High taxes a hindrance to regional travel – airline operators

Travelers about to board a LIAT flight
Travelers about to board a LIAT flight

Airline operators and members of the travelling public have pointed to taxes as a main hindrance to growth of intra-Caribbean travel. They expressed this view while examining the topic: “The Realities of Intra-Caribbean Tourism and Who Gets It” during the just concluded 2013 State of the Industry Conference (SOTIC) held in Martinique.

“Sometimes I feel like I have a flying cow,” was how Albert Kluyver – Chief Executive Officer of Insel Air summed up the situation.

Jaime Lopez-Diaz, Chief Financial Officer of Seaborne Airlines described the government taxes on airline tickets as “extremely onerous.” He predicted that there could be more carriers going bankrupt if the situation continues.

Brian Challenger noted that between 2008-2012 there has been a decline in intra-regional travel within the English-speaking Caribbean. However, the wider Caribbean has seen moderate increases.

“Other factors affecting intra-regional travel include the price of travel, the general macro-economic conditions regionally, immigration requirements and connectivity,” said Challenger, a former LIAT CEO and chairman of Caribbean Tourism Organization (CTO) Aviation Task Force.

Other panellists discussing the matter were Lesroy Browne, Special Advisor to the LIAT CEO; Serge Tsygalnitxky, General Director atAir Antilles Express; and Jean-Yves Lacascade, Deputy Director for European Affairs and Cooperation for the Region of Martinique.

Browne listed “those who get it” as territories that are building an attractive product, effectively marketing their product, introducing innovative “pulling” programmes; and allowing easier access or less entry requirement.

SOTIC was held from October 16 to 18, 2013.

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32 Comments

  1. UDOHREADYET
    October 21, 2013

    Generally airlines complain about fuel costs, its surprising that they’re complaining about taxes on tickets since the traveler is the one paying for it.

    • budman
      October 22, 2013

      you are not thinking. they are complaining about taxes because it makes the cost of travel too high. therefore, less people can afford to fly thus reducing their business. was that so hard?

  2. Tj
    October 21, 2013

    Why are the airlines complaining about taxes, when it’s about the same all over? Besides, the airline pass the cost through the customers.

    I purchased a ticket via Seaborne last week. The taxes came up to about USD$46.00. Would someone not travel because of $46.00? The tax paid on my JetBlue ticket is about the same.

    Seaborne join LIAT’s excuses. Help!!!!!

    • Vonetta
      October 22, 2013

      You just don’t get it TJ

  3. Anthony Ismael
    October 21, 2013

    We have been cursed with lazy elected officials who lack foresight and vision. I’ve said a long time ago, they need to identify the area, and mandate all query companies on the island to set up shop in that area.
    When they’re done blasting after a few years, that same area can be used for the construction of the international airport.
    Something has to be done. Melville Hall is pure foolishness.

    • Jimi Hendrix
      October 21, 2013

      So what if the area on the approach to the landing strip does not have the suitable kind of rock used in construction? Are you suggesing they dig a quarry there?

  4. Anoushah Alie
    October 21, 2013

    High taxes, unemployment, and cheap labor ALL contribute to the region’s low travel sales. That seems to be the theme every year, every month, and every day.

  5. hmmmm
    October 21, 2013

    Leave Liat alone, allu to hypocrite. Allu say that you all dont want an international airport. SO SHUT UP. Liat doing allu a favour cause you all dont have a any other choices

  6. Sweep Dominica
    October 21, 2013

    LIAT would not fly one day when SAVEZ was in town. Now they are trying to recoup their losses long after SHAVEZ is gone. Now we are the ones paying for it.

  7. Sweep Dominica
    October 21, 2013

    Much blame to go around; so I’m not traveling. Every-time my brother ask me when am I coming to visit, I always say, ‘next year.’ Dem tricket too damn expensive. Make the tricket cheaper and more people will travel and that will boost the economy across the board.

  8. Anonymous
    October 21, 2013

    So how came LATE I mean LIAT doesn’t get it???? Are they not taking your advice????

    • budman
      October 21, 2013

      huh? what advice? Liat has say over taxes? read the article before braying. but wha happening here nah,. everybody eating fooly bush this morning?

  9. Jimi Hendrix
    October 21, 2013

    But I have been saying that for ages now. Everybody is blaming LIAT for the high cost of air travel, yet when you book a flight and look at the cost breakdown, sometimes taxes make up more than 50% of the cost of the ticket. In the mean time, they keep bleating about the British APD.

    I have long figured these regional governments have no clue about how businesses operate. These taxes have a direct dampening effect on regional business and yet they have not seen it fit to (as far as I am concerned) eliminate these onerous taxes. It would be interesting for them to do cost benefit analysis to determine whether it makes any sense to keep those taxes in place. But of course they are so myopic, I would not hold my breath on that.

    • I'mWondering
      October 21, 2013

      Just so you know – that is just standard these days – sometimes the taxes are most expensive than the actual cost of the “flight”

      i see it all the time when booking tickets

    • Anonymous
      October 21, 2013

      You have hit the nail on the head with this one. It is actually cheaper to buy your ticket (in the past) from Dominica than to buy a ticket from St Lucia. This tends to determine which island I stop over at as the price can be very high and results in one less visitor to the respective island’s shores. Air taxes are detrimental to tourism.

  10. Castle Comfort.
    October 21, 2013

    But when is LIE-AT going to stop throw blame all around noh? They shoud only blame their incompetent management for the mess that they have put the company in.
    Shame on LIE-AT.

    • Jimi Hendrix
      October 21, 2013

      Didn’t you read the article? Didn’t you see the other airlines are saying the same things?

    • budman
      October 21, 2013

      this is not a Liat issue. did you read the article? other persons , including Seaborne were having the same issues regarding government taxation. reading comprehension continues to plague us in this country.

    • Israelite
      October 21, 2013

      Can’t you read? LIAT and other Airlines are taking the stand for Governments to reduce their taxes so that the ticket fares can be reasonable for intra travel so why are you misnaming LIAT to your name probably Castle Comfort people need Hooked on Phonics.

  11. Air Dominica
    October 21, 2013

    Dominica suffers the worst in terms of air access, Dominica continues to suffer from the LIAT monopoly and our governments failure to construct a Brand New International Airport for this country. The Bahamas, Cayman Islands, Cuba, Jamaica, Haiti, Dominican Republic, Puerto Rico, St Thomas, St Croix, St Maarten, St Kitts and Nevis, Antigua and Barbuda, Guadeloupe, Martinique, St Lucia, Barbados, St Vincent & the Grenadines (New Argyle International Airport with a 9,000 ft runway is opening in late 2014, Grenada, Trinidad & Tobago, Guyana, all have what Dominica lacks which is Direct Non Stop Air Access to the USA, Canada, Europe. Dominica is the only “Independent” Caribbean island nation without an International Airport that is a shame my fellow Dominicans. Time to wake up and get with reality and the 21 century.

    • budman
      October 21, 2013

      what the hell does this rambling have to do with high government taxation and the effect on intra-REGIONAL travel? did you read the article at all?

    • j
      October 21, 2013

      Probably you mean the island needs a larger airport. Melville Hall is already international as it is, you can get a flight between here and the United States (Puerto Rico is part of the US), or Dominica and France (Guadeloupe is part of France) we need to educate ourselves and realize that what we need is a longer runway and logistically our terrain is very difficult to realize such a thing, much less for our pockets.

      • Anonymous
        October 21, 2013

        If they don’t want to blast a few mountains they could build it into the sea. I mean our best friends(china) building airports on a man made island therefore, I am sure extending Melville hall another 4,0000ft into the sea is nothing to them. And seeing its already on the coast all the heavy equipment could stay out at sea just Incase our roads would be too narrow to transport equipment. That is if our airport was internal like trinidad. Worrying about the road to woodford hill, cause I know it circles the end near the ocean? They could run a tunnel and pass motor cars underneath the runway. It’s a simple fix and first world countries do it all the time.

      • Anthony Ismael
        October 21, 2013

        This terrain nonsense is killing me. We already know that. So what then is the solution? I have one.
        Blast the damn mountains. That’s what St. Vincent is doing. That’s what most of the islands who constructed an international airport did.
        They selected an alternate sight years ago. It’s time to get this done.
        Why can’t our government approach the Chinese? They’re building everything else in Dominica.

    • Traveller
      October 21, 2013

      Dominica don’t need an International Airport, Dominica need to improve their brand and provide quality service , some of our hotels and business places need Customer Service, it stinks.

      Yall talking about LIAT but Dominica needs to be tourist friendly.

      • Anthony Ismael
        October 21, 2013

        Try telling that to the traveler who’s paying US$330.00 round trip to fly to Jamaica for example, compared to some US$900.00 to fly to Dominica.
        The tourism brand will never improve because most of the hotels are family owned and they’re the only game in town.
        If we had more people traveling to Dominica, plus larger hotels, the market place will determine those who win and those who do not win.

    • Nel
      October 21, 2013

      that is not true. Clearly you haven’t been to Grenada and there are others. chupes. Plus i don’t think getting an international airport or a 9000 ft air strip going to increase air tourist flow into d/ca. If Barbados had what we have they would be the most stable economy in the the Caribbean and then we would be able to actually pay for the running of an international airport. We need to put more effort into marketing. not to build an international airport to watch us and suck our economy further

      • Nel
        October 21, 2013

        Correction St. Vincent. And I mean St. Vincent not Canjuan or however that island is spelt.

  12. maindesk
    October 21, 2013

    Immigration entry in Dominica is too onerous as we stand there watching the officers struggle with computers to register each person at an average of 10 minutes each. A LIAT ticket from Barbados to Dominica on Oct 31st at 12.30pm is 145.80 divided as follows
    83.00 goes to LIAT
    63.80 for Taxes

  13. Citizen Kane
    October 21, 2013

    This is not rocket science at all, that’s why when our beloved PM decided to invest $8million dollars in LIAT I raised the argument that the 8mil should come in the form of waived taxes / landing charges. Invest 20 million for all I care but it should be in the form of waivers at our airport that way you create a more favorable environment for airlines to come in here and possibly attract more tourists to our shores… quite possibly the ensuing increase in visitors could lead to increased V.A.T revenue.. and have a net positive impact on the economy … a donation to LIAT and yes I said donation because we do not expect any financial return on that investment does not directly impact our economy in any way shape or form …

  14. White Plains Rd
    October 21, 2013

    The issue is that our Governments lack the ability to think….one of the main factors to the aviation industry is fuel and prices…

    hmm, excuse me i have a bad cough!!!..

    what about the (ALBA)..if fuel is a a decent or reasonable rate those taxes won’t have to be passed on….

    It’s just the Caribbean for you! they still on the back bench when it comes to OECS Unity etc…

    Have Caribbean Government place a rigged Integrity Focus alongside their Governance..

    Folks it’s still a Banana orientated system in The Caribbean————–Don’t be Fooled by the Bling..

    • Marcus Aurelius
      October 22, 2013

      What a non sequitur!! “Good morning Peter,…Cabbage Ma’am?”

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