|
The Bahamas has seen an increase in American convention visitors, ever since a new U.S. tax deduction, applicable to business conventions in The Bahamas went into effect.
Sales people at the premier Atlantis hotel say the deductions have given them a “big advantage,” said Jamie Bruce, senior vice president of sales for Kerzner International of Ft. Lauderdale.
The deduction evolved from a tax-exchange agreement between the U.S. and The Bahamas. The U.S. Treasury Department explained: “Beginning on January 1, 2006, The Bahamas will be considered part of the ‘North American area’ for purposes of determining whether U.S. taxpayers may deduct expenses incurred in attending conventions, business meetings and seminars in The Bahamas.”
Since then, The Bahamas has seen “double digit increases of 15 to 20 percent in bookings for conferences and meetings” eligible for the tax deduction, according to James Malcolm, the tourism ministry’s executive director of group travel.
“I would say that we’re seeing increases of $15 to $20 million in overall revenue each year from conferences and convention group travel, which is taking advantage of the tax law,” Malcolm said.
“The tourism ministry is working ‘very hard’ to promote the incentive,” Malcolm said. “However, we didn’t do a great job of promoting it before January of 2006.”
Traditionally, much of the non-vacation travel to the Atlantis has been “incentive travel,” Bruce noted. It does not qualify for tax deductions. Such trips are typically offered to reward sales executives.
It’s “tough to measure” how many non-vacation visitors to the Atlantis utilize the deduction, Bruce said. Even so, he noted Atlantis has seen a “steady increase” in non-vacation visitors since Jan. 1, 2006. He added that “we certainly feel that this (tax break) has been a contributing factor.”
Bruce said: “27 percent of Atlantis’ guests are convention goers, and the rest vacationers, but more non-vacation guests are definitely anticipated.” Last April, Atlantis completed a $50 million expansion of its convention center – doubling indoor and outdoor space to 200,000 square feet each. “Now, the ballroom can accommodate 5,000 people. By the end of the year, the hotel on Paradise Island will have 3,400 rooms, following an expansion it’s undergoing,” Bruce said.
Another “huge” selling point for non-vacation visitors is the availability of Blackberry service in The Bahamas, Bruce noted. In the past, he said the absence of top quality telecommunications service had been “a major negative” for potential convention visitors.
A travel expert who sees a bright future for conventions in The Bahamas is Gregory Kurdian, whose 22-year-old company, Sunbound, arranges elaborate trade shows, conferences, and incentive trips for major corporate clients. Among other things, Sunbound specializes in conventions in The Bahamas – a destination that Kurdian notes is right off Florida’s coast and offers costs and levels of security comparable to U.S. cities. Homeland Security offers pre-clearance in The Bahamas, simplifying return trips to the U.S.
According to Kurdian, a trade show in The Bahamas as opposed to Chicago would cost only “$80 to 100 more” per person. The Bahamas has an exotic and exciting appeal, he noted.
Sunbound arranges events at Atlantis and a resort in Freeport, Grand Bahama, Westin Our Lucaya. In The Bahamas, Sunbound’s hands-on services is provided through Sunbound – Bahamas.
|
