Are Caribbean governments killing the tourism industry?

letter to the editorDear editor,

I recall Caribbean governments crying foul and complaining about the UK wanting to impose a travel tax to the caribbean.

However, when one analyses the taxes imposed by these same governments on travel on LIAT, one cannot but wonder why would governments who rely on tourism revenue impose punishing and prohibitive taxes on travel to the Caribbean islands.

Below is an example of the prohibitive taxes quoted by LIAT on my attempt to take my family on vacation to Dominica.

Would it not be more benificial to remove the taxes and encourage travel within the Caribbean as the VAT and other revenue generated would have a multiplier effect in the economies and would encourage more travel within the Caribbean rather than to North America and other trips with less taxes?

I write this out of the concern that if this is not done tourism in the caribbean will dry up especially as Cuba has now opened and the flights to Cuba are subsidized.

Departing Flight: POS – DOM

Semi Flexible
1 Adult$ 211.00 USD
1 Adult$ 211.00 USD
1 Adult$ 211.00 USD
1 Adult$ 211.00 USD

Taxes and Fees:$ 465.20 USD

Returning Flight: DOM – POS

Fully Flexible
1 Adult $279.00 USD
1 Adult $279.00 USD
1 Adult $279.00 USD
1 Adult $279.00 USD

Taxes and Fees:$577.72 USD

Total
-$US3,002.92

Thank you

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21 Comments

  1. sean
    January 1, 2015

    Multiplier effect in economics=Good fiscal prodence:
    Every $a government invests in the economy should have a multiplier effect of yeilding$ 3 to $6.00
    therefore if the government does not charge this tax then the economy should benefit by 3 to 6 times.
    smart leaders: (bds, anu, t&t….)
    1.pay international airlines to make their destination a scheduled stop.
    2.invest in regional airlines so they can tax travel to other islands as a revenue generator to pay for #1 &as a deterrent to visitors wanting to visit neighboring islands

  2. sean
    December 27, 2014

    Lol the major shareholders of liat pay the international flights to come to their destinations (bdos, anu…) & overtax the other destinations that do not have international airports. Thats the reason for investing in liat: to pay for the subsidy to the international flights.
    saddly these countries like dominica dont understand or dont care so they simply impose taxes as well

    stiffling any potential of tourism

    now cuba is open there is too much to go see and do there and the flights are short and subsidized

  3. Terre
    December 27, 2014

    I cant aford to come home, dut if I can, I cant aford to buy anything.

  4. see 4 yourself why
    December 27, 2014

    Is there hope now that we have a businessman is minister of tourism?

    • Titiwi
      December 29, 2014

      No, he will soon find out that he can not take decisions himself like in his own business but must play second fiddle in everything to Roosevelt Skerrit and those who stroke his ego. I can not see him lasting in that post for more than two years, if at all.

  5. December 25, 2014

    I had planned on spending winter in Dominica as I did last year, went to Virgin Islands first, then was going to buy a ticket to Dominica round trip from St Croix, but VI was so expensive and a disappointment, i preferred to stay in Dominica, i am semi retired, doing ok but not rich, i couldn’t find a ticket for less than $400 dollars, Dominica isn’t even that far from VI, Dominica customs requires a round trip ticket for non residence, it was cheaper to fly all the way to VI from Santa Cruz CA, west coast U.S.A. than to fly to Dominica from VI. Keep in mind most people are not rich, and $400 is a lot of money, all the different passports and astronomical airline fees and tax cant be good for Caribbean islands economies or people, anyway i am back in states, give it another try next year.

  6. Citizen Kane
    December 25, 2014

    IHAVE TO AGREE!

  7. Annon
    December 25, 2014

    I agree fully. Have you priced a ticket from Puerto Rico to Dominica? It gets worse the more you look, no incentive to attract visitors. Perfect recipe to kill tourism.

  8. badrep
    December 25, 2014

    Concerned Caricom Citizen you are too advanced for caricom and you make too much sense, all these near sighted politicians see is the money ringing in from their tax racket which sometimes is almost 50% of the ticket price I am convince that regional travel will explode and Dominica would be a beneficiary because of the large number of Dominicans outside the country if these taxes were eliminated.

  9. Malatete
    December 24, 2014

    Unfortunately this observation is only too true. For the fares quoted the writer will have the inconvenience of having to make at least one stop over with no proper transfer facilities and run the the not infrequent risk of arriving at thier destination without their luggage. The Liat departure satellite at Barbados is tatty, cramped and not customer friendly compared with the main departure hall used by the other major airlines. As for in-flight service. I’m still waiting for the day where LIAT will even provide just a cup of coffee. And yet, despite these sky-high fare the company is unable to make a profit.
    One does wonder if the heads of states, who are the shareholders of this airline use the scheduled services of this airline themselves for their official travels because they seem to be unaware of the appalling service and sky-high prices but are supportive of the airl;ine in keeping out competition to the detriment of the traveling public
    The attitude seems to be one that one should be grateful for having an airline, one of “give us the money and shut up, give us your money but don’t tell us what to do”, which is prevalent in other aspects of our tourism offering. The fact is that the world does not owe us a living and that people have choices. They have no duty to visit our islands for their vacation and will increasingly vote with their wallets.

  10. Thor
    December 24, 2014

    I have been saying the same thing for the longest time.

    These guys who govern these islands could not even run s lemonade stand.

    Sometimes charging more does not necessarily translate into more money. Just this week I reduce the price of priducts yo one of our fastest growing customers. He will see a reduction of over US$300,000 next year. I did not do that because I don’t like the money. I did it, because I think it makes god business sense. The customs did not ask for it. I offered it to them. But over time it will pay dividends several times over.

    That is how you do business. You plant the seed today to reap the benefit later.

  11. Too Hard Too Long
    December 24, 2014

    The comments on DNO are hilarious

  12. All Shall Eat
    December 24, 2014

    That’s great news Sir. I really want Cuba to open up fast. Our leaders in the Caribbean are all classic idiots. They make intra-Caribbean travel difficult and prohibitive failing to realize the potential of travel within the Caribbean for the Tourism industry.
    I want Cuba to open up quickly so that the few people who come to our shores will be diverted to Havana instead and that our fake leaders will turn to Caracas for the new tourist market.

  13. Concern citizen
    December 24, 2014

    I agree with you, the prices for flying long haul flights and around the caribbean the taxes are ridiculously very expensive. I also wondered why the governments need to have taxes so high. The governments are trying to encourage tourism but the airport taxes are more expensive than the actual flights.

  14. grell
    December 24, 2014

    Wow thought it was me doing something wrong,been trying to book a flight on liat and this is what i have been seeing,ridiculous will find somewhere else to vacation,the caribbean leaders esp domiminica are ripping of the poor people,and these people still continue to vote them and remain in poverty.

    • joking
      December 25, 2014

      this is very true
      that is why a fool will remain a fool
      i like ur thinking

  15. Shaka zulu
    December 24, 2014

    One answer. Yes. They talk bout Caribbean integration but their actions are contrary. Our thinking is so backwards. What do you expect when you have a finance minister who has a degree in psychology running finances of a country and his idea of prudent financial responsibility is begging. His only way to give a raise to employees is from finance of friendly gov. That is the kind of leadership we have.

  16. Helas!!
    December 24, 2014

    it only gets worse when bardouille and his gang keeps adding taxes and our good minister of finance do not really understand economics.

    haven’t anyone noticed , when gas prices go up , it rises quickly yet now gas prices are way down there and gas prices are still way up there $13.plus dollars.

    • penville massive
      December 24, 2014

      they will say old stock, lol

      • Titiwi
        December 29, 2014

        Hmmmm, old stock is normally cleared at a discount.

    • Peter Potter
      December 24, 2014

      Your are spot on. The gread of the Caribbean governments in particular Dominica is unimaginable. Worse still, Dominica has got nothing to show for it!

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