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Adrian Loveridge – Hotel Owner

There are different versions, but my favourite is when the ‘going gets tough, the tough get creative’. It probably comes from spending most of my working life trying to turn tiny marketing budgets into big picture realities. What prompted this was reading the classified section of the local papers and seeing one of our accommodation competitors renting its rooms by the hour.

Concluding that this property is targeting a particular niche clientele, we cannot let any market share be eroded. We think therefore that in many cases, hourly rates might be to optimistic, so of course the obvious answer is to offer a per-minute rate.

Flippancy aside now is the time, more than ever, with a tourism driven economy we have to explore every possible opportunity to recover lost ground.

It’s hard to imagine how Willie Walsh the CEO of British Airways could have been any more supportive to try and limit any increases in the APD (Advanced Passenger Duty) next month.

His various comments were carried locally, regionally and internationally, appearing in every major circulation newspaper in the United Kingdom. Not only is it a direct threat to the world’s most tourism dependent economies here in the Caribbean, but as Mr. Walsh pointed out, it has potentially a devastating effect on employment and airline growth in Britain.

Together with the concerted effort of the Caribbean Tourism Organisation, Ministers of Tourism throughout the region, the Caribbean Hotel and Tourism Association and various other tourism trade bodies, any British politician who has had not heard the passionate objections to the tax or planned increases must be hiding under a very large rock.

Clearly, as someone that makes my living from tourism, I share their objections, but sadly the new UK coalition Government can argue the issue. ‘We’, are asking a sovereign Nation to remove or reduce taxes based on the premise that these increases will further erode the arrival of British long stay visitor numbers.

But, isn’t this the same argument that many of us in the industry have been pleading for Caribbean Government’s to reduce or eliminate the high taxes imposed on intra regional travel?

The justification for our departure tax, one of the highest in the Caribbean, is said to support financially the cost of the airport infrastructure and operational costs.

But if this is the case, why isn’t the same principal applied to the seaport?

How much does the average embarking cruise ship passenger pay in tax when joining at Bridgetown Port or transiting the facility?

Our Government charges 15 per cent VAT on all air travel purchased here.

What rate of VAT is charged on cruise packages?

We are always talking about equity and fairness, but if we are competing on a level playing field, then it has to be across the board.

Ultimately, Governments have to reach the conclusion that you can only extract taxes from people in so many ways. If you make a destination as being perceived as too expensive, those people will choose somewhere else to spend their already taxed income.

If they do not arrive, then Government does not collect VAT on accommodation, car rental, dining experiences, activities, attractions, shopping etc.


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9 responses to “Tourism MATTERS – VI”


  1. Very good points, Adrian. On the matter of the APD, are our Caribbean governments too lily-livered to take retaliatory action against British or European goods entering the Caribbean? Why not an increase in the Environmental Levy on their goods until such time as they remove or at least moderate the APD? They will, of course, claim that such a move is discriminatory, but then, so is the APD. We can at least claim, like they do with the APD, that it is helping with our efforts on the environment. On the question of charging a passenger head tax on cruise ship passengers, rest assured that the Barbados Port Authority subsidises cruise ship passengers by charging exorbitant rates to those using the cargo facilities, even when cruise ships take berthing preference over cargo ships. That is why container handling charges in Barbados are multiples of those charged in Trinidad.


  2. Hypocrisy – that is what we have with the Caribbean Governments with their unreasonable airport taxes that have reduced intra regional travel to a trickle, and now are crying about the APD. My business used to benefit from significant intra regional customers and the decline is staggering… admittedly some is related to reduced airlift but as Adrian has pointed out in the past several times… check on the cost of travel through the Caribbean in many cases just a bit more and you can be in Miami or New York


  3. Speaking of Niche Market and Clientelle,we have just heard that Staycation has netted the industry some much needed funds. Will these same clientelle and niche market persons who have made Staycation a bit of a success, be still welcomed when the same hotels begin to fill up with ‘real tourist’?


  4. Is this million dollars profit or hotel sales?


  5. @ oh my it actually cheaper to miami than it is to go puerto rico.


  6. Well said Peltdownman about the Port Charges to cargo ships… but somehow I feel that charges at the airport also help out with the costs at the sea port in some indirect way


  7. @ Adrian
    Help me work out some maths. A Carnival cruise on Victory
    costs less than 1000 Bajan dollars for an inside cabin cruising from Puerto Rico . If you
    join the ship 3 days later at Barbados and visit the identical ports, you pay almost 2000 Bajan dollars. Who
    pockets the extra 1000 dollars? Doesn’t Government get a cut of the extra charges? If that is the case , would you call that a tax/

  8. Adrian Loveridge Avatar
    Adrian Loveridge

    Peter,

    Its a good question and perhaps Martin Ince at Foster Ince Inc., could answer it for us.
    My wife and I have done this actual cruise on Carnival Victory (out of Barbados) and we booked and paid directly through an agent in the USA. From memory we paid around US$500.
    Operational costs for cruise ships are VERY different from land based tourism entities.
    No land tax, no national insurance, no duties on their consumables and in many cases they do not actually pay wages, as a substantial proportion of their employees work for service charges (paid by the customer).


  9. the people of Barbados need to understand that without tourism there would be no big screen tv or pretty car or boat.
    yet jet ski operators hound down innocent tourist daily.
    making noise and waves .
    nearly killing anything in their way.
    in Hawaii jet ski are only allowed in certain designated areas away
    from the tourist areas.
    also boats like thriller and extremely fast boats are not allowed because of dolphins and turtles.
    i wonder how much of a thrill the turtles get being run over by super fast boats.
    i mean come on.
    most of the tourist want to go places that are safe.
    in Barbados you have to watch out or get hit by some boat.
    things like this is why tourism is down and dwindling.
    nothing more.
    then i see in the nation some fat ass woman letting tourist touch he false bottom as a welcome to Barbados.
    in the USA and Canada this depiction of a black woman would be not tolerated.
    OK you are depicting blacks as big lipped and big bottomed.
    and a woman on top of that.
    really??????
    these small things turn off tourist.
    wake up Barbados.
    get with the program

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