By the Caribbean Journal staff

Regional Caribbean airline Winair is expanding.

The St Maarten-based airline has announced that it is in the process of acquiring another Twin Otter aircraft “in preparation for the summer season and shoulder periods of 2016.”

“This will ensure that our schedule integrity remains constant and Winair will maintain most of its capacity to accommodate increased demand in expanded and new markets in 2016,” the company said in its latest newsletter. “It will also allow WINAIR to offer additional charter services when need arises.”

Winair has been expanding quickly in the Caribbean, with new flights across the region, including new service to Dominica’s Canefield airport.

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It’s part of a sizable economy, on the Caribbean coast and full of historic charm. And it’s among the region’s hippest cities.

But it’s a real estate market not generally on the radar of most would-be home or apartment buyers in the Caribbean.

But that should be changing.

Cartagena, Colombia, the colonial beach city on the country’s Caribbean coast, has a rare cocktail of rising prices but falling currency rates — making it a great opportunity for buyers armed with US dollars.

That’s among the findings of Christie’s Real Estate’s Luxury Defined White Paper.

For example, a given three-story apartment in Cartagena has seen a 10 percent increase in local housing prices, but a 22 percent decline in currency rates.

That means that an apartment that cost a buyer $1.9 million in 2014 now costs $1.5 million.

Indeed, Colombia has “developed a unique appeal to dollar-paying buyers, making it possible for them to buy a property at a much lower price than previously,” says Veronica Davila of Julio Corredor & CIA.

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Spanish carrier Iberia has officially returned to Puerto Rico.

The company launched its first direct flight to the island in more than three years this weekend.

Iberia will be operating three weekly direct flights to Puerto Rico this summer, with round trip flights on Mondays, Wednesdays and Sundays.

The service will run through October.

Puerto Rico Tourism Company Executive Director Ingrid Rivera Rocafort said the flights would bring around 7,500 European tourists to Puerto Rico, with an estimated economic boost of $21.2 million.

The flights are being operated on Airbus A330-200 aircraft.

“This itinerary allows you to connect to Puerto Rico from more than 90 cities across Europe, which is a great benefit for both tourism and for trade,” Rocafort said.

Iberia becomes the latest European carrier to launch service to the island, following a successful launch of Norwegian flights to the island out of London.

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By Guy Britton

No Caribbean hotel company is growing faster right now than this one: AMResorts. The Apple Leisure Group subsidiary signed 17 new resort management contracts in 2015, easily the most of any company in the region. And now the company is primed for even more aggressive growth, with plans to open nine new resorts this year. To learn more about the company and its unique ability to transform Caribbean hotels, we talked to Javier Coll, executive vice president and chief strategy officer of Apple Leisure Group.

Explain the unique structure of Apple Leisure Group and the integration of Apple Vacations and AMResorts. 

Apple Leisure Group is the nation’s only vertically integrated hospitality company, and it is this business model that truly sets us apart. We are comprised of six subsidiaries: Apple Vacations®, the world’s largest tour operator to Mexico and the Dominican Republic; Travel Impressions®, a prominent  U.S. wholesaler possessing an extensive global portfolio; CheapCaribbean.com®, a popular online travel agency specializing in luxury vacation packages and resort accommodations in Mexico and the Caribbean; AMResorts®, provider of marketing and brand management services to six luxury resort brands; Amstar DMC®, a destination management company offering premium airport transfers, tours and excursions; and Unlimited Vacation Club®, AMResorts’ popular guest loyalty program for discerning travelers who expect the very best in a vacation experience.

Each subsidiary brings its own strengths and opportunities to the table, and collectively give the company as a whole the power necessary to continue growing and maintaining its competitiveness within the market. Apple Vacations and AMResorts actually pre-date Apple Leisure Group but were the first two companies to join under the holding company when it was formed in 2013. Through AMResorts, we have been able to carve out our own path within the all-inclusive space and quickly became North America’s fastest growing luxury leisure resort company. Moreover, the integration of Apple Vacations seemed natural and beneficial given that it carries more vacationers to Mexico and the Dominican Republic than any tour operator worldwide. Apple Vacations is also among the nation’s largest tour operators to the Caribbean, Mexico and Costa Rica – areas in which we have various AMResorts properties.

Our vertically integrated business model enables us to send close to 2 million passengers to Mexico and the Caribbean, which provides unparalleled value for Mexican, South America and Caribbean investors. Our focus on the North American traveler has translated into a stronger return for investors as well, since this market has better room rates and higher ancillary revenue compared to Europeans and Canadians. We are able to support this growing group through the highest levels of operations, and our recognizable brands.

Tell us a bit about your newest projects and what’s on the horizon for AMResorts. 

Last month we announced our first signed resort brand management deal in Puerto Rico – Dreams® Puerto Rico Resort & Spa. It is scheduled to open October 2018 and will bring the family-friendly brand’s signature Unlimited–Luxury^® concept, where everything is included, to the island. Puerto Rico’s strong airlift, no passport requirements and rich natural beauty have consistently made the island a popular choice for U.S. travelers.

We’ve also had several openings recently, including Secrets® Playa Bonita Panama Resort & Spa in January. We recently met with Panama’s Minister of Tourism, Gustavo Him, at the property. We believe the country has great promise and would love the opportunity to grow our footprint within the destination while simultaneously exploring the opportunities to bolster Panama’s tourism sector and help increase the number of visitors each year.

We have continued to grow our footprint in the Caribbean with the opening of Secrets® Papagayo Costa Rica, Secrets Akumal Riviera Maya, and, just this past February, we welcomed Sunscape® Puerto Plata Dominican Republic.

We will open another 9 resorts in 2016:

Breathless® Riviera Cancun Resort & Spa (May 2016)

Dreams® Dominicus La Romana (October 2016)

Now® Onyx Punta Cana (November 2016)

Secrets® Cap Cana Resort & Spa (November 2016)

Dreams® Playa Mujeres Golf & Spa Resort (November 2016)

Breathless® Montego Bay Resort & Spa (December 2016)

Sunscape® Dominican Beach Punta Cana (December 2016)

Sunscape® Bávaro Beach Punta Cana (December 2016)

Zoetry® Montego Bay Jamaica (December 2016)

In previous interviews you have mentioned the importance of investment incentives to encourage tourism development.  What are some key incentives?

Incentives are imperative to promoting tourism in a destination, and it is something we are seeing more of in the Caribbean. Each country has their own specific set of incentives that hoteliers should become familiar with, whether they are looking to open a new property or rebrand.

A great example of an incentive encouraging tourism development can be found in the Dominican Republic. It’s called the “ley de incentivo turistico,” which translates to the law to incentivize tourism, and it focuses on areas in need of development. The law declares the following exempt for projects related to tourism: income tax for 10 years, transfer tax, real estate taxes, withholding tax in the case of foreign financing, and import tax related to initial FF&E. Any individual investing in a tourism project will also be able to deduct their investments on their tax return.

What are some key factors to consider incorporating independent hotels into the AMResorts portfolio?

We work closely with owners to ensure that the unique identity of each property is maintained while incorporating our brand standards to ensure a consistent and enjoyable experience every time for our guests. Additionally, we offer independent owners a unique value proposition through our vertically integrated business model. Our distribution channels send close to 2 million passengers to the Caribbean and Mexico annually, which is a major advantage for an independent hotelier joining our portfolio. There is no other hospitality company in the United States that can offer this to investors.

What is AMResorts outlook for redevelopment projects.  How much opportunity and need is there for redevelopment in the Caribbean? 

Rebrandings compared to new developments usually happen in cycle, and we believe we are heading into a redevelopment cycle. The reason for this is that rates are dropping due to the Canadian market struggling with the lower exchange rate. This is forcing some hotels to drop their rates to attract the American market to compensate for the lack of Canadian guests. Also, land is getting very expensive, which forces investors to look for hotels instead of land. This change in cycles will not happen overnight and we anticipate that over the next few years we will see more hotels struggling. They will then look for better management companies to improve their returns and rebrand.

In my opinion, there are two different Caribbeans. The first one is growing and is attractive to investors, who can get good returns on their investments as labor costs are reasonable and energy is inexpensive. The government is also helping with tax incentives and favorable labor laws. Increasing investment also translates to growing interest from airlines, financial institutions and other relevant businesses, all of which creates a positive spiral of growth and opportunity.

There is another Caribbean, however, where the costs are high and incentives are not in place. There are even come countries that are against the all-inclusive model altogether, which in my opinion is close to saying you are against the leisure market itself. Politicians do not want to lose voter support and choose not to enforce measures that will help them compete against “the other Caribbean.” This makes it difficult for investors and developers to invest in certain countries under these circumstances.

In many of your properties you offer a select or preferred sections creating a higher level of service. Is this a trend that will see growth in the future? 

Guests of AMResorts’ properties can choose to upgrade their experience be opting to stay in the Preferred Club at Secrets®, Dreams®, and Now® Resorts & Spas, xhale Club at Breathless® Resorts & Spas or the Sun Club at Sunscape® Resorts & Spas. This is just one of the ways that we try to customize the guest experience by offering as many options as we can.

By choosing this upgrade, guests will receive enhanced amenities, access to a private area for check-in and check-out as well as a lounge, and accommodations in premium locations. This is how we are able to appeal to a wide variety of guests. For example, there will always be those that are more interested in the beach, pool or restaurants than the guestroom. Yet, others see everything as important. By creating different categories within the hotel we are able to please all of our guests both from a financial point of view and from a product perspective.

These areas are an important component of our resorts, and we will continue to incorporate them into future properties.

Recently there has been a lot of press about direct bookings and the increased focus on direct bookings from companies like Marriott and Hilton and Choice. Where will that trend be in 5 years?

Direct bookings are certainly much more important for companies like the ones you mentioned because many of their hotels are urban and brands are more of a commodity. When it comes to leisure hotels, however, it is very different.

The majority of leisure travelers still book using a travel agent. These guests have questions they want answered by either an in-person agent or a knowledgeable phone agent. There are also guests who prefer to book their vacation as a package, including airfare and transfers to and from the resorts. This makes working through a travel agent or OTA especially appealing since they can offer guests special discounts that would not be available through direct bookings.

We have seen our direct bookings increase over the last few years, but mainly within our existing customer base. These guests know the destination and the hotel, so they feel comfortable booking directly.

Airbnb and HomeAway have become significant to the travel industry worldwide.  What is the impact in the Caribbean and what is being done about it?

To be clear, hotels have had this type of competitor for decades—take for example, Wyndham. Wyndham Worldwide owns one of the oldest vacation rental brands—the British Hoseasons, (founded in 1940). Airbnb is just a new competitor, and in the competition for leisure travelers, hotels have the upper hand. In general, the vacation rental market is more resilient to global economic downturns than the hotel industry because it is not dependent on business travelers like the hotel industry. There may even be some substitution effect with leisure travelers looking for less expensive accommodation options during times of economic distress, but when it comes to traveling for leisure to a foreign country, and especially to a beach destination, vacation rentals have a long way to go.

In my opinion, the impact will be good for and proportional to the size of each market. For example, we have four or five major Caribbean markets, including Cancun/Riviera Maya, Punta Cana, Jamaica and Cuba. There are more tourists, flights and hotel rooms in these destinations than in any other, and there will be more customers for Airbnb and HomeAway in these destinations than any other.

In general, I am in favor of giving the customer what he or she wants and accommodating market trends. However, it is critical that we all work together on an even playing field, with regulations and taxes applied uniformly to everyone. This is where the challenge exists, because how can this approach be successfully implemented in a region where tourism is often relegated to the second or third tier of the government’s policy agenda?

Can you give your view of recent and likely future developments in Cuba?

Currently, U.S. hotel brands looking to make a move into Cuba will set-up shop in Havana and will most likely enter the market by offering management contracts – like Starwood Hotels & Resorts has demonstrated – to re-flag and manage existing hotels in Havana. However, once Congress decides to lift the economic embargo it has over Cuba and travel for pure leisure is allowed, we’ll start seeing a shift of re-flagged properties move from Havana into the beach areas.

Lifting the embargo makes sense in today’s world and it’s good for both the U.S. and Cuba. Of course, this will take some time to happen. While the specifics are different a good example to look at is what happened in Germany, as it shows what aligned policies and the support of a powerful nation can do for a country that has been isolated.

The Cuban government sees tourism as a strategic sector for the country’s economy. Cuban tourism authorities are working with foreign investors to develop and improve the country’s tourism infrastructure. They want to reinforce the national hotel supply and increase its capacity from 63,000 rooms to 85,000 rooms over the next five years. Cuba counts on these investments to develop infrastructure such as golf courses and resorts to accommodate the increasing numbers of visitors to their shores.

How is AMResorts applying new consumer technology at resorts? 

Within participating AMResorts properties, we currently provide our guests the Unlimited Connectivity app, which offers free calling to the U.S., Canada and local land lines, free WiFi throughout the resort, plus the ability to view the daily activity calendar, make a spa appointment, and access dining menus, restaurant times and more. This is all included within the daily rate. We launched Unlimited Connectivity because we know our guests want to have the same access to technology that they enjoy at home.

What’s being done on your properties to prevent the spread of Zika? 

At AMResorts, the health and safety of our guests is a top priority. At our properties, we’re reinforcing fumigation procedures by providing insect repellant at no charge in each guest room, collaborating with both housekeeping and minibar staff to ensure doors are kept closed at all times, and ensuring there is no standing water areas in our hotels.

We are also being even more communicative with our guests than usual. We are using direct communication, as well as providing our travel agent partners, hotel employees and others, with the information they need to educate our guests on the measures being taken.

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By Sarah Greaves-Gabbadon
CJ Travel Editor

A Caribbean vacation is synonymous with a beach vacation. But what if you decided to do something different? On a recent trip to St. Croix I did, eschewing seaside resorts for Hotel Caravelle, a small independent hotel smack in the center of the island’s capital, Christiansted. Can a citified stay trump a sand-strewn vacay? I aimed to find out.

Hotel Caravelle has been a fixture in town for half a century, and just completed a multi-million-dollar revamp this spring, with 42 spiffed-up rooms; an upgraded pool deck and public spaces and a casino. Set on the waterfront, where Queen Cross Street meets the Caribbean, it’s a quick stroll along the boardwalk from the seaplane base, so visitors hopping over from neighboring St. Thomas can go from plane to poolside in less than five minutes.

Rooms here are light-filled and spacious, with new bathrooms, mini-fridges, satellite TV and complimentary Wi-Fi. They’re undoubtedly comfortable, and some have views of Christiansted’s harbor through sliding French balcony doors. But chances are you won’t be spending much time in them because the capital lies literally at your feet.

My first order of business was simply to stroll the city and see what had changed since my previous visit, two years earlier. Back then I’d spent most of my time at a beach resort with just quick jaunts into town for shopping and dining. But now I could seize the opportunity to explore at my leisure.

Fortified by a quick stop at RumRunners, the bar and restaurant that serves as the hotel’s dining room (there’s no room service but you can call down for takeout), I planned my attack.

An insatiable shopper, I headed first for Company Street, only three blocks away, where Sonya’s and IB Designs tempted with their latest riffs on the classic silver and gold Crucian hook bracelets. Crucian Gold and newcomer Joyia stretched the limits of my restraint further, and I quickly realized that you don’t have to go far to spend a lot in this town where “shopportunities” lie literally around every corner.

Still, having saved on cab fare by hoofing it, it was easier to justify my purchases as well as a dinner at Zion Modern Kitchen. The lobster ravioli gets raves at the year-old restaurant, but when I enquired about apple cobbler and the waiter told me “Cobbler is my crack,” ordering a slice was a no-brainer.

Head mixologist Frank Robinson’s cocktails, custom-created using a slew of tropical fruit-laced alcoholic infusions he keeps behind the bar, were an intoxicating addition to the meal. And since Caravelle was so close, there was no cab required; only a breezy (and sobering!) five-minute stroll past Christiansted’s historic façades.

Of course, no trip to the city is complete without a tour of its impressive Danish Colonial fort, and it’s less than 10 minutes’ walk along the boardwalk to the National Historic Site where slaves were once sold and Alexander Hamilton once worked.

But having history on my doorstep and shops and restaurants within a three-minute-walk radius weren’t the only perks of my city base.

It’d be rude to come to the Caribbean and leave without getting in the water. And even though Caravelle isn’t on the beach, it couldn’t get much closer to it.

The alluring sands of Protestant Cay, and islet just offshore the harbor, are a 53-second, $5-roundtrip boat ride from the hotel. From there, lazing on a lounger with a rummy cocktail in my hand, Caravelle’s distinctive sunny-yellow façade lay just beyond my toes, ready to welcome me back once I’d reached my sunscreen’s limits.

My remaining days in town were a case of “revel, rinse, and repeat.” I spent them enjoying the city’s assets (homemade ice cream at Savor St Croix; dress shopping at Asha); squeezing in some beach time (a trip to Buck Island, five miles away, can be arranged through the on-site Big Beards Adventure Tours or Caribbean Sea Adventures, just along the boardwalk); and then enjoying my own dine-around program, eating Thai at Galangal and previewing balter, both just blocks away.

If I’d wanted to rent a car and explore further afield, Caravelle’s car park – the only hotel car park in town – would have come in handy. But I found Crucians to be so friendly that when I expressed an interest in seeing the sunrise from Point Udall, the island’s easternmost point, about a 30-minute drive away, a new local friend – one of many I’d made in my four days of tooling around town – insisted she drive me there.

And as the sun peeped over the horizon that final day, the answer to my question was revealed.

No, a Caribbean vacation doesn’t have to revolve exclusively around sun, sea and sand to be enjoyable.

An urban island experience, such as the one I had at Hotel Caravelle, can deliver so much more.

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