The Adrian Loveridge Column – Tourism is OUR Business
If I needed to be reminded for a single second that our policymakers, planners, politicians and private sector partners need to work closer together across the Caribbean, then it was at the recently concluded 4th annual Caribavia Aviation Meetup held in Saint Maarten.
I doubt a solitary speaker or attendee at that conference returned home with anything other than the same conclusion. Among the topics extensively discussed was the excessive taxation by Government’s, which were proving to be one of the single largest deterrents to growing tourism.
While the overwhelming positives outweighed the negatives, many of us were left with the disappointment that more of the key decision makers across the region did not make the effort to attend as they could well have hugely enhanced their knowledge and ability to increase their own individual destination numbers.
For Barbados, we have in the past been able to boast that the Caribbean was our third largest source market, but unless the subject of airlift is addressed quickly and effectively, it is almost impossible to imagine that this will continue.
As the widely recognized doyen of tourism, Vincent Vanderpool-Wallace CBE., graphically pointed out at the event – as he has on many previous occasions – proximity and connectivity are two of the most critical factors in air transport.
Simply put, that potential visitors on your doorstep can provide some of the greatest arrival opportunities, providing they can reach the destination with more affordable ticket prices. None of this of course, is a revelation or ground-breaking news, as it’s widely accepted as a fact of life in all other source markets.
When lower airfares are made available from the United States, Canada, United Kingdom and Europe, then increased numbers will travel to the Caribbean, yet many in critical decision making positions, do not seem to fully understand or embrace this within our region.
Few can seriously dispute the fact that low cost carriers have dramatically grown airlift into the Caribbean and you only have to cite jetBlue as a classic example. Our United States visitor arrival numbers stagnated for almost a decade until replacement key marketing personnel were brought into place and negotiated new or existing routes with various airlines. Westjet out of Canada is another case in point. And to a lesser extent Thomas Cook Airlines, with their seasonal services, from Manchester and Gatwick, which provides a less expensive flight option to many of our second home owners and shared accommodation offerings.
Ultimately, our politicians and policymakers will have to carefully weigh the overall tax collection benefits earned from visitors who are deterred by high airfares. Conversely, those who are tempted to our shores and pay VAT, room levies, DTS (direct tourism services) levies, shared accommodation levies and all the various additional taxes collected as a direct result of increased employment it creates.
Returning to the subject of working together, I believe there is also vast untapped potential if we partner with some of our neighbours. Enticing new carriers with triangle airline routes offers a low and shared risk possibility, especially with long haul carriers. If we are ever going to persuade Scandinavian airlines back to Barbados, it may be the only feasible way to attract their high cost-of-living population and where comparative on-island prices are not so inhibitive as many other markets.
The team from Antigua is in Barbados to discuss buying a significant number of shares that will see them majority shareholder.
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Hip, Hip, Hooray!!!!
I’m hoping the Mottley administration decides to offer the Antiguans Barbados’ ENTIRE shareholdings…..thereby eliminating the need for Barbadian tax-payers to “pump” millions of dollars into the airline annually….… while transferring that burden to Antiguan tax-payers in the process.
Then, I’m also hoping the Barbados government adopts an attitude similar to that of the governments of St. Lucia and St. Kitts……… and not financially investing in LIAT, unless there’s a fundamental change to its operating structure.
Remember LIAT’s minimal revenue guarantee (MRG) proposals, where Barbados, which had the 116 weekly departures, the highest by LIAT, was being asked to contribute US$1.614 million?
It is interesting to note that Gaston said Sir Richard Branson is “coming on board” to invest in LIAT. However, chairman of the share-holder governments, SVG’s PM Gonsalves said he read the media report about Sir Richard alleged interest in investing in LIAT, but so far, he has not received any formal indication from Sir Richard.
Gonsalves said: “As chairman of the shareholders, I have not been aware of that. Nobody has contacted me about that. I have seen the reports that Max Fernandez, one of the ministers in Antigua said so.”
I see some very interesting times ahead for LIAT.
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@Artax
As you probably know Antigua is a dark hole when it comes to doing business.
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David BU
Yes….. and both the Antigua & Barbuda Labour Party and United Progressive Party seem to believe the islands and populace belong to them to do as they please.
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“Teams from both countries met today at the Hilton Hotel to begin talks, a week after Barbados’ lead negotiator, Attorney General Dale Marshall, revealed he had tried unsuccessfully to arrange a previous meeting with LIAT officials to discuss the details surrounding selling its 49.4 per cent stake to the Gaston Browne administration.”
An interesting development.
Is this an “unofficial” protest by LIAT officials against the sale?
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Another window to the sea could be changed.
” Construction of a major public beach club on Rockley Beach, Christ Church, part of a $50 million redevelopment of the nearby Blue Horizon Hotel, is getting mixed views from vendors there.”
http://www.nationnews.com/nationnews/news/240546/mixed-views-rockley-project
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Still chasing LIAT about the double rate (US$70) of what they describe as BGI Passenger Service Charge on my BGI/SXM/BGI ticket and surprised to see that Mark Maloney is listed as a DIRECTOR on their board.
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@Adrian
Why are you surprised? Maloney has continued his excellent relationship with this government. Think ROSS!
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Jet ski recovered off coast of Guadeloupe
http://www.nationnews.com/nationnews/news/240603/jet-ski-recovered-coast-guadeloupe
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