fp Turks and Caicos

A recent market study, “The Survey of Affluence and Wealth in America” by American Express Publishing and Harrison Group, found that the Turks and Caicos ranked third on the wish list of planned vacation destinations for the American wealthy.

“This is big news,” Dr. Jim Taylor, Vice Chairman of Harrison Group, told a group of local business owners and managers at a workshop organized by Grace Bay Resorts at the newly opened Veranda. “Turks and Caicos ranked above all other non-US Caribbean destinations aside from the Bahamas,” he said. 29 percent of those surveyed said they planned to take a trip to the Turks and Caicos in the next two years.

Six million households make up the Affluent, Super-Affluent, and Wealthy families in America. Largely middle-class in origin, middle-aged, and at the peak of their income-earning years these consumers have a profound impact on the economy. “When we refer to the “wealthy,” we are referring to people in the top 1% or ½ of 1% of the American economic spectrum – these people typically have at least $5 million in liquid assets (i.e., not including their primary residence), or have at least $500,000 in annual discretionary income. When we refer to the “affluent,” we are referring to approximately the top 5% of the economic spectrum, which is closer to $1 million in liquid assets or $125,000 in annual discretionary income,” Taylor says in his new book “The New Elite: Inside the Minds of the Truly Wealthy.”

The Turks and Caicos has focused its marketing efforts on positing itself as a “high-end” destination, putting itself right inline to be of interest to this affluent American market. “Our focus has been attracting those individuals in the segment with a greater amount of disposable income,” said Caesar Campbell, CEO of the Turks and Caicos Hotel and Tourism Association. Understanding the needs and wants of this client is critical to the long term success of the country and the developments in it. The American Express Publishing/Harrison Group survey says the millionaire of today is very different for those of year past.

There are two important myths Taylor dispels regarding the wealthy in his book, which tie together and speak volumes about the current travel market in the Turks and Caicos.

Myth: The wealthy spend freely and take their money for granted. Reality: Money matters. For the wealthy, making and spending money is serious business. Very serious. Nearly three-fourths come right out and say “money is very important to me.” Some of this attitude is simply an extension of the middle class mindset.

While many assume most money is inherited, according to the survey, most millionaires today come from middle-class households, and roughly 65% have been wealthy for less than 15 years. Along with their newly found wealth comes a middle class mentality that is still frugal. About 84% say they spend with a middle-class mindset, according to the American Express Publishing/Harrison Group survey. Taylor says much of this attitude is rooted in hard financial realities. “The wealthy worked hard for their money, and easily recall the day-to-day struggles they faced before financial comfort arrived.

Indeed, those days weren’t all that long ago.” This fact translates into the reality of buying luxury items on sale, hunting for bargains – and even clipping coupons.

This would explain the recent trend seen in the Turks and Caicos toward last minute travel booking and customer quest for travel deals. Nikheel Advani, COO of Grace Bay Resorts, confirmed that guests in today’s market are seeking value and as a company, they continue to offer incentives and packages to satisfy the deal seeking affluent customer.

Taylor also revealed for these affluent customers, “Spending time with family really matters to them.” They seek vacations where they can retreat away from the hectic, high power life in New York, rating privacy, a stress-free environment and high service levels as most important factors in their vacation decisions.

Although not all predictions for 2010 are rosy. Many experts are still undecided on whether the American recession is over or not, almost all agree the outlook for the next five years is positive. Critical for today is to prepare to take advantage of the market when it truly bounces back.