Adrian Loveridge Takes A Trip To St. Lucia…
Attempting to practice what I preach, I have just returned from a week on St. Lucia.
It wasn’t all pleasure. I managed to visit over 40 hotels including witness at first-hand the current progress of the new Raffles, Ritz-Carlton, Cap Maison, Landings and Westin Le Paradis Hotel and property developments and the expansion of Rodney Bay Marina.
We took advantage of some of ‘special’ LIAT airfares posted on their website.
At first, they seem so attractive.
Barbados to St. Lucia US$45 and St. Lucia to Barbados US$35!
So a return airfare of just US$80!
But then start adding the taxes and additional charges.
First Barbados (all shown in US$)
Sales Tax $6.75
Passenger Facility Charge $5
Airport Development Tax $27.50
Airport Authority Tax $2.50
Airport Passenger Tax $0.37
Fuel and Insurance Surcharge $13.75
Second St. Lucia
Sales Tax $5.25
Passenger Facility Charge $1.50
Airport Development Tax $25
Airport Passenger Tax $4.82
Fuel and Insurance Surcharge $13.75
So on top of the US$80 airfare goes another whopping US$106.19 in additional charges.
Anyone sitting yesterday in George F.L. Charles Airport waiting for the two hour delayed, 35 minute flight back to Barbados had plenty of time to try and figure out exactly where those Passenger Facility Charge/Airport Development Tax/Sales Tax and Airport passenger taxes were being spent.
Well the US$36.57 in taxes alone charged by St. Lucia was certainly not being spent to improve the comfort of the delayed passengers in adequate seating or air conditioning.
Now the fuel/insurance surcharge!
I understand that unless LIAT have hedged (bought forward) their fuel purchases, the current price being paid for A1 fuel is between US$840 and $1,000 a ton.
I am not sure if LIAT measures by a US (short) ton of 2,000 lb or an Imperial (long) ton of 2,240 lb.
I also understood from the Captain that a Dash Eight would use around 1,000 lb. of fuel between St. Lucia and Barbados.
Yesterday’s flight was full, perhaps partially due to the next scheduled flight leaving within 15 minutes of the time we eventually departed and other passengers were perhaps consolidated onto our plane.
So, 50 persons paying each a fuel/insurance surcharge of US$13.75 or a total of US$687.50.
1,000 lb. of fuel even at the higher cost of $1,000 a ton then would mean the total fuel element was $500.
So what exactly is the insurance cost per person?
Do we as taxpayers have a right to know?
Of course the taxes collected by the St. Lucia Government (as most) do not end at the airport.
A temporary Driving Licence – US$21 (3 months)
US$5 a day on Car Rental
8% on accommodation and food and beverage are among others levied.
Pending any unforeseen developments, all the indicators show that long stay visitor arrivals from our traditional markets including the United States and the United Kingdom are going to show little of no growth this summer.
Our registered accommodation providers barely reach an average annual occupancy of 50% currently and this takes into account the stronger four month winter season.
So you can imagine many of our hotels, especially the smaller ones, are struggling at 25% occupancy or less during the summer.
Caribbean Government’s and their Ministers of Tourism will one day have to wake-up and realise there are simply only so many ways you can extract taxes from people.
Make it too expensive and people will not travel at all or at least go to areas where they can offset the costs in shopping.
No travel, No taxes.
It’s really as simple as that.
Adrian Loveridge
19th May 2008
27 Comments
May 19, 2008 at 3:45 pm
You know Mr.Loveridge it’s the same in Europe with Easyjet and Ryanair. They advertise these really cheap fares which catch your interest and then add all the extra taxes after, including paying for luggage. And quite a difference it makes too !
So I guess Liat is just following the bigger players.
Really and truly I don’t think they should be allowed to advertise those really cheap fares as that is not the true price. In my opinion it is fraudulent.
May 19, 2008 at 3:59 pm
All I can say is… that in 2008 the ONLY WAY (I know of) to travel between Barbados and the islands is by air.
Is this ridiculous or is this ridoculous?
Fancy – NO transportation/travel possibility by water. No ship, no ‘ferry.’
Is this great insight by our Governments/business people?
Imagine – with John Lennon – being able to get on a ship – with cabin accomodation – and sailing overnight to St. Lucia … it isn’t hard to do.
Imagine being able to drive on to a ferry with your car and driving off on St. Lucia… it isn’t hard to do.
Imagine intra-island commerce between the islands and Barbados with fresh fruit and vegetables coming in from the islands, especially from Guyana and Trinidad… it isn’t hard to do.
Excuse me, I’ve got to go… feeling sick … have to vomit.
May 19, 2008 at 4:18 pm
All good reference points Adrian
What are some of the solutions given the realities of ever increasing jet fuel, airplane costs ( capital and maintenance ) and labour costs?
How do we get better service and bang for our buck from the Airport authority and what do you recommend?
May 19, 2008 at 5:30 pm
What Iriebrown is true also for Canada, airlines here advertise $125 one way to London, by the time you add on your surcharges the return fare ends up costing you $600-700 (Canadian Dollars). I understand that hotels in Moscow are now charging over $1,000 per night.
May 19, 2008 at 6:43 pm
What it means is that only the wealthy are going to be travelling as the price of oil per barrel continues to ascend.
Either as AL states — Governments are going to have to rethink their excessive taxation on tourism or there will be little or no tourism at all.
I think that Barbados and the rest of the Caribbean is going to have to give some very serious thought to this impending certainty.
May 19, 2008 at 7:17 pm
Adrian:
I was wondering if in your position as director of the BTA, you could find out how many passengers leave Barbados through GAIA and how many of these pay US$30 fee.
I read somewhere that about 2 million passengers departed though the airport, and I would imagine that most of these pay the fee now that in transit passengers also pay. So, that’s close of US$60 million already. Then you have landing fees, parking fees, rents, advertising etc. When is the last time the GAIA produced audited financial statements.
I could not imagine that it takes US$80 million to operate the facility on an annual basis (even if you factor in debt payments). If that is not the case, should the government be using the airport as a cash cow?
Another point: when are we going to get baggage trolleys? Only in Barbados does an entire industry get held to ransom by a small group of people. Successive governments have always made poor decisions in tourism, allowing small but vocal groups (redcaps, taxis, vendors) to dictate policy. I am sure the trolleys already ordered are quietly rusting away as passengers are forced to carry their own bags out of the airport. Welcome to Barbados!!
May 19, 2008 at 8:35 pm
Carifesta is launched, the region is coming and the world is watching as our GUYANA welcomes the region, and Austria, Japan, Indonesia, Morocco and groups form the USA, UK, Canada and beyond. The Guyana Hitlon will be up and running for this great event, so come over to Guyana and celebrate in LOVE N UNITY, PEACE N HARMONY, YES YES, COME TO GUYANA and celebrate you. Effective on June 1st Delta Airlines offers the only NONSTOP flights between New York City and Georgetown, so step on board Delta’s widewide Boeing 767 jet to Geoegetown, for Delta is ready to bring you to Carifesta in beautiful Guyana. Easy connections to Guyana on Caribbean Airlines, Zoom Airlines and Sky Serice Airlines. And see Guyana on Roraima Airways and Trans Guyana Airways, or TNTRASERV bus….you can even walk to Brasil on the new Takutu River bridge…so come..celebrate you…in beautiful Guyana…,
May 19, 2008 at 10:33 pm
Well the US$36.57 in taxes alone charged by St. Lucia was certainly not being spent to improve the comfort of the delayed passengers in adequate seating or air conditioning
……………………………………………………………………………………….
It amazes that over the years nothing has changed in Vigie departure lounge. Very uncomfortable indeed. Who paid for your trip?
I listening to Reds Rerriera( when did he become a political reporter?) mumbling about the St. Lucia government in strife and hanging on by a thread. Is that so?
May 20, 2008 at 12:43 am
I reckon it’s only a matter of time before we hear growing cries to limit hi altitude jet travel, away from the enormous amounts of gunk those multi-engine boys spew out at 30,000ft. with gay abandon.
Hey, God/Nature made the upper atmosphere so that NO-one would put any carbon molecules up there.
But along came Orville and Wilbur Wright et alumni, to fly in God’s/Nature’s face and defy the delicate balance of Nature.
And then TechnoNations wonder why nature starts coughing back nasty tornado and hurricane seasons at people so dumb they can’t figure out the cause/effect thing? Hello-o-o!
Won’t be long.
Watch for it.
Climatologists and atmosphere-ologists will soon be making their findings known,
and the air travel/JET industry isn’t going to like the news one little bit!
There might even be a transition back to (eco-safe and) ’slow’ ship/boat travel between nations,
like there should be between islands no more than 30-100 miles apart!
May 20, 2008 at 2:51 am
The Governmentof SLU is building a new terminal and the current area where the aircraft park will be only for private jets. here is a lay out of how it will look http://htsstlucia.com/images/2007News/September/13/airport.html
should be starting by the end of the year.
May 20, 2008 at 3:26 am
I have to admit that many of us are trying to guess who this Blog is run by…. or maybe I should say controlled by… My guess is that the following (according to my friend in the AGs office) are intimately associated with such:
1. Adrian L
2. Ian B
3. Dennis J
4. David E
5. Vic F
It would be interesting to see how this e-mail would be treated.
May 20, 2008 at 3:30 am
I know you guys have guessed who I am talking about… Well it is none other than:
1. Adrian Lynch
2. Ian Batson
3. Dennis James
4. David Evelyn
5. Victor Fenty
May 20, 2008 at 6:34 am
Strewth, Adrian likes his stastistics, does my head in.
Me, yes I moan about the global economy, (can’t alter that) pay up and am just grateful for good health and am able to travel.
Smile and the world smiles with you …………………
May 20, 2008 at 8:45 am
BajanBoy,
I will ask for a copy of their accounts, but I am also waiting to see the accounts of Hotels and Resorts Ltd since 2001.
As I understand it, both previously exempt children and intransit passengers now pay the 140% increased ‘departure tax’.
These as the charges to LEAVE Grantely Adams Int. Airport according to my LIAT ticket in Barbados Dollars per PERSON:
Passenger Facility Charge – $10
Airport Development Tax – $55
Airport Authority Tax – $5
Airport Passenger Tax – $0.74
So a total of $70.74 per Person.
Therefore if 2 million people are departing and transitting GAIA each year, they are collecting over $141 million annually BEFORE any other charges to users (ie: concessions, landing fees, car parking, etc).
Ferries Now… I (me) personally paid for the trip.
B
May 20, 2008 at 11:22 am
Good luck getting those annual reports.
May 20, 2008 at 11:47 am
BajanBoy..
I am sure I will need all the luck in the world.
I seriously believe that it should be mandatory to publish within six months of the end of the financial year audited accounts of ALL Government (taxpayer) owned companies.
I did hear Mr Mark Darby on the news just now stating that they could do nothing about fuel costs.
Cannot they buy forward (hedge) like other airlines.
I understand that easyJet did this for about 40% of their fuel requirements for six months of this year at US$75 a barrel?
May 20, 2008 at 12:06 pm
Adrian, it seems all airlines have the tax add ons .. a recdnt flight from Toronto to Montreal (1.5 hour flight) on an Air Canada seat sale was $138. return for the base fare and I ended up paying $301. by the time the taxes and surcharges were added on and this ticket was purchased before the lates Air Canada surcharge was instituted – that would be an extra $40. return. It is the same everywhere.
The commenter who said the future of travel is that it is for the rich only is I suspect going to come to pass. I think we are going to have to get used to a changing world.
May 20, 2008 at 12:10 pm
I just looked at Grantley Adams International Airport’s web site:
http://www.gaiainc.bb/index.html
No annual reports on the half finished website.
I did notice something funny. The tagline for GAIA is “rising higher”. I wonder if they are referring to the fees and taxes they charge.
May 20, 2008 at 12:31 pm
Adrian, have you thought of submitting your article to the major dailies in each island? Publication might be a catalyst for change or al least the raising of an awareness in government circles of the need for change.
May 20, 2008 at 12:55 pm
BajanBoy..
‘Rising Higher’
Yes! clearly its a mission statement to see if they can become (or are) the most expensive airport in the region.
Perhaps they should learn from Ft. Lauderdale/Hollywood Airports example.
Low costs attract MORE airlines.
Inkwell…
Thank you for the suggestion. I have sent it to Star Publishing (St. Lucia) and the Antigua Sun and maybe they will print the article.
But will now send to others in the hope it will be read.
May 21, 2008 at 9:52 pm
TYT:
Peach and Quiet is a privately owned company, so there is no need for it to make public its financial statements.
Don’t you care how government spends your money, TYT? Don’t you think that there should be some accountability and control.
Corruption affects everyone in Barbados because misspent and misappropriated money could be used to fix the problems at the QEH, make changes to our floundering education system and fix roads.
********************
BFP says,
TYT’s comment was removed because he/she is part of the same group that threatened death and arson against Adrian Loveridge. And still the police have done nothing.
May 22, 2008 at 3:02 pm
Hey I just read that American Airlines will now be charging $15 USD for the first checked-in bag and another $25 USD for the second…
seems like soon we will have to stop travelling by air entirely, or it will go back to the way it was in the 1940’s, only for the rich. Those cruise ships sure are looking sweet now…
May 24, 2008 at 11:53 am
‘He (Minister Allan Chastanet) critised those Caribbean countries that are increasing departure taxes, fuel taxes and landing fees despite the fact that airlines are all losing money right now’.
Caymanian Compass
22 May 2008
‘The time for talk is over tourism needs action’
St. Lucia’s departure taxes = US$36.57 per person.
I wonder which Caribbean Government’s Sen. Chastanet is talking about?
May 28, 2008 at 8:47 am
Is it now official?
That Barbados has become the most expensive airport in the region?
ONE Way flight from Barbados to St. Kitts booked ONE month in advance and opting for the cheapest possible fare of US$145 with LIAT.
PLUS taxes:
US$14.50 Sales Tax (VAT)
US$15 Passenger Facility Tax
US$27.50 Airport Development Tax
US$2.50 Airport Authority Tax
US$18.75 Fuel and Insurance Surcharge
A total of US$78.25 in addtional taxes and add-ons.
Can ANY other airport in the Caribbean beat that?
June 12, 2008 at 10:16 pm
Only people that don’t travel on a regular basic would think that travel in the caribbean is cheap . I only travel to the caribbean and this is every month and i have seen a significant increase in the price and a decrease in service . It starts with a plane being late and some times you wait at the airport with out any one telling you any thing , further more , you have to make a call to your destination to tell your pick up that you will be late and the cost is at you , now if i am late or missed my flight i have to pay , why can it be even across the board ? How it is that going to Miami is almost the same price as going to TnT or St. Vincent . I honestly think it is time for the governments of the caribbean to invest in a ferry system and give us the options of wich service we want to take ,because waiting on Liat (late) it might take the same time as getting on the ferry .
August 15, 2008 at 9:04 pm
following adapted from The Antigua Sun
Low cost air carrier for the Caribbean
Thursday August 14 2008
AirOne Ventures Limited, a recently established low cost carrier is preparing to begin services to nine regional and United States destinations including Antigua and Barbuda between March to April 2009.
According to online information source Business Observer, the fares will be as low as US$10 but on average 40-70 per cent cheaper than existing airlines.
The airline is yet to get a response from the Jamaican government as to whether it will be allowed to land and take off from Kingston’s Norman Manley International Airport under a “fifth freedom rights” agreement. AirOne was last year denied a licence to base itself on the island until Air Jamaica could be successfully divested, which forced the new airline to shift its headquarters to Barbados.
AirOne’s Commercial Director, Tara Playfair, said services like hold baggage, food and beverages will be provided at extra cost as compared to existing European low-budget airlines Easyjet and Ryanair.
AirOne is yet to enter negotiations with Trinidad but besides Barbados, will service Cayman, Grenada, Curacao and Antigua. After three months of operation, it will be allowed to begin flights to US destinations Miami, Orlando and New York.
The airline has reportedly approached local tourism officials about its plans to fly to Antigua and the authorities have endorsed the idea.
AirOne will begin its services with two 160-seater Boeing 737-700 passenger aircraft but it plans to grow to a total of 25.
The brainchild of a group of Irish entrepreneurs, including Digicel’s Vice-Chairman Leslie Buckley, AirOne has a close partnership with the cellular firm owned by fellow Irishman Dennis O’Brien.
Originally based at Digicel’s headquarters in New Kingston, there are plans for AirOne tickets to be sold via Digicel outlets while ticketing and other information can be sent to customers using phones on that network
August 18, 2008 at 8:45 pm
I think the cost of the departure tax in Barbados is deplorable. Barbados will find itself in a situation where it prices itself out of it’s growing tourism industry and the politicians stand shrugging their shoulders wondering why.
Barbados always had some of the most expensive landing fees in the Caribbean. Remember back in the 1980’s when Pan Am use to overnight in Trinidad then fly back to Barbados for the early morning Miami flight. Just to avoid Barbados’ expensive overnight fees. Now remember that flight use to get into Barbados at around 11:30 maybe later. It would then go to Trinidad for the four to six hour layover.