Submitted by Douglas
In October 2013 this Democratic Labour Party administration made public, by way of a Ministerial Statement, the details of the two memoranda of Understanding signed with Sandals Resorts International for the development of two Sandals properties in Barbados. There is no one that would argue that the signing of those MOUs have helped to rescue and bring new life to Barbados’ tourism product. We eagerly await the reopening of the Sandals Casuarina during the coming winter tourist season.
The idea of that MOU stuck in the craw of the Barbados Labour Party. For 14 years they were unable to convince Sandals to develop the Paradise Property in Barbados. The DLP administration was able to get Sandals to develop not one but two properties in Barbados. To say that the BLP did not like the idea of these MOUs is a major understatement. They found every fault possible and accused the government of selling out to sandals.
The members of the Barbados Hotel and Tourism Association also placed pressure on the government to fulfil their promise to make similar concessions offered to Sandals available to other hoteliers. Today, this Democratic Labour Party administration can say that they have delivered on their promise.
With the passage of the amendment to the Tourism Development Act, which was recently passed by the House of Assembly and the Senate, the way has now been cleared for Hoteliers in Barbados to access major concessions. These concessions, it is hoped, would allow hoteliers to transform and upgrade their properties, improve their ratings, service delivery and position the Barbados Tourism product to reclaim its market share in the world travel market. These concessions if used wisely can go along way to stimulate growth in the Barbados Economy.
The premise behind offering the concessions was to classify the tourism industry as an export industry where taxes are placed on the output and not the inputs for the industry. This is a tremendous sacrifice for an economy which has a revenue challenge resulting in a high fiscal deficit. However, this sacrifice is viewed as being necessary given the foreign exchange earning potential of the tourism industry and its ability to drive employment and stimulate economic activity.
To ensure these concessions redound to the economic gain of Barbados, this DLP administration has taken the process a step further. Through the Ministry Commerce, MOUs were signed between the BHTA and the Barbados Manufactures Association as well as the Barbados Agricultural Society to ensure that Barbadian farmers and manufactures are given an opportunity to share in the economic pie. This will provide tremendous opportunity for growth in the manufacturing sector and in the agricultural sector in Barbados. Providing increased avenues for entrepreneurship and employment generation. At the same time, allowing Barbados to save foreign exchange by utilizing goods and services produced locally; while increasing the export potential of locally produced products.
Much has been given to the hotel sector in Barbados by way of a mini-stimulus. If they follow through and deliver they can help the Barbados economy to bounce back to record sustainable economic growth from 2015 onward. To whom much has been given, much is expected! These concessions can bring about a major transformation in the hotel sector in Barbados once the hoteliers take up the opportunity and upgrade their properties. If they develop a business culture to support and purchase Barbadian manufactured products it will also lend to increased economic activity in the country.
It is fitting to end this week’s column with a word of advice from our departed party stalwart, Tennyson Beckles, who will be laid to rest today:
“Barbados cannot get out of the present predicament unless it starts producing internationally competitive products. We cannot continue consuming more of other people’s products than what we are producing.” (Tennyson Beckles, Business Monday, October 13th, 2014).
Tennyson Beckles, retired Economist, Democratic Labour Party stalwart, former Senator. May he rest in peace.
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