SIMPSON BAY--St. Maarten Heineken Regatta did not stick to its agreement with Government on the use of its subsidy for 2015, Finance Minister Richard Gibson said in the plenary session of Parliament dealing with the draft 2016 budget on Monday.
No money was paid out to the organisers of the Regatta, because the agreement with Government called for the Regatta to “directly market” the destination to attract more visitors. Instead, the Regatta budgeted the expected 2015 subsidy money for its operational cost.
The breach of the agreement for direct marketing led the former Marcel Gumbs Cabinet to not pay out the subsidy, a decision the current Cabinet has upheld.
Regatta organisers had issued a press statement on February 19 stating it had been working alongside St. Maarten Tourism Bureau to market the country and had operated on the advice and promises of both the Tourism Bureau and multiple Ministers of Tourism holding office over the last 18 months. The advice and promises continually made were that the event would receive its backdated funding as agreed, before the 2016 event began. This promise was made as recently as January 29, 2016.
“The St. Maarten Heineken Regatta has been operating under the guidelines of Government for more than a decade and has always provided the financial statements as required,” the February 19 release stated.
“The 2015 financial statements were submitted on time to the Tourism Office by the St. Maarten Heineken Regatta. With regard to the financial guidelines, the organisers of the Regatta were recently told its financial statements for the 2015 fiscal year would need to be audited, unlike the agreed-upon convention from previous years. Furthermore, the organisers of the St. Maarten Heineken Regatta were told by the previous four Ministers of Tourism that the stipulation for audited financial statements was waived,” according to the Heineken Regatta release.
The Regatta’s subsidy, as with a number of other organisations, has been cut by Government as a means of keeping the budget balanced by only spending realised income.
Gibson told Members of Parliament (MPs) he appreciated the reaction from St. Maarten Carnival Development Foundation about its subsidy cut. Foundation representatives indicated they understood Government’s position and would fill the gap by approaching the private sector.
“They will not pursue Government, because the situation is clear. Do you know what that was? It was a message of self-reliance. Embracing that self-reliance, given the situation, is something they should be complimented and lauded for,” said Gibson.
Responding to Finance Minister Richard Gibson’s statements, Regatta Chairman John Gifford said: “It is unfortunate that the situation has gotten to this point. The fact that those who are commenting don’t have all the facts makes it hard to reply. Dealing with a decrease in a subsidy is an entirely different situation to dealing with a complete non-payment. There was no breach of agreement on the Regatta’s part; there was indeed direct marketing done to promote the island and the event, and the marketing plan was submitted to the Tourism Office well in advance of the Regatta.
“Right now the Regatta Organisation will be turning its focus towards the week ahead as they welcome 5000 plus visitors to the island, making sure that their experience on St. Maarten is the best that it can be. New avenues are currently being explored and the event will continue to thrive, with or without the support of the Island Government.”
