The newly appointed CEO of LIAT – The Caribbean Airline believes a reduction in taxation on intra-regional travel will help increase revenues for the governments of the Caribbean and give customers a fairer deal.
David Evans, who assumed leadership duties on April 22, 2014, acknowledged taxes are important to reinvest in aviation infrastructure, but he would like to see governments fully examine the overall economic and social impact of LIAT.
Speaking on the Caribbean Tourism Organization’s Destination Caribbean – a series of live, regional broadcasts on the importance of Caribbean tourism – Evans, a former British Airways executive, stated that the Caribbean tax burden is not significantly high compared with other parts of the world, but he suggested that a lighter taxation regime will stimulate greater demand and an increase in the “tax take” back to the government.
He contended that for every LIAT employee, four additional jobs in the aviation supply chain are created.
“We spend approximately US$12.5 million dollars a year here in Barbados, but all those jobs we create spend a further $25 million and most of that is, of course, taxable revenue to the government,” said Evans, who joined Elizabeth Scotton, Chief Commercial Officer, Sangster International Airport, Jamaica; Neville Boxhill, Aviation Consultant, Barbados Tourism Authority; and Economist Ryan Straughn during the lively television discussion, which aired across the region on the Caribbean Media Corporation.
“LIAT is worth – outside of its airline activity – well over US$100 million dollars annually to the region in terms of the jobs it creates and the impact that it has on tourism,” declared Evans who assured viewers that meeting increased demand with more capacity was not a major hurdle. “Any airline faced with increasing demand will be happy with that situation and it would find a way either in its own right or in some sort of a cooperative fashion in order to provide that extra supply or capacity.”
Meanwhile, the LIAT CEO sees a real opportunity for collaboration among regional carriers. “Whilst competition is absolutely essential, there is more we can do in cooperation with each other than we are doing at the moment.”
Looking ahead, Evans stated that LIAT is well positioned to increase connectivity to and from other regional and international carriers, thereby increasing the volume of traffic and returning benefits back to governments.
why put your customers through so much inconvenience?
liat needs some good competition their service is not good.
Just like ms Nevis all u shouldn’t have answered….liat wouldn’t get best answer and question in this field. Is not lowered tax rates, it should a complete change in the management team of liat.
This man just come to the Ccaribbean to get away from the cold, gloomy and depressing weather in England. British Airways whom was working for originally is increasing their fares again and they are in a more stable position. How are the governments of poor 3rd world countries going to survive if they remove taxes, how will they buy drugs for the hospital ete etc. Tell this man to enjoy his holiday as the others have done because his bread is already buttered on both sides in England. Next thing he will say that Liat has made a profit because he wants a higher commission on his contract
I hope new CEO can sorted out all this mess called LIAT. I dont like LIAT as the company because they are an quintessence of all negative aspects of the Caribbean life…what really pisses me off is that LIAT doing all wrongdoings and doesnt see anything in it…. For example: http://www.liat.com/navSource.html?page_id=768
February 4th, Bridgetown
‘Before landing flight LI 371 from St. Lucia, Captain Robertson did a low pass over the runway, tipping the wing of the aircraft to acknowledge those who had gathered for the occasion.’
As In understand low pass is illegal on such type of aircraft and basically pilots endangered life of passengers…Low pass is a manouver performed in special situation and generally by military aviation.
But LIAT doesnt see any problem? I’m not aviation specialist but it seems to be completely unjustified and illegal…
Probably new CEO has to take a look on the pilots also, so next time another retiree won’t perform Cuban eight because he feels that after 30 years of flying he can the last time risk with passenger lives…
U are quite right. U are not an aviation expert or u wud have known low pass fly bys are common in commercial aviation when marking special events. Eg retiring of a senior pilot or inaugural flight to a new destination.
quite common where? in the world or in the caribbean?
I agree if taxes are reduced for ticket prices, people will begin to travel more which will help to increase tourism in the country, which will generate more revenue for the govt.
it’s up to the respective governments to take the initiatives and reduce/remove these taxes not LIAT
It’s great to hear this new positive vibration at LIAT!
amen
Some people ask me how I know the man will fail tin the interim as all those who precedes him; but the first word out of his mouth is an indication that he is full of it! Government collecting taxes in any form is a way of generating revenue to run the country.
Suppose Dominica government reduces the taxes we collect, that will do no good for our country the reduction would cause our government to have less money to run the country. The more people who visits Dominica is the more we can collect in departure taxes, assuming the visitor remains in Dominica for five days or more; the reality is that not many people, and by that I mean foreign tourist does not visit Dominica in vast quantity’s.
As such we cannot contend that because of the volume of visitors we will not lose money even if we reduce the travel taxes; his advise is ludicrous he has no resolve to LIAT problems, only a god can solve LIAT’s financial problems.
That man is talking crap!
Francisco Etienne-Dods Telemaque
Does anyone understand what that man just said?
All I kept reading was blah, blah………blah…..
Allu doh find for a big man, this an does talk a lot of nonsense?
Yes he does!!!
Okay anonymous, since you are the only person who understand what the man said, explain to me, us, the rest of us Dominicans how lowering travel taxes are going to help Dominica?
Islands such as Barbados, Trinidad & Tobago, St. Lucia, Martinique, Guadeloupe, Grenada, Antigua, St. Kitts, St. Marten, even Tortolla, will not participate in the crap the man has suggested.
Want to know the reason?
Because; the islands I mentioned are not totally dependent on LIAT as the main source of air transportation into and out of their country. Dominica will be the greatest looser if we get involved and accept that man’s advise.
All of the islands I mentioned with the exception of (Tortolla, I do not know if that is spelt correctly), but anyway they all have International Airports with commercial jets landing and take off connecting to other Caribbean islands, these islands does not need LIAT, as Dominica and St. Vincent do.
Latter this year International Flights will be landing and take off in St. Vincent, so in order to keep LIAT flying Dominicans will have to crawl with LIAT on our backs; subjected to the mercy of LIAT!
One can board an International flight in Trinidad, which stops in Barbados, Antigua, and also St. Kitts. Who needs Dominica. They say one sleeps according to how they make their bed. If you prepare a soft bed, you will have a peaceful and restful night sleep, if you make a hard bed your body will feel the pain of sleeping on a hard bed or cold ground oui!
Hahahahahahahahahahahahahahahahahah!
Dominica is going to go to bed and wake up hurting when St. Vincent International Airport becomes operational.
Francisco Etienne-Dods Telemaque
Not necessarily. Because taxes suppress economic activity, under certain circumstances lowering a tax rate will lead to increased overall tax revenue because the government will be taking a narrower slice of the pie, but the pie will be larger enough that it more than makes up for it.
Quite right. It not about the size of the individual tax, but the total amount that more traveller will pay as they are attracted by more reasonable tickets. What more is that if more people buy taxes, the government does not only collect taxes on airport fees, but on the hotel rooms and other services they take advantage of when they come. Furthermore as the article said, more employment is created to sustain the likely increase in budget minded travellers attracted by lower airline rates.
I often lament that it is cheaper for me to fly to England or France than to fly to the Caribbean, But then again with taxes as high as 63% of tickets to the Caribbean in some cases, it is no wonder.
Foster, I ma now very confused, I just did not get your concept.
Sorry!
Because I selling cheaper than you, do you think I will make less money than you? In the end I will make more because I will sell more .I am cheaper/ Think about it.
LIAT and the government are two different entities. Airlines make an exorbitant sum of money through consistent airline ticket increases and on passengers’ overweight.
In simple terms, the taxes the CEO referred to pertains to passengers’ costs. In so doing, there will surely be increased passenger travel on this airline. When taxes are increased, fewer people will travel. It is as simple as that.
If u guys contend he’s talking crap, I suggest u shut your mouths and stop complaining how it’s cheaper to fly internationally that it is to fly within the region. U ppl need to understand liat is like an agent collecting those taxes on behalf of government.as far as I’m concern liars tickets are priced reasonably. If u don’t have money to travel vacation at home.its that simple.
Great. Now let’s see it done and let’s reap the benefits. The one whom you replaced was mamagaying LIAT for his own personal benefits, now that you are here, without that “personal business interest”, let’s see the improvements.
Duh…!!! its basic economics.