Help Car Rental Sector
Whether travelling on business or pleasure, I usually hire a car, because for me it adds a huge dimension to the experience and dramatically increases the options available. With a budget on the horizon, I implore the Minister of Finance to look again at our car rental sector, if we are going to maintain the recent increase in visitor arrival numbers. Personally, I do not think this segment of our tourism offerings gets the attention it deserves and that is probably partially due to the lack of knowledge and understanding of the enormous contribution it makes. Just one of our larger vehicle rental operators, have a fleet of almost 130 cars. If you average a rental period at 7 days, with a driver and at least one passenger, that amounts to over 13,000 persons each year.
Of course the fleet size varies enormously, but from recently writing to over 30 Barbados based entities offering car rental, it gives you some idea of the importance in economic terms they play overall. Rarely do I pay more than US$150 for a week’s rental in North America or 100 pounds in the United Kingdom for a compact car, so for many of our visitors it can be quite a shock to pay what are considered ‘normal’ rates on Barbados. But it’s easy to see why, because of the taxes on purchasing cars here is staggeringly different to those where our major source markets emanate from. Also surprising is that it is sad and difficult to understand logic behind the decision not to lower the rate of value-added-tax (VAT) on vehicle rental when the adjustments were made to hotels and some restaurants recently. Perhaps it is because our tourism planners and policy makers do not fully understand the secondary benefits and economic importance that the flexibility of having a rental vehicle brings. It enables our visitors to sample more restaurants for lunch and dinner, patronise our attractions, activities, increases shopping options and generates fuel purchases among others. All of which put additional non-refundable VAT and other taxes into Government coffers.
So on their behalf, I am pleading with the Minister of Finance to again re-consider lowering the rate of VAT on car rental for at least our overseas visitors and treat it like it is, a critical component part of our export tourism offerings. Any administration must eventually understand that there are only so many ways you can collect taxes, before there is resistance and the level of taxation becomes a direct deterrent. The question also has to be asked is, that if car rental was more affordable would more people hire vehicles? It would appear so, if we apply the same scenario to other component parts of tourism, like hotels, air travel, reductions in dining costs etc., so could it not work for car rental?
Thirdly if more visitors hire vehicles would there be a greater overall spend across all sectors of the industry?
Finally would Government benefit overall with the collection of duties and taxes collected on additional fleet vehicles being purchased, fuel consumed, driver permits, increased employment, repairs and servicing etc?
I think the answer to all these would be a resounding YES!
Barbados Underground 
Leave the MOF out of all things , Nothing he touch turns out right, He will look to find ways of adding tax , vat and duties on it , Leave that fool alone,
Run your hotel? and leave the crooks alone,
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It is not to often that I disagree with you but if it wasn’t for the govt I would weigh over 300 pds. Because of there foresight in making cars so expensive and the on going taxes they have managed to accomplish what Canada and the US have not…keeping me in shape from walking everywhere since renting a van is more than the apt I am staying at. Keep up the good work………………that’s sarcasm right
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Adrian
Your recommendation is just too logical.
Unfortunately PLANTATION’S comment “Leave the MOF out of all things , Nothing he touch turns out right, He will look to find ways of adding tax , vat and duties on it , Leave that fool alone,” is too true.
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STOP PRESS! I have a novel idea!
How about those in the tourism industry take the initiative for their own business’ success and offer world class product while aggressively marketing the same? How about being creative and formulating some new ideas? How about getting up off your entitled, self-absorbed asses and trying something different?
As usual the best our so called business classes can come up with is top hat in hand begging government at every turn… No wonder the foreigners taking over all the business ’bout here. A visionless, overly risk averse, timid, smug, bunch of cowards getting fat off taxpayers and masquerading as businessmen and entrepreneurs.
#Disgraceful
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uber to the rescue
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I have never rented a vehicle on my return visits to Barbados, and I haven’t any intention of doing so in the near future. It isn’t that I am cheap or that the rentals are too expensive. I just prefer to take the bus or taxi, so that I can avail myself the opportunity to interact with the local people.Who I find quite quizzical and quixtoic. Now, if it cost a visitor an arm and a leg to rent a vehicle in Barbados, why put one’s self through such unnecessary stress-given one’s cash. Listen! I haven’t any shame taking public transportation to get to my desired destinations. I often take the bus and ride it throughout the countryside every opportunity I get- whenever I visit Barbados. So I am happy to say that car rental has never been an issue of mine whenever I visit Barbados. I just wish de local people wood stop treatin me lik yah celebraty. lol
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@Adrian
What are you hearing about Sandals planning to layoff workers.
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David
Sandals layoffs?
That must just an ugly rumour.
Sandals came to Barbados to assist Barbados in maintaining its tourist numbers and therefore its airlift.
It says so in the February 11 Jamaica Observer story at http://www.jamaicaobserver.com/business/Sandals-Barbados-expands_18386330
“After buying the hotel in 2013, Sandals continued to operate it from November 2013 through to March 2014, for the main purpose of assisting Barbados in maintaining its tourist numbers and therefore its airlift.”
Surely the company that came to save the tourism industry in Barbados would not lay off employees after only six months and with tourism arrivals up 15%
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@DD
Cannot confirm, something in the inbox.
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What is happening to gas prices in Barbados? We had to fight had , make a lot of noise to get a substantial drop in gas prices even after everybody had lower their drastically. Now as there is a slight raise in the world prices within days this government has returned the prices back to what it was during the high world prices. Ironically this is done just a few days before the budget, so the MOF can easily say he had a tax free budget
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Dompey said ..
“I have never rented a vehicle on my return visits to Barbados, and I haven’t any intention of doing so in the near future. It isn’t that I am cheap or that the rentals are too expensive. I just prefer to take the bus or taxi…”
++++++++++++++++++++++++++++
What Dompey did NOT say…
“I cannot drive…..”
@ DD
Bushie would not be surprised at layoffs…
…when a man can piss all over Paradise beach and be rewarded with big attractive contracts, tax waivers, concessions and with politicians personally keeping his donkey clean with constant kisses, …would you not expect him to soon shiite in St Lawrence and see what it can get him…?
Perhaps Froon will give him a knighthood…or make him a vice president of the Froon Republic…
Wuh look at Emera…. BL&P declares profits of $40M this year …after $47M last year ….and after not EVER having experienced a loss……and responds by laying off 70 out of a workforce of 450 in order to “improve financial performance”…
how many companies ANYWHERE have done better…?
Obviously these white people come here and quickly realise that they are dealing with a bunch or brass bowl topsies ….and have been behaving accordingly… pissing all over us..
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Onlooker, boy gas prices back up aa gine in America bozzie, so done panic and run wah yah pant down buy yah knezzs. I see dem at 280 fah regular in my part bee and dah is expensive ova hare.
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Bush Tea maybe the return to the high gas prices is a gift to Emera so that they can profit from charging high fuel on our electrical bills
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Dompey six months after your prices were way down, our prices were still very high. We had to make a lot of noise to get a lower prices. At first we were insulted by being given a two cents off per litre . We had to show that our prices were much higher than anywhere else in the region, then we were given a much better deal. this time as prices increased immediately the price has returned to that high price that it was nine months ago.
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@ onlooker
High fuel prices don’t help Emera, it helps government…
The fuel clause insulates BL&P from fuel prices except for the dampening impact that high fuel charges have on demand and sales…
Meanwhile, Government makes TONS of dollars of every barrel of oil imported via taxes, vat, levies and best of all through a “shakedown” arrangement between BL&P and the Oil Terminals place…
LOL
Without major investments in needed new plant, BL&P can’t really handle any serious increase in demand anyhow …so perhaps you are right… high prices depress demand and ease pressure on Emera to invest some serious capital in new plant ….or cut their profits and run off….
Imagine Barbados government makes so much money from environmentally disastrous operations such as Oil and vehicle importation….?
…can you see why Alternative Energy gets lip service…?
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It seems to me that local hoteliers don’t want to pay taxes or anything. They just keep demanding more and more freebies. in the meantime , after sixty years, they cannot develop a product such as Sandals. Nothing close. The are a pathetic lot !
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Bush Tea June 8, 2015 at 11:09 PM #
And according to todays Nation , the Government may be planning to increase the import duties on electric cars, thus forcing them off the local market. Another Lip Service.
But the authorities, so far has failed to take into consideration the eventual disposal of electric cars, which could become a serious environmental problem. Given that the cost of a replacement battery could be $30-40,000, there is very little chance of these electric cars being sold off to a second owner,and , in Barbados ,may very well have a,single -owner life span of some 10 years.
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