The Barbados economy is estimated to have grown by 0.5 percent in 2015, thanks mainly to a stellar tourism performance. There was a 13 percent increase in airlift from major source markets, an expansion in room stock, and refurbishment of aging hotel plant. The tourism outturn was the best on record since 2007, with activity in the sector rebounding to pre-crisis levels. Tourism receipts grew by an estimated 5 percent, with arrivals up by 14 percent, and all major markets recorded double digit increases.
@Artaxerxes thanks for the link. It really reinforces what we know about the nature of tourism. Very little of what is earned is generated within our economies and of the little that is earned, much goes out in the form of repatriated profits, imports of luxury products and the list goes on. By the way, are you following Davos? I am getting ready to binge watch some of the speeches.
Look guys stop confusing the issue the fact being that Tourism has sustained many carribbean economies for many years, Trying to weigh in on how the money flows is an exercise in futility as there is enough concrete evidence that tourism is a major market stimulus for growth in world economies, All day you foot soldiers have been trying to take a little stick to knock over a giant, Really going over the deep end and looking so silly
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Vincent Haynes
Coming to CBC TV near you on the 26 Jan,Discussion on the Economy with moderator David Ellis…….sorry did not get the time,nor the pannelist except that the GoCB is one……an interesting combination.
Meanwhile the price of oil is tumbling and this insensitive government which never hesitated to raise petrol prices in consonance with the movement upwards of the price of a barrel of oil on the international market,is now equally resolutely refusing to pass on the benefit to the public of the movement downwards of the said price of a barrel of oil.
Petrol cost in the USA averaged $1.75 per gallon today,about US0.46 a litre(BD$0.92)In Hamilton,Ontario today,petrol was CA0.88 per litre(BD$1.21)per litre.Aren’t we entitled to benefit from this big price reduction?Why should I vote for these robber barons called the DLP.And why should I not,at every opportunity,criticize these incompetent sums offa beaches and discourage anyone who would listen to vote against them with every sinew in one’s body.These DLP robber barons,the worst of everything that is wrong in Barbados.All we ask is equity.
Bear in mind the government is losing tax revenue on fuel, it has to compensate for it know?
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Prodigal Son
Gabriel,
These DLP robbers kept the price of gas and diesel sky high as the world price of oil kept rising, when the prices started to tumble, there was no comparative fall in prices here.
These morons cannot afford to lose out and all they are doing is screwing us every day.
I am so sick of this government.
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Prodigal Son
Yes, David, David Ellis mentioned the pending interview on Brasstacks last week.
You dont think that he should use the opportunity to tell the governor if you cannot include my fellow journalists, I cannot in all good sincerity conduct this interview!
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Enuff
They say Sandals good for us but I am still awaiting the proof. The coma continues as the government and it’s supporters are so aware of their opiate that they are busy rejoicing another .5% “growth”.
We will have to wait to see if other journalists joined him. On the last occasion there was Jewel Brathwaite and one other. Would like to see Pat Hoyos who understands financial matters better than even Ellis. He who pays the piper plays the tune.
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Tron
GD is still below 2007/08. No substantial growth despite tourism. Budget deficit still too high. The overhead of public servants is simply too big.
Solution is clear for the public servants:
– no increase, but wage cut of 10 %
– cut off all allowances
– release 10 % of public servants to the labour market
– outsource another 20 %
– increase working hours to 45 per week up to S6, to 50 hours from S5 to S1.
Pensions:
– retirement age 70 years
– cut pensions by 10 %
Tax the rich:
– higher income tax: 50 % above 200,000 BBD yearly income
– inheritance tax: 25 % above 500,000 BBD per person
– wealth tax: 1 % per year above 1,000,000 BBD
– one-time tax 25 % on bank accounts and other savings above 100,000 BBD
Public services:
– bus fare 5 BBD for adult, 3 BBD for children
– double university fees for children of the rich (see income tax above)
– no free school meals etc. at schools
– school fees from age 14 on
– franchise for public healthcare 30 BBD per day for people with yearly income above 50,000 BBD
I know many people won´t like that. However, tell me an alternative to kill the deficit. The measures above reflect the medicine in Greece and Cyprus.
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Vincent Haynes
David January 20, 2016 at 7:56 PM #
Chuckle……yes his friend and we shall see what we shall see…….remember,time longer than twine.
What about a strategy for increasing productivity and creativity? Why do we always resort to the blunt instrument of taxation ?
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Vincent Haynes
David January 20, 2016 at 8:28 PM #
The answer to you and Tron lies in our belief in the science of economics,which has no base and is no different to the belief in alchemy i.e. turning base metal into gold.
We do not need rocket science to understand that we have to stop whoring i.e tourism and start to use our natural creative talents and develop niche markets…..the sad part of this is that we know how and what has to be done.
Note tourism should always be the gravy not the main course.
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are-we-there-yet
Tron @8.19 pm
Wow!
Dah is de Grease an Cyprus model?
Um wukking dere?
Wuhloss!!!
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Tron
@David and Vincent Haynes
Surely, there are different solutions. So let´s discuss other solutions.
An alternative route would be higher productivy, indeed.
That could include for the public sector:
– longer working hours as said before
– a certain percentage of salary is based on performance
– less holiday
– pension at 70 years
– restructuring institutionen:
= outsourcing a certain percentage of staff as said before
= shrinking the numbers of ministries by 50 %
The private sector could be pushed by:
– opening hours 24/7
– working on Saturday
– no taxes for new business the first 5 years
– pension at 70 years
The economy:
New third and fourth pillar of Bim economy besides tourism and offshore, eg IT, fabrication of quality furniture, niche products for industrial tools, master courses at UWI, all for the world market which needs aggressive advertising.
Efficiency:
An average person with children spends up to 1 hour in traffic jam per day. 20 hours per month. The roundabouts do not work. Alternative could be public tram at West and South coast.
Budget:
More aggressive search for oil around the shore.
Surely, all these ideas have already been on the table …
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NorthernObserver
No it hasn’t worked in Greece, and the reason is simple, the people wont pay the taxes, haven’t in years, that’s part of how they got there in the first place.
They elected a new gov’t who said no to austerity, but those who hold their debt control them. At the end it will be another ‘meet me half way’ without concrete solution.
If the personal incorporations aren’t already high enough, jacking up the taxes will flood the visits to the CA’s and LLB’s. The benefit of avoidance increases.
One can try the surtax on the uber rich, but generally they are the ones who feel they already pay more than their fair share, and have the resources to avoid.
But Tron is along the right course, it just has to be slow. People will join the bandwagon ONCE they see improvements, not those which ‘ac’ brags about.
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Simple Simon
@Tron January 20, 2016 at 8:19 PM “release 10 % of public servants to the labour market.”
A simple response: What labour market? where? Did I miss something?
“outsource another 20 %”
A simple response:And when the work is outsourced will the people to whom it is outsourced do it cheaper? And if so Why?
“retirement age 70 years”
A simple response: And when many of these 70 year old’s are incapable of working anymore what do we do? Give the lazy good for nothing bastards a shot between the eyes? After all how they they retire when they have only worked for 53 or 54 years.
“wealth tax: 1 % per year above 1,000,000 BBD”
A simple response: Why only 1% Why let the rich keep any money at all? Why does anybody need 1,000,000 BBD for anyhow? Why not take 100% of their money one time and be done with them as well, just like the old people above. Everyody knows and inherited wealth and old age are both works of the devil.
“busfares 3 BBD for children, school fees from age 14 on, no free school meals etc.”
A simple response: And when children can no longer afford to go to school, let them go in the fields and pick pond grass, and nut grass and devil grass…school what? You ever stoop in a field and pick weeds all day Tron. I have and so can you. It real easy. Any 4 year old can do it.
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Simple Simon
Dear tron:
You cannot get blood out of a stone.
And if you think that Bajans will let any government impose your “solutions” on them without resorting to violence you got another think coming.
Even slaves revolt.
Bajan slaves have revolted more than once.
Ppressed Bajans revolted as recently as 1937.
A word to the wise is sufficient.
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Simple Simon
Dear tron:
I have a better idea for university funding.
Go back and retroactively collect the real university costs for everybody who has ever gone to UWI or who has ever borrowed money from the Bajan taxpayers to pay for their education. Apply the prevailing rate of interest from the date the student first entered university to today’s date.
If that includes you I hope that you have your certified cheque ready by tomorrow morning.
Heck why stop at university education. Wunna must pay back for elementary and secondary education as well. We will use that money to continue pay for school meals for the 3 to 11 age group.
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Bush Tea
@ Tron
Your solutions are completely out of place.
Those are suggestions that would be pursued by intelligent people, …who are smart enough to see that the alternative will be worse than they even imagine.
Brass bowls actually thing that somehow they can continue to ‘punch above their weight’ while living at first world standards, talking shiite and producing squat.
@ David
The time for addressing productivity as an option for us is long passed.
Tron is right. Our options now is between applying the whacker ourselves… or waiting for outsiders to come with the bulldozer for our asses…
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Bush Tea
@ David
Productivity may have been an option when we owned producing assets.
Once the political Jackasses sold BET/ BS&T /Bartel/ Almond/ BL&P/ Banks/ BNB and every shiite off to foreigners any ‘productivity gains’ will just redound in increased profits for Massy /Republic/ Flow /Emera etc ….no damn help to Barbados.
So austerity it is….
The brass bowl fool’s path to poverty.
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are-we-there-yet
Tron;
Most of your suggestions, imho, need some fine tuning
An alternative route would be higher productivity. That could include for the public sector:
– a HIGH percentage of salary is based on performance (OK)
– less holiday- (from 6 weeks to 4 weeks?)
– pension at 67? years
– restructuring institutions:
= outsourcing a small percentage of staff – Managerial mainly in certain areas, i suppose, but where are you going to outsource them from given the likely unattractiveness of the posts after the draconian measures?
= shrinking the numbers of ministries by 25 %? (OK)
– add shrinking the number of ministers and their assistants to the list.
The private sector could be pushed by:
– opening hours 24/7 (Who are they going to sell to during the increased hours?)
– working on Saturday
– pension at 67 years (70 is too high, you ever hear bout threescore and ten?)
The economy:
New third and fourth pillars of Bim economy besides tourism and offshore, eg IT, fabrication of quality furniture, niche products for industrial tools, master’s courses at UWI, all for the world market which needs aggressive advertising. Add Renewable Energy systems; Add Entertainment services; Add Sports facilitation; Add Global Consultancy Services facilitation; etc,
Efficiency:
An average person with children spends up to 1 hour in traffic jam per day. 20 hours per month. The roundabouts do not work (Really? ). Alternative could be public tram at West and South coast. add Zoning of Schools, add Punitive taxes on second and third family cars; add west coast ferry; add facilitation of water harvesting for some special areas, improving legal and jurisprudence systems, policing, offshore professional education systems etc. etc..
Budget:
More aggressive search for oil around the shore. Not good! would be an environmental horror.
Some of your suggestions are likely to be non starters or will be extremely difficult to implement or be counterproductive. These all need a lot of work and modification:
For the public servants:
– no increase, but wage cut of 10 %
– cut off all allowances
– release 10 % of public servants to the labour market ( What labour market? do you really mean – cut staff by 10% and the wages of those left by 10% and then bring in 20% from elsewhere)
– outsource another 20 %
– increase working hours to 45 per week up to S6, to 50 hours from S5 to S1. (Most conscientious management staff work over 50 hours per week anyhow and with the draconian cuts above will have to work even more hours. -gilding of the lily- no need to specify changes in working hours, for the other staff, increasing their work hours will be counter productive)
Pensions:
– retirement age 70 years- Too high
– cut pensions by 10 % – OK
Tax the rich:
– higher income tax: 50 % above 200,000 BBD yearly income
– inheritance tax: 25 % above 500,000 BBD per person
– wealth tax: 1 % per year above 1,000,000 BBD
– one-time tax 25 % on bank accounts and other savings above 100,000 BBD The bands above need a lot of work.
Public services:
– bus fare 5 BBD for adult, 3 BBD for children ( you can’t be serious)
– double university fees for children of the rich (see income tax above) ( you can’t be serious)
– no free school meals etc. at schools. ( you can’t be serious)
– school fees from age 14 on ( you can’t be serious)
– franchise for public healthcare 30 BBD per day for people with yearly income above 50,000 BBD. (I don’t understand exactly what you are suggesting here)
What safety nets and pressure valve releases are you going to provide for the thousands laid off under this system and the resultant contraction in the economy?
It is all about what accrues to GDP, the benefits of having a job etc.
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Exclaimer
@ Bush Tea & David,
Why has our government not done more to implement a policy to encourage the return of her Bajan diaspora? Should such a policy have existed thirty years ago I am certain that the established white elite community would have been toppled and decimated. Our economy would be in a far healthier state.
The Bajan diaspora would not be kow-towing or showing deference to this deplorable minority group.
Members of the Bajan diaspora will not return if only because of healthcare benefits. Plus the government prefers to benefit from the remittances moreso anyway.
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Bush Tea
@ Exclaimer
You would probably need to spend a bit more time here to see why a return by Ex-pats will not address our dilema. You see, the problem is not where you think it is located… (in toppling the ‘white elite community’)
Brass bowlery is deeply entrenched within the very majority group that you seek to lift up. It would probably surprise you to find that you will get more resistance to a change in the status quo from piss-poor blacks ..than you will get from most of the minority community.
@ David
The Bajan diaspora WOULD return in large numbers…if they were welcomed with HALF the enthusiasm we reserve for our albino guests….
Have you ANY idea of what it must be like to return here to find it exactly like the plantation society that they left 50 years ago….?
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balance
“The DLP is in election mode.”
And the iniquitous cell phone tax will cover the costs. The promise to channel the cell phone tax money towards education is just a blind.
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balance
“The fact is the economy has been on skid row for the longest while and neither the governor or the Stinkliar has a clue of what next to do”
Mr prodigal again I write that I have been hearing that kind of rhetoric for the past seven years and except for the decrease in the value of our money and the burdensome tax impositions I have seen nothing of which you speak. Barbados and the majority of Barbadians are still sailing merrily along.
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balance
“We need to study the works of the late Lloyd Best of Trinidad and Tobago for guidance.”
Perhaps Trinidad needs to study his works as well given their present predicament which is different from ours. By the way Lloyd Best like George Lamming and people of their ilk were only talkers not problem solvers.
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balance
“As far as I know from reading the Nation, Ian Gooding Edghill was nominated to run in this constituency about two years now”
Despite what you say and his party indiscretions Rommel Marshall is a more attractive candidate than the stiffnecked Ian gooding-Edghill any day. Mr Edghill does not give the appearance of one who can connect with the grass roots vote
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Well Well & Consequences
Explainer…listen to the Bushman, many Bajans have returned and had to pack up and hightail it back, they do not return to a friendly environment. ..their remittances are welcome, but not them because it has been indoctrinated into the minds of the ignorant that these returning Bajans will try to change things.
Remember, it’s not in the best interest of the politician for things to change, neither is it in the best interest of the minorities, the majority will benefit too much, so on this they both agree and arrived at a consensus years ago…..the minorities would fund the election campaigns of both political parties with their ill gotten gains and have freedom to operate as they like on the island, while the majority are used as the vehicle to keep it all in play and around and around we go, an unbroken but not unbreakable cycle.
Some of the more brutal people who have returned only manage to stay because they continue to display a NY mentality. The island has been sewn up tight by the most despicable of people enabled by politicians.
Alicia Nicholls Jamaica has become the 67th member country of the World Trade Organisation (WTO) to ratify the Trade Facilitation Agreement (TFA) on January 19th this year. Jamaica is the sixth country of the Caribbean Community (CARICOM) to have ratified the TFA. The other CARICOM countries which have already ratified are Trinidad & Tobago, Belize, Guyana, St. Lucia and […]
Chuckle……….Alvin Cummings on Brasstacks now defending the present path of Bim as shown by this review and Ellis is pelting some licks in him to no effect.
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Tron
@are-we-there-yet
If the fine-tuning you suggest would be implemented that would help Bim a lot! Hope you get the chance to do so one day …
I suggest restructuring and improving efficiency should be implemented at once, tax adjustments and other things potentially slowing down performance only step-by-step and NOT during recession.
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Well Well & Consequences
Lol….Alvin is hard headed and die hard…he don’t care if he’s buried with DBLP as long as he gets to represent, someone mentioned his name to me recently and I had to tell them not to let him indoctrinate them with political bullshit, it’s poison….that older generation of yardfowls would frighten serial killers.
I think Ellis is basking in the realization that it is he who provoked the Bdos Water Authority to act.I know Mia got on the bandwagon but it was Ellis who smoked out the ill-mannered,uncultured,ill-bred Minister to show his hand and his ignorance of what was happening at the Water Authority.Then yesterday he exposed Mara Thompson as another clueless member of parliament and representative for St John.And today he put some warm lashes in the Westminster system which allows a JA with a 2 seat majority and voted in to power by a minority electorate of 31%,a system that allows him to remain deaf and dumb to the suffering people of Barbados,especially those in aggravation with water woes in St Joseph,St Andrew,St Lucy,St Peter,St Thomas and St John.
Devesh Rasgotra holds his MSc in International Relations from the London School of Economics. He also holds a bachelors in International Relations from Richmond, the American International University in London. He has worked at the International Institute for Strategic Studies where his focus was on maritime security in South-East Asia.
David…this dude is the author, he highlighted the stagnation that is blighting the island and noticed that if they continue on the tourist dependency path and do not allow their young bright entrepreneurs to rise, it will not bode well for the island, they need to let go the known parasites and focus solely on letting the young bright people drive the island forward….or nothing more will happen, progress will be dead.
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Well Well & Consequences
U.S. Embassy to Barbados, the Eastern Caribbean, and the OECS advises U.S. citizens that the Ministry of Health of Barbados has confirmed the presence of the mosquito-borne Zika Virus on the island. As we reported in our January 15 security message, there is a CDC Advisory regarding the Zika Virus. For the full text of the advisory, please visit the CDC website. The U.S. Embassy has advised its pregnant U.S. citizen staff members or dependents to depart Barbados. To obtain Centers for Disease Control and Prevention (CDC) travel notices, call the CDC at 1-800-CDC-INFO (1-800-232-4636) from within the United States, or 1-404-639-3534 from overseas or visit the CDC website.
It will only take one disaster and that will be the end of tourism and the all the eggs in one basket mentality.
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Yatinkiteasy
I seem to remember the Central Bank Governor a few years ago claiming that big foreign investments such as Merricks( Harlequin Resorts) would contribute to our economic growth . Well today , not even a sign remains on the site, and the show houses have been completely stripped . The H hotel on the Hastings board walk also remains as a dangerous eyesore, harbouring rats and vagrants. It now seems that Harlequin may be on its last legs…hope Barbados reputation won’t suffer due to this financial disaster . This is the latest court news about Harlequin. http://www.professionaladviser.com/professional-adviser/news/2441773/harlequin-boss-in-high-stakes-court-showdown-with-investors
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Fractured BLP
George Payne & Noel Lynch…..looked the part…..all decked out in their blue & yellow outfit for the 50th anniversary broken Trident run !
Skipper Barrow…..would have been smiling from on high…..to witness such a transformation!
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Well Well & Consequences
Again, the greedy governments in the Caribbean refuse to background check these white dudes and gals with Interpol, when they roll into the Caribbean with their smiles and scams. Caribbean governments should also be held accountable. This is what happens when they don’t.
“The FCA has also begun to look more closely at advice firms recommending clients invest in risky schemes via their SIPPs.
On 12 January it issued a warning to one CEO about the practice, and last year the regulator fined and banned the directors of TailorMade, one of the major distributors of Harlequin, for poor SIPP advice among other failings.
Two Years Of Trouble
Harlequin has faced a series of high-profile problems since the start of 2013 though investors have claimed it began failing to deliver on its promises years earlier.
It been the subject of three warnings from City watchdog the Financial Conduct Authority (FCA) and is under investigation by the Serious Fraud Office (SFO) and Essex Police.
Ames’ son Matthew was helping run Harlequin’s flagship hotel Buccament Bay in St. Vincent, before being jailed in 2014 for swindling investors in his own schemes out of £1.6m.”
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Artaxerxes
caribbeantradelaw January 20, 2016 at 5:24 PM #
“By the way, are you following Davos? I am getting ready to binge watch some of the speeches.”
Unfortunately, I am not. I was busy doing research for my thesis. Perhaps you could share some information.
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Fractured BLP
Is it true that Mia Mottley & Jerome Walcott have summoned George Payne, Noel Lynch, Dwight Sutherland and Gline Clarke to a meeting of the BLP National Executive Council to explain….why of all days – Errol Barrow Day…..they were all seen fraternising with the Dems…..??
Barbadians wouls well recall the wrath Dr. Maria Agard faced for organising a football tournament with Minister, Stephen Lashley
Mottley & Walcott….birds of a feather……!!!!
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Well Well & Consequences
I too would be concerned about what they were colluding and conspiring about, there are some underground rumblings that should concern the electorate….but time is longer than twine and it does eventually come out in the wash.
The “minister” giveth and he taketh away?
Is he abolishing the entire income tax department?
Several other geographical neighbours have zero income tax, and they collect monies in other ways.
Fact is, income tax, both individual and corporate, have been on ‘life support’ in most places for a long time. This is just pulling the inevitable plug.
Income taxes have proven increasingly difficult to collect. What happens if you do not file? How long do you think it takes a bureaucracy to figure that out? What is done when it is discovered a citizen owes but refuses to pay? [and they have no traceable assets]
I am not running to Antigua. Not yet? LOL
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