With cruises slated to return to the Caribbean from November, after what must be perceived as one of the biggest public relations catastrophes in the history of tourism, is there any way that we, here on Barbados or throughout the region, can gain a far more equitable share of the past profits and revenues this sector has generated in years to come?

According to ALG- Global, the number of cruise passengers has increased by more than 60 per cent over the last 10 years, reaching a 28.5 million throughput in 2018. Out of these, 40 per cent of the passengers are concentrated in the Caribbean market, which is the single highest market in the entire cruise sector.

The Florida-Caribbean Cruise Association, state that North America accounts for around 12 million of departing cruise ship passengers annually.
This despite the fact remains that the overwhelming majority of ships which ply the Caribbean Sea are not registered under the US flag, therefore not subject to US employment laws, covering among many others things, minimum wages and labour laws. As an example, industry brand giants Royal Caribbean’s corporate domicile is in Liberia and Carnival’s, Panama, despite being headquartered in the United States.

Many would agree that Barbados has done an extraordinary job of permitting dozens of cruise ships to anchor-off our shores eventually discharging thousands of crew members before allowing them to fly home, when other islands and some mainland ports have denied that dispensation and compassion.

Will those humanitarian concessions be taken in to account when cruise ship itineraries are being scheduled and marketed for late 2020 and 2021 or will ‘our’ reach-out be forgotten in the quest of returning to profitability?

Clearly we, as a country, have clearly demonstrated ‘our’ ability’ to handle large numbers of persons joining or leaving, even the largest capacity vessels presently afloat.

Following the trauma of Covid-19, future cruise ship passengers will inevitably consider this as a critical booking factor before selecting a particular Caribbean itinerary, to avoid being stranded at sea for an indeterminate time, should a similar or food based virus re-occur.

Increased Home-porting could also play a critical role in airlift recovery, allowing some airlines to sell any unsold cruise passenger seats to long stay visitors, increasing the fiscal benefit to the destination.

There also remains the unresolved inequity between the contribution made by the land based and cruise sectors. ‘Our’ ability to repatriate the sea farers was largely created by our land-based partners, whose payment of taxes provided the infrastructure to make it possible.

If there is ever going to be a balance of a level playing field, Government must re-visit the subject of disparity in taxation. Currently there is no VAT on cruise packages and the individual passenger charges currently levied do not in any way compensate for the national investment already made which supports this sector.  Our land based tourism partners are subject to corporation tax, income tax, national insurance, VAT, land taxes, room levies and a bevy of other impositions, which cruise operators totally avoid.

Hopefully, all these considerations will be in the minds of our policymakers, as and when the cruise ships return.

94 responses to “Adrian Loveridge Column – How High Will Cruise Ship Industry Bounce?”


  1. There’s another airline serving the Caribbean grinning like a Cheshire Cat and waiting to swoop down and fill the void. A friend of mine flew to Antigua from Barbados last year but his flight was via Trinidad. It is called Caribbean Airways and it knows that a reimaged LIAT is not going to get off the ground.


  2. You also got to remember Air Antilles out of Martinique and Guadeloupe. Already flying into nuff of these islands and connecting with Paris flights.


  3. @ John A.

    It won’t be the (Don)
    signing that executive order to bailout the US base cruise ship companies. His ship is sinking. He has his LAST 5 MONTHS IN OFFICE. If Biden signs, expect Herculean stipulations.


  4. @ NorthernObserver

    I agree …… why would one wish to use “LIAT?”

    Successive Antigua & Barbuda governments….. and Antiguans in general, seem to believe they own LIAT and have some special entitlement to benefit from it. Perhaps Gaston Browne wanting to maintain the name “LIAT,” was prompted by feelings of nostalgia….. that ANU has some sentimental attachment to the airline.

    But, ‘then again,’ ANU is the departure transit hub for islands such as St. Kitts & Nevis, Montserrat, Anguilla, BVI, USVI, St. Maarten and Puerto Rico.

    Additionally, over the years, ANU has rejected all operational and management proposals to improve the airline’s operational efficiency. For example, in 2013, former PM, Lester Bird, rejected SVG PM Gonsalves’ suggestion LIAT should be scrapped and replaced with a new airline. And, in 2016, Gaston Browne rejected a proposal that moving LIAT’s headquarters to Barbados would be financially beneficial to the airline.

    ANU always make unilateral decisions relative to LIAT. Recall when then PM of ANU, Baldwin Spencer, was at the forefront of facilitating the merger between LIAT and the Stanford owned “Caribbean Star,” which was finalized on June 15, 2007? The merger was to operate under the name “LIAT – Star of the Caribbean.” At that time, LIAT was seeking financing from the CDB and ‘Sanford Financial Group’ provided the airline with a ‘bridge loan’ of $25M, until the CDB loan was approved.

    Remember Browne negotiating with Virgin Atlantic’s Sir Richard Branson about investing in LIAT? How about in October, 2019, when he negotiated a US$15.8M from the Venezuelan Banco del ALBA, to facilitate acquiring additional shares in the airline?

    Interestingly, a condition of the ALBA loan was to reduce LIAT’s operational expenses, including salaries and wages..

    Unfortunately, when LIAT is eventually liquidated, Antiguan taxpayers remain ‘saddled’ with a 10 year debt, at 6% per annum and an annual repayment of US$2M.

  5. NorthernObserver Avatar
    NorthernObserver

    @Artax
    Thank you for the concise history.
    The finger pointing is sure to warm over the forthcoming months.


  6. @ John A

    Whatever the outcome, the Barbadian taxpayer is going to be a loser. My suggestion for resolving the mess is to sell the existing company for a dollar (US$?), along with all liabilities, assets and other obligations.
    Has Arthur anything to say about the state of LIAT? Has the minister of finance anything to say about the state of LIAT? Has our minister of foreign affairs anything to say about the state of LIAT? Does BHTA anything to say about the state of LIAT? Why the silence?


  7. Fly One ready to take LIAT’s place

    by COLVILLE MOUNSEY MANAGING DIRECTOR of Fly One Caribbean, Reginald Adams, says his company stands ready to fill the void left by the soon to be folded regional carrier LIAT.

    Adams told the DAILY NATIONyesterday that with the airline’s hub already established in Barbados, the Vincentian-owned company was ready to roll out service to most of the southern Caribbean as well as one or two islands in the north.

    “We have three airplanes, two 30-seaters and a 19-seater, and it would take us about three weeks or so to add another two airplanes. So, within a six-week period we can be up to a fleet of five planes, which I believe would be sufficient to serve the south Caribbean and one or two routes in the north. So yes, we can cover some of it immediately and in a short period of time. Right now we can cover from Trinidad to Dominica and one or two flights beyond that,” said Adams.

    “One Caribbean’s operational base is already in Barbados, but we also have offices in St Vincent. So absolutely Barbados will be the airport that we hub out of while we maintain services in other islands.”

    Short-term solutions

    Over the weekend, chairman of LIAT shareholder governments, St Vincent and Grenadines’ Prime Minister Dr Ralph Gonsalves confirmed that the airline, which had been in existence since 1974, would wrap up operations, stressing the urgent need for an interim entity to maintain regional connectivity.

    Gonsalves touted Fly One Caribbean, SVG Air and a carrier from Turks and Caicos, as possible short-term solutions until a new official regional carrier was established.

    However, Adams made it clear that while he was happy to meet the short-term travel needs, he had his sights set on being part of the long-term solution for regional travel. He said his operational

    model differed from LIAT and was therefore convinced he could maintain “efficient and affordable” services to several routes.

    “We have a different model than LIAT and we want to be part of the long-term solution, but it is not going to be a case of us being able to serve every island, but we want to remain full-time for the slack that we can pick up.

    “As we speak, we are reaching out to different private entities in Dominica, Grenada and St Lucia. We already have an investor in Barbados, but we are looking at divesting ownership among the other islands privately. So, we will be able to expand services and become more regional but managed privately by investors in the region,” he explained.

    In terms of the cost of travel, Adams said he did not anticipate his fares to exceed the price of a basic ticket on LIAT, which was around US$120 from Barbados to St Vincent or to St Lucia.

    “I think it would be around the same for LIAT’s basic fares. We would not be on the tier where the fares get extremelyhigh. So, our fares would hover around US$120 and those are numbers that

    can work and be sustained.

    “They are not extremely cheap but extremely cheap cannot pay the bills. We plan to use fair fares that people can afford but at the same time be sustainable for the airline,” he added, while giving the assurance the airline was capable of meeting any protocols for COVID-19.

    “In the immediate future

    we are going to begin a service from Barbados to St Vincent, then to St Lucia and back to Barbados. This would give the travelling public a chance to wake themselves up and get the airports functioning. As the demand rises, we would spread our wings from Grenada to Barbados and then to Guyana. We would grow as the demand grows.”


  8. @ Sargeant June 29, 2020 8:46 PM #:

    The reality with Caribbean Airlines is, flights to ALL Caribbean destinations must first go to Trinidad, where, in some cases passengers may be in transit for as long as 10 hours….. or they have to ‘overnight.’ And, although the TT government subsidises aviation fuel, the airfares are usually more expensive than LIAT’s.

    Also, whereas LIAT concentrates specifically on intra regional flights, CA provides both regional and international flights. So, to adequately fill the void left in the absence of LIAT and accommodate an increase in passengers as a result, CA may have to change its operations to provide a reliable and efficient service for the region.

    ++++++++++++++++++++++++++++++++++

    @ David

    Do you believe now is the best time for regional governments to ‘have a look’ at former LIAT pilot James Lynch’s business plan for establishing a new airline?


  9. @Artax

    All options should be on the table. However it is difficult to see politicians allowing a ‘cean’ due diligence and evaluation exercise to take place given track record to date. All proposals should be reviewed by a committee of airline and business exports and the best selected based on predetermined criteria..


  10. Gonsalves to talk LIAT salaries, severance
    THE PAYMENT of outstanding salaries and severance to employees of LIAT will be placed on the front burner in discussions by the shareholder governments of the folding carrier.
    Prime Minister of St Vincent and the Grenadines, Dr Ralph Gonsalves, chairman of the shareholder governments of the regional airline, which is going into liquidation, yesterday wrote staff a letter informing them of the disappointment over the company’s demise, but promising that their financial position would be looked into.
    “Both the board of directors and major shareholders agree that the airline cannot survive this crisis. A general meeting of all the shareholders and creditors will be called for the purpose of considering the closure of the airline.
    A most important priority of the airline is the staff. The payment of your outstanding salaries and severance will be urgently addressed in this process,” he wrote.
    In yesterday’s DAILY NATION, Gonsalves said that based on the workers’ collective agreement, LIAT was saddled with about EC$83.9 million for severance payouts, EC$10 million for vacation balances, EC$10 million in paid bookings, along with immediate pre-liquidation costs of overdue payroll liabilities, maintenance for the aircraft, insurance, the cost of repatriating some staff members, rental of office equipment and utilities.
    Giving a further breakdown, he revealed that severance: for 372 workers in Antigua would come to EC$61.6 million;
    for the 93 in Barbados,
    EC$15.1 million; EC$2.5 million for 45 staff in Grenada; EC$1.3 million for the 37 in St Lucia; EC$1.5 million for St Vincent’s 41 workers; and EC$500 000 for Dominica’s 30 staffers.
    There were also a small number of employees in Trinidad, Martinique, Guyana, Guadeloupe and Puerto Rico that also had to receive theirs.
    The Vincentian leader said the shareholders understood the information about the airline’s pending closure was disappointing and an unfortunate result of circumstances, but the governments would ensure the process was “fairly and justly” undertaken.
    (BA)

    Source: Nation Newspaper


  11. I have two questions:

    LIAT is a private company. How long has it been insolvent? Is there a case of delayed filing for insolvency?

    If so, is OSA as so-called chairman personally liable?


  12. @ALL

    My question is still in the air whether the new COVID protocol will not reduce our tourism by 90 percent for the next 12 months.


  13. @Tron
    My question is still in the air whether the new COVID protocol will not reduce our tourism by 90 percent for the next 12 months.

    You were clamoring for The President to open the place. Now that is is open you are still unhappy.
    What do you suggest?


  14. @ Dullard June 30, 2020 12:57 PM

    We are setting up a special plague zone in Christ Church where people are allowed to enter without testing, but cannot visit the rest of the country. Plus some burning cars and barricades to make our guests from USA and UK feel at home.


  15. Funny. Good one!


  16. My, my, my! Who’s the shit hole banana republic now, huh Tron?

    Funny! Sad, but funny!


  17. TORONTO — Toronto city council approved a bylaw Tuesday that makes face coverings mandatory in indoor public spaces.
    https://toronto.ctvnews.ca/toronto-makes-it-mandatory-to-wear-a-mask-in-indoor-public-spaces-1.5005358


  18. @ Tron June 30, 2020 12:19 PM
    “I have two questions:
    LIAT is a private company. How long has it been insolvent? Is there a case of delayed filing for insolvency?
    If so, is OSA as so-called chairman personally liable?”
    +++++++++++++++++++++++++++++++++++++++++++++++++++

    Come on Tron, my man!

    How can you blame a pathologist or the undertaker for the demise of a ‘person’, whether individual or corporate?

    A former caregiver, Capt. James Lynch, was warning you constantly of the pending demise of that terminally-ill financial leech propped up primarily by the massively-inflated egos of ‘West Indian politicians’ at taxpayers’ expense.

    Even at this stage of internment these politicians will be squabbling over the few tattered possessions (like the HQ) left by LIAT 1974 when most commercial entities are going ‘E-management’.


  19. @ Donna June 30, 2020 5:06 PM

    Donna!

    We are witnessing a new era. A reversal of all prejudices.

    China, Japan, South Korea, Singapore, many African and Caribbean nations are managing the new plague far better than many so-called developed countries of the West, especially the USA, UK and Sweden. In the past, the narrative was that yellow, brown and black people were second class. Not anymore! Now many white nations are second or even third class.

    However, we should not triumph. Our main tourism markets (USA and UK) are at risk of being severely damaged for at least five years.


  20. @ Miller June 30, 2020 6:15 PM

    Of course no prosecutor will be found. There are far too many current and former heads of state involved.

    At best, private airline companies will take over the market. Where there is real demand, there will still be air travel. The small pepper and pirate islands will lose out because they do not generate enough passengers. However, that is not our problem.


  21. The situation in Antigua is already desperate. King Gaston is threatening to withdraw from CARICOM and OECS.


  22. Tron At best, private airline companies will take over the market.

    Well of course. As it should be. Why should the taxpayers be pumping money into a limp airline? Private enterprise should be running the short island hops, which these are. Without being flippant, any good pilot and his wife could run a charter inter-island. The wife to take bookings and manage the money, the husband to fly. Plus a mechanic.

    Too simplistic maybe, but really? For flights of an hour maximum????

    Stupse. A group of sensible businessmen can get a loan for three or four Dash 8’s and with a modern, cost effective digital app based booking system, flights should be cheaper and better than Leave Island Any Time.

    Admin part of the airline can be run out of an older converted three bedroom house close to Grantley Adams.

    The ONLY thing that governments should be doing is regulation i.e. checking that aircraft are properly and safely maintained, regularly, continually.

    And no, it is not to be a suckwell for politicians nephews and nieces and friends.

    People too like to complicate things.


  23. https://www.aircraftcostcalculator.com/AircraftOperatingCosts/482/Bombardier-DeHavilland+Dash+8-300

    Multiply by four, add in admin costs and building cost, airport fees and ground costs / mechanics and maintenance. Consider trips per day and average passenger per trip.

    There, that is a start.


  24. PS Keep the politicians and friends far from it.

    Wishful thinking I guess.


  25. Of course, regional taxes on airline tickets are partly to blame for the LIAT disaster.

    Is Enuff still laughing at my justified reference to taxes?


  26. GAIA will not be able to open in the middle of the month. We have to account for the Caribbean laziness. The protocol has not yet been implemented at all (where to upload your data?) and flights are still shifted towards August and September. Until everything is definite, no one will spend money on a Wuhan test if the flight is cancelled afterwards.

    I estimate it will take at least another 3 to 6 months before we have significant air traffic again. In the meantime, the unemployment rate will rocket.


  27. Tron all the white countries are not handling covid19 as good as others, to be fair a lot of countries are not hampered by regulations ,laws or perhaps kindness. but your atement on class reminded me of a fell that was put in a jail cell with a monster guy. The big fella says were going to play house …do you want to be the mummy or the daddy…the little guy says the daddy ….the big fella says good…now come over here and suck mummys c?ck. You may think your the people who are your biggest tourist numbers are 3rd class now …but get a grip


  28. @lawson
    What did you do?

  29. Piece the Prophet Avatar
    Piece the Prophet

    @ Commander Theophillus Gazerts

    De Prophet was also wondering what did Lawson do to get put in jail!

    And I grew concerned when he shared what that big fellow prisoner made him do, EVEN THOUGH HE HAD OPTED TO BE DADDY!

    Heheheheh

    De problem is that people in here see Tron de Jester effortlessly making jokes pun this blog.

    And dem want to try and end up talking bout sucking things

    Heheheheh


  30. Be prepared for an influx of potential Covid-19 tourists arriving from the UK very shortly. The Caribbean has done a good job, so far, in controlling the spread of Covid-19.

    “Travellers from 59 destinations will no longer have to quarantine for two weeks when they enter England, unless they have also been to countries not on the list.

    The full list of exempted destinations is:

    Antigua and Barbuda, Aruba, Australia, Austria, Bahamas, Barbados, Belgium, Bonaire, Sint Eustatius and Saba, Croatia, Curaçao, Cyprus, Czech Republic, Denmark, Dominica, Faroe Islands, Fiji, Finland, France, French Polynesia, Germany, Greece, Greenland, Grenada, Guadeloupe, Hong Kong, Hungary, Iceland, Italy, Jamaica, Japan, Liechtenstein, Lithuania, Luxembourg, Macau, Malta, Mauritius, Monaco, Netherlands, New Caledonia, New Zealand, Norway, Poland, Réunion, San Marino, Serbia, Seychelles, South Korea, Spain, St Barthélemy, St Kitts and Nevis, St Lucia, St Pierre and Miquelon, Switzerland, Taiwan, Trinidad and Tobago, Turkey, Vatican City, Vietnam.” (Source: BBC)


  31. If Browne is so confident of the potential of LIAT (1974), then he is free to buy out the other shareholders. This is not a business proposal, it is a begging letter. LIAT is insolvent. It has failed.


  32. The problem is not LIAT, but the local governments, which still massively obstruct air traffic within CARICOM through Corona chicanery and excessive flight taxes. Airlines like One Caribbean or Caribbean Airlines can easily fill the gap at any time – provided there is sufficient deman for air traffic. We do not need a financial graveyard called LIAT for failed provincial politicians like OSA.

    Two years ago, the local establishment laughed at me about flight taxes. Once again a failure of the government advisors who still believe in their old Moscow doctrine of maximum taxation to punish economy instead of leaving the economy to the free people.

    We must finally free ourselves from the octopus called the deep welfare state with slavery-like paternalism of the people.


  33. @ David July 3, 2020 4:03 PM

    Everybody should read an interview with Bizzy: “Right now LIAT is the number one charity in Antigua. If you can’t get a job anywhere else you get one at LIAT no matter how nasty you treat the passengers you are assured of a job”.


  34. Antigua was not represented at yesterday’s special conference of CARICOM leaders where PM Mottley handed over the chairmanship to SVG PM Dr Ralph Gonsalves.

    Apparently, Gaston Browne was angry because heads of the shareholder governments made a decision to liquidate LIAT and that a SVG airline, registered in Barbados, is advertising flights to certain destinations at fares of US$99 plus taxes.

    He wrote on his Facebook page “There are some regional leaders who see our regional institution, carrier, LIAT, as a ‘predator’ and they are determined to keep their knees on its neck to prevent its regeneration. Their espoused values about regional integration, are in congruent with their insular actions,” he said, adding that “it is with a heavy heart that I add, if this insularity hidden in intellectual subterfuge is allowed to continue unabated, the CARICOM and OECS integration institutions shall wither and die.”

    It seems as though Browne wants to bully his regional counterparts into investing millions of dollars of taxpayers’ money into a failed airline, under the guise of facilitating regional integration, when, in actuality, he wants to keep Antiguans employed and Antigua to have full control of LIAT.

    It’s rather interesting that this man is talking about “insular actions,” when he and CWI bought Stanford’s ‘Sticky Wicket,’ so more cricket could be played in Antigua; forced UWI to open a campus there; and ‘went behind the backs’ of the other shareholder PMs to negotiate all types of selfish deals for LIAT.


  35. Gaston is like a man who wants to be selector, player and umpire. Based on the news reports he made a unilateral decision to announce LIAT’s insolvency, announce the formative terms for a new carrier based on the bones of LIAT and is now in a snit because the other PM’s haven’t kow towed to his demands.

    What next? Will he refuse landing rights to any carrier that seems to have the support (not financial) of the other Gov’ts?
    The other Gov’ts should tell Gaston he should take his bat and ball and go play with himself, there is no harm in calling someone’s bluff.


  36. LIAT is like the Caribbean public service. It is not about optimizing services, but only about enabling as many lazy natives as possible to live a carefree life. If I extrapolate the number of jobs to large American aviation companies, LIAT has a staff surplus of at least 75 percent.

    LIAT must die so that cheaper private airlines can take its place.


  37. LIAT is like the whole Caribbean public service. It is not about optimizing services, but only about enabling as many lazy natives as possible to live a carefree life. If I extrapolate the number of jobs to large American aviation companies, LIAT has a staff surplus of at least 75 percent.

    LIAT must die so that cheaper private airlines can take its place.


  38. British VIPs paying big bucks to jet in

    Wealthy British travellers will be forking out as much as $10 000 for a return ticket to Barbados on a VIP airline this summer.

    The UK charter broker Caledonia Jets is offering seats on board a massive Airbus A340 private jet which will be operating between London and Barbados.

    The first flight was originally scheduled to arrive here yesterday, but a source told the Sunday Sun it was postponed due to the cessation of commercial flights into the Grantley Adams International Airport because of the COVID-19 pandemic.

    Prime Minister Mia Amor Mottley announced last week the airport would be reopening to commercial flights on July 12, the day when Barbados will see the return of Air Canada, followed by British Airways flights from Gatwick and Heathrow airports on July 18 and Jet Blue from New York on July 25.

    Open for bookings

    In a notice posted on its website last week, Caledonia Jets said: “Following the announcement by the Prime Minister of Barbados, we are open for bookings to Barbados from a private terminal at Stansted, London commencing 8th of July 2020.

    “We fully support the Government’s test before flying strategy and shall operate a thorough test, isolate and fly protocol to all passengers on board. Passengers can board in the knowledge that everyone has been issued with a negative PCR test certificate alongside their fellow passengers in an isolated environment. This goes beyond the requirements of the Government but as always, the safety of our passengers comes first.”

    Health status certification

    Protocols outlined by Minister of Tourism Kerrie Symmonds state that visitorsarriving at Grantley Adams

    International Airport will be required to present Immigration officials with health status certification which has to be in their possession at least 72 hours before arrival.

    In compliance with this requirement therefore, before the British passengers can board the luxury jet for Barbados, they must submit to a COVID-19 test and self-isolate in a hotel overnight prior to the flight, at their expense.

    According to the Caledonia Jets website, the test ensures that travellers do not have to worry about fellow passengers potentially having the virus. It also serves to protect Barbadians against transmission of the coronavirus which the island has managed to contain.

    (GC)

    Source: Nation Newspaper


  39. Dont rule out china getting involved after antigua”s vote over hong kong


  40. @ David July 5, 2020 4:30 AM

    How many tourists will this bring us by Christmas? 100, 200, 500?

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