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Adrian Loveridge - Hotelier
Adrian Loveridge – Hotelier

Just over a week ago, my wife and I experienced a staycation at Sandals Casuarina.  An enormous amount of discussion has taken place concerning the extraordinary concessions granted to the Sandals companies and as I was not personally familiar with the product thought it was important that I tasted what is often referred to as the Sandals ‘WOW’ factor first hand.

Despite the website [Sandals] at the time showing that the hotel was fully booked until the middle of March 2014, I managed to reserve a room online for the dates of my choice and pay in full at published rates by credit card. Bookings are processed by yet another company, Unique Vacations Inc., based in Florida and an email confirmation was sent. Noticeably absent were any taxes or corporate information, including office address or contact details.

Having a few queries prior to our stay I emailed Adam Stewart, the CEO of Sandals Resorts International (SRI) and within minutes he responded personally apologising that because he was currently travelling, he had passed my concerns over to the General Manager (GM) of the hotel. Still within one hour, Josef Zellner, the new GM not only answered my initial questions but went on to monitor our reservation and ensure a seamless check-in.

Over our four day stay it soon became apparent that Joe was a hands-on manager, frequently seen in every area of the property from as early as 6am until late at night. Frankly, when so many senior personnel appear to find the comfort of air conditioned offices more attractive it was a refreshing change.

At this stage I think it is very important to point out that I have only stayed in two all-inclusive hotels in my entire life, the Montego Bay Sunspree Holiday Inn and the Jolly Beach Resort in Antigua,  observations made has to reflect this.

Clearly, even after four weeks re-branding from Couples, there is still a lot of work necessary to fully ‘Sandalise’ the hotel but you get the feeling that it is progressing as planned. The vast majority of the staff are friendly and helpful. When I brought up the subject of a three months probationary work period a Barbadian waitress we talked to could not have explained it any better. She said that during the current challenging trading times that this was not at all unusual and by no means limited to the hospitality industry.

There were a number of surprises, especially the current very limited use of locally available products. These included Banks Beer (draft and cans), Pine Hill milk, BICO ice cream, BBC bottled water and some soft drinks. As the birthplace of Rum not a single Barbadian produced brand was available at any outlet. I really hope that considering the tremendous commercial advantages Sandals has been given that Government can exert some gentle pressure to ensure a higher percentage of consumables are sourced here. It was however, commendable that local craft vendors have been allowed to establish a presence on the property to sell their wares.

On check-out, we asked for a receipted bill, but as all bookings are processed offshore one was not available. Apparently only incidental items including extra charges are payable locally and that again raises the question of VAT and ensuring a level playing field with the remaining tourism sector on Barbados. Would it therefore be unreasonable for the taxpayer to be told the net foreign exchange contribution to Barbados the company (SRI) will be making, after each trading year?


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94 responses to “Bajan Sandals Experience”

  1. Caswell Franklyn Avatar

    Adrian

    Staycation or spycation?


  2. This posting goes right to the heart of this government’s blind spot on monetary policy.
    About two years ago I recommended ten friends of mine to stay at Almond Resorts, which also claimed to be all-inclusive. Their payments also went through the southern United States.
    I am sure that neither Sandals nor Almond Resorts is deliberately breaking the law in Barbados, but a general policy of having offshore payments for bookings in Barbados goes far beyond just administrative convenience.
    It involves VAT payments, as has been pointed out, but equally accounting practices, including the profitability of the local branch/subsidiary. It also involves internal pricing, a massive loophole for cross-border firms.
    This can easily become an accounting black hole in which cash flows out of Barbados without the authorities even realising it.
    We are paying a heavy price for inviting Sandals to Barbados, for reasons not quite clear.
    Is sit to give Sandals a wider geographical reach? To create local jobs, as another distributional outlet for local producers, or, to expand the Barbadian brand?


  3. I rented a van in Barbados one year through a company in the states, the money was paid up front to the us provider when I got to the island picked it up at the airport. It cost me a lot less for the van than booking it direct with the rental agency, and you wonder how much of that money ever even makes it to the island or will it end up in a foreign account

  4. Adrian Loveridge Avatar

    Caswell,
    I thought it important that I got a personal impression of the product and the likely impact it would have on our tourism industry generally.
    I am sure the Minister of Tourism and Minister of Finance had already stayed there with the same objective before granting such extraordinary concessions.


  5. It is not only in the tourism industry forex leakage has been taking place for years. In the distributive sector as well. And the authorities may well know about it.

  6. Code Name Octopussy Avatar
    Code Name Octopussy

    The blog owner says that he makes no money from this blog
    I believe him


  7. @ David
    “In the distributive sector as well. And the authorities may well know about it.”

    Please explain.

  8. Caswell Franklyn Avatar

    Adrian

    I hope you were speaking in jest, and if you weren’t, I hope that they would have paid out of their on resources. Otherwise it would be corruption.

    >


  9. its always the opposition that cry corruption, those in power call it teamwork


  10. As i have been saying, Barbados sees very little of the millions to billions of dollars generated by the hotels on the island, the island and it’s people should be paid directly for all this largesse enjoyed by hotels, no concessions are owed to or should be given to hotel owners in Barbados by government, of course, the government(s) are too DUMB to realize this and act accordingly.


  11. The following is a quote from the latest MOF on “Statement on Governments Fiscal Consolidation Programme ……

    Cabinet has also agreed to support following additional measures:

    1. A 10 % cut in the salaries of all Ministers, Government MPs, Parliamentary Secretaries, Personal Assistants, and other persons designated as “political appointees” in the employ of the government.

    2. A 50% cut in the external travel budgets of all ministries, and statutory boards.

    3. A freeze on all non-statutory discretionary waivers unrelated to the earning and/or direct saving of foreign exchange for the next three years. It is projected that this measure could save the government at least 100 million dollars over the period.

    O f particular interest is #3., does this means all Sandals concessions are on HOLD for the next three years ?


  12. Why doesn’t the MOT wait until the numbers come in for the winter season before mouthing off.


  13. @Adrian and Hal.
    Hal, two years ago the Almond was owned by Neal and Massey in Trinidad. When they acquired BS&T, they also obtained Almond since it was part of the BS&T portfolio. I thought you knew this. If
    you had read my contributions carefully you would have seen that the sale of Almonds; (on the spurious claim that it was not making money, and Neal and Massey had to close it and sell it) meant the immediate loss of jobs by over 6oo persons. Pressure was put on government immediately to do everything to save those jobs, and counter the negative effect on the tourism industry. Note that NO PRIVATE SECTOR (BAJAN) companies stepped in to fill the Breach. (Paul Doyle is not Bajan) The tourism sector could not come up with viable alternatives. I immediately saw this as the selling of the least productive asset in the obvious leverage buyout. It could not therefore be expected that funds would pass through Barbados in any case. It belonged to Trinidad. Based on the above, the decision of the Barbados government to BUY it back and rebuild it, and the decision to let Sandals manage it under the Beaches brand, was an alternative solution. Now, you tell me what you expect in the circumstances.

    @Adrian, How is it that you, a hotelier; a Barbadian hotelier, have NEVER VISITED OR SPENT TIME AT A BAJAN ALL iNCLUSIVE; AND WE HAVE HAD MANY; tHE ESCAPE HOTELS(PROSPECT, ST JAMES,ESCAPE IN THE GAP), THE BARBADOS BEACH CLUB, THE SAVANNAH, and even Almond before it was closed. How is it you never checked out the opposition (competition) and now all of a sudden you are checking out Sandals. By the way was Casuarina an all inclusive before? You also seem to forget that the products you named; Banks, BICO, BBC, and Pine Hill, are no longer Barbadian products. they may be produced in Barbados, but they are now Trinidadian owned. (Part of the BS&T portfolio) As a consequence it is not unreasonable to expect that Butch Stewart would not want to give more money to Trinidad.People like you have to get accustomed to thinking of these companies as “foreign”; Trinidad owned, and not Bajan. Not even the Rum is locally owned. Mount Gay is owned by Remy Martin (I told you so already) You should be encouraging David Seale or Alleyne Arthur to be pushing their products more. Their marketing managers should be sitting on the steps of the Sandals office and not moving until they can get their products at the forefront. MARKETING, is the key. Guerrilla marketing if necessary.

    And David, Barbados has been the distribution capital for Trinidad products for many many years. Where else do you think our foreign exchange has been going for so many years? From inter company transfers from CLICO, to CL financial and mr Dupre; obviously to finance investment opportunities in Florida, through manufacturers fo whom SBI etc are the distributors; and if I am not mistaken, SBI was in BS&T portfolio, A.S Bryden, Stokes & Bynoe etc, are all Trinidad Owned and managed.
    Do you think Trinidadian managers are going to think BAJAN if they want to keep their jobs? Do you understand why I will keep fighting with Miller when he keeps insisting that we have to pay for Trinidad goods in U.S. dollars? It is the same as with CLICO. It amounts to the same inter company transfers of funds, but with foreign exchange that we need and can ill afford to let our country be drained of.

    Buy the blasted Trinidad dollars with Bajan dollars and pay them the trinidad manufacturers and wholesalers) in Trinidad dollars. CMMB (Caribbean Money Market Brokers) is also Trinidad owned; part of Neal and Massey, so buy the trinidad dollars from or through them, they have a major office here.
    It is time the government got serious and put pressure on these entities. Stop the payment in U.S. dollars. Restrict what they can get, restrict the importation of Trinidad goods. We really owe them nothing.

  14. millertheanunnaki Avatar
    millertheanunnaki

    @ Alvin Cummins | December 16, 2013 at 8:03 PM |
    “…Buy the blasted Trinidad dollars with Bajan dollars and pay them the trinidad manufacturers and wholesalers) in Trinidad dollars.”

    With people of your intellect residing right in the bosom of the DLP and advising its leaders it is no wonder the country is up economic ‘shit’ street.

    Now pray tell us from your font of ‘arro-ignorance’ where would Bajan importers get hold of so much T&T dollars? From Republic Bank?
    Before you can buy T&T dollars the country has to earn T&T dollars by way of exports to T&T.
    Alvin Simpleton, do you or can you understand that? What does Barbados export to T&T to earn such large amounts of T&T dollars other than declining tourism services?
    It is highly recommended you return to defending the DLP administration is it revised mantra of “Layoffs, Yes, Privatization Not yet!” and leave this high finance and economics stuff to the other idiot ac.


  15. Miller.t.a.i

    Your response (last para) to Alvin Cummins at 8:29pm just made me have a good Laugh Out Loud. Good one!


  16. @Miller:
    Are you telling me that T&T dollars are more difficult to get hold of than U.S dollars?Don’t make me laugh.If that were so, according to the laws of supply and demand the T&T money should be more expensive. Are you telling me that if SBI imported (IMPORTED) one hundred thousand dollars worth of Soft drinks from the company in Trinidad (of which it is a subsidiary) that they could not get one hundred thousand T&T dollars at an exchange of about 15 TT dollars for each Barbados dollar, that we could not obtain that amount of Barbados dollars? Bull!! The same SBI would have this money from the sales of the products. The same bank that would have to pay them the U.S> dollars would have the T&T dollars. SBI would only have to write a cheque to X soft drink company…Please pay to X soft drink company one hundred thousand dollars T&T. When the cheque draft or whatever is presented to the Bank in Barbados you pay them the equivalent of one hundred thousande t&T dollars in Barbados dollars.
    I wish I could advise them. It would really make a difference. I won’t stand for a lot of the; to use Bushie favourites , Brass Bowl, that they try to pull on bajans.
    “Before you can buy T&T dollars the country has to earn T&T dollars by way of exports to T&T.” I don’t buy that Brass bowlery. in Simple words we have a scenario; I am an individual going to Trinidad , say for carnival. I have one thousand dollars Barbados that i have gotten from my pension. ( have not exported anything). Before I get to Trinidad I go to the bank at the airport and BUY Trinidad and PAY for them in Barbados dollars. No U.S. dollars used. I land in Trinidad and go to the bank to obtain Trinidad dollars to spend for Carnival. Are you telling me the bank will demand U.S. dollars, to be changed into t&T dollars? Brass Bowlery. I guarantee they will change my Barbados dollars and give me Trinidad dollars. If you want I can give you some of the T&T dollars I have in my home that I brought back from Trinidad when I visited there last year.. The same principal holds for wholesale and retail. A.S. Brydens (head office in Trinidad now) imports for resale in Barbados 2o cases of a particular drug
    . Cost for 10 cases in trinidad dollars 1000. dollars. U.S. dollars say 30 dollars, B’dos equivalent say 60.00 ($60,00Bds) A.S. Bryden transfers $60.00 B’dos to Trinidad office. Where the hell does the need to “Export” to have that $60.00 Bdos. come in. When A.S. Bryden sells the product it is paid for in B’dos dollars, that same 60.00 is paid to trinidad. What is so difficult about that, for you to understand? All that happen is that Trinidad see Barbados as an easy way to get foreign (u.S.) dollars into Trinidad without raising questions about money laundering.
    Now that you put forward the idea, Republic may be the best place to start, they own CMMB, they are a bank, and they have branches in Barbados. Should be no problem getting (No its not even necessary to get the funds in cash, a simple money transfer (in B’dos dollars) should suffice. Thus instead of writing the draft or transfering the funds in U.S. dollar equivalent, you substitute B’dos equivalent. I
    dare them to refuse this legal tender, and open themselves to a law suit. maybe before the CCJ. They are members of Caricom are they not?
    You are talking about “such a large amount of T&T dollars. Is this where the 1.4 billion dollars that Henderson Bovell is talking about that left the island? Is this how the transfer of funds was disguised? Maybe the Central Bank should have a number of audits of Trinidad owned subsidiaries in Brbados.You have been strangely quiet on the 1.4 billion dollars; definitely not denying what Henderson Bovell said. In addition “Barbados importers” are just Trinidad distributors “Importing” from their warehouses in Trinidad.
    This is not like buying a Mercedes from germany and paying them in U.S. dollars. Nothing for Mercedes is manufactured in Barbados and dealers in Barbados are not subsidiaries of german companies.
    I may be a simpleton, but I have common sense, and the little maths that i remember tells me that:things that are equal to one another are equal.


  17. @Jamila, Are you saying I should leave it to “the Professional Economist”? Wasn’t he “advising” the BLP before the 2008 election; when we accumulated so many debts?Was it he who advised the BLP government not to Pay Al Barrack? Maybe it was Miller who gave that advice.


  18. @Alvin

    Barbados imports more than we export to T&T, it means therefore that T&T would have a net surplus of Barbados dollars to repatriate to Barbados for settlement at any one time. Because Barbados will never have the T&T dollars to settle we have to redeem in greenbacks. Hope the explanation is simple enough for you.


  19. Alvin morning………when you go to Trinidad, do you travel with Barbados dollars, i mean you can cause you still get $2,50 for a bajan dollar, down from $3.00, but if you are doing business, would it not be more practical to use US which is still $6.00 to one Trinidad dollar, you know i do business there and much prefer bang for my buck…i really don’t get your point. I would be surprised if you buy Bajan dollars in Canada to travel to Barbados, after all, one CAD is now $1.85 Barbados in Barbados.;


  20. @Well Well,
    It is not a matter of the amount you or I might use on a vacation or business trip. We are talking of hundreds of thousands of dollars, or even millions transferred every year from one country to the other.It is a matter where these millions of dollars are converted from local currency into foreign exchange (U.S. dollars), and the survival of our country and its people depend on this foreign exchange. It thus becomes a matter of survival, and should not be taken lightly or dealth with flippantly.
    Barbados has become the distribution and retail outled for Trinidad manufactured goods. As a consequence the trinidad exports currency used in this trading is of utmost importance. Goods manufactured in Trinidad are “sold” (exported) to their subsidiaries in Barbados. the payment for these “exports” and the currency of the transaction becomes of importance. In the course of the transactions what currency should be used? Trinidad is not Germany, it is not the U.S. it is not China. It is a caribbean country, part of the Caricom “society”, a country that is part of a collection of countries that have been considered as part of a group that is considering and have discussed a means etc of having a common market and economy. Each of us depends on the use of foreign currency to run our economies, the use of foreign reserves is at the core of our economic well being.
    In my opinion, what happened with CLICO should have rung alarm bells many years ago. Here you had a conglomerate: CL Financial that was able to use its subsidiaries; CLICO in the rest of the Caribbean, as cash cows. Having read the Judicial Manager’s report I see the interconnecction and the use of the subsidiaries that funnel funds to the head ofice for their own use.I see the use of the manufacturers’ “sale” (export”) of goods in Barbados as another way to obtain foreign currency, to the detriment of Barbados. There is no reason for the payment of goods from Trinidad in U.S dollars suppplied from barbados. David tries to justify it by claiming that Barbados “imports” more from Trinidad than it exports to trinidad, and therefore the costs must be paid in U.S. dollars, because Barbados would not be able to buy the amount of Trinidad dollars required. I beg to differ. If Trinidad pays for our exports there in U.S. dollars, the only U.S. dollar that should be paid would be the differential. The Barbados dollar (Yesterday) was valued at 3.2 to 1.0. and the U.S dollar 6.0 If that is used to purchaase Trinidad dollars the cost to Barbados would be even less, to get the equivalent Trinidad dollars.
    At the moment the government does not intervene in the import /export private sector business. However, if that process is going to lead to more loss of foreign currency,, then the government is going to have to intervene to ensure that the amount (value) of imports are rationalized against the cost (value) of exports. Thus we export one million dollars (TT) to Trinidad, then we import one million dollars (TT) from Trinidad. And we pay for these in TT dollars; the coin of the realm. If Trinidad wants to be paid in U.S. dollars, then they will have to pay for our exports in U.S. dollars.
    .As a consequence there is no net loss of U.S. dollars to Barbados. How the subsidiaries work this out is up to them, but I would advise the Central bank to monitor, or even audit these companies to determine the amount of foreign exchange that is transferred betwen them and their head offices.


  21. On another note, is there a reason why Bajans refuse to tryout tor these shows and in the process give Barbados some publicity? It is always Jamaica.

    DECEMBER 17, 2013 11:03 PM ‘The Voice’ Season 5 Finale: Team Adam wins big as Tessanne Chin takes home the victory with the U.S. and Jamaica celebrating BY ZAYDA RIVERA Tessanne Chin’s dream of becoming an international musical artist came true Tuesday night when she took home the title of season five’s “The Voice.”

    “The winner of ‘The Voice’ is Tessanne Chin,” host Carson Daly said. “Jamaica is celebrating with the United States tonight.”

    The Jamaica-native brought a diverse catalog of songs to the competition stage throughout the season, proving she could do it all. With poise and grace she immediately started her journey by singing an original song OneRepublic’s Ryan Tedder wrote for the winner.

    Under the tutelage People magazine’s “Sexiest Man Alive,” Adam Levine, Chin raced to the finish leaving the other two finalists — Will Champlin and Jacquie Lee — in her musical dust.

    “A better coach for me I could not find,” she told Levine during the finale moments before Daly announced her big win. “I thank you every day for choosing me.”

    While Chin entered the competition with vocal experience under her belt, she encountered a performance level she’d never known before.

    The 28-year-old singer hails from Kingston, Jamaica where she sang backup for the legendary reggae singer Jimmy Cliff. But she desired a worldly career in music.

    During blind auditions, Chin sang the Pink song “Try.” While she later demonstrated her ability to return to her homeland’s sound, the coaches knew she could sing in various categories of music, which included songs by Katy Perry and Whitney Houston.

    Levine pushed her to the limit because he believed in her just that much. And although she stood on the brink of those challenges at times, once she touched the stage it was as if magic happened.

    During the finale, Chin had the opportunity to sing with one of her musical idols, Celine Dion. Unsurprisingly, she held her own alongside the multi-platinum recording artist.

    Chin is an example of what it means to dream big. Now, she must face the music as she got exactly what she wished for.


  22. David | December 18, 2013 at 5:49 AM |
    On another note, is there a reason why Bajans refuse to tryout tor these shows and in the process give Barbados some publicity? It is always Jamaica.
    ——-
    David, cuh dear….wunna know the answer! Jamaicans SUPPORT their own. Jamaicans are ‘allowed to’ dream big.

    Bajans does bring down dey own. ‘Stupse, who she does feel she is?’

    Rihanna made it on here own.

    The only time one gets government support is after the fact, when a Minister appears at the airport wid skin teet.

    True.


  23. Pure talent without digital interference will always win.


  24. @Crusoe
    You are spot on with your comments about the difference between Jamaicans and Bajans. Despite its many difficulties, Jamaica is passionately supported by Jamaicans, many of whom are not afraid to dream and go after those dreams. On the other hand, Bajans spend too much time talking and criticising, instead of dreaming and making those dreams become reality.


  25. the unfortunate thing for this girl is she has won the voice which hasn’t had a good track record for stardom, she should have gone to idol or x factor or better yet sang outside sandy lane so simon cowell could hear her.


  26. Alvin…….I don’t believe Barbados can just up and pay Trinidad for imports in Trini dollars or vice versa, when doing business the person or business rep always outlines what currency they prefer to be paid in, sometimes they even identify payment method, et by credit card only so that the international world currency used is easier to access………..you can’t just pay people in whatever currency you feel like or what is more convenient for you, you have entered another argument where Caricom members are yet to even begin to discuss one currency for the Caribbean, you have a long mile to walk…it’s good to hear you though..


  27. @Well Well;
    There is a thing in business called negotiation. It is the basis of nearly all business transactions. the form of payment is negotiable, for instance letter of Credit. See below:
    Import L/C Negotiation
    Import L/C negotiation is a kind of short-term facility the letter of credit issuing bank offers the exporter (the applicant). After our bank has opened letter of credit upon your application and with certain deduction of your margin, your company might face short term liquidity problem and is unable to carry out your payment obligation for compliant documents. After approval by our bank, we could make payment to the foreign correspondent bank or exporter on your behalf and your company could return the negotiated fund and its interest to our bank within stipulated tenor.

    Advantages
    1. As a kind of finance under letter of credit opened with certain deduction of margin, import negotiation has simple operation procedure. In comparison to foreign currency loan, it simplifies the approval procedure at the foreign exchange administration departments.
    2. With a combination of sight letter of credit, this kind of finance offers the importer a substitution for finance under usance letter of credit.

    Subject of the Loan
    Import negotiation is suitable for import export trading companies with frequent trade business, tight capital turnover, regulated management, good credit record, normal financial and business operation status and reliable product quality.

    Types of the Loan
    According to the way of guarantee, the import negotiation business offered by our bank includes:
    (1) Negotiation on credit, namely negotiation without guarantee.
    (2) Import negotiation with pledged manifest
    The negotiation is provided upon the trust receipt issued by the importer and the pledge of the goods as well as the pledged dock warrant. The importer should make the corresponding payment for the goods before it could ask our bank to release the dock warrant and pick up the goods.
    (3) Import negotiation with guarantee
    A guarantee other than pledge of dock warrant is provided for the finance, such as mortgage, pledge and guarantee. Currently our bank only accepts import negotiation application under sight letter of credit.

    Amount, Tenor, Currency and Interest Rate
    (1) Amount
    The amount should be the liable payment for submitted document amount under the letter of credit less the margin which has already been deposited by the applicant to the bank.
    (2) Tenor
    The tenor is decided according to the application of the applicant and the actual need of trade revolving. It starts from the payment date under letter of credit and shall not exceed 90 days principally and maximum 180 days. The tenor could not be extended.
    (3) Currency
    In the same currency as the letter of credit currency (RMB, US Dollar, Japanese Yen, Euro, Hong Kong Dollar, British Pounds or other foreign currency listed on the foreign exchange rate board of our bank)
    (4) Interest Rate
    If the negotiation currency is RMB, the interest rate should comply with the loan interest rate for the same tenor published by the People’s Bank of China. If the negotiation currency is foreign currency, the interest rate should be the interest rate of the basic loan interest rate for the same currency and same tenor published by our bank plus a spread. Interest rate calculation starts from the date of payment under letter of credit and ends by the date of repayment of the loan. The interest should be settled together with the principle.
    The type of letter of credit can be negotiated. The exporter (Trinidad:head office) wants (needs) to export. Simple as that. The importer (subsidiary) wants to satisify his client so he imports. but he has choices. He has the advantage whether he usesit or not is up to him. However the decision to negotiate depends on the relationship between subsidiary and head office. Does the importer (subsidiary) have the freedom to import from other sources; perhaps cheaper, less currency restrictions, more amenable to negotiation etc? Does the head office presurize the subsidiary to take their products, and the amount. Because it is complex does not mean that we (our importers) must capitulate to the detriment of the country.
    The other question is the role of government in determining the foreign currency restrictions to impose.
    I know it is easier to just say, we want payment in x dollars. However where there is limited foreign exchange, the govenment cannot adopt a laissez-faire attitude and let them do as they like.

    Again the important thing is negotiation.


  28. @Alvin

    Your head appears to be hard like rock.

    Why is it you can’t compute that Barbados is a net importer which means that if Barbados importers were were to trade in Barbados dollars only T&T exporters would end up with a surplus in Barbados dollars which the T&T central bank would then have to repatriate to Barbados Central Bank and be paid in US dollars. Or is it you think the T&T exporters will keep the surplus Barbados dollars?

  29. millertheanunnaki Avatar
    millertheanunnaki

    @ Alvin Cummins | December 18, 2013 at 6:03 PM |

    Weren’t you told not to dabble in things you know little or nothing about?
    David BU has likened your head (brains) to rock but even rock can be shaped and chiseled into a form to represent something of beauty or unusual interest.

    We doubt very much if “rock” can be used to replace the two thick planks between your filled-in ears and pretending to be your brains.

    A LoC is just a form of guarantee (type of payment insurance) to minimize settlement risks used by businesses (buyers and sellers) to facilitate trade.

    At the end of the day, or in the final analysis, or when the bankers’ books are reconciled the situation with Barbados is still the same.
    Barbados is a net importer of goods from Trinidad and in the absence of a surplus of T&T dollars it must find hard currency (namely the US dollar being the trading currency for international oil transactions) to settle the bill due to T&T.


  30. @Miller and David,
    My head ent no harder than yours, or more stubborn.
    Both of you just want to defend the Trinidadians. Cut the blasted imports to equal the amount in exports, from Barbados, let them pay in U. S. dollars and we pay them in foreign currency.u.S. dollars dollar for dollar. We export a million dollars, and import a million dollars. Things that are equal to the same thing are equal to one another. Import and export, dollar for dollar. Barbados is NOT to have an imbalance in foreign currency. You, and so many other bajans are on this damn import bandwagon that you can’t get off. Why do we need to import soft drinks from Trinidad. Why do we need to import so much evaporated or condensed milk. I could go on and on. Stop the importation of large gas guzzling SUVs and four wheel drive trucks that are used for home use. Because of the import of Oil from Trinidad, is that why you want to Privatize BNOCL, so that the Trinidadians can buy it and control the market even more? I think I will refer to you as Cromwell.
    STOP THE IMPORTATION!!!! Why the hell do we have to import Sweet Potatoes from overseas? Governmentg will HAVE to intervene. Based on you ropinions it has nothing to lose by taking such drastic action.


  31. @Alvin

    Given the size of our import bill and the trade imbalance with T&T Barbadians would starve to death if we attempted to match imports with exports, we currently don’t produce enough to feed ourselves.


  32. The following comments were posted on BFP and sent by a commenter for sharing:

    Tax Advisor
    December 18, 2013 at 7:23 pm
    So long as a taxable supply is being enjoyed in Barbados, it is VAtable in Barbados. The rooms are probably being sold wholesale to the intermediary company that processed the credit cards, and they are likely being billed retrospectively at the end of a period (month?) after occupancy has been determined.
    This will likely be the invoice that carries the VAT. As the intermediary company is not a Barbados incorporated entity, and is not doing business in Barbados (they are only selling a product in Barbados, but not managing the delivery thereof), they should not required to register for or charge VAT on their sales.

    Adrian Loveridge
    December 18, 2013 at 7:31 pm
    Tax Advisor, it must just be me. So is the guest (consumer) of the service paying any element of VAT or not?

    Tax Advisor
    December 18, 2013 at 9:19 pm
    Adrian,
    Likely not. If I were structuring this, the rooms would be sold at a discounted wholesale rate to the intermediary. On that perhaps heavily discounted amount is what the VAT will be levied on, and therefore significantly reduced than if it were levied on published rates.
    When the consumer pays the (higher) published rates to the non-Barbadian entity, no VAT will be due. So, indirectly, the consumer will only suffer the burden of a fraction of the VAT that would have been paid by “Unique Vacations” (who cannot claim back the VAT) with respect to their booking.
    Some numbers may actually be clarifying:
    VAT if sold direct:Published Rate of $100 sold directly to consumer = ($100/107.5*7.5) = $6.98 per $100 or accomodations delivered.
    VAT via Unique Vacations, assuming 40% discount rate:Published Rate $100, sold wholesale at $60 = ($60/107.5*7.5) = $4.19 per $100 of guest accomodations delivered.
    What this means in effect, is that the consumer will pay only 4.5% VAT instead of 7.5%. ((4.19/6.98)*7.5%).
    These numbers are of course dependent on the discount rate negotiated with Unique Vacations… But that’s how I’d do it. take a big fat cut off the top number for management fees, and card processing fees, and marketing fees, and put it in a room guarantee that shows the foreign company baring most of the risk… That discount rate can be manipulated to as high or low as needed to show a break even in Barbados, or minimal losses even.
    The only tax they have to pay is the VAT, and its not even their burden, and they don’t even sell we rum, and they not even pulling they own pocket for the expense of the hotel we building them. That’s how the rich get richer.

    Adrian Loveridge
    December 19, 2013 at 8:29 am
    Tax Advisor,
    Thank you. WOW! Do you think that our Government would have taken this all into account before granting the extraordinary concessions and how does the rest of the tourism industry on Barbados compete with this?

  33. millertheanunnaki Avatar
    millertheanunnaki

    @ Alvin Cummins | December 18, 2013 at 10:22 PM |

    “STOP THE IMPORTATION!!!! Why the hell do we have to import Sweet Potatoes from overseas? Governmentg will HAVE to intervene. Based on you ropinions it has nothing to lose by taking such drastic action.”

    Mr. Mad Max Alvin C, why don’t you stop talking to yourself and shouting at David and the miller?
    For heaven’s sake, why don’t you direct you criticisms and imaginative alternative proposals to the powers that be, namely, the ruling DLP administration.
    Let them know how pissed off you are with them to allow so much slow poisoning “tin” food to be imported from T&T.

    Let them know it’s time to switch sources for the country’s oil imports. Why not recommend the PetroCaribe deal to them or source their oil from Nigeria where you can trick them as some naïve Bajan businessmen were tricked in the solar water heater scam?

    Let them know how upset you are with them for allowing those ‘despicable exploitative’ Trinidad owned business from remitting huge profits and management fees to T&T and other offshore jurisdictions instead of reinvesting some of it in their run down enterprises, especially the hotels and food processing plants?

    Finally, Mr.Alvin the consummate hypocrite of a patriot, why not let your DLP moribund administration which is leading Barbados to bankruptcy that you will be resigning from the party and backing the Opposition should any part of the GAIA and Port Inc be sold to any T&T business interests just to get some more fixes of foreign exchange to feed the country’s addiction to food and other imports from the same T&T land. We are sure Bushie would back you on this one.


  34. Someone should tell Alvin that T&T does not have a fixed exchange rate. So a contract for supply signed in January might find the price different in TT dollars when the goods are delivered in March. Hence the use of US dollars in matters of trade, and why the US dollar is currently the world’s trading currency, though that is beginning to change.


  35. Alvin……..things are moving faster than you can keep up with, i know the DLPites are definitely out of their depth on this one, don’t know if you realize it, but Trinidad bought the leading supermarket chain on the island, SuperCentre, when they purchased BS&T, it’s not as though the government can tell the Trinis not to stock their own supermarkets with goods from Trinidad, after all, it now belongs to them…..when things were getting out of control on the island, no one noticed, now they are irretrievable but people have noticed albeit way too late..letter of credit yeah, but you better be paying me in US dollars, for now, negotiations or not.


  36. @Peltdownman.
    Exactly what I am talking about. The payment in U/S. will be to the benefit of T&T whenever the value of the T&T dollar declines, because of the fluctuations. Why should it be to their advantage and our disadvantage. that is one of the reasons Miller would love a devaluation of the Barbados dollar.
    David says Barbaidans would starve to death if we stopped the importation of goods from T&T. Do you agree with that? Why do we need to import onions? we can grow all we need and more.
    @Miller,
    I am not pisssed off at the government. I am pissed off at Bajans who would imclude the damned importers. The Government does not do any importation; except the fuel and oil through the BNOCL. The size of that amount of import would be less than the 28% of imports to Barbados in 2012 of around 15 billion. For a small (tiny) country an import bill of 13 billion dollars is unstainable and as I said we have to STOP THE DAMNED IMPORTATION and contraty to what David maintains, we would not starve to death. I am pissed off at our importers (T&T subsidiaries) for the amount of remmitances going there. But I will not be resigning from the ?DLP and joining any opposition party especially the one that broke off the rudder, damaged the engine and started the boat drifting to the rocks.
    And Miller, you “harp back” to the episode with the “Nigerian water heaater fiasco, which occurred under your administration. I will also go back to 2007 when your administration agreed with a certain Mr. Johnson, and a company called CAGEInc LLc, to allow an additional 2500 slot machines to enter the country and be set up. At the same time Trinidad outlawed slot machines and their usage.Who were these slot machines targeted to; the poor people in the country districts…a very cosy deal between Mr. Johnson and Mr. Arthur and the BLP. More foreign exchange leaving the island. Talk about destroying the country?
    Based on the trade deficit; in the area of oil imports we can’t match dollar for dollar, but in the dry goods sector we could, or at least we could try. Our exports (not necessarily only to Trinidad,) have been growing since 2009, and are now 35% higher than they were in 2009, and the trade deficit has been reducing but more has to be done.
    My call is to the people of Barbados. It can be done. A visit to Carmetas; a little store on the harbour road in the BADMC building, will show the variety and quality of local goods that are produced here. I am encouraging other businesses to follow that example. I am encouraging our exporters to market these products to their distributors. Why can’t we get Bajan sugar in the supremarkest here in Toronto? Why can’t we get Cassava and the by -products here in Toronto? Why can’t we get Condensed milk produced in Barbados in the Supermarkets here in Toronto, and other cities in Canada?


  37. @Well Well,
    I know that Super Centre was part of BS&T. That is why I am so pissed offf at this so called PRIVATE SECTOR in Barbados. They either were not able to buy it; (in which case they should have said so) or they did not care enough about the country to see the implications and make every effort to buy it. This sale occurred before the BLP lost the election in 2008. Their economic gurus, including the “Professional economist”, should have seen the implications of this sale and the implications for the transfer of foreign exchange.
    One very interesting thing is that the trinidad owners having secured enough shares, have delisted BS&T from trading on the stock market.Nobody has commented (as far as I can determine) on the significance of that move.
    Your thoughts

    .


  38. At Christmas I would order groceries on line, special things to make my relatives happy pretty seamless for a long time now they have been having a problem with the online service, what a stupid way to do business if that was in Canada that would have been fixed asap .


  39. that is the supercenter online service


  40. @ Lawson;
    Private sector inefficiencies. But Supercentre is a Trinidad company now. This is how the private sector does business. I havae been pointing this out to Miller and David, and Adrian.


  41. @Lawson
    this is not Canada. Stop comparing the two countries.Deal with BARBADOS AS IT IS.


  42. Alvin……..you may not be aware but very recently the Barbados government did not renew the trade agreement with Canada that allows bajan exporters duty free concessions, no duty onmost imported items from Barbados, luckily for me i have a registered company in Canada………..now, if the government is not doing it’s job, how can Bajans export anything anywhere, it’s no fun paying 20% duty in these trying times and try to also make a profit, particularly exporting from such a distance, i understand the government will now have to seek a waiver, hope they actually do it or bajans will not be able to afford exporting to Canada, at all. Now you see the problem, Barbados governments remain laid back and uncaring as it relates to their own people doing business to maintain the island’s forex, they are forever stuck in tourism mode, nothing else.


  43. On Trinidad’s move to delist BS&T…..Trinidadians are business people, whatever they do will also benefit Barbados, they will never shoot themselves in the foot.


  44. @Well Well,
    So we are to be satisfied with their scraps?
    I am attaching a copy of some of the essence of the Barbados agreement between Invest Barbados and Canada. As usual I like to check out what I am told. I expect a call any minute from the investment arm of the consulate who I will question on this matter. I will get back to you further. By the way have you looked into the feasability of registering your company and taking opportunity of anny concession for which you might be eligible?

    Barbados’ International Business and Financial Services Sector Important to Economy

    2013-12-10 00:00:00

    Barbados’ international business and financial services sector has been “quietly and steadfastly making a major contribution” to the economy and the Barbadian public needs to be further reminded about the importance of the sector.

    These sentiments were expressed by the Minister of Industry, International Business, Commerce and Small Business Development Donville Inniss, as he recently addressed the opening ceremony of the Meeting of Ministers Responsible for International Business and Financial Services in CARIFORUM at the Radisson Aquatica Resort Barbados.

    Minister Inniss reported that as recently as 2011, the international business and financial services sector represented 17 per cent of the region’s GDP. As it related specifically to Barbados, he noted that the sector had contributed $180.2 million to corporation taxes in 2012; an increase from $161.2 million in 2011. Additionally, the sector’s overall estimated contribution to the Barbados economy for 2012 was $874 million or 10.3 per cent GDP as compared with $806 million or 9.3 per cent of GDP for 2011.

    Admitting that more work still needed to be done within the sector to further boost its development, the Minister announced that the Ministry would soon be unveiling its five-year Strategic Plan for the International Business sector for 2014 – 2019; some details of which had already been discussed with stakeholders in the private and public sector.
    Subsequent to Cabinet’s approval, the Plan would be laid in Parliament and a debate would be led by the Minister on the sector.

    A component of the strategy going forward would also include Barbados’ outreach to jurisdictions such as Latin America, the Middle East and Africa to pursue additional tax treaties. To date, Barbados has 24 Double Taxation Agreements in force with 33 countries and over 4,000 registered international business entities.

    NEWS
    ——————————————————————————–
    + Barbados’ International Business and Financial Services Sect…
    2013-12-10
    + Columbus Further Enhances Barbados’ Telecommunications Infra…
    2013-11-06

    EVENTS
    ——————————————————————————–
    + World Captive Forum 2014
    2014-01-29 (3 day(s))
    Aventura, Florida


  45. Alvin..okay…I am trying to spend money in Barbados from Canada by buying Christmas goodies on line, and helping your economy. Whether it is the indifference of the Trinidadian owners or the incompetence of the Barbadian employees I cannot get it done .Since is too late to send a barrel ,and because of the distance give the people involved two barrels, I will keep my hard earned money to gamble in Vegas in Jan. Deal with Barbados as it is????, that is the problem their the status quo is seen as excellence. So who do we compare you to, just like in cricket you are being outclassed by teams or islands that you consider inferior to your product …wake up … .


  46. @Lawson,
    You wrote:”…I will keep my hard earned money to gamble in Vegas in Jan.”.
    Shakespeare wrote ..”first to thine own self be true, and it must follow, as the night the day, thou canst, be false to others…)Apologies to Mr. Shakespeare if there is a slight misquote.)
    The question you have to ask yourself, and answer yourself, truthfully, is this: How much do I like my country and the people in it? How much do I like my family? Do I, or should I, like the white people in Las Vegas more than I like the people looking like me (I am being presumptious in believing you are black), because if you go to Las Vegas chances are that you will come back poorer than when you got
    there. If you really want to contribute, even though it is too late for a barrel to arrive before Christmas, still send it, they will still get the benefit whenever it gets there.The important thing is to want to give. If you want to give them something for Christmas, send the dollars you would pay for the trip to Las Vegas, to them by Western Union and they would get it in two to three days, in good time for Christmas. I am sure that the money would do them, and the country, a world of good, for every little bit of foreign currency they get there helps. As I said before, if every bajan in the diaspora sent 100 dollars home we would have enough to go a long way in correcting the shortfall in foreign exchange.
    The inefficiencies will get sorted out; even if it is eventually.
    I woke up a long time ago, unfortunately a lot of my countrymen have not. Their thinking is clouded by a lack of self confidence and a very mendicant attitude, and a lack of appreciation of what they have, when compared with other countries; even some of the developed countries.


  47. Alvin I am going to do as your govt is doing, gamble with the assets and hope to win.
    Although I may not have a chance at poker since my math is not too good, you see I am trying to figure out how a 3% pay decrease will save the 3000 jobs.In my mind if each govt employee earned a dollar the 14000 working would have to come up with the 3000 dollars for the ones being laid off. 3 % of 14000 is 420 dollars it seems a little short. That is why I said earlier it would have to be a 10% cut plus attrition to make up the money and the other expenses ,health care, pension.etc remember I said my math is not the greatest


  48. @Lawson,
    Take note of what Sir roy said; at the moment “it has to be a proposals, because the Social Paartnership is being consulted and many kinds of options are being suggested. I do not know if you listen to VOB; I do every day;even at the moment. You can get it bu googling VOB929 and clicking on the musical note. Very enjoyable especially Ken Husbands and Mona, tonight after 8.c0 haer (9.30 there). Back to more serious stuff. What assets are govt gambling with? If you are talking about the layoffs (pending) in the civil service, wasn’t everybody calling for that? Tell me. It has not yet happened though, so anything is possible. We people tend to be premature in out judgments.
    By the way, doesn’t anybody; Miller, Old onions, or anybody willing to enoighten me about the 1.4 biooion referred to by Henderson Bovell since early in decembet? Interesting isn’t it, this silence I am talking about.


  49. !.4 billion dollars.


  50. Alvin the gamble I was referring to was sandals, trust me I have no govt dog in this fight, but this seems bizarre to me.
    Did my math make sense?
    Here is some more of my bad math if the Canadian dollar drops 10% against the US greenback I believe that would translate into a 10% drop in visitors from Canada. They would go where it is cheaper.

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