Rising meat prices could impact the hospitality industry
By Marlon Madden
Tourism industry executives said on Thursday they were bracing for likely price hikes in poultry and other meat products that could have a significant negative impact on an industry trying to regain a foothold.
But the president and CEO of the Barbados Hotel and Tourism Association (BHTA), Senator Rudy Grant, said he would not suggest there would be price increases among hoteliers because “it is about have the dialogue “at this point.
The tourism and hospitality industry relies heavily on local farmers for poultry and other meat products.
Grant told reporters: “It’s an environment where I don’t know for sure what’s going on with the prices. As I said, I have heard the Minister of Agriculture comment on how he would like to deal with certain aspects and we have been told about some recent price increases that he says are now on hold.
He was responding to questions during a quarterly BHTA media update regarding the expected feed price that could reach 26%.
Pinnacle Feeds Ltd. announced that it would increase its prices in line with the rise in world prices.
While farmers have since indicated that they will seek to minimize the impact by pooling their resources and purchasing more of their raw materials in bulk, Agriculture Minister Indar Weir met with the animal feed company in order to find a solution and minimize the impact of price increases.
Senator Grant said Barbados TODAY any increase at this point would only make Barbados less competitive than other destinations.
He stressed the need for a wider debate on price competitiveness in the tourism industry, while placing more emphasis on improving the value for money proposition so that even if prices increase, consumers don’t mind paying more because of a great experience and great value for money. .
“There is a use of a lot of local products. Many hotels buy directly from farmers who supply them weekly. The issue of increases will have an impact on our price competitiveness, and that’s something we need to talk about a bit more, ”Grant said.
“As we seek to contain any price increases, I also think we should pay some attention to how we can improve our value for money proposition to ensure that even though people are spending a little more, what they get in terms of the value of their trip and the experiences they have, that these are exceptional.
“And this not only requires that BHTA, the Ministry of Tourism and other entities like Barbados Tourism Marketing Inc. be involved in this process; it also requires that Barbadians have a better understanding of the industry and are committed to ensuring that we are able to fully exploit the opportunities we have in this industry.
BHTA President Geoffrey Roach stressed that impending price increases must be “creatively approached” to minimize the impact on the tourism industry which is now seeking to recover from the ravages of the COVID pandemic. -19.
He told reporters: “The truth is that the increases we see, if not handled creatively, will definitely have an impact on the industry. This industry requires a significant amount of inputs and a lot of those inputs. will be affected by the increases, so I think as an industry we need to discuss this because I have heard what I see as creative solutions being talked about elsewhere, which I think we need to have discussions on.
“This is a necessary conversation because we know that Barbados is seen as a high-priced destination, and while some of these costs are likely to impact multiple destinations in the same way, we are still looking to compete for. the same tourism dollar and each additional layer of costs to the industry makes us a little less competitive, ”Roach added.