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Thread: All Inclusive Limitations

  1. #1
    Aruba since 1979
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    All Inclusive Limitations






    Aruba Enact Limits On All-Inclusive Resort Proliferation

    DESTINATION & TOURISM | BRIAN MAJOR | SEPTEMBER 21, 2016
    PHOTO: Aruba passed new limits on all-inclusive accommodations despite opposition from the country’s hotel and tourism association. (Photo by Brian Major)


    Defying objections from several hotelier organizations, Aruba last week modified its Permit Law to restrict the island’s percentage of all-inclusive resort accommodations to a maximum of 40 percent of the country’s hotel rooms.
    The southern Caribbean island’s government also placed an annual 20 percent cap on all-inclusive room nights sold by “European plan” or traditional hotel properties.
    “Given Aruba’s high level of dependence on the tourism industry, we believed it was imperative to formulate policy that best meets the island’s general interest and to re-address policy in respect to accommodation providers on island,” said Otmar Oduber, Aruba’s minister of tourism.
    “The new regulation will ensure all actors remain active in the tourism industry and allow for a healthy contribution to Aruba’s GDP, currently 91 percent reliant on tourism and travel,” he added.
    In June, officials at the Caribbean Hotel & Tourism Association (CHTA) asked Michiel Eman, Aruba’s prime minister, to “abandon” the proposed legislation, describing any limit on all-inclusive accommodations as “counterproductive to the health and growth of the Aruba tourism industry.”
    Government officials last week brushed those concerns aside. “Aruba’s government and tourism officials conducted the necessary analyses and formulated actions that specifically impacted the future of the destination’s all-inclusive sector,” said tourism ministry officials in a statement.
    “The vision for a balanced mix of accommodations stemmed from research derived from more than 13 publications, suggesting a correlation between all-inclusive resorts and a decreased effect on local spending and immersion in local culture,” the statement adds.
    Jim Hepple, president and CEO of the Aruba Hotel and Tourism Association (AHATA), said earlier this year Aruba’s government was motivated by concerns expressed in 2014 by local restaurant operators who claimed Aruba was attracting an inordinate number of all-inclusive hotels.
    Hepple and CHTA officials have called described the modifications short-sighted, saying an all-inclusive limit would ultimately hurt employment levels, the cost and availability of air transportation and government revenues.
    “Aruba’s goal is not to completely eliminate all-inclusive resorts, as we understand this market is considered to be the fastest growing segment of the leisure travel industry in the next 10 years,” said Ronella Tjin Asjoe-Croes, CEO of Aruba Tourism Authority.
    “Rather, our goal is to remain competitive and create balance, while re-evaluating the policy every five years to ensure Aruba’s best interests continue to be met,” she said. “Ultimately, a healthy mix of on-island accommodations is crucial to the success of Aruba.”
    The modifications include a “Grandfather Right” under which properties that prior to May 9 operated as all-inclusive resorts have received permits to continue those operations for 20 years.
    Additionally, hotels that have not offered more than 20 percent of their inventory as all-inclusive are permitted to continue those operations. Hotels not exclusively all-inclusive resorts but with more than 20 percent of their inventory allotted to all-inclusive packages will have two years to reduce their percentage of all-inclusive accommodations to a maximum of 20 percent.
    Asjoe-Croes said the new regulations also reflect Aruba’s acknowledgement of the impact of sharing economy providers on Aruba’s hospitality segment.
    “Aruba embraces the concept of sharing economy and is exploring areas where [it] will add value to the community as well as the visitor,” she said. “As part of this proactive approach, we have entered into discussions with AirBnB to formalize a relationship with the online community.
    “Our goal is to work together to drive more sustainable and unique tourism to the island,” she said, “help make Aruba a regional leader in the sharing economy and continue to position Aruba as a world-class tourist destination.”
    Aruba recorded an island record of 1.22 million overnight visitors in 2015, a 14.3 percent increase over 2014, also a record year for the destination.
    Aruba’s hotel sector also showed growth last year, with occupancy growing by 8.3 percent in 2015, while ADR increased 2.7 percent to $237.39. Aruba’s RevPar (revenue per available room) has steadily increased in recent years and in 2015 totaled $191.10, higher than the Caribbean average of $158 according to data from travel research firm STR.
    Last edited by Andrea J.; 09-21-2016 at 10:56 PM.

  2. #2
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    this seems to me to be a fair and equitable arrangement to all involved.

    everyone's thoughts?

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    Senior Member Pegmeister's Avatar
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    It makes sense to keep a balance. They're being proactive in keeping their economy healthy.

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    Senior Member cpjones's Avatar
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    Whew.....! Probably gonna save a restaurant or two and keep some of the taxi folks working.

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    Super Moderator Jacki's Avatar
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    our goal is to remain competitive and create balance, while re-evaluating the policy every five years to ensure Aruba’s best interests continue to be met


    What's not to agree with? If this is actually how it works and what actually happens, it sounds perfect
    Jacki ~ loving Aruba from NJ

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    How will they ever enforce this? They haven't done well overseeing the issue of palapa rentals on the beaches by the hotels. That would seem to be easier than this. Similarly they talked about clamping down on water sports operators without licenses. Now there seem to be more. I wonder if this isn't paying lip service to the restaurants while silently recognizing that all inclusive Accomodation is growing on most of the other islands.

  7. #7
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    enforcement? well, occupancy and operational permits would be a good way to start i think.

    all inclusive programs on other islands .... lots of other islands, tourists are not able to move safely off resort during or the day or especially evenings.
    one of the things that draws tourists to aruba is the multitude of restaurants/dinging choices.

    it will be interesting to see how this all plays out.

  8. #8
    Senior Member dq1974's Avatar
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    Quote Originally Posted by Andrea J. View Post
    enforcement? well, occupancy and operational permits would be a good way to start i think.

    all inclusive programs on other islands .... lots of other islands, tourists are not able to move safely off resort during or the day or especially evenings.
    one of the things that draws tourists to aruba is the multitude of restaurants/dinging choices.

    it will be interesting to see how this all plays out.
    This is one the reasons that we chose to come to Aruba. We love that we can stay at an all-inclusive on a safer island. We love the fact we can take a taxi or a local bus downtown. We always bypass the airport transfers we get and use Hubert to pick us up and drop us off. We always try to do an excursion or 2 and we always try to eat off the resort a couple of times a week. This next trip we plan on trying Blossoms since we a re staying at the old Westin. I think you'd be surprised how many people who stay at all-inclusives go off the resort to eat. Just my opinion.
    Aruba Trip #7.....March 2017..

  9. #9
    Senior Member danadog56's Avatar
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    I think the tourism authority got this right, in order to protect the restaurant community at large they need make sure they have the opportunity to serve the tourists coming onto the island. I know many folks that go the AI way do go off site for some meals, but I also know that many of my friends that went that route never go off site.
    As Andrea stated a few other islands offer AI because you can not leave the compound safely so you have no other options......which is one of the reasons we fell in love with Aruba and bought our timeshares...you can go anywhere on the island a feel safe, of course, using common sense when you go....
    ARUBA....HOME AWAY FROM HOME

  10. #10
    Senior Member Arubalisa's Avatar
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    The part that I cannot wrap my tiny mind around is the fact that with the declining economy of the last 8 years or so, talk to anyone in the tourism industry in Aruba and they will tell you that the owners of timeshares are staying "in" more and eating out "less". Add to that, the 100's of non hotel accommodations available through Airbnb, where are THEIR restrictions? Shouldn't they be "forced" to go OUT and spend money and not be able to stay within their resort or suite or room?

    Either way, not my island, not my laws, but here in the U.S. if I owned my own business I wouldn't want the government shoving yet ANOTHER mandate down my throat.

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