I just had a meeting with the Director of Tourism for the Cayman Islands who came to Washington for a convention. He told me that he thinks the rates will go down at hotels (including FS/RC/St.R/MO) for the holiday period and the coming months as the economy is not in good shape. This means less people are traveling and making reservations at hotels. What is your take on his thought?

First here is my take:
I feel there will always be people who will stay and pay for an RC or FS but the number of people will be less than the previous years. Plus more people are visiting the US from abroad than before and where the currency is strong. I noticed this at the RC in Naples this summer when almost 75% of the guests were from Europe or Asia, I felt like I was in Europe when I was sitting in the Club Lounge.
I still think there will be a strong decrease in bookings in the coming months and the luxury hotels need to decide what they want to do and how they want to deal with the economy. Will they lower their rates to adjust to the economy? Or will the hotels be content with a sub par occupancy rate and keep the room rates the same?

Only Time Will Tell

I will be at the RC in Sarasota for a week over Christmas and I will report back in this thread on how the occupancy rate is.

Ben