
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














