WHITEFISH, MT / June 19, 2014 / The Caribbean is the number one destination in the global cruise
sector, with 37.3% of capacity this year, a figure which continues to be
dominated largely by passengers from the U.S. and Canada. Overall
Caribbean tourism has grown nicely so far in 2014 according to the
latest Caribbean Tourism Organization (CTO) data, with 2% year-over-year
growth across the region for Q1 and nearly 6.9M arrivals by cruise ship
already. With the average ship bringing 2.5k tourists and roughly 500
crew each, generating some $226k in expenditures during each port of
call, there is a ton of upside to be found cultivating the tastes and
expectations of North American tourists to the Caribbean, especially for
those arriving by cruise ship who miss out on hotel and resort-attached
restaurant options.
The best dining packages from the top cruise lines get old mighty
fast when passengers have eaten at the same on-board location several
times during their trip, not to mention how quickly tiresome the
standard menu can get on the majority of cruises. Even the dining
options available on Royal Caribbean Cruises Ltd. (NYSE: RCL) Quantum
Class vessels, where patrons can choose from between five different
(upscale to casual dining) full-service restaurants, quickly become
boring and passengers generally yearn to get off the boat and take in
the local culinary offerings.
The island of St. Maarten is a particular hotspot for Caribbean
tourists, with the largest cruise ship terminal in the Caribbean, the
Port of St. Maarten, on the southern part of the island at Great Bay.
This port, which has seen expansion to further the tourism industry over
the last few years, can handle even the supersized Oasis Class ships
(5.4k passengers and 2.4k crew) and saw some 1.79M cruise passengers
dock last year in 631 vessel calls. St. Maarten has established itself
as the capital of the booming Caribbean culinary tourism market and with
over 43 miles of gorgeous coastline featuring 37 beaches on the island
itself, as well as some of the world’s most attractive seascapes, the
hotel and resort market on the island of St. Maarten also continues to
thrive year after year.
Where People Stay Determines Where They Eat
For resort owners and hoteliers like Orient-Express Hotels Ltd.
(NYSE: OEH), which operates the celebrity favorite Belmond La Samanna
luxury resort on the longest and most exclusive stretch of beach (Baie
Longue) on the island, in-house fine and casual dining options exist,
including a beach bar. The same holds true for The Westin Dawn Beach
Resort & Spa on the eastern side of the island run by Starwood
Hotels & Resorts Worldwide, Inc. (NYSE: HOT), both of whom continue
to do steady business, with recently improving conditions in the
European economy helping to bring up overall tourism numbers. All major
hotel performance indicators remained positive for 2013 with upwards of a
67% occupancy rate, in line with expectations and the key sector
indicator, revenue per available room, which grew by over 7.5% from 2012
to 2013 (CTO).
The in-house dining model for higher-end beach resorts and hotels
throughout the Caribbean creates an insular vacation experience that has
allowed the model to return solid revenues. A given facility acts as a
self-contained city in many respects, with patrons only going out to
visit even fancier gourmet restaurants for variety (or to they go out
shopping and to the island’s other attractions). These kinds of luxury
hotel, resort and spa operations are among the most sought after
destinations in the Caribbean, and cruise ship tourists greatly desire a
taste of the luxury resort life when they get off the boat at a
gorgeous place like the island of Saint Maarten, with its classically
idyllic beaches. Statistically high visitor volume in the sub-luxury
hotel and resort space, combined with cruise ship stop-over tourists,
creates a bustling market, particularly for dining and beach bars.
Dining is a Major Growth Area
Blue Water Global Group, Inc. (OTCQB: BLUU) looks to have put
together a regionally focused strategy that is in essence a perfected
execution of what attracts North American tourists to the smaller, less
well run, private beach bar/grill type establishments that dot the
region (a taste of the Caribbean resort life and the fusion cuisine).
Blue Water has devised a branded, Caribbean-themed restaurant model that
is somewhat akin to Hard Rock Cafe International’s eponymous venue and
is focused on generating repeat business.
Complete with branded merchandise (the real secret behind Hard Rock
Cafe’s revenues), the company’s Blue Water Bar & Grill™ concept
fuses a walk/swim up beach bar, outdoor covered patio lounge,
small-stage live music and an open-air kitchen off the main dining area
where customers can see their food being prepared. Blue Water has even
developed their own branded rum, an iconic souvenir of the Caribbean in
and of itself, called Blue Water Ultra Premium Rum™, which will be sold
by the beverage and by the bottle at each of their locations.
Blue Water’s initial restaurant location in St. Maarten was chosen
for its exceptional waterfront location, as well as proximity to ports
and island destinations, in addition to being in range of plenty of the
local population, who often sustain a restaurant during the tourism
off-season. Blue Water Bar & Grill represents the natural evolution
of the Caribbean theme restaurant along Western franchise standards,
hitting the target demographic sweet spot with maximum effect. Not too
upscale and over-priced like the private gourmet locales and yet a
comfortable distance in overall quality and presentation above local
artisan eateries, which are mostly cynical tourist cash grabs.
This restaurant model would give average cruise goers exactly what
they expect from a Caribbean experience at a reasonable price, with
consistent quality from island to island along their journey, making
Blue Water Bar & Grill a familiar destination away from the ship
that customers can return to in each port of call. Blue Water plans to
strategically expand across the Caribbean from St. Maarten on an
island-by-island basis, chasing the trail of the major cruise lines.
BLUU’s strategy to bring the feel of a resort together with a relaxed
waterfront bar and dining atmosphere, capitalizing on the Caribbean’s
growing reputation for fusion cuisine, is a formula for bottom-line
success. The key with the company’s strategy is to offer consistent food
quality from island to island and location to location, capturing the
expectations of North American tourists for reliably good food and
location conditions that they are used to back home, where the market is
saturated by similar theme restaurants, as well as fast-casual dining
brands.
To receive free updates on Blue Water Global developments, click here: http://www.tdmfinancial.com/emailassets/bluu/bluu_landing.php
Lots of Upside Across the Spectrum
Operators like Fiesta Restaurant Group, Inc. (NASDAQ: FRGI), the
spin-off from the major U.S. Burger King franchisee Carrols Restaurant
Group, Inc. (NASDAQ: TAST), already understand the growth possibilities
in this space, with their Pollo Tropical brand of fast-casual
restaurants serving Caribbean-inspired foods poised to fuel 20% EPS
growth for many years to come on convenience-driven patrons. Well-known
throughout Florida and the Caribbean, with a large density of locations
in Puerto Rico, the Pollo Tropical model that began in Miami back in
1988 is doing so well for Fiesta Restaurant Group that despite the
abundant potential in the Caribbean, their biggest growth market has
boomeranged home and now resides in the U.S. southeast.
The allure of the Caribbean and its cuisine is indeed strong in North
America and the same psychology/tastes which drive Fiesta Restaurant
Group’s profits also make considerable room for the likes of Bahama
Breeze, the Caribbean-inspired casual dining franchise from Darden
Restaurants, Inc. (NYSE: DRI), which is popular in Florida and along the
east coast. These same tastes follow North Americans when they visit
the Caribbean, but until the emergence of Blue Water Bar & Grill, a
compelling offering has been missing to fill tourist’s needs.
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SOURCE: Emerging Growth LLC