Proprietor of Jungle Bay Resort and Spa Sam Raphael has pin-pointed air and sea access and the price of VAT on tourism products as two of the major challenges facing the tourism sector in Dominica.
Speaking at a cheque presentation ceremony at the office of attorney, Singolla Blomquist-Williams this morning, Raphael said that he is hopeful that along with help from the government these problems will be alleviated.
“Our number one problem is air access and our number two problem is sea access. Access to Dominica is the big challenge that the industry is facing and we’re hoping to be able to work with the government to be able to try to alleviate that to be able to bring traffic into the destination,” Raphael stated.
Raphael also proposed a reduction in the amount of VAT on tourism-oriented businesses here as a way to make Dominica’s tourism more competitive with other Caribbean islands.
He explained: “Tourism is really an exported commodity that is consumed domestically. So tourism is like selling bananas overseas or selling products overseas. Certainly, the government wouldn’t impose a VAT on persons trying to sell products overseas because it will add to the cost of the product…”
“The VAT here have added to the cost of tourism and so it makes it prohibitive in some cases because in some cases our prices have to go up and it’s not competitive. So if the VAT is reduced then the price of the vacationing will go down and we will be able to attract more visitors. So that’s why the industry is calling for reduction in the percentage of the VAT for the tourism sector…” the resort owner said.
Raphael adeded: “We think that the VAT on tourism should be about 50 percent of the VAT on domestic sectors. That would … would make us more competitive.”
Round Trip tickets to Dominica $1084 US – Roundtrip to England $784 US i am a Dominican love my country But when prices like this is what i got to pay to visit my country in these difficult times iam sorry i will visit london if i got to take my vacation.
Grand Bayrian,
That’s why Dominica will always stay behind Gods Back.
I could not agree wiyh you more. Are we asleep in Dominica? We have become the laughing stock of the caribbean. How long will it take those inept leaders of all political persuasion to bring meaningful developement to the Dominican people. DOMINICA NEEDS ITS AIRPORT LIKE YESTERDAY. The country will get no where without it.
Tourism is not like selling bananas….absolutely not.
Selling Bananas.
We produce the banana we package it nicely to meet the supermarket standards and we get paid at a predetermined price. Our Bananas goes to the destination, The supermarkets in the UK market their destination, and we sell to them once we meet the standards. where obviously value is added based on the quality of our commodity by the supermarket.
Tourism.
We are the destination and we have to add value to it based on the quality of the commodity (tourist) we attract. The commodity is the Tourist, we market our destination we don’t sell it. Which means researching the features and characteristics if the commodity we attract and modifying (adding value to) the destination will attract more of that and other commodities (tourist) and also result in increased spending thresholds of the commodity thereby making tourism profitable.
The VAT is not part of operational cost, find ways of making your business attractive and profitable around the 15% VAT and if this cannot be attained then you make a request for a reduction. But I find it amazing that an operation that is Eco-friendly and uses alternative means for production is not profitable.
What he mean is Sam saying about Sea Access? we have one of the best sea access in the OECS what is his point? Why don’t he invest in a sea carrier?
THESE PPL TOO BRIGHT FOR MY LIKING!!!!!
dat man like noticing wii boy…wat hell cheque presentation? stuppss…….he will be paying it for the next 20 yrs….dats how long….
I’m not sure if Dominica will ever secure a proper hotel/resort with the capacity to hold at least five hundred people. To do so, we need to attact a major hotel chain with brand name recognition. No investor in his right mind will make such a large investment in Dominica, with the state of air access. The improvements to Melville Hall compared to what is was, are much appreciated. However, it’s nowhere close accepting an Airbus or Boeing aircraft.
Forgotten in this equation is the state of our roads. Until we address the issue of proper air access, I’m afraid the idea of a burgeoning tourism industry in Dominica will remain a dream.
Dominica is located in a central location, between Guadeloupe and Martinique, a unique location, I might say. Yet we have not taken full advantage of it, and here we are talking about and International airport? Where is the infrastructure to support the airport? Are not listening to whats happening to the other islands in the Caribbean? or are we that selfish?, Is it that we can only see past our nose?…
Have we think seriously of the demand that is required in having an international airport? Or are we using the same excuses, that St.Lucia has one, Grenada etc… Why can’t Dominica have one?.. Here in Dominica, we do not even have a population of 75,000 people, and we want international airport., Do you think that tourism alone will pay for the airport? Government can’t even collect millions of Dollars that are owed to it by the same business people who are calling on Government to build internationa airport, basically effectively not paying your taxes, and you want Government to build airport?.. With What?.. We really have a bunch of Jokers in this country.
History has not serve us well, I can’t believe it, but like my late Grand father once said to me, you have an island, that was the first to be given self Government in the Caribbean, yet it is one of the least developed. Dominica has had so many opportunities, and one by one they just slept away.
Anonymous I agree with you
What is $100.000 on six million dollars loan. When will debt be ever paid at that rate? So much so to make it a news item. This could not even cover interest payment on such a loan. Some people really get away with murder. Sam is just taking advantage of a rediculous scheme.
i agree with sam……dominica is one of the most expensive island to get to in the caribbean……..something must be done if we are to compete
Believe that the issues raised by him are valid and if addressed would definitely cause a movement in the positive direction of tourism which we are longing for for such a long time in this country. It is about high time that we sit, analyze the situation and implement the necessary measures to encourage the forward movement of our little economy. no one is going to do that for us but ourselves. we have to take the first step.
He never thought that VAT is based on the selling price? so the more expensive your rooms the more VAT the Guest has to pay!! So even if Government reduce VAT by 50% the underlying factor will still remain (i.e. the cost to the guest may still be high) cause it is a tax that varies with prices like sales tax.
Now soon we will see the commencement of night landing, this will give us air access as the airport will remain open for longer hours, there is the notion that only an international airport can give adequate access because a jet can carry more ppl at one time. That assumption is lacking, because we have to realize the main issue is accomodation. ROOMS IN ROSEAU CATCHMENT:
GARRAWAY HOTEL = 30 ROOMS
SUTTON PLACE = 9 ROOMS
ANCHORAGE HOTEL = 30 ROOMS
EVERGREEN HOTEL = 17 ROOMS FORT YOUNG HOTEL 120 ROOMS
DID I MISS ONE? HOWEVER LETS SAY A GROUP OF SAY 500 NATURE LOVERS DECIDES TO HOLD A CONFERENCE IN DOMINICA. LETS SAY U ARE THE ORGANIZER AND THIS IS THEIR REQUEST:
1. A CONFERENCE ROOM LARGE ENOUGH TO ACCOMODATE THEM (ORGANIZED LIKE FORT YOUNG CONFERENCE ROOM)
2. ACCOMODATION IN CLOSE PROXIMITY OF THE CONFERENCE ROOM FOR EACH PARTICIPANT
3. THEY NEED TO BE IN ROSEAU
4. THEY NEED A DATE THAT COINCIDES WITH A MAJOR ACTIVITY SUCH AS CARNIVAL OR CREOLE FESTIVAL
LIAT WILL CARRY THEM ACROSS TO DOMINICA UP TILL MIDNIGHT ONCE THE AIRPORT IS LIGHTED UP, BUT SAY WE HAVE AN INTERNATIONAL AIRPORT AND THEY COMINIG IN ON A BOEING 747 WHERE WILL THEY STAY? MAJOR 5 STARR HOTELS ARE NOT BUILT OVERNIGHT OR IN 6 MONTHS!
NOW YOU SEE THE PROBLEM? I KNOW CAUSE I WAS IN THAT SITUATION AND HAD TO CANCEL MY EXPERIENCE AS A PROMOTER IS ACCESS IS NOT THE MAIN ISSUE ITS THE ACCOMODATION!!!!
We can’t get a direct flight from the major continents to Dominica. Lenghtening the airport is the only way to inprove air access. Even if we have night landing it will still be the same size of planes landing there.
Dominican politicians should forget political backbiting and build a new airport in the same area UWP had aquired.
OKAY MR. RAPHAEL…..YOU GOT YOUR DEBT REDUCED BY 50%….GREAT…I GUESS NOW YOU JUST WANT EVERYTHING REDUCED BY 50%…..HUH.
IF THE GLOBAL CRISIS HAS TAUGHT US ANYTHING IT’S THIS……..NOTHING HAPPENS IN A VACCUM. CHANGES IN ANY AREA WILL UNDOUBTEDLY AFFECT EVERYTHING ELSE.
LET’S SAY GOVERNMENT DOES REDUCE VAT IN YOUR SECTOR BY 50%… DID YOU EVER STOP AND WONDER THE REPERCUSSION IN OTHER SECTORS. WE ARE ALWAYS GIVEN THESE BRIGHT ASSUMPTIONS BUT NEVER THE FULL STORY.
JUST A THOUGHT
what they need to do is use the tax to help build an international airport and make the ports bigger.