Throughout the territory, but especially on St. Croix, the V.I. Tourism Department is working to boost small inns, bed and breakfasts and boutique hotels as a way of promoting the unique charms of each island—and to maybe encourage smaller entrepreneurs to open shop.
"Oftentimes everyone talks about big hotel development and what national hotel names bring toward branding the destination, and that is important," said Tourism Commissioner Beverly Nicholson-Doty, speaking to Rotary West in Frederiksted Tuesday.
"But on St. Croix we have a lot of charming small hotels already, so how do we get the word out about what we already have, to build demand that will build airline flights and cruise passenger interest?" she said.
After going around to small inns throughout the territory, asking owners how they promoted themselves and where they got their customers, Nicholson-Doty and the department put together a promotion under the rubric: "Inntimate Treasures," where travelers can receive $100 in dining and attractions coupons, focused specifically on the smaller, non-chain establishments—from the Frederiksted Hotel to the Inn at Salt River.
Promoting the smaller establishments fits in with efforts to brand St. Croix as a culture and heritage tourism destination, and as a romantic getaway, as in their current advertising campaign, "St. Croix: Port of Solace," she said.
Additionally, increasing the demand for and the profile of these smaller establishments might encourage smaller entrepreneurs who may not have considered opening a hotel to weigh the pros and cons and open up a new establishment on St. Croix. And boosting non-chain establishments throughout the territory helps to spread the revenue around and show visitors more of the unique character of the people and the islands.
In general, when sponsoring an event or subsidizing a promotion, Nicholson-Doty aims for a return of at least $3 in revenue to the territory for each $1 spent, she said. When a Rotarian asked her to respond to radio criticism of Tourism’s sponsorship of the Tempo fourth anniversary event on St. Croix later this month, she said the event may not make that goal, given reduced traveling during the current worldwide economic crisis.
The situation came about because in 2008 the department decided plans for a celebration that year were not formed in time to promote it properly, making it less likely to succeed. So rather than abrogate their agreements, they committed to sponsoring the 2009 celebration instead. Now, having made a commitment, Tourism would not want to break it without a "compelling reason," she said.
But between yearlong TV advertising for the territory on Tempo and increased hotel visitation, the territory stood likely to benefit and come out ahead on the deal, she said. Tourism is expending $125,000 to help sponsor the celebration.
On St. Croix in particular, there is a tourism paradox: flights are more expensive than St. Thomas, which pushes down demand; but to build more hotel rooms and increase flights, you need more demand.
So for the big island, they are trying a plan to subsidize the flights for people who come for extended stays, she said. Visitors who book at least four nights at participating hotels can get $150 off airfare for one or $300 off airfare for two travelers and their fourth night free of charge.
While these programs are limited in scope, part of the goal is to bring people in for their first trip to St. Croix, broaden its name recognition, increase word-of-mouth recommendations and hopefully spur people to make the island their regular vacation stop.
By linking the benefits to confirmed extended stays, the plan hopes to avoid one pitfall of subsidizing flights, too. When one Rotarian asked her about the possibility of enticing a direct flight from New York with some sort of subsidy, Nicholson-Doty said a direct flight from the northeast was high on her list of priorities.
But she cautioned, "You don’t ever want to start paying for empty seats. Then you’ll never be able to stop. The airlines are happy to keep flying as long as you keep paying, and since they are getting paid anyway, they don’t care whether or not you fill them."
Nicholson-Doty outlined the department’s various promotional efforts, from newspaper ad buys to an upcoming showcase in Atlanta, Ga.’s Lenox Mall, where they are encouraging the city’s large V.I. community to come out and help sell the territory.
The commissioner also touted a highly successful 25-cent room deal that got into the nation’s major papers and onto the "Today Show," reaching 100 million total viewers for a total investment of less than $100,000.
"We could not have afforded to pay for just an ad on the Today show, not to mention all the other exposure we received," she said.
