‘What needs to happen is this…we have to get out of this notion that the Government is here to prop up every business’ – – David Rice CEO/President – Barbados Tourism Authority (Barbados Advocate – 24 February 2011)
From a tourism perspective that is of course unless your business is called Hotels and Resorts Ltd (GEMS). In which case you will receive almost unlimited support to ‘prop’ you up, including a reported BDS$247 million (losses) or nearly three times the annual budget of Mr. Rice’s organisation!
The majority of our small hotels have been left floundering while GEMS has for over ten years been ‘propped-up’ by Government and allowed to practice persistent predatory pricing.
No part of the BTA’s nearly BDS$100 million budget is dedicating to marketing the majority of our small hotels and there is still no functioning committee to support this sub-sector with the private sector trade association (BHTA).
The BTA chairman, Ralph Taylor is quoted on StarCom news this morning that were ‘looking for value-for-money’, yet three weeks after being awarded the ONLY hotel on Barbados to be recognised as one of the 11 Best Value Caribbean Hotels, our property has not been highlighted by the BTA at all.
Mr. Rice has given the impression that there has been previous support for the majority of our small hotels by stating ‘Local businesses in the tourism sector need to take on the responsibility for marketing their own product, and no longer rely on the government for support in tough times’.
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The Scout
The hotel industry in barbados is not indigenous enough, most hotels try serving the same menus that the tourists are accustomed to in their country, when they then compare the price with what they pay in their country some believe that they are being robbed. We talk about “staycation” yet when a local goes to some of these locations, they are not treated in the same manner as the foreign hotel resident. We need to have a total different outlook at the tourist industry in barbados and look to marketing the country better with more involvement from local and the hotel owners must stop thinking that Government owe them everything and they just sit back and live large, many hotels is allege to owe massive bills for water, natural gas and property taxes, and drive big luxurious vehicles and live in similar houses, some in gated communities while average bajans who work hard to keep this country afloat have their facilities disconnected. The same thing happened with the plantation owners many years ago, they fleeced the then government, ran up massive bills, then pulled out. This mendicant attitude has to stop.
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e
well said scout
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Straight talk
What needs to happen is this … Scout.
Theories about changing management practices, Civil Service reform and NISE targets will not, in the short time we have before the SHTF, be of any use whatsoever.
The USA ( and so Barbados) may have to devalue more ( 20% already in the last four years), very soon.
Although price gouging may be happening, this devaluation has not been fully recognised as a major driver of our own inflation.
Our government, it seems, is happy to allow this devaluation to continue and give some relief to our external debt repayments.
Falsely believing they can use NIS funds as their bottomless piggy bank to finance current expenditure.
Some time soon there must come a reckoning, and admit we are living beyond our means.
There are ways for us to ride this downturn, but maybe our pride will baulk at the most obvious solutions.
But maybe swallowing some of our pride is preferable to Haitian mudcakes.
To those who say we have no natural resources, I say rubbish, we are lucky to have the cachet of one of the most desirable tropical locations in the world, and in that perception lies our short-term salvation, but maybe not in conventional short-term tourism.
No more of the rock should be sold to foreign investors, it is too precious to our survival, literally and socially.
Barbados needs critical action this year, not think tanks, consultants and other delaying bodies.
Action now for major results next fiscal year.
tbc
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Charlie
Sorry about raising this point here but the Hotelier who spoke at the Nation talk back should be shame to mention that he serves Jubilee juice to tourist as a complimentary drink.
I recognized every since that when you go to a hotel for lunch you get jubilee juice costing over $6.00 for a glass when a jubilee juice cost around $22.00 for a can that can make nearly twenty gallons of juice.
He would not even say that he offers tourists mauby made by Millar brothers as a complimentary drink. Mr. Hotelier how about golden apple juice, forget the artificial concentrated juice you are tricking the tourists with.
Any foreign exchange earned is always spent on things the tourist know about, for example fruit punch Jubilee juice
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Adrian Loveridge
Charlie,
Just on a point of correction, the person that raised the Jubilee issue is a not a hotelier, but Ralph White who manages Island Safari.
BUT as a hotelier, I agree with you. I recall being honoured to attend the Independent Awards at the Governor General’s house where Jubilee or some sort of ‘juice crystals’ were served as fruit juice only to find the catering company was owned by a former President of the BHTA.
Pine Hill had an amazing opportunity to market regional fruit juices with their associated company in Belize, but two of their latest products only contain 10% and 15% fruit
and one has added sodium. Can you imagine trying to sell a ‘fruit juice’ with added salt at the same time daily tv ‘ads’ are telling you salt is a killer?
We would love to be able to purchase REAL fruit juices locally on a commercial basis but the only way we can currently do that is to buy South African products.
In our experience visitors want to consume LOCALLY made/produced items and if that cannot be done then at least REGIONALLY made. Every time I go to Dominica there are thousands of mangos that have fallen off treees. Surely, someone is capable of turning those otherwise wasted mangos into pulp and supplying them to Pine Hill!
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BAFBFP
Second Street in St James is finally designated Whites Only … All that is needed now is the appropriate signage. I put this down to natural selection, an act of God!
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BAFBFP
With the cost of commodities rising I think the better thing to do is to process the Dominican mangoes in such a way as to significantly increase the shelf life and put them in storage … ja ja
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BAFBFP
The BTA is run by a highly qualified Bureaucrat … of the typical Crumpton Street variety! He admits to knowing NOTHING about selling…
Now here is the thing. Shouldn’t the BTA, along with EVERY overseas agency (Embassies, High Commissions, trade agencies, BIDC, Invest Barbados etc) be packed with expert Sellers instead of qualified Bureaucrats of the typical Crumpton Street variety?
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BAFBFP
Straight talk
The Central Bank Governor two weeks ago said that he and people in his field “CANNOT help you… that they have no advice to give at this stage”
What do you say to Barbados going along with the rest of the Caribbean and pegging to a non-US influenced REAL currency like the Yuan or indeed a basket of commodities? Inter regional Politics aside, is this technically possible?
Perhaps someone needs to go to Dominica and set up an operation to produce mango puree. Mango fruit can be successfully frozen, I freeze mine all the time for later use. I also post recipes on my blog using mango. http://benthamshouse.blogspot.com/2009/08/irwin-sweet-irwin.html
Bon apetit!
It is amazing that only in Barbados Restaurants and hotels serve fake juices. Go to Martinique, ALL restaurants serve fresh juices of whatever fruit is in season. Tamarind, mammy apple, golden apple, mango, passion fruit, tangerine, pineapple, orange, all locally grown. It is a big business there. Hotels and restaurants need to stop pissing pon peoples foot and telling dem dat it raining. Jubille juices taste like liquid plastic to me.
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Adrian Loveridge
Islandgal246,
Not all hotels.
We serve 100 per cent orange and grapefruit juice and bring in (from South Africa!!!) Mango,
Passion, Guava, Pomegranate etc., which is real fruit and grape juice.
We would not dream of serving Jubilee to our guests and we are only a 2 1/2 star prperty.
It is interesting to note that SBI as the sole importer of Jubilee has been using an invalid classification since 1981. Makes one go hmmm.
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Straight talk
@ BAFBFP,
I think it’s a non- starter now.
We are in such a state that our local gurus need the dollar’s devaluation to sort our own debt out, letting the US take the flak.
You are being moderated because you probably changed your browser. WordPress sometimes have a hard time with Chrome and newer versions of IE. When in doubt use FF to post on BU.
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anthony
David i think you misunderstanding the article. it not that they been using an invalid classification since 1981.
SBI said it entered the juice under the classification 21007 following a “classification opinion” it received in 1981. However, Sinckler said that classification no longer existed.
What should have been the next question was when was the classification discontinued. Seeing that they didn’t ask that the fourth estate seems to be lacking more now.
Thanks Anthony but we have become quite use to doublespeak from some on a matter like this one. Our reservation stands, something stinks.
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anthony
That is does. I have been trying to so see when the 21007 code was discontinued in the harmonize system. that said under the current code is should fall under 2009.12 or 2009.19. The one thing that we all can agree on it the price going to rise when it hit wholesale and retail.
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bajeabroad
It is the sole responsibility for ANY business to ensure it has a marketing plan in place to attract customers to its product of service offering. Come on, how can you start a business or develop a business plan with the expectation the someone else is directly on the hook for YOUR livelihood
With that said I am fully in agreement with any business that wants to go beyond their own marketing efforts to have co-ordinated marketing efforts with other organisations or the government, BUT let’s not take that to mean the gov’t should be totally responsible for marketing the business’ offering.
Sandals does an excellent job marketing independently in addition to the Jamaica commercials that I see on cable tv here. Bay Gardens in St. Lucia does a good job of that for a “small” hotel as well.
Let’s get off our lazy asses an be more innovative with the budget that our business has. Governments are being brought down by poor citizens via very powerful and ultra cheap internet twitter and facebook means. Shows the power of disseminating a focussed message via cheap vehicle.
If we don’t have the budget to atleast do that, then let’s get real, we really don’t have a sustainable business! Stop the belly aching!
What is Adrian doing at Peach and Quiet that other small hotels are finding it to do?
Adrian have you ever been asked by BHTA or BTA to speak about the model you use? Has is ever been case studied?
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Adrian Loveridge
David,
Sadly, in a word NO!
I have had numerous promises from key tourism decision makers including ‘we have to meet each month’ and ‘I will look into this and get back to you later today’ but nothing happens.
We don’t pretend to have all the answers or any magical formula, but don’t insult us with a senior Government salaried spokesperson telling us that Government is not here to prop up the private sector after hundreds of millions of Dollars (our money) has been squandered on GEMS.
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The Scout
Adrian Loveridge
Yes much money was squandered on GEMS so should this government squander more money on other hotels? The buck has to stop somewhere or the financial hemorrahaging will contiue
islandgal246
In the short term Barbados can purchase fruit from Dominica, this was suppose to happen at the start of this administration’s term in office, the first shipment is still waiting for an ETA. However, with the large amount of slippage within the Scotland district and the large amount of waste land with big “river tamarind” trees growing, if these trees were replace by fruit trees Barbados would not only become self-sufficient in fruit but we would be able to export also, check the many mangoes, tamarinds, golden apples that fall every years and wasted. Somebody needs to start an industry in pulping these fruits and marketing them.
But Scoutie wasn’t that the plan in the 70’s when the then government started planting fruit trees in the scotland district? So what happened? Hey we could start a business Scout. I had a plan years ago to grow passion fruit on a large scale. I tried talking to a few people and all I was hearing that the monkeys will take them. I still believe there is a business to be started. I had called Pine Hill dairy and asked where they were getting their passion juice concentrate, they told me Dominica and later on from Dominican Republic I think. I got some land next to mine that I could rent and set up a vinery for passion fruit. You interested?
Scoutie I really serious. I got dirt in muh veins.
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Prodigal Son
During the expensive swearing in ceremony in 2008 seated right up front was the PM of Dominica whom the late PM said was specially flown in to do a deal to bring all manner of fruit to Barbados which were rotting in Dominica to Barbados. What happened?? Did even one fruit ever arrived here?
I am surprised to hear that we still have so much rotting fruit in Dominica when we could use them here!!! Wow was the research not done before this gimmick was foisted on a gullible public? I knew that the fruit couldn’t come in here just so!!
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The Scout
islandgal246
Ten years ago I wuld have told you “let’s go for it”, however, I’m now retired and am just willing to enjoy the rest of my senior time in the company of my wife. I’ve decided , what I have I’ll protect and learn to live off the hard work and what I was able to save. I’m sure some-one will take up the offer. For the longest time I was trying to convince the powers that be to do this project but no-one took me on, imagine Pine Hill buying bajan cherry pulp from Brazil and so many wild trees growing where valuable trees could have been growing and we talking about foreign exchange. I smile whenever I hear this nonsense, the problem some-one is getting big and they don’t care about the country; it is an individual thing.
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The Scout
Prodigal Son
I’m now hearing talk about leasing land in Guyana and taking the guys off the block and sending them down there to work. The person who came up with this idea could be the first to don his agricultural outfit and start digging. Imagine we have so many indo-guyanese here doing agriculture, why don’t they go back home and work all these thousands of acres of land there instead of begging bjans to rent them a little half-acre lot for $500.00 per year? Send the indo-guyanese back home and offer to purchase their produce from them.
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Hants
BAFBFP | February 25, 2011 at 7:57 AM |
“Second Street in St James is finally designated Whites Only .”
Please elaborate for the benefit of us overseas Bajans.
Holetown is one of my favourite places in Barbados.
BAFBFP “of the typical Crumpton Street variety!”
I am of the Crumpton Street variety but not typical.
My Crumpton street brother at the BTA needs to do some firing and hiring but he is not a ruthless bastard like Hants.
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Hants
David wrote “What is Adrian doing at Peach and Quiet that other small hotels are finding it to do?”
Let me state the obvious.
He is doing the fundamentals consistently well.
Clean premises, comfortable beds,pleasant staff, good food and drinks.
Note that I have never been to Peach and Quiet cause I is a Bajan wid relatives who does welcome me evah time I guh back.
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BAFBFP
bajeabroad
Tourism is too important and capital intensive a project to expect its proprietors to be masters of all the various skills required to make it work. Adrian Loveridge has the distinct advantage of being a product of his own target market. If he knows what has to be done to please him, he will be well on his way in succeeding in pleasing his target market. He is unique in Barbados. The rest could use as much help as the GoB could provide, after all if they must sink funds in aimless bureaucrats, of course they must then be capable to spend some funds on those who could actually help the industry earn foreign currency…!
Islandgirl
I am interested, but it is not the monkeys that I am afraid of, it is the other kind of primate, the one that will get increasing more desperate as the Bajan dollar value falls in the next few months …!
Hants
“Whites’ Only” Second Street has become. White Bajan girls are pimped by White Bajan Boys to very high paying West Coast patrons. The presence of single Black males is not good for business and is velly velly much discouraged, “by any means necessary…!” The proprietor of the major offending establishment, an ex-Broadway super star, is in very tight with the RBPF, after all he helps with their band and does a number of freebees for charity. As I said my man, natural selection …!
I am really serious. This was my dream when we bought this property 15 years ago. I know the two footed primate is the real pest to crops like these. Rats are also a big problem but that can be controlled. If you or anyone else that is interested, send me an email.
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BAFBFP
Sure you are serious,
But you are a romantic, a female romantic even, a dicy combination when it comes to investment propositions … You did say that you live close to the area that you have in mind however…
Luckily I, like many everyone else will need to find areas to offload excess savings, and quick. I am assuming that to contact you I must use your web-site. What is this thing about subscribing?
@BAFBTP …….Just go into my profile and you will see my email address.
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Hants
Is Nationnews following the BU lead?
“Barbadians need to get back to basics and grow their own food.
This was the number one suggestion from most of the Nation’s online readers who were asked what consumers can do to cope with the rising cost of living.”
Good advice anyway because Barbados will soon not be able to continuing importing food and your yard and fron garden will be your supplier of fruit and vegetables.
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bajeabroad
@ BAFBFP
“Tourism is too important and capital intensive a project to expect its proprietors to be masters of all the various skills required to make it work.”
Can’t this be said of almost any business? What makes Tourism in Barbados so special. Tell that to Sandals which is a Caribbean owned and developed property that does an excellent job marketing itself. It didnt start at the top, but like any business, when you do the fundamentals correctly, including marketing, people buy your product/service and provide the funding for you to grow.
Stop making excuses for “special hotels” in “poor” Barbados and let’s stand up in the real world. At some time we have got to understand that our business have to be globally competitive to the long term success of the island. No government can protect a business from that fact indefinitely
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BAFBFP
Since when is Earning Foreign Exchange for the Barbados retail freeloaders the same as “almost any business”?
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bajeabroad
@ BAFBFP
Don’t really want to get into a back and forth, but let’s get real friend, Tourism is not rocket science and there are many examples globally that our “astute” hoteliers can turn to for solutions on how to position our hotels correctly to offer value for money. Adrian L at P&Q mentions that he NEVER receiver TIRF yet he employs common sense practices….or atleast common sense practices in every other part of the world to ensure that his business is successful. Other small hoteliers can do the same, as it seems to work for him. No wheel re-invention needed
Now I am not saying that government must not offer ANY assistance to the tourism industry to maintain foreign exchange but come on there is alot that can be done by these hoteliers to be globally competitive….can list if you like.
It is absolutely astonishing that we focus so much on Tourism as an example yet the same abundance of sunshine is not put to better use in relation to reducing our dependence on fossil fuel. Same can be said in relation to the abundance of wind. We should be focused on subsidising business and industries that can be directly responsible for providing energy generation from alternative means, because in the long term it would have a large impact on foreign exchange spend on ever costly fossil fuels. This is certainly an area where capital and operating costs are high because globally we are still on a technology learning curve. It’s no surprise that the US is focusing on these subsidies now because in the long run that is where all economies will have to evolve to. Note that China is the top producer of Solar technolgy as well. The earlier Barbados gets on track the earlier we can decouple our foreign exchange from fossil fuels.
We already have an example in B’dos in the solar water heating industry. Barbados has saved $375 million Bds dollars in foreign exchange from 1974-2002 due to solar water heater penetration and has the highest per capita penetration in the Caribbean. This was LARGELY due to Government’s fiscal incentives where homeowner’s can deduct the costs of the unit. Clear example of government policy matching consumer behaviour for the benefit of the country and reduced foreign exchange demand. The same scenario is ready to be repeated with respect to alternative electrical in Barbados. Government leadership is certainly needed here.
That is just one example of where Government needs to really focus to solve structural problems WHILE providing smart assistance to key existing industries. I will leave you with a few questions.
(1) How many hotels buy fruits that are literally dropping off the tree from our small farmers to make purees or juices for their guest instead of buying expensive artificial imported jubilee juice from SBI
(2) How many hotels pool together and direct buy from suppliers out of the USA or Caribbean to eliminate the middle man distributor here
(3) How many hotels pool together to support specific local farms, and even advertise this as a potential visitor attraction to their guest a la winery tours in Tuscany Italy or Napa California.
(4) How many hotels have rooftop gardens or regular vegetable gardens on their property for that fact?
(5) How many hotels have solar technology employed to reduce cululative electrical costs over the next 5 years?
(6) How many hotels have active Facebook pages and twitter accounts as well as multi-language websites with a “web cam” view of current beach and sun conditions that you can experience “if only you were here”
(7) How many hotels “give away” 3 days at their hotel and collaborate with an airline to offer a gift package on a North American radio station just to generate buzz on their property and the island to listernships in the millions.
(8) How many of them pool together and jump on a plane to offer that packages themselves in person on popular radio stations in NY, Toronto or London for that fact?
(9) How many hotels employ local chefs that know how to cook what we grow around here and in the Caribbean as opposed to Steak and Pasta?
Government assistance….man give me a break!
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BAFBFP
bajeabroad
Now here is the thing. In Trinidad as in many other parts of the Caribbean, water is heated by placing a very small inexpensive device just before the shower head. No real impact on household electricity usage. Truth is, it is a far more sensible option to the thousands of dollars spent in the infrastructural cost that is s solar heater. But what the heck, solar heating is a job creation industry, so I have no problem playing my part. Is it a green activity..? When one considers all of the manufacturing processes and materials and fossil fuels utilized in the transport of the goods and services etc, hmm hard one to determine. Solar tech does NOT and will NOT earn foreign X for Barbados.
Now do hotels NET foreign X for Barbados … the jury is out. But with the enforcement of the buy local produce as you suggested, yes the industry would become more meaningful to the countries development. So the obvious opportunity for Government is the Quid pro quo … Government continues to subsidize the marketing of the property only if the property operates as suggested.
The major point that I will not back away from is that the earning of foreign X for a COUNTRY requires a variety of resources. To expect to find the entire skill set with in one household or indeed an entire pooling effort in the geographic space the size of Barbados is a bit of a stretch. If Government insists on creating civil service jobs then let some of the bureaucrats serve the major good in support of the Tourism trade. The marketing ideas that you have mentioned are fine. Maybe the BTA should prepare a formal environment for such activity to take place.
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bajeabroad
@ BAFBFP
Some points to note on your submission
(1) Trinidad has the absolute LOWEST electricity and petrol costs in the Caribbean because of the government’s subsidisation program, so OFCOURSE the average homeowner can use electrical heaters all day and still pay ridiculously low electricity bills. The government subsidises it. This subsidy is also the reason why their manufacturers are the most “competitive” in the Caribbean. Barbados does not have this luxury, as our electricity costs much higher. Let me give you some stats from the Carilec 2005 comparative study. B’dos – 22 cents/kwH (highest in Caribbean), Jamaica – 20 cents/kwH, Bahamas – 17 cents/kwH. Trinidad – 6 cents/kwH (lowest in the Caribbean)
(2) Read this response from the Spanish ambassador to Jamaica who is clearly bemoaning the fact that ELECTRICITY costs in Jamaica are making their Spanish investor hotels a la RIU hotel chain uncompetitive when compared to Mexico and Domimincan Republic. the link is here http://www.jamaicaobserver.com/news/Electricity-rates-too-high–says-Spanish-envoy_7674570
(3) ELECTRICITY costs underpin ALL business activity in a country, so if our government focuses on growing foreign exchange “revenue” and ignores the “cost” then the runaway “cost” in the form of ever growing oil and electricity prices will far outway any additional visitor revenue etc and also turn away any international investment in the sector anyway because the destination has simply become too expensive to operate. We ABSOLUTELY have to tackle energy costs! as it affects ALL business activity and these growth costs WILL outpace any revenue we can gain from tourism growth. (I am sure most of us here notice our bills and prices rise much more than our salaries! for some “strange” reason). Unless we address this we will be less competitive in ALL businesses
(4) On your main point that our hoteliers do not have all the skills needed to be able to market effectively therefore need government assistance. Well if an entrepreneur that spends ALL day and week in their business does not have the skills to promote their business then I have 2 questions
(a) What gives us the comfort level that these skills reside in a government bureacrat that has not been entrepreneurial in anything tourism? Has government ran Tourism ventures well….oh yes……Gems!
(b) Are these operators globally competitive in the long run since they don’t know or are able to obtain basic business skills? Should we be pouring tax payer dollars into these guys?
I agree with your quid pro quo proposal….funding/assistance should ONLY be available to those properties that have clearly demonstrated that they are employing successful strategies but can do with some additional help. Not just an across-the-board grant to lazy owners who have not even tapped out simple strategies that they can employ themselves!
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BAFBFP
bajeabroad
Ah hah … I sense a merging of minds here. I will not challenge the difference in energy cost between T&T and the rest of the Caribbean. The fact that it is a subsidized commodity is new to me, unless you are referring to the fact that Trinidad energy producing plants do not buy state oil at the “Export” (OTC) price. What might be of interest here is that Trinidad is under no obligation to sell any CARICOM country at the NYMEX price. They could negotiate much better deals with their neighbors but prefer not to do so in fear of attracting criticism from the opposition on giving away their national asset.
Now here is the thing. If Barbadians were to use the small attachments on their shower heads (were they to be made available in stores) they would hardly see a change in their electricity bills. The heating is done as the water exits the tubes; there is no heating of a large volume of water in a tank somewhere…!
Our head of the Biggest Supermarket chain in Bim said in a town hall meeting last week that the energy costs to the chain is a whopping three percent (3%) of his overall costs … THREE PERCENT! If energy costs go up further we are going to start the panic thing when the percentage hits five …! ja ja …
A Babbling radio host, in his perpetual brown nosing ignorance drew the public’s attention to our Government juggernaut employing some of the brightest and best that is on offer. What a roll. I am easily with you on that. But Government does use foreign X to pay for the services of overseas talent that we expect to deliver on a promise. They fail miserably sometimes, but the response here is try and try again, since other than for Loveridge himself, I doubt whether it is possible to find what is really needed on the island …!
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anthony
If Barbadians were to use the small attachments on their shower heads (were they to be made available in stores)
They are readily available in carters and other hardware stores.
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BAFBFP
Well Anthony you know that if was ever made common knowledge the WHOLE solar powered industry gone to shite … another industry destroyed once again at the hands of parasitic importer …!
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Hants
Why don’t the Solar Energy companies design systems that heat water and produce electricity.
The Roi of a Solar water heater is probably 10 years compared to the shower head heater but using hot water for washing dishes and clothes changes the equation.
@Hants: “Why don’t the Solar Energy companies design systems that heat water and produce electricity.
How?
Photovoltaic panels are already produced “elsewhere” for far less than we could produce them here.
And because the basic flat-plate collectors produced locally cannot heat any fluid beyond approximately 80 degrees centigrade, water does not change state into a gas, and thus cannot drive a turbine.
(One could, of course, use another fluid for the process of driving a turbine, but I question how many would be comfortable using, for example, heated methyl acetate around their homes….)
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