THE CARIBBEAN has strongly criticised the United Kingdom government, accusing it of showing complete disregard for the region’s future economic prosperity and the role of tourism in its development.
In a press release on Tuesday, both the Caribbean Tourism Organisation and the Caribbean Hotel and Tourist Association (CHTA) condemned the UK Treasury’s decision to increase the controversial Air Passenger Duty (APD) by eight per cent as of April 2012.
“The decision is in total contrast to the stated policy of the UK’s desire to improve its relations with the independent Caribbean and Britain’s overseas territories in the Caribbean,” said the CHTA.
CTO’s chairman, Ricky Skerritt, described the move as a slap in the face for all Caribbean people. “It dismisses all of the research and information CTO has provided to the British government over the past three years, and it contradicts the message sent by the UK chancellor, George Osborne MP, in March 2011, when he cited the discrepancy between the USA and Caribbean APD rates as one of the reasons for holding a consultation on reform of UK APD.”
He said the Caribbean is the most tourism-dependent region of the world and the British government’s decision totally ignores the negative effect that APD is having on the region’s economies and its business partners in the UK travel industry.
Blow for customers
The UK, in a 26-page document published on Tuesday, said APD rates to Caribbean destinations will continue to be considerably higher than those to some competitor destinations, for instance Hawaii. Furthermore, the fact that premium economy passengers will continue to be charged the same APD as first-class passengers is a blow for those customers wanting to upgrade, the CTO said.
As the news gained traction throughout the region, Jamaica’s tourism minister, Edmund Bartlett, added his voice to the debate, stating that the announcement “is as unbelievable as it is unacceptable”.
Lamenting the UK’s course of action, Bartlett said the choice to maintain the current regime despite strong lobby efforts was very disturbing.
“We are saddened that the Caribbean’s proposal that the band arrangement be adjusted to establish only two bands for long and short haul, respectively, in addition to a rate adjustment, was not embraced. We believe that approach would have ensured greater equity,” he stated.
He too has expressed surprise that, after engendering support at the parliamentary level in the UK and despite the fact that many agree that the current regime is discriminatory, there was no change.
“Notwithstanding our efforts, the current tax burden placed on British travellers to the Caribbean will continue to have an adverse effect on the region’s tourism earnings,” he predicted.
The Jamaican tourism minister has also cautioned that, “today’s interdependent world countries must ensure that actions that are aimed at safeguarding their own fiscal positions do not destroy that of other global partners. If our legislation engenders poverty in other places, we are actually encouraging the migration of crime and other social ills through our insensitive fiscal policies.”
Gleaner
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