It's great to have Ian Taylor back! And he's certainly fighting fit and keen to get to the bottom of this Heathrow subsidy. As reported in today's Jersey Evening Post, Flybe have asked the OFT in the UK to investigate the subsidy provided by the States to BMI for the new Heathrow route. They have also complained to the Jersey Competition Authority that the deal should have been referred to them for approval.
Not content with that, Flybe have also made submissions to Economic Development, objecting to the issuing of a permit to fly the route. So where does that leave us?
To be honest it is unlikely that the launch of the new route will be affected - which will come as a relief to the thousands who have already booked to travel to Heathrow (including me!). However, it seems to me that the real problem here is Economic Development's refusal to reveal the subsidy. The secrecy of the deal suggests it's a pretty largish sum of tax-payer's money. Ian Taylor wants the figure to be revealed and is quoted as saying ' If it was £3 million a year - that's £9 million over 3 years.' Clearly you're good at maths, Ian!
Deputy Alan Maclean refuses to divulge the amount on the grounds of commercial confidentiality - but if it's public money and the figure is in that ballpark, surely the amount should be revealed?
Everyone in our industry (except Flybe and the other airlines) is delighted to have the Heathrow route back - not least the Finance industry. Perhaps there lies the key to the whole thing. The Golden Child of Jersey's economy has forced the hand of the government to make it easier for their clients to come and check out the value of their funds.
I'm willing to bet that it won't be long before the true level of subsidy is revealed. Keep watching this space!
Just how much is that BMI Heathrow subsidy?
bmibaby launch new Birmngham route & increase Cardiff schedule
More good news for air travellers to and from Jersey. Bmibaby have announced a new route from Birmingham with fares starting from £19.99 incl taxes. The service starts on 24th May and will operate 4 times a week (Sat., Sun., Tues. & Thurs).
At the same time Bmibaby have announced an increase in the Cardiff schedule from once a week to 3 times a week, again with fares starting from £19.99 each way incl. taxes.
This is more good news for the tourism industry and another feather in the cap of Julian Green and his team at the airport. Mind you - not too sure how Flybe will react to having a competitor on the Birmingham route. Along with Thomsonfly out of Coventry this will mean a significant increase in capacity out of the Midlands.
You can read more about the announcement by clicking here .
Hush! Hush! Whisper who dares. Jersey tourism is saying its prayers.
Not quite the continued improvement expected, or indeed heralded at the end of 2005. The small increase in visitors in 2005 then led the Minister responsible for Jersey Tourism, Senator Philip Ozouf to state that this was the ‘first sign of a reversal in our fortunes’. At this stage, there are no detailed figures to confirm whether the average length of stay also decreased last year – as it has been doing for the past decade or more, from an average 6 nights in 1993 to 4.8 nights in 2005. I know that one years figures don’t make a trend and the upturn in 2005 was probably just a blip. And there was a bit of good news in 2006! Business visitors increased by 7% to over 60,000. But hang on they only stayed 2.13 nights – that’s down 2.2% on 2005 and down 11% on just six years ago. No – I am sure that the new tourism strategy, the new hotels, the new-look airport, the new Waterfront, the new tourism PPP, the new TV advert, the new air routes, the new ferry services, the new Liberation festival are all going to make a big difference! So the 15,000 drop in staying visitors is nothing to worry about. That’s OK then. I am, however, looking forward to seeing the spin put on yet another set of disappointing results.
Guess what? I have just seen the year-end tourism statistics for 2006. They have been quietly posted on the Jersey Tourism business website . So, has 2006 been a good year? Let’s see:
How long can the traditional package holiday survive?
Today, MyTravel and Thomas Cook announced that they are to merge to create the second biggest travel company in Europe (Tui being the biggest). The deal is all about consolidation and cost savings driven by the fact that the traditional package holiday is in decline. The key question is - and this is important for all tourism businesses in Jersey - is the decline terminal?
A decade ago - package holidays accounted for more than two-thirds of all overseas holidays. In 2006 the big four tour operators sold 13.8 million package holidays whilst 18 million organised their own trips. That's quite a switch. More and more of us are booking our holidays independently - a trend driven by low-cost airlines, internet travel sites like Expedia and the desire for more, shorter breaks rather than one longer holiday.
And the same is happening in Jersey. Think about all those brands which have departed Jersey - Sunblessed, Thomas Cook, Albion to name just three. Those that remain Preston, Premier, Travelsmith etc. are finding it increasingly hard to compete through traditional off-line channels such the high street travel agent. Not only are commission rates demanded by the multiple retailers crippling, but the internet creates greater competition each year. Brand is virtually meaningless in this virtual world - it's now all about price. So margins are under pressure but costs keep on rising. Faced with this circle that cannot be squared, the only answer is to merge and consolidate infrastructure to remove costs from the business.
And yet we need these operators to survive because they still deliver a huge chunk of our existing business. Jersey Tourism are focusing on new markets and those 'Cosmopolitans' (I am really growing to dislike that word) are more likely to do their own thing than book through a tour operator. But please do not forget that for many accommodation owners, the traditional market is still key and must be supported.
The traditional package is a long way from extinction - but those remaining Jersey operators will need to think creatively, or yet more consolidation is on the cards and more brands will disappear.
Sport Jersey goes live at last!
It's taken a little longer than I expected, but finally our new website - Sport Jersey - has gone live.
