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Adrian Loveridge - Hotel Owner
Adrian Loveridge – Hotel Owner

At a time when various Caribbean Ministers of Government have recently met and agreed to levy yet another tax on intra Caribbean air travel, its time perhaps for them to contemplate exactly the effective its having on land based tourism. A seven day cruise departing from Barbados was recently advertised with one of the largest companies, taking in St. Lucia, Antigua, St. Kitts, Puerto Rico, St. Thomas, Dominica and back to Barbados.

With a lead-in price from US$449 per person plus mandatory gratuities, Government fees and taxes, it represented what many might consider outstanding value-for-money. Especially as when you consider most meals, and other features like entertainment are included. Of the overall total cost, an amount of US$55.42 per person is shown as Government fees and taxes.

Now let’s say you were the same person considering visiting our Caribbean neighbours and taking the cheapest published airfares between point to point, what would you pay in Government taxes and add-ons?

Barbados-St. Lucia US$61.87; St. Lucia – Antigua US$82.57; Antigua-St. Kitts US$42.10; St. Kitts – San Juan US$52.70; San Juan – St. Thomas US$34.50; St. Thomas – Dominica US$33.00 and Dominica- Barbados US$25.38! So a massive US$332.12 per person in taxes and add-ons to visit the same number of destinations by air! In fact this figure is even higher, because some governments are not yet including the departure tax in the ticket price.

Now what about the overall contribution to the region?

Well we know many of the ships are not registered in the region. We know they largely employ extra-regional crew and officers, who as far as I am aware contribute little in national insurance contributions, income or other taxes to the Caribbean. The overwhelming percentage of what is consumed onboard is sourced outside of the Caribbean. And finally, where does the lion’s slice of the revenue and profit generated from the world’s largest cruise market go?

Of course, outside the region!

On the other hand, the almost dominant regional airline has been subsidised over decades by the Caribbean taxpayer. The reason we are told the departure taxes are so high is because we need to upgrade the airports, but wait a minute, don’t we, and haven’t ‘we’ upgraded the ports as well? So how can anyone reasonably argue for airports to extract more than six times the amount in taxes than our ports do?

For the ship cruise operators, when the going gets tough, all they have to do is haul the anchor and sail off to Alaska, Dubai or the Mediterranean. Hoteliers and other land-based tourism partners sadly do not have that option. I am not, repeat not advocating against the cruise ships and their recognised contribution. But simply asking the playing field to be levelled to a degree where we can at least think of competing and surviving in these troubling economic times.

Yes! There have been repeated calls for hoteliers to lower their rates and make them more affordable to Caribbean Nationals, while at the same time considerable pressure has been placed on them to maintain employment. Most of recognise the desirability of having a truly pan Caribbean marketing campaign, but don’t do it at the expense of an already barely viable accommodation sector.


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  1. I hope this article was placed in the main stream press… it makes the case as clear as day is to night that there is something not right here.

    Personally, as important as tourism is to Barbados, I despise the industry. At one large hotel chain new employees are forced to work for free for as much as three months so that management has a chance to asses you. You are virtually on call seven days a week. You are expected to put in more than 8 hours a day but cannot claim over time and reporting for work late is an almost sure reason for dismissal. I believe that industry is as exploitative as they come (probably true for all destinations in the world). As much as I respect the brain of Mr Loveridge and being very aware of the vital importance of the industry to the region, tourism being the necessary evil that it is will attract no sympathy from me.


  2. Adrian L et al

    It has become a numbers game. The economic model at the airport dictates that revenue levels must be x and expense y to ensure an ROI of b. Where the lads get it wrong is when market conditions change and commonsense says that you may have to revise b because the airport operations is a key input in the GDP model.

  3. Adrian Loveridge Avatar
    Adrian Loveridge

    David,
    I largely agree with you.
    It was refreshing to hear the MOT recently point out the revenue/arrival number comparision between Barbados and Jamaica.
    Something that some of us have been pointing out for a long time.

    I believe to partially ensure this happens less often is that ALL Government (taxpayer) owned enties MUST publish in the local press their audited accounts within SIX months of the end of their financial year.

    This would ensure that independent financial observers could comment of each entities performance and if the monies were being spent cost-effectively.

    I too, want to see the accounts for GAIA Inc., and see how these windfall departure taxes are being spent.

    All these years on and we (the public) are still waiting to see the audited accounts of Hotels and Resorts Ltd.


  4. The question remains: whether the role of the Auditor General and by extension the government. Is it not true that the AG has the authority to turn his findings over to the DPP?

    So where do we go from here when government corporations/boards continue to flout the law?


  5. I would like to see financials for NIS. Anyone know when the last audited financials were produced for this institution?


  6. One would think that a democracy’s ability to change governments regularly should be to some advantage. Hey do not fault me for being anti-democratic. It’s all a deception game anyway. If all you are doing is swapping out one set of questionables for another set, why bother with the expense of an election?


  7. Hope springs eternal. The hope is that until we get a more transparent system of government the people can restrict the looting by the two parties.


  8. Damn it Nostradamus

    While we at it let’s see the figures for the amount of money spent in overseas travel year by year for the last five years by Government Ministers and their entourages. In fact let’s compare the travelling expenses of Billie Miller with the current Maxine McLean.


  9. We find the nomination of Dr. Jean Holder interesting in the upcoming awards. Does he not preside over an airline which is the epitome of inefficiency? Interesting is the advertisement placed in the newspaper supporting the nomination. Money well spent we ask?


  10. Dr. Jean Holder Haaaaaa Haaaaaaa. Murdah somebody open a window. HAAAAAAA HAAAA…..!


  11. BAFBFP, as Winston Churchill was quoted as saying “It has been said that democracy is the worst form of government except all the others that have been tried.”


  12. You know Nostradamus
    I disagree with Churchill. Maybe it is that the others were not given a good enough chance to thrive. This democracy thing is awaiting serious modification and/or revamping. Man I got some real ideas but this is AL’s thread so they’ll have to wait..!


  13. “one man’s democracy is another man’s dictatorship”-anonymous


  14. Churchill, BTW as near a dictator as dammit, never in his wildest dreams envisaged the web.

    True emancipation from these immoral scoundrels oa less than 5 years away.

    Instant referenda, proportional representation, true democracy.

    It may not turn out to everyone’s satisfaction, but the whim of the people will overcome the deceits of the elite.

    Brave new world.


  15. oa less than 5 years away? Wait Mia due for a life-style type demise”


  16. Chewing Mia seems to be good fodder, try using the dung in agriculture. Yall surely got a fixation and can’t get over it . Deal with issues and face facts. Why
    such rot.

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