electronic copies from the Department of Statistics website at www.statistics.gov.bm.

Dr. the Hon. Ewart F. Brown; J.P., M.P., Premier of Bermuda has been selected by the National Medical Association (NMA) Board of Trustees as a recipient of its highest recognition – The NMA 2010 Scroll of Merit Award. The Premier is being recognized by the NMA for his, “…stellar leadership and outstanding humanitarian endeavors, dedicated and tenacious work in grass roots community medicine, and staunch support of medical education.”

The Award which will be presented on July 31, 2010 at the NMA’s 2010 Annual Convention and Scientific Assembly, held at the Gaylord Palms Hotel in Orlando, Florida.

Dr. Burton Butterfield, President of the Bermuda Medical Association said, “As a friend and colleague of Dr. Brown and as an Active Member of the NMA I would like to congratulate Dr. Brown on this achievement.”

Dr. Donald Thomas III Chief of Staff of the Bermuda Hospitals Board said, “I have been honored to work with the Premier, the Hon. Dr Ewart Brown JP MP and congratulate him on this prestigious but very well earned award. Dr Brown has dedicated his life to the care of people and his commitment to improving the welfare of his country has meant he has made a difference to the whole of Bermuda. He is an insightful and visionary medical policy director and provider, using collaboration, innovation and a drive to bring the highest standards of care to his country.”

Premier Brown said, “I am deeply humbled and gratified to receive this honour. My desire to become a Doctor was driven by a deep and passionate drive to help people. It is an honour to have my efforts recognized by the National Medical Association.”

Premier Brown has been recognized throughout his medical career for his work on the grass roots level and for his commitment to the community. Among his accomplishments, the Premier has been singled out by Howard University’s College of Medicine twice for distinguished service to the college.

He received the Physicians Recognition Award in 1977 from the American Medical Association; the Grassroots Health Award from the Sons of Watts California in 1979; the Dubois Academic Institute’s Community Leadership Award in 1982; the Pacesetter Award from the NAACP in 1984; Humanitarian of the Year Award from the Marcus Garvey School in Los Angeles in 1991; and in 1993, the Scroll Award from the Union of American Physicians and Dentists.

After operating the Vermont-Century Medical Clinic in Los Angeles, California for almost twenty years, Premier Brown in 1993 decided to make Bermuda the focal point of his expertise. As Medical Director of Bermuda HealthCare Services, Premier Brown has endeavored to provide Bermuda with efficient and cost-effective health care.

Premier Brown received his M.D. from The Howard University College of Medicine. He also earned a M.P.H. with an emphasis on Child Health, Maternal family Population Control and International Health from the University of California at Los Angeles. He is a certified Diplomat of the American Board of Family Practice, a Diplomat of the American Board of Quality Assurance and Utilization Review Physicians, and served as Vice President of the Union of American Physicians and Dentists. Premier Brown is a member of several professional organizations and has held such significant positions as Trustee of Howard University and Charles R. Drew University of Medicine and Science; Assistant Professor in the Department of Family Practice at Charles R. Drew University of Medicine and Science; Director, Marcus Garvey School in Los Angeles, California; Vice President of the Union of American Physician and Dentists (California Federation).

Premier Brown is a former member of the Board of Directors of Marina Hills Hospital in Los Angeles, California; a former member of the California State Commission on Maternal, Child and Adolescent Health; and a founding Commissioner of the Board of Prevention Commissioners for South Central Los Angeles Regional Centre for Development Disabilities.

He was a Founder and Chairman of the Board of Directors for Western Park Hospital in California and has also served as Director of Quality Assurance for the Los Angeles Doctor’s Hospital; as Chairman of the Minority Group Affairs of the Student American Medical Association and as a Coordinator of the Summer Health Task Force of the National Urban Coalition in Washington D.C.; as Chairman of the Utilization Review Committee, West Adams Hospital, Los Angeles, California; and as Secretary of the Charles R Drew Medical Society in Los Angeles.

Premier Brown is a former member of the National Medical Association; American College of Utilization Review Physicians; Golden State Medical Association; American Medical Association, American Academy of Family Physicians; American Public Health Association; Charles R. Drew Medical Society and the National Medical Association Council on Medical Legislation.

Following a competitive pitch, the Bermuda Department of Tourism has awarded Rooster a sales and marketing brief as part of the Island’s renewed efforts to increase tourism arrivals from the UK and Ireland.

Rooster, who already handles the public relations for the Bermuda Department of Tourism, will take on the role of sales and marketing representatives, leading a number of exciting consumer initiatives throughout 2010/11.

“As the UK is our most important international market, we are aggressively expanding our presence by appointing Rooster to work on our behalf. They have been briefed to increase visitor arrivals through a targeted mixture of trade and consumer initiatives.” says Director of Tourism William Griffith.

Rooster played in integral role in the launch of the Bermudaful pink taxis on the streets of London and is in the process of finalising a comprehensive media plan comprising of billboard, underground print and radio campaigns which will communicate a new positioning statement for Bermuda in the UK market.

James Brooke, Rooster’s Managing Director commented: “Our relationship with the Bermuda Department of Tourism began in March 2006 and we are thrilled to have been appointed as the UK sales and marketing representatives for the island. The team at Rooster stands ready to continue delivering results that are outstanding, creative and draw more visitors from the UK to the stunning destination of Bermuda.”

The Bermuda Lifeguard Service was founded in 1987. Lifeguard coverage is provided on a seasonal basis at four beaches from 10 am until 6 pm:

Lifeguards at Horseshoe Bay and John Smith’s Bay beaches can be seen in the videos below:

On March 19 the Premier presented Mr. Francis ‘Frankie’ Rabain with a Lifetime Membership of the Bermuda Government’s golf courses.

Mr Rabain was appointed Head Professional at Port Royal Golf Course in 1975. Before coming to Port Royal he was Head Pro at Ocean View Golf Course.

During his golf career Mr Rabain was a two time Bermuda Open Champ, qualified for the British Open, the US Senior Open and the British Senior Open

The Premier said, “Mr. Rabain has demonstrated and embodied honour, strength, courage and diligence on the course and off and will always be regarded as a gentlemen and a sportsman in our community.” He went on to say, “he has been an international ambassador for Bermuda and a local ambassador for young Bermudian golfers. Few individuals have scored such a ‘hole in one’ in their careers!”

News that Bermuda’s Under 17 Women’s National Hockey Team has earned the Pan American Youth Championships Fair Play Award has been greeted warmly by Bermuda’ s Premier Dr. the Honourable Ewart F. Brown.

“Our team has represented Bermuda and themselves with distinction. Matched up against the powerhouses of the Pan American region, our young women have earned the respect of the world. Too often the media spotlight fails to shine on Bermuda’s young people who are working hard and playing by the rules. Bermuda’s Under 17 Women’s National Hockey Team has achieved an accomplishment worthy of praise and emulation,” said Premier Brown.

The squad consists of:

• Goalkeepers: Latonia Fray, Keisha Harvey
• Utility Players: Ryanne Bardgett, Safiya Nurse
• Midfielders: Christine Decker, Lorina-Le Harvey, Jennifer Chisnall, Iman Smith
• Forwards: Raven Pearman, Alex Francis, Lorendae Symonds, Katie Masters
• Defenders: Jokiah Richardson, Heather Sinclair, Megan Lindsay-Bayley, Rhea Gibbons, Rachel Soares, Zoe Friesen, Emily Chadderton

Coaches Lakae Dill and Valerie Young, Manager Juliette Oatley, and Assistant Manager Stephanie Adderley, accompanied the squad to Uruguay.

The team departed Bermuda on March 9th and will return to Bermuda on March 22nd.

2009 Year End Report and Look Ahead – Bermuda Tourism
February 11, 2010
Remarks by:

Dr. the Hon. Ewart F. Brown, JP, MP
Premier and Minister of Tourism and Transport

Good afternoon,

Today, I will speak about the state of tourism in Bermuda. My intent is to be frank and direct.

The global economy is still a real concern. Notwithstanding some signs of recovery, it has not turned around yet. This is by far the most serious recession since1929. We all have been touched by it in one way or another. We all know that tourism in Bermuda continues to face challenges to maintain its fair share of an increasingly competitive market.

I want to accomplish four things with you this afternoon. First, I want to give the highlights of the Fourth Quarter results. Second, I will give the highlights of all of 2009. Third, I will summarise the results of last summer’s Air Arrivals Exit Study, because they point to directions for future strategies. Finally, I will outline our 2010 outlook and objectives to ensure that tourism, this pillar of our economy, are increasingly strengthened.

Many of our assets, in combination, make our Island unique. We want to make sure that we maintain a laser focus on building on our assets to make tourism in Bermuda the very powerful pillar we know it can be.

NOW FOR THE HIGHLIGHTS OF THE FOURTH QUARTER 2009: OCTOBER TO DECEMBER.

October was the best performing month of the year. We had 22,000 arrivals by air, representing a modest increase of 2% over October 2008. Total arrivals were 56,875. It was also the month of three key events, the 2009 Bermuda Tattoo, the PGA Grand Slam of Golf and the Bermuda Music Festival.

There were 48,000 visitors by air in Quarter 4; a 3% decline compared to 2008’s Fourth Quarter. Total arrivals for the quarter: 101, 660.

Despite all of the challenges of 2009, Bermuda’s total visitor arrivals gained over the previous year. Fuelled by cruises, 559,000 visitors arrived. That is an increase of 1% over 2008.

Although the number of visitors who arrived by air last year did not increase over 2008 arrivals, over the year, the results got better and better. The results for each quarter of 2009 were better than the results for the one before. This trend of improvement continued into the last quarter, October to December.

235,000 visitors came to Bermuda by air, down by 10.6% compared to 2008. This is clearly disappointing. It is the lowest number of visitors to Bermuda in a very long time. It does, however, reflect a recovery from the depths of the first half of the year and showed a respectable recovery by year end.

It is important to note, however, this decline puts us roughly in the same place as many of our competitors, particularly the Caribbean.

Hotel occupancies, as reported by Bermuda Hotel Association (BHA) member properties, do reflect the poor overall performance of 2009. Average occupancy for 2009 was 51%, compared to 59% in 2008 and 67% in 2007.

These results are clearly not good and tell us that there is still much work to be done. Bermuda Tourism continues to support our hotel partners. Hoteliers have received an unprecedented $2.5 million in direct support for promotions. In addition to this direct financial support, the Government has assisted the hotels by deferring payroll taxes. We continue to believe that this continued support is necessary in the near term until we see a tangible turnaround in arrivals and in the economy.

Our digital marketing agency, iCrossing, has done a fantastic job in the past several months in driving increased traffic and awareness through BermudaTourism.com Total visits are up 82% and unique visitors are up 101%. The measure of how long a visitor stays on the site (the bounce rate) is down 34%. This is great news because it means visitors are not leaving the site right away, they are staying to see what we have to offer.

Major natural search initiatives have moved BermudaTourism.com to the number one results position in Google searches of the word ‘Bermuda’. The current website is a little over five years old and has been improved a few times, the most recent taking place in 2009. As I reported in the third quarter of 2009, plans are underway for the creation of a dynamic new website set to launch in 2010. Look out for more soon.

THE AIR ARRIVALS EXIT STUDY IS NEXT.

We recently released our Air Arrivals Exit Study for the 2009 summer season. It was based on a survey of 731 randomly selected visitors leaving the Island. In summary, travellers are highly satisfied with virtually all aspects of their visit to Bermuda. They would not only recommend the Island for a vacation to others, but they plan to return themselves.

We believe that the survey results validate Bermuda Tourism’s advertising, marketing and sales strategy.

Visitors are increasingly satisfied with both the affordability of Bermuda as a vacation spot and the cost of airfare, in stark contrast to mounting concerns that they expressed last summer.

Despite these high levels of visitor satisfaction, their expenditures have reached a historic low, a combined result of a decrease in visitor numbers and decreased spending per person. A number of factors have an impact on visitor spending, only one of which is the slow recovery of the global economy. Nonetheless, Bermuda Tourism must keep this reality of high satisfaction and relatively low spending in mind as it moves forward with strategies to increase the numbers of visitors and how much they spend.

People still visit Bermuda primarily for leisure. However, the proportion of travellers visiting and staying with friends and relatives has risen significantly. Incidentally, that fact is one likely explanation for the decline in visitor spending.

Use of commercial accommodations remains quite consistent, though declines in accommodations spending and total expenditures overall may be a result of the Island’s hotels lowered pricing strategy during the summer.

Business travel, though representing only 18% of visitors overall, remains integral to Bermuda’s economy, particularly given that their average per person expenditure far exceeds leisure spending. Of particular interest, most business travellers this summer were visiting the Island for the first time, and an increased proportion are working for a company that has operations on?Island.

Virtually all visitors take part in some form of activity, including evening entertainment. Once again, visiting the beach and swimming remain the most popular activities, despite somewhat decreased levels of satisfaction with the Island’s weather this summer. We didn’t like our summer all that much either. Shopping, though still actively enjoyed by most visitors, has experienced a notable decline in participation, reaching historic lows.

Advertising recall or how a visitor remembers how they heard about Bermuda, among leisure visitors has returned to highs previously recorded in the summer of 2003. Canadian visitors are the exception; their recall stands at a historic low. That is almost certainly because we cut our advertising budget in that market. We expect that to change with the introduction of WestJet this summer.

Most visitors recall Bermuda through our television ads. This is followed closely by print media, including newspapers and magazines. Bermuda’s official website continues to be used by a sizeable and growing majority of leisure visitors. Given the widespread use of the Internet as a travel planning and booking tool; our decision to enhance our use of this medium as a means of advertising stands us in good stead.

American Airlines, British Airways, Continental Airlines, Delta Airlines, JetBlue Airways and US Airways have maintained solid and consistent service out of New York, London, Newark, Boston, Atlanta, Philadelphia, and Washington. We will continue to provide support to keep those loads up.

NOW TO OUR OUTLOOK AND OBJECTIVES FOR 2010

The mandate of Bermuda Tourism is to promote awareness of Bermuda.

The key objectives for Bermuda Tourism remain:

• Concentrate our marketing and sales efforts on our core market: North East United States.
• Increase the focus on key secondary markets: UK, Canada and Italy.
• Continue our efforts to establish tertiary markets, particularly India and China.

Our key strategies are:

• Generate interest in immediate visitation to Bermuda among new and repeat visitors.
• Build the Bermuda brand through synergistic messaging with all communications media.
• Support hotel and niche market promotions.
• Continue our heightened digital marketing strategy.
• Continue efforts to have Bermuda make the important decision on gaming.

According to recent Pegasus research, there is no sign that hotel average daily rates will return to 2007 levels; at least not anytime soon. Nonetheless Pegasus’ analysis indicates that the market has bottomed out and bookings are returning to hotels.

The President and CEO of Starwood Hotels Worldwide delivered his company’s Quarterly Report on CNBC last Thursday. He stated that his company had its worst revenue per available room since the early 1930s. He continued that it will be necessary to experience a sustained period with lower rates before expecting rates to start climbing again.

His words are instructive for Bermuda’s hoteliers.

The Hospitality industry and Internet Marketing News also reported that many luxury properties in the United States are reporting increases in demand of 5 to 8% as the industry slowly emerges from this latest recession. Many eyes are on the luxury hoteliers who endured the largest drop in business during the downturn. The drop in bookings was exacerbated by the sharp decline in the MICE sector. MICE stands for Meetings, Incentives, Conferences and Exhibitions. You need to remember MICE. I will come back to it later.

The outlook for Bermuda’s hotel sector is very similar, although short-term first quarter projections are still lagging somewhat behind last year. The erratic weather that has been causing multiple airline cancellations since the beginning of the year is not helping our cause.

Eight months ago, Globalhue, our advertising agency, rolled out an excellent new campaign that will serve us well in the next twelve months. The exit survey results I mentioned earlier citing advertising recall back to 2003 levels is testament that we are on a right path. Globalhue is now developing an exciting mobile telephone strategy to be adopted in the first half of the year based on apps for smart phones like the iPhone and the BlackBerry.

The introduction of JetBlue’s service out of New York and Boston was a game changer. It caused fare reductions and made vacations from this region significantly more attractive. JetBlue has been encouraged to expand their service out of Boston and this is currently being discussed. We are very positive about JetBlue’s vision for Bermuda as a long term partner.

American Airlines established daily service from Miami in November 2009. They have recently introduced very aggressive first quarter pricing out of JFK and we welcome this news.

The launch of WestJet’s service out of Toronto on May 3, 2010 will be the most significant change in this market in the past 25 years. The number of available seats will be virtually doubled. This, too, will be a game changer. We have valued and appreciated Air Canada’s long service. I know that they will welcome the opportunity this new competition will provide.

We will increase our Canadian advertising and will be appointing a sales representative in this market in the coming weeks. We will be actively working with all partners to bring increased Canadian visitors this summer.

Bermuda Tourism’s team is poised therefore to aggressively tackle all opportunities for business in 2010. We will continue to work with, and support, major hotels to close deals on short term corporate or incentive group business.

We will continue to target business in special sports tourism niches, e.g. running and golf. A wonderful example of this is Bermuda Tourism’s recent agreement to be the featured destination in a half hour, fast paced, golf and travel show called Global Golf Adventure, hosted by NBC Sports Mark Rolfing. The show highlights a unique destination and its adventures for active golf travellers. The show will be broadcast nationally on NBC on Saturday May 8, prior to the third round coverage of the Players Championship.

We will also continue to leverage sponsorship partnerships in key gateways, for example Boston Red Sox and Deutsche Bank golf.

Bermuda has long been a very attractive destination for weddings and honeymoons. We will redouble efforts to capture an increased share of this niche in 2010. We want to known as the romance capital of the world. We are currently finalizing plans for a major destination wedding event in Bermuda this year. It will be unique, exciting and will create significant awareness for Bermuda for this particular niche.

There will be additional funding in the core North East market directed at increasing visitor awareness of Bermuda. Direct marketing, including reaching the target market through the internet and their mobile phones, will be a key part of the strategy.

Our mandate to increase awareness of Bermuda will also extend to the UK market in the next 12 months. I made this commitment to the CEO of British Airways on a recent visit there. An example of this will be 12 fully-liveried pink taxis, supplemented by 80 more in peak season, all branded with the Bermuda Shorts Feel the Love tag. This will surely get the type of attention that we need.

I am pleased to announce we have completed negotiations with cruise lines for the 2010 cruise ship season.

One of the significant changes to the 2010 season is that ships will be staying longer. We discovered that cruise visitors who stay for only one day often do not have enough time to experience all the Island has to offer. Retailers, restaurant owners and tour operators requested that we negotiate longer stays. I am pleased to say that this request was met with a positive response.

We are excited to have both the Holland America Line and Celebrity Cruises return to Bermuda after an absence of a few years. Holland America will make 24 cruises from New York to St. George’s and Hamilton. Celebrity Cruises will make 17 calls from New Jersey to Dockyard.

Royal Caribbean will return to Bermuda in 2010 and make 40 calls from New Jersey and Baltimore to Dockyard. Norwegian Cruise Line will return to make 45 calls from Boston and New York to Dockyard. Princess Cruises will make 10 calls sailing from New York to Dockyard.

In addition to the weekly callers, a number of premium cruise lines will call in Bermuda in 2010.

The number of cruise calls is projected to increase from 138 in 2009 to 154 in 2010. We also project that the number of cruise visitor arrivals will increase from just over 318,000 in 2009 to just shy of 337,000 in 2010. This represents a 6% increase!

The cruise market is anticipated to contribute over $70 million to Bermuda’s economy in 2010. Heritage Wharf alone will account for $34 million of that, including government fees, on-island spending by cruise visitors, crew and shore excursions taken by cruise visitors.

I am pleased to announce some more exciting news. Holland America Line’s cruise ship ‘Veendam’ will return to Bermuda in 2011. The ‘Veendam’ is scheduled to make 24 calls from New York, serving St. George’s and Hamilton.

This commitment by Holland America for 2011 tells me that although there have been a few people who have expressed concerns about tendering in St. George’s; this has not deterred Holland America.

Norwegian Cruise Lines also announced this week their commitment to Bermuda for 2011. I am more than pleased with this news as this solidifies our efforts to grow our cruise industry and shows confidence in Bermuda by the cruise lines.

NCL will sail two ships from the Northeast to Bermuda weekly from May through October, calling on Heritage Wharf. Norwegian Gem, one of Norwegian’s newest and largest Freestyle Cruising ships carrying 2,400 guests, will replace the Norwegian Dawn. It will sail from New York on Sundays to Bermuda, and stay for three full days. The 2,224-passenger Norwegian Dawn will replace the Norwegian Spirit which sailed from Boston for two years. The Dawn will depart on Fridays and spend three days in Bermuda.

We know that Bermuda’s biggest advantage comes from Bermudians themselves. It is important, therefore, that we focus on ensuring that Bermudians remain committed to seeing tourism move from strength to strength. The Bermuda Hospitality Institute (BHI) is a solid plank in our plan for attracting Bermudians into the hospitality industry. The Board of Directors will announce its Executive Director in a month. I look forward to seeing results from this new and important initiative.

In conclusion, I want to say that we all know that we have lots of challenges ahead. I am confident, however, that we have the will, the passion and the skills to make Bermuda’s economy rest on a solid and growing pillar.

Thank you.

Remarks by:

The Hon. Michael Scott, JP, MP
Minister of Energy, Telecommunications and E-Commerce

Good morning and thank you for being here:

For the past two to three decades the world’s postal system has experienced annual declines in mail volumes. These declines are due in part to the advent of the internet and electronic communications. Bermuda has been no exception and, is now seeing a general decline in business and residential mail volumes in keeping with the global trends. The Bermuda Post Office therefore is committed to further developing other lines of revenue.

Over the past two years the Bermuda Post Office (BPO) has moved to capitalize on new competitive mail service products in an effort to significantly enhance the vision of its customer outreach and increase revenue. In October 2008 we launched the track and trace system which allows our customers to track their express mail parcels and letters. The team at the Post Office did not stop there; the public will no doubt recall that as part of its ongoing commitment to offset the cost of public postal services and become more viable and competitive, September 2009 saw the launch of R-Post®. This new service allows customers to send international and local business correspondence — including invoices, contracts for signature, required notifications and general information — via e-mail with verifiable proof of message delivery, content and official time stamp. A link has been set up on the Bermuda Government website at www.gov.bm that will take members of the public directly to a co-branded web site where they can learn more about the product by live demonstration and free trial of 10 Registered Email units.

I am pleased to be here today with the Post Master General George Outerbridge, Mr. David Sousa Chief Executive Officer at Best Express and Mr. Roger Moniz the Best Express Export Manager, to announce yet another service available to Bermuda public.
The Bermuda Post Office and Best Express (BEST) have formed a public -private joint venture to expand the range of overseas parcel delivery and to provide Island wide collection points for goods purchased overseas and brought into the Island through Best Express and the Bermuda Post Office.

There currently is a great demand in Bermuda for express freight to the Island. With the advent of the Internet coupled with Bermuda’s high computer literacy and the ever increasing number of computers in our homes, the demand for goods from overseas continues to be fuelled.

Given the expertise of both entities in the delivery of parcels, there is a natural synergy for BPO and BEST to work together in order to provide a faster, easier-to-use and economical service. By taking advantage of respective industry expertise, strengths and networks, a more efficient operation can be achieved and enjoyed by both parties.

The Bermuda Post Office has an island-wide network of sub post offices for the distribution and collection of parcels which BEST does not have. The Bermuda Post Office International Data Express and Express Parcel Services, while reliable and cost effective, are reliant on a network of global postal administrations and commercial airlines and therefore do not ship or receive parcels within three days or less. BEST has a proven international shipping and cargo delivery service in place in the US, Canada and the UK, thus being able to provide the customer with a ‘local’ address to have their goods shipped to the Island overnight, or within three days or less. As you can see, this partnership simply just makes sense.

This joint venture offers our customers overnight delivery of goods from overseas through BEST and the option of collecting their packages from the General Post Office in Hamilton or the parish sub post offices. Alternatively, customers can use the current Bermuda Post Office International Data Express and Express Parcel Services as more cost effective delivery options.

The Bermuda Post Office and BEST plan to make this service option available to the public on Monday 15 February 2010.

Thank you.