Margaritaville (Turks) Ltd achieved its highest annual revenue ever in 2019 despite being closed for two months due to hurricane damage.
The company’s revenue increased to US$7.59 million, US$1.57 million more than the previous year, as passengers to the Grand Turk Port improved significantly. Passenger arrivals to the port improved by more than 30 per cent to surpass the one million mark during the period. Some 1,064,408 people visited the port, the highest total passenger count to date, when compared to 818,832 in the previous year.
“The Grand Turk Port is experiencing significant focus as a strategic port in Carnival’s Caribbean itinerary and the company expects to benefit significantly from this,” stated its audited financial statement listed on the Jamaica Stock Exchange.
Though the number of passengers increased, there was a decline in the spend per passenger, which is a key performance indicator for company. Passengers’ spend dropped from US$7.35 to US$7.14 year on year, the company said. “Revenue lost as a result of the reduced spend rate was US$223,526.”
Among the factors that would have contributed to this decline are the length of time ships spend at port, the time of day the ships arrive, the particular days’ weather pattern and illegal beach vending.
The port welcomed 329 ships in the fiscal year, with 96 per cent of them being from the Carnival Corporation, which Chairman of Carnival Corporation Herrick Dear, stating it “speaks to the value of the brand and the satisfaction of our guests.”
Despite the increased earnings, profits for Margaritaville (Turks) dipped due an insurance pay-out it received in 2018. Net profits for the financial year was US$750,000 while it the previous year saw it make US$1.07 million; US$710 thousand of that amount was from insurance settlement resulting from damage from hurricanes Irma and Maria.
Margaritaville (Turks) said its outlook for 2020 is positive as passenger arrivals are trending similar to last year and it has achieved all its operating targets so far.
Margaritaville (Turks), an entertainment, food and beverage concept, is a subsidiary of the Margaritaville Caribbean Group, and developed by the Carnival Corporation in 2006.