Barbados tourism investment ‘level playing field’
It reminds me a little of the rather repetitive ‘ad’ aired on local radio, ‘how low can you go’. There are almost always consequences for the failure to implement policies and address the overwhelming concerns of an entire industry.
Therefore it was inevitable that it would manifest itself in the shortest possible time. The Daily Nation article published last week ‘Jobs on Hold’ graphically demonstrates the dangers of attempting to invest, upgrade and re-open one of our many closed hotels, in a climate that lacks a level playing field.
If the reporting was accurate, then a potential 320 jobs, $4 million refurbishment plan, $5 million in foreign exchange and getting 145 improved rooms back into the marketplace for the upcoming critical winter season is now beyond possibility. That could represent a further loss of almost 300 airline seats per week, which may play a crucial part in helping fill and ensuring the sustainability of the two new Delta flights from Atlanta and New York starting early December.
An enhanced Amaryllis would have also helped bridge the gap of product quality offerings from when Sandals is scheduled to re-open its doors in late January 2015.
What I find so incredulous is that did our policymakers not think through that no substantive investor in their right mind would speculate millions of dollars into new or improved plant, before having in place the unimpeded similar concessions that Sandals extracted.
I also think that as a matter of urgency, some analysis needs to be done by the Central Bank of Barbados to see in ‘real’ terms if foreign exchange generated by our accommodation sector, that is retained in the country has fallen in a desperate attempt to replicate Sandals policy of collecting revenue offshore.
If in fact this figure is down there will be further negative implications in terms of taxation collected and payable to Government through VAT and any corporate taxes payable.
These issues have to be addressed now if there is any realistic chance in returning our tourism sector to growth and lifting it out of the current prolonged period of arrival numbers stagnation.
The longer the administration delays universal implementation of all the pledged concessions, the closer is the risk that more hotels will close.
As a destination, we currently hold the record for the most failed tourism accommodation properties within the Caribbean.
Later this week the Minister of Finance has kindly consented to address the third quarterly meeting of the Barbados Hotel and Tourism Association. It would seem like this would be an ideal forum to declare that the promised ‘permanent’ legislation is now in place. Only then can the entire industry start rebuilding a sector that clearly is experiencing prolonged and severe distress.
Using the Minister’s own recent ‘instant coffee society’ analogy, as the pot has been on the boil so long already and the expectations have evaporated, it will not be the beverage of choice for me this Thursday.