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Traditionally, for years this period between Christmas and New Year the United Kingdom normally experiences the largest level of holiday bookings than at any other time annually. Not this year of course, with our tourism policymakers and planners left to contemplate, what, if anything they can do to bridge the enormous void of visitor arrivals.

It is an unprecedented situation and for those who stand on the side and criticize, proffering what they think could be done, are only frankly second guessing a clearly almost impossible and unpredictable scenario.

What I understand the current guardians of our industry are successfully doing is maintaining the highest possible destination visibility with initiatives like the Welcome Stamp, visits by travel writers, travel agents and the incredible centenarian, Captain Sir Tom Moore, all naturally under carefully managed pandemic compliant conditions.

While, it may seem very optimistic given the current circumstances, I am still going to have a wish list for 2021.

As we emerge from the pandemic, there will be opportunities and some of these may come from those airlines that have survived, downsized and retired their larger, less fuel efficient aircraft. New aircraft like the incredible Airbus A321XLR will come into service and enable long haul routes from various European cities to operate planes which carry around 200 passengers, economically on non-stop services to the Caribbean.

Routes like Dublin or Belfast to Barbados then become less of a risk and given a massive price advantage by not having APD (Advanced Passenger Duty) imposed on the fares, saving at least UK Pounds 80 per passenger in the case of Northern Ireland.

Locally, I believe that a great more could be done with developing smart partnerships between all sectors across tourism and those companies who supply them together with our seemingly reluctant banking sector. As one of the persons deeply involved in creating the first fully functional small hotel alliance, it has been hugely disappointing not to witness more co-operation in this sub-sector, by developing joint promotional initiatives and driving cost savings through collaboration.

And as the cruise industry finally resumes sailings from the Caribbean, perhaps not until the very latter part of 2021, let us look objectively at exactly where we can truly benefit from this sector and justify the investment we have already placed in it.

As always, my thoughts go out to all the dedicated tourism workers and managers that are still employed and have sacrificed their quality family time over this festive period, to give our cherished visitors that holiday of a lifetime.

 


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258 responses to “Adrian Loveridge Column – Wish List for 2021”


  1. Instead of braying on the blog daily you should investigate how many of the properties being rented are owned by black people.

    https://www.welcomestampbarbados.com/Barbados/For-Rent/

  2. Carson C Cadogan Avatar

    Or BLACK PEOPLE are to remain poor all the time????? Just like the MARIJANA INDUSTRY where they are cutting out the THE BLACK RASTAS. Only jail for them.

    But giving it to the WHITE PEOPLE. People who never went to jail because they were protected by Officialdom.

    BLACK PEOPLE in BARBADOS cant catch a break. What a place to be in. Everything is done for the 3% of the Barbados population.

    The 97% of the population who is BLACK, MUST SUCK SALT ALL THE TIME.

  3. Carson C Cadogan Avatar

    Ant time any one is speaking on the behalf of BLACK PEOPLE, then you are braying?????

    they are not worth speaking about in your opinion.


  4. Another hijacking in the making.


  5. @Artax

    No

  6. Carson C Cadogan Avatar

  7. Critical Analyzer Avatar
    Critical Analyzer

    @Carson C Cadogan
    Yes, you are braying a bunch of nonsense just like the animal that makes that sound.

    The problem with people like you is you want to keep your own BLACK PEOPLE down with mediocre thinking. We BLACK PEOPLE running the country, writing all the laws and managing the country for donkey years, both B and D have had all the power at one time or the other. Your problem you want somebody to come to the country and put a free million US dollars in your hands to waste just like you got free education, free healthcare and free school meals.

    I once met one of the same gardeners you talking about that started out getting $200 a week and built his business so big now that he does professional landscaping and has maintenance contracts that make lots of money for him and his employees and was able to branch out into other related fields and business ventures.

    The problem you and most Black People have is that because you yourself have no vision to take the risk and try to create a business, you are happy to denigrate others trying to share and bring their business ideas to fruition so you can laugh and ridicule them if they fail.


  8. @Critical Analyzer

    A comment the blogmaster can wholeheartedly agree.


  9. What is the average wage/salary of black Americans and black Brits?


  10. @ PLT

    $40,000 USD a year or $80,000 bds is not an unreasonable figure for total spend. Housing and a car lease alone will swallow up more than half of that. Then you add food and entertainment too and it’s easily done.

    What I have heard too is that not only are the contract holders coming but bringing their extended family as well. So by the time you factor in these 3rd parties and their consumption, you should comfortably clear the $40K USD.

    I also know on the top end of a Canadian company that rented a west coast villa and their rent alone is above the $40K USD figure. What we have to watch for now is how the foreign tax departments will view all of this, as these persons will undoubtedly be lodging these expenses against their taxable income.

  11. NorthernObserver Avatar

    @Traveller
    a key to the proposed US Snowbird Visa is Canadians keep their “nonresident alien tax status”, for up to 240 days. They still have to comply with rules within their Canadian jurisdiction regarding residency. So on the one hand, the Visa keeps the IRS off their backs, on the other, they could fail to qualify for benefits associated with residency in Canada (varies by province).

  12. NorthernObserver Avatar

    @CA
    your closing paragraph is a gem. To quote the late G.O.Belle, more gemacious if you omit the word ‘black’.

  13. NorthernObserver Avatar

    @PLT
    have you encountered challenges, where employers would not permit an employee to be based in Barbados?


  14. @ Critical Analyzer December 28, 2020 2:32 PM

    Spot on! Brilliant analysis.

    However, when I expressed similar observations, it was implied since I’m addicted to bullying, I must find a victim.

    Any bet your comment won’t be followed by a similar critique, but with SILENCE.

    On BU it isn’t about WHAT is ‘said,’ it’s about WHO ‘says’ it.

  15. NorthernObserver Avatar

    @JohnA
    “What we have to watch for now is how the foreign tax departments will view all of this”[quote]
    This is true. And it goes well beyond expenses, but also delves into ‘where and who made certain decisions’ and where revenue was earned. What the legal beagles term ‘mind and management’. Which interestingly stemmed from a Supreme Court of Canada ruling regards Trusts, in which Barbados was one jurisdiction, known as the Garron Decision or ruling.
    Tax departments are already bamboozled by the mobility of companies and cash-flows, now they are faced to deal with personal mobility on a larger scale than before.


  16. Finally something from Critical Analyzer that I can agree with. Triple C brays all day about black people- the same ones that did not exist for him before May 25th, 2018 when he was in the bosom of the DLP government whose leader said of the economic hardship, “It is affecting me too.”

    There is opportunity out there. Black Bajans need to pool their resources and take those opportunities.

    By the way, Alex Tasker has appeared before the Court.

    Talk bout dat!


  17. @Donna

    We should add the note to your comment that Tasker’s appearance in court today was as a result of an extradition request from the US authorities.


  18. @ Northern.

    The problem will come with the the home tax offices especially with the highly profitable companies who would be heavy tax payers. So when they apply the expenses here to their pre tax income, it will reduce their tax liability considerably in their home town filing. No doubt these tax departments will then place limits to claimable expenses for persons working outside their domicile. In other words the pressure will start being applied as in the case of the offshore business sector. It will start with capping housing and office expense claims for those outside their
    Tax domicile and then go from there.


  19. @John A

    The continuing row we have with the EU and OECD is about alleged tax dodging individuals and corporates, so they will be watching this development with eagle eyes.
    Already the IRS follows US citizens all over the world, no matter how long they have been out of the country; the Brits are doing the same.
    They will not allow remote workers, being paid from their home countries, to avoid paying income taxes and national insurance at home. Further, they are unlikely allow tax-free expenses claims from some far away country.
    Then there are matters of being subsidised by Barbadian taxpayers. I have heard the politics, but what are the economics of this deal?


  20. @ Hal

    Yes but remember the operators off domicile are not refusing to pay their taxes in their domicile. What they will be however doing is substantially reducing their taxable income by applying the off domicile expenses before paying the taxes. So although it’s not like the offshore companies being domiciled in low tax regions, the end result to the tax collector will be the same. In other words lower taxes being paid on the same revenue due to off domicile expenses being applied to pre tax income.

    We will have to see how the home tax bases deal with it. I believe they will do it by capping allowed expenses in off domicile operations as that would be the easiest way. Hopefully they will not catch up with it till our traditional tourism returns in some form.

  21. Carson C Cadogan Avatar

    Critical analyzer

    You are making no sense at all.

    Your breath was just wasted. Come again.

  22. Carson C Cadogan Avatar

    Hal

    Somehow the Barbados Labour Party Govt. thinks it will get a free ride. And so it yardfowls. Nothing is further from the truth.

  23. Carson C Cadogan Avatar

    This program will be under the microscope in nothing flat. Where International regulators sees it causing their Countries Tax revenues, they will be all over it in record time.

    Much to Barbados chagrin.


  24. @John A

    Are you making and assumption off domicile expenses is an expectation of the visa stamp visitors?


  25. The home tax bases can not stop the companies or people from working off domicile. It is not like the off shore companies that can be black listed. What the tax departments can however do is cap the taxable allowances on off domicile operations to the point where it could make the exercise unattractive to individuals or businesses. This is the one risk to the venture that concerns me.


  26. @ John A

    The statutory residency test will be applied very stringently as far as the UK is concerned. I am not sure how many days one has to spend in the Barbados jurisdiction, but a year is a long time.
    So, in calculating the benefits of a @PLT visa, one has to look at the tangibles and the intangibles. The UK tax code is about 17000, up from 12000 just a few years ago.
    Very important, the UK adopted a lot of the IRS strategies since 2013, which led to financial advisers and banks refusing to do business with people who were US citizens. I remember this took up a lot of our energy at the time.
    I am still of the belief that the @PLT visa will not be as easy as it seems; where are our tax experts? Where is the cost/benefit analysis by the ministry? I am sure the big accountancy firms would have done their home work for their overseas clients.


  27. @ David.

    Without a doubt yes they will be applying a portion of these expenses to their pre tax income. No one will add $100,000 to their operating expenses without claiming back some against their income. They are allowances on domicile for things like this. So were they home they could claim a part of their home expenses off their taxes say, if they worked from home. The question is how will the home tax offices view claiming such expenses off domicile. Remember these people are not being forced to relocate they are doing it by choice. How therefore will tax offices view this in terms of right to claim? Will these people still be claiming expenses for offices etc on domicile at the same time? All these are unanswered questions. Now that is not our problem it is theirs. We made a facility available it is for those taking it to do their homework. The point is though if the tax offices make it unattractive for people to do it then it affects our success.


  28. @John A

    Would the persons not have requested approval from their respective companies to work offshore and communicated with HR to establish the parameters how they manage taxes and related matters?


  29. @ Hal

    Only time will tell how it is viewed. If The home tax departments feel that it is becoming a threat to their revenue base, then they will step in with restrictions. It’s too early to say but that doesn’t mean we should not stop and think on it. Remember all the tax experts can only advise their clients based on CURRENT legislation not the changes that could come. .


  30. David

    Do you too also support the extraterritorial jurisdiction of US law?

    Or are you so noting to wash the hands of the current regime in barbados under cover of an hegemony whose interests don’t centre bim.


  31. @ John A December 28, 2020 4:10 PM

    The Czech Republic, for example, has been offering a long-term business visa for several years, which is targeted at freelance and remote workers who are desirous of living and working that country for up to one year. The application requirements are somewhat similar to those of Barbados.

    The Czech Republic’s consular office based in the USA and I’m sure that, over the years, several US citizens may have taken advantage of the opportunity to work there. Then, you have US soldiers stationed in countries other than the US, so, most likely the IRS has already made the necessary arrangements to deal with income tax filing issues you alluded to.


  32. @ David.

    That is not the concern for the IRS that is between you and HR. Where it becomes the IRS problem is if this relocation increases your employers expenses to the point that it severely reduces the companies pre tax income. So the IRS doesn’t really care where you are once you pay your share of taxes. For example lets say a company made $500,000 in profit in 2020 and 2019, if that company now moves off domicile and rents a $200,000 a year house with butlers and maids and that results in a drop in pretax income for the company to $300,000 then trust me the IRS will be all over it.


  33. We remember well when such cases failed and the USA kidnapped the people anyway


  34. @John A

    The follow up question is that the company would have legal and tax support to establish and clarify the mechanics for employees working overseas?


  35. @ Artax

    I am not talking about the filing of tax returns. I am talking about a relocation increasing a companies expense and as a result reduces its taxable revenue on domicile.


  36. @Pacha

    We have signed on to extradition treaties with countries?


  37. @ David.

    Forget the person working abroad etc and focus only on if this transition off domicile will increase the companies expenses and in turn reduce the pre tax revenue on domicile. The IRS don’t care where you are once they get their share.


  38. @John A

    You assume the offshore worker is not expected to pay their way in Barbados? Do we know or are we assuming.


  39. David

    So our intuition was right.

    That may be a hole to hide in for political reasons but once you give a monster a cookie a glass of milk will also be demanded. Are you cool wid that too.

    What about the kidnapping of others who won these extradition cases in barbados and the USA captured them in contravention of court rulings while en route to third jurisdictions.

    Has the US ever extradited any of their citizens?


  40. @ John A

    Okay, I understand the point you’re making. You’re essentially looking at the expenses a company may incur as a result of an individual relocating to Barbados to work for a year. If those relocation costs can be identified as being incurred to generate revenue and expensed against taxable income.


  41. @ David

    No the offshore worker will not pay taxes here. Look at him as a working long term tourist. So the benefit of him for us comes from the value added of him living here. Car rental, house rental etc.

    Don’t get me wrong I think it is a good idea and worth exploring all that I am saying is just like the offshore business sector, if this proves to be a massive success and reduces the taxable income on domicile look for the home tax office to step in.


  42. @ Artax

    Bang on target my friend.


  43. @ John A

    Do not forget we have tax information sharing agreements with some countries. In the UK, we also have unexplained wealth legislation.
    So, a UK worker on an annual salary of £70000 annual salary (ie the top ten per cent of earners) with a mortgage and other fixed costs, and living a middle class life in Barbados will have some explaining to do.


  44. @ John A

    Plse clarify: will the @PLT visa holders simply be enjoying Barbados, apart from the normal expenses (rent, VAT, petrol, etc), tax-free?
    In other words, they will be enjoying the pleasure of Barbados without any cost to themselves. In economics that will be described as being subsidised by local taxpayers.


  45. @ Hal

    Let’s be honest there is no way easier to reduce taxable revenue than to increase expenses. What better way to increase expenses than a nice beachfront Caribbean villa. Lol

    We just have to wait and see how tax offices view all of it. It’s like the offshore businesses. When they first started out nobody paid them any mind. It was only when it started to eat into domestic tax revenue that you started hearing words like ” black lisitng” and “compliance.”


  46. @Northern Observer

    Canadians can now remain in the USA for 183 days. To avoid having to file US tax returns, Canadains file a form 8040. This form establishes a “closer connection to another tax jurisdiction (Canada) and states where you will file and pay your income taxes. Most Canadian Provinces now allow 7 months of absence before there is any reduction in Provincial Health Care Benefits. In some cases there is no loss at all. If you plan to be outside Canada for more than seven months in any 12-month period you can keep your OHIP coverage for up to two years if you:
    have a valid health card
    make Ontario your primary home
    will be in Ontario for at least 153 days a year in each of the two years immediately before you leave the country .

    There are no other “clawbacks” realted to residency so long as you have resided in Canada for 20 years.

    The USA health care system so far as costs go are totally out of control. There is another opportunity there for Barbados to offer a emergency health care package to longer term visitors. Check out the cost of a doctor visit in both countries.


  47. @ John A

    That is fantasy land, if you think remote workers will be able to increase their expenses claimed. First, their employers will not allow it, and fr the self-employed, the tax man will come down on them like a ton of bricks.
    Question: why do you have to re-locate to Barbados?


  48. @ Hal

    Not really they will be no different to long stay tourist. When the tourist are here we don’t tax them but we benefit from their spend. What PLT is proposing is a good idea in that one long stay working tourist literally can replace the spend of 20 short term tourist. Hopefully they will renew their visas next year and tell a few friends as well. What we have to ensure is that our support sector like phones, Internet speeds etc are there. Our goal should be to make it as easy as possible to extract legally as much from them as we can, while making sure their experience is first rate.


  49. @ Hal

    Yes you are correct the success of this program is partially dependant on how the on domicile tax offices view this down the road. As I said though we might get a few years out of it before they drop the hammer just like we did with the offshore sector in its hay day.


  50. @ John A

    There is a big difference between working and holidaying. For example, if someone is going to the US on holiday, they do not need a visa, but if they are going to report on an event, they do.

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