(Jamaica Observer) The Caribbean has failed in its lobby to get the United Kingdom (UK) to place it in a band which would see tourists to the region paying similar Air Passenger Duty (APD) rates as those to several rival destinations.
Not only has the UK refused to grant the Caribbean the requested design change to the banded system, but London has also announced a 10 per cent hike in the controversial tax as of next April.
Yesterday, Tourism Minister Edmund Bartlett expressed disappointment that the arrangement was not adjusted to establish only two bands for long and short haul respectively, and that a rate adjustment was not embraced.
He told the Observer that the Caribbean had been hopeful the UK would implement a Band A for short hauls in Europe and a Band B to incorporate the rest of the world.
“This would mean that the United States markets, which are farther away from London, would not have the advantage of a lower rate,” he said.
“Despite our intensive lobby efforts, not only has the UK Government refused to adjust the banding system, but they have increased the rate. Hence they have rejected every recommendation the Caribbean and other partners have put forward, thus making a mockery of their call for consultation,” Bartlett added.
With the UK moving fast to put this new decision into legislation, Bartlett said there appears to be no further scope for dialogue on the issue.
As such, he said, the Caribbean will have to take a new look at its marketing strategies and the market diversification programme which will see a stronger emphasis on emerging markets as the energy from which growth in visitor arrivals will be derived.
In the case of Jamaica, Bartlett said the country has already embarked on such a strategy.
“We are going to have a significant inflow from some new destinations, particularly South America, and we will be driving a stronger marketing approach out of the Caribbean, Latin America and South America and the rest of Europe such as Italy, France, Germany and Russia,” he said, adding that long-term marketing development will be pursued in China and other Asian countries.
Since the announcement, Bartlett said he has been in touch with regional colleagues who have all expressed disappointment with the outcome, given the months of consultations with British parliamentarians and other interest and affiliate groups.
“The CTO’s (Caribbean Tourism Organisation’s) position is that this response is a slap in our faces because we have been very involved in the consultations and we did get the sense that the Caribbean had an issue that would have been addressed,” Bartlett said.
The tourism minister said the stakeholders believed that approach would have ensured greater equity.
“So we are very surprised 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,” he said.
“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 added.
