Discussion on a proposed tourist levy and related Nature and Environmental Management Fund in Curaçao (see Monday paper) is interesting. Adult stay-over guests are to pay a one-time fee of US $55 and cruise passengers $10, while children and residents of the former Netherlands Antilles would be exempted.
The draft National Ordinance coming from the Health, Environment and Nature GMN ministry in Willemstad unpleasantly surprised Minister of Economic Development MEO Ruisandro Cijntje (PNP). Prime Minister Gilmar Pisas (MFK) was quick to reassure everyone that the matter only came up in a brainstorming session and no decisions have been taken.
The idea behind the bill is that visitors help pay for their use of the island’s valuable resources like beaches, inland waters, bays and the sea. Bonaire has a similar levy mostly to help protect and preserve marine life, including coral reefs on which its famous dive industry is based.
Cijntje pointed out that tourism also implies added expenses in other areas such as infrastructure, security at attractions, etc. Perhaps most controversial in this plan is that local businesses and operators utilising these natural resources for commercial purposes would have to pay $1,500 per year as well.
St. Maarten has included a new arrival tax in its 2023 budget, despite strong opposition from within the country’s hospitality sector. It would produce some 10 million Netherlands Antillean guilders, but relevant legislation is yet to be adopted more than halfway into the year.
Government referred to a study of 21 airports in the region showing Princess Juliana International Airport (PJIA) was the 12th most expensive and an additional charge of between US $15 and $35 would only bring it up to ninth. Aruba, for example, raised its room tax from 9.5% to 12.5% at the start of 2023 and reportedly charges an environmental fee at accommodations too.
St. Maarten’s room tax is just 5%, but concern nevertheless seems warranted. The local tourism economy’s recovery from first Hurricane Irma and then the COVID-19 pandemic continues to be extremely vulnerable.
Raging inflation due in part to war in Eastern Europe and especially skyrocketing plane ticket prices have not helped the destination’s cause either. What’s more, in Aruba much of the income from such levies goes directly to marketing and promotion to increase traffic, which is not necessarily the case here.
A delicate balance must be found between collecting additional revenue and remaining competitive in terms of cost, so as not to kill the goose that lays the golden eggs.
