The BroadCAST

CAST's Quarterly Newsletter 

Spanish

The translation of this document was made possible by Enrique Sanchez as part of the United Nations Volunteer Programme

PLEASE VISIT THE CAST WEBSITE AT: http://www.cha-cast.com

To see the July Issues of the BroadCAST, please click HERE or to see it in Spanish click AQUI

Director's Cut

Hurricane Preparedness Is More Important Than Ever: Tips For Making Insurance Claims

This feature article was written by Stan Smith of Smith Orloff & Associates, insurance loss consultants to the Caribbean hotel sector. Smith Orloff has extensive experience in the Caribbean representing the policyholder with their insurance company in catastrophic losses. Stan Smith is collaborating with CAST in the development and delivery of the Hurricane Preparedness & Response Training Workshops. Contact Smith Orloff at (610)-526-2213, (215)-886-1204 or via e-mail at smith@smithorloff.com or go to www.smithorloff.com to learn more.

Because of the unbelievably harsh hurricane season the Caribbean has been experiencing this year it was felt that CAST needed to again address the topic of hurricane preparedness.  Researchers for the National Oceanic and Atmospheric Administration (NOAA) have been saying for a number of years now that the climatic ingredients are in place for intense hurricane development, which activity is linked to a natural warming cycle of the Atlantic Ocean between Africa and the Caribbean - the main hurricane development area.  Hurricane forecaster Dr. Gray has said we are entering an era of more and more powerful storms – well it seems that this year they have arrived.

With regard to preparedness, the Director of the National Hurricane Center has most accurately stated “Preparation through education is less costly than learning through tragedy”.

NOAA also has a web site that deals with Hurricane Awareness and preparation, which is http://www.nhc.noaa.gov/HAW2/english/intro.shtml.  By knowing your vulnerability and what actions you should take, you can reduce the effects of a hurricane disaster.  The goal of this Hurricane Awareness web site is to inform the reader of hurricane hazards and provide knowledge, which can be used to take action.  Hurricane hazards come in many forms: storm surge, high winds, tornadoes, and flooding.  This means it is important to have a plan that includes all of these hazards.

Certain aspects of hurricane preparedness relating to building improvements and upgrades are not only important in preventing destruction of the property, but also extremely important in obtaining property insurance at rates more favorable than otherwise.  Based upon historical events, as a result of this year’s catastrophic occurrences it would seem inevitable that the insurance markets will tighten up and premiums will increase.  Therefore the cost of insurance will become even more significant to everyone’s operations and each property must be more proactive in addressing mitigation efforts to help reduce risk and control premiums.  Further in this regard, each property must find the means to disseminate this property information to potentially interested insurers.  One client on St. Croix has taken a very constructive and innovative approach to this matter by creating, and continuously updating, which is imperative, a web site for their property insurance.  I refer you to www.schooner-bay.com/insurance for what can be done to impress and effectively communicate with prospective insurers and brokers.

Some of the Basics of How to Prepare for a Hurricane Loss Claim Include:

• Review & understand your insurance policy, especially any problem areas like coinsurance and exclusionary type language.  Also insure you have a complete copy of the policy & keep in a safe place.

• Pre-hurricane season preparation – plan for protection from the storm, particularly areas that are more vulnerable as a result of wind direction or wave action.

• Photographs of the property prior to hurricane season to show conditions.

• Report loss to your agent on a timely basis – gets adjuster out early and accelerates the process claim and settlement.

• Photograph all damages after the storm.

• Protect damaged property to mitigate further damages – facilitates full recovery.  Emergency post storm clean-up – tarps on roofs, water extraction – prioritize for your needs.

• Address “extra expense” to minimize any business interruption loss and mitigation efforts.

• Reservations – maintain records to assist in documenting loss revenues.  Maintain historical records in a secure place.

• Insurance company reserves – prepare early estimated damage assessments to assist in setting as accurate amounts as possible (very difficult, but extremely important).

• Claim preparation – must be proactive - prepare your own detailed loss assessment on an estimated basis – do not wait for actual costs.

In dealing with insurance coverage, it is important to understand some of the more common conditions of a policy and their application and make sure that insurance coverage is appropriate and avoid pitfalls before the loss occurs.  Go over at least the following with your broker:

• Replacement cost vs. actual cash value

• Coinsurance

• Agreed value endorsement

• Ordinance / code upgrade

• Loss of off-premises power & water

• Costs of architects & engineers in reconstruction

• Foundations, walkways, roads & landscaping

• Blanket coverage

• Consequential business interruption

• Deductibles for windstorm & earthquake

• Appraisal clause - know that it exists

In the Event of a Loss, Note the Following to Maximize Your Claim Recovery:

• Must be proactive

• Understand policy terms and conditions & how they apply to the loss

• Use of experts

• Schedule meetings with company adjusters and address:

• Scope of loss

• Evaluate alternatives to reconstruction - seize the opportunity for enhancing capacity / efficiency

• Participate in establishment of reserve for your loss

•  Request advances

• Document the Loss:

• Photographs

• Keep accurate cost records

• Preserve damaged articles for adjuster’s inspection

• Preparation of your own in-depth loss estimates

• Losses can be settled on an estimated basis

• Responsibility to mitigate further damages

• Precision in uncovering critical detail

• Be aware of diminution of useful lives

• Mitigation of business interruption loss used as a leverage in settling property

• Efficient handling of continuing expenses

• Use of extra expense coverage

• Negotiating skills / negotiating on an informed basis

• Business interruption loss & extra expense

• Net income plus continuing expenses - projected based upon trends

• Ordinary payroll expense exclusion

• Address costs to stay in business & mitigation; i.e., extra expense -have a plan

• Restoration period and any extended period – think through to settle on an estimated basis

CHA/CAST in conjunction with CTO & American Express has produced the ”Hurricane Preparedness Manual”. This manual covers hurricane preparedness and response and post-disaster mitigation and recovery. It offers advice on guest and property safety and security, insurance coverage, and disaster communications.  Each year from April - July, CAST offers Hurricane Preparedness Workshops to the tourism sector.  For more information, contact CAST  at 787-725-9139 or via email: cast@caribbeanhotels.org.

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Green Tourism Corner

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Leading Lights

Leading Lights are Caribbean leaders who have made significant achievements in the environmental and social performance at their properties. This issues 'Leading Light' was interviewed about her leadership and philosophy and these are her words:

Lucy Fleming, Owner, The Lodge at Chaa Creek Adventure Centre, Rainforest Reserve and Spa: "We believe strongly in the merit of sound environmental stewardship as not only having the least damaging impact on the natural land base but also direct responsibility for enhancing cultural integrity, promoting national pride in the natural resources of Belize, and instilling positive future career goals for the youth. Staff understand the importance of maintaining Chaa Creek as a model of sustainable nature-based tourism and are encouraged to promote this concept through innovative involvement and also through attending various course studies applicable to their fields of expertise within Belize as well as through internship programs organized by Chaa Creek at state parks and tourism related facilities abroad. We are very proud of our out reach programs in environmental education facilitated by a teachers training program utilizing a 60 page teachers training guide written by Chaa Creek. A workshop took place this year to review the actual working impact of the program with our local village schools. The workshop was partnered by the State University of New York . Teachers from the US and Belize had the opportunity to review the merit of the training program and by all accounts the program is a success with another follow up  workshop scheduled for 2005."  

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CAST News

• Green Tourism Conference, July 21-24, 2004, A Resounding Success:

  • The Conference report is due out shortly but the energy and feedback at the Conference was very positive. Contact Hugh Cresser, Conference Convener at east@infochan.com for further information.
  • CAST conducted a Silent Auction which raised $6,500 thanks to the eager participation by conference attendees who will no doubt enjoy their spectacular prizes. CAST would like to once again thank all the hotels and tourism businesses which generously donated these prizes and made the auction possible. As an initial endowment for an environmental scholarship, CAST will donate $2500 of the funds raised at the auction to the Caribbean Hotel Foundation. Stay tuned for more details.
  • An informal discussion, convened by CAST, was held between representatives of Green Globe Asia Pacific, global managers of the Green Globe 21 program and registered Caribbean properties. The discussion focused mainly on Benchmarking – a recent addition to the Green Globe 21 certification process.  Businesses must have their operations benchmarked against key performance indicators such as resource consumption (energy, water), social commitment, production of solid wastes, usage of chemicals etc. Issues discussed ranged from the methods of calculating the performance indices, to their suitability for the Caribbean territories and the need for a Benchmarking guidance document. Contact CAST at cast@caribbeanhotels.org for further details.
  • The following four conference participants, pictured in front of the CAST booth, were able to attend thanks to the generous and continued support of American Airlines.

  

  From Left to Right: David Edgell, Lissette Gil, Kurtis Ruff, Ronald Sanabria

  • Andreas Mueseler, Environmental Manager of LTU Touristik one of the big tour operators in Europe provided the following information about what European visitors to the Caribbean are seeking when purchasing their vacation packages:

• 81% regard the natural environment to be as important as culture and heritage

• 79% consider unspoiled nature and environment to be important;

• 74% would avoid choosing a destination that is over-developed

• 70% want qualified information from destinations on their environment, culture and heritage

• 40% are willing to pay a surcharge to protect the environment.

• Small Hotels are Better Equipped to Handle Environmental Issues: The two year Caribbean Hotel Environmental Management Initiative (CHEMI), which was funded by USAID and implemented by PA Consulting Group has increased environmental awareness and provided environmental improvement assistance to 200 small Eastern Caribbean hotels and hoteliers. For detailed highlights of CHEMI and the ongoing resources that will now be available at CAST because of the project please see the CAST website: http://www.cha-cast.com/programs.htm

• New Monthly Newsletter for Green Globe Certified and Benchmark Properties: On October 29th CAST will be distributing via e-mail the first of its new monthly newsletter titled: The Globe Trotter: the Green Globe Caribbean Newsletter Presented by CAST to all Green Globe Certified and Benchmarked properties. The Globe Trotter will be released on the last Friday of every month. This newsletter is to serve as a comprehensive resource and communication tool for all involved in the Green Globe program. All are encouraged to highlight their new programs, special offers and showcase new technologies or services on a regular basis. Information to be considered for publication should be sent to jdohrmann@caribbeanhotels.org (please note that CAST reserves the right to edit all content for quality and length).

• Special DVD SALE!! Take advantage of a sale now on while stocks last on the newly released DVD series titled: “Environmental Best Practices In Action For The Hotel Industry” (2004), a series of 5 environmental best practice videos all on one DVD. According to Richard May, Group Director of Environmental Affairs for Sandals Resorts International, "I think the videos make for an EXCELLENT TOOL for senior management orientation to EMS and its benefits and in my experience... it is senior management that creates the most hurdles until they understand the process and its goals. These videos should help new hotels to at least get 80% over that hurdle."  SAVE 50% NOW  on this exciting new video series when you ORDER TODAY. Click here for More Info or Click here to Order

• CAST to Attend WTO Policy Forum: From October 18th – 20th 2004 CAST's Director will be speaking on the experience of the Green Globe 21 program in the Caribbean at the World Tourism Organization’s Tourism Policy Forum at George Washington University in Washington D.C. The purpose of the forum is to analyze how tourism may be used as a mechanism for sustainable development. For more information on the event see: http://www.world-tourism.org/education/PDF/policy_forum/TPF%20Concept%20Paper%2025.6.pdf

• CAST NEEDS YOUR SUPPORT!: CAST is currently conducting a fundraising effort to garner support for its promotion of sustainable tourism practices throughout the region; including, but not limited to, community based initiatives and the improvement of hotel operating standards. CAST is continually evolving to serve you better. It’s your paradise and our Mission, so send in your contribution Today!  More info.

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On The Wire

Follow Up to the March National Geographic Study: In the last issue of the BroadCAST CAST mentioned the different Caribbean countries that were highlighted in the March 2004 study which ranked 115 global destinations. The article titled "Destination Scorecard" featured ratings that were based on a survey of some 200 experts in fields such as urban planning, sustainable tourism, anthropology, and geography. National Geographic has now released a selection of comments on all 115 places made by the panelists on whom the ratings were based. For example, one panelist said this about Bonaire, Netherlands Antilles: "It has taken a generation, but this is a good example of how the enlightened self-interests of the local people can be tapped so they are partners in maintaining environmental and ecological quality."

To read the full list of comments see: http://www.nationalgeographic.com/traveler/scorecard/

Green Globe Training Course Scheduled: Green Globe will be holding a training course from Tuesday October 19th through Thursday October 21st at the Normandie Hotel Conference Centre in Trinidad. This Green Globe course will provide assessors and individual consultants with an in-depth review of the Green Globe 21 Company Standard and the ‘ABC's of GREEN GLOBE’ and introduce the concepts of Benchmarking and Sector Benchmarking Indicators. For more information and registration forms click HERE.

Bay Gardens Hotel in St. Lucia Invests in the Local Youth: For the third consecutive year, the recently Benchmarked Green Globe 21 property has taken on the responsibility of training four secondary school students, with pay, during their summer holidays. The students are given exposure to the varied operational areas of the hotel through a rotation program where they work in the following departments: administration, kitchen, restaurant, accounts, and reservations. “We are proud to contribute to the development of our youth, because we believe that our human resources are a major factor to sustaining our industry,” said Bernice Justin, Bay Gardens Accounts Manager.

World Tourism Day, Monday September 27th: The World Tourism Organization has set as the theme of this years World Tourism Day: Sports and Tourism, which is particularly pertinent to the Caribbean considering the short time frame before Cricket World Cup 2007. Click HERE to view CAST's World Tourism Day Message.

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Feedback From Our Readers   The upcoming January 15th issue of the BroadCAST will have as its theme: "Cricket World Cup & the Caribbean Hotel Sector: Preparing to Perform" CAST will be focusing on the preparedness of the hotel sector in the 9 selected countries that will be hosting matches, Antigua, Barbados, Bermuda, Grenada, Guyana, Jamaica, St. Kitts / Nevis, St. Lucia and Trinidad & Tobago. If you have comments or an article that you would like to submit please e-mail submissions to cast@caribbeanhotels.org before December 10th.   CAST also encourages readers to send in comments and feedback on BroadCAST articles, news and achievements from your properties, or with your own questions or concerns,   All submissions should be emailed to cast@caribbeanhotels.org

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Caribbean Alliance for Sustainable Tourism

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