Passenger and tourism taxes may cause economic strangulation

Dear Editor,

Passenger or tourism taxation is “swamp taxation” because no one besides the tax receiver wants it, and it sucks. Tourists may opt for visiting a different island destination that doesn’t have the taxes, yet does have the same sun, the beaches and the palm trees. Plus, the new discovery may even have more to offer and is worth a repeat visit. Competition in double degree.

The taxations were done in several locations, not just the Caribbean. The tax was expected to raise a high amount of government earnings annually, but a commissioned report concluded that it costs the economy in general four times as much in lost revenue as it resulted in a steep decline in passenger traffic.

There are also indications that some “hotel visitors” converted into being cruise passengers by raising taxes on air tickets substantially. It may be less expensive to take a short cruise than the cost of a round- trip airline ticket for that short trip. In essence it means that passengers would leave more money on the cruise ships benefiting the cruise operators, rather than spending it on shore at destinations.

If a destination or an airport in the Caribbean wishes to be an international hub, or even a regional hub, it is probably well advised to drop departure taxes and other passenger taxes.

ICAO is the International Civil Aviation Organization. a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. ICAO is distinct from other international air transport organizations, like the International Air Transport Association (IATA), a trade association representing airlines.

ICAO has clear policies on taxation and Member States are urged to apply ICAO policies on taxation in regulatory practices. ICAO Assembly Resolutions have repeatedly urged Member States to follow the ICAO policies on taxation and not to impose taxes on the sale or use of international air transport. Yet, Member States have not included in their ASA’s (Article on Taxation) a commitment to reduce or eliminate taxes on the sale and use of international air transport.

Caribbean Member States of ICAO are the sovereign countries: Antigua and Barbuda, Bahamas, Barbados, Cuba, Dominican Republic, Grenada, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago. The countries with overseas territories in the region are also ICAO members.

Already, in 2013, at their Worldwide Transport Conference, the ICAO issued the following text to be included in their Template Article on Taxation (TASA): “… Each party shall undertake to reduce to the fullest practicable extent and make plans to eliminate as soon as its economic conditions permit all forms of taxation on the sale or use of international air transport, including such taxes for services which are not required for international civil aviation or which may discriminate against it.”

According to ICAO a tax is a levy that is designed to raise national or local government revenues, which are generally not applied to civil aviation in their entirety or on a cost-specific basis. ICAO has also recognized that in the past decades there was a development of tourism taxes in some regions, in particular Latin America and the Caribbean. In many cases, revenues from the tourism taxes are not being reinvested in tourism development.

The main principles on taxation contained in ICAO policies are frequently adopted by international organizations in policy documents. Some regional organizations and industry associations, such as the Airports Council International (ACI) and the International Air Transport Association (IATA), have also developed policies that are opposed to discriminatory and unfair government taxation on air transport. The World Tourism Organization (UNWTO), while not opposed to taxes per se, as part of the overall fiscal responsibility of States, considers that travel taxes should be scrutinized objectively to avoid excessive burdens on travelers/companies with a view to reducing taxes that have a negative impact on travel and, hence on tourism development.

Despite these policies, the past decade has seen an unprecedented proliferation of taxes levied on air passenger tickets in the region. This trend is again causing serious concerns and has a negative impact on the sustainable development of air transportation, which ultimately, negatively impacts the tourism industry, inter-island traffic, and the overall national economic development.

Caribbean governments are well advised to reconsider the current taxation or before making a decision on a new tax, an independent evaluation by qualified professionals acquainted with economics should be made on the impact of passenger taxation. A “neat” idea to get some extra money in the coffers, may turn out to be a monkeynomics. What plays a crucial role and contributes significantly to an economy must not be hindered by ineffective government taxation which actually becomes counterproductive to tourism and the economy at large.

Commander Bud Slabbaert

Another casino

Dear Editor,

We all know that we are living on a little island that is heavily dependent on tourism. Tourism drives our economy, and provides jobs for many. Without tourists, especially from the U.S., we would be in some serious trouble. So we are glad when especially the tourist high season comes around and pray that no calamity, or unforeseen circumstances, will hinder or prevent the tourists from visiting our island. Our government will therefore uphold, and promote, anything that not only attracts the tourists, but also support whatever activity that can keep them happy.

All of this may sound well and good, but we also have to look at the other side of the coin. I was quite amazed when I realized that another casino was going to open its doors, in what used to be the former building of Caribbean Auto Sales on Union Road. Why more casinos? Just recently another new casino had opened up its doors in the Simpson Bay area. The large video screens of now both casinos are already in full display, as to invite people to come gamble.

St. Maarten should now be called: “Little Las Vegas”. Yes, and by chance, this other new casino on Union Road is called: “Vegas” St. Maarten has now officially become the friendly island of gambling, where people can come, sit, drink, and gamble until they gamble away their last pennies.

So on behalf of government, the bright side is that more of these casinos will help fill and sustain their coffers, (and as many people believe, also the pockets of some money-greedy politicians? Who knows. … But that’s a different issue I don’t want to deal with right now.)

But there is also a dark side of these casinos. Whether there is a tourist high season, or low season, for the locals there is no season. Throughout the year many locals do regularly visit these casinos, even outnumbering the very tourists. So with so many casinos now in almost “every corner of the island”, are we then not creating and encouraging a generation of gamblers by allowing more of these gambling businesses on our island?

Not so long ago when I was in Curaçao, I saw an advertisement of one of their casinos over there. Although they were encouraging people to come gamble, they also reminded the players in their advertisement to “gamble responsibly.” Yes, there are people who become so addicted to gambling that they would “dump” their entire pay-check into the slots in a desperate need of a quick financial fix. This can also lead to frustration, family issues, and disputes.

Dear editor, we are living in a time when things are tough. Some people still have to work more than one job as to make ends meet. Food prices are sky-rocketing, while salaries and pensions remain at an all-time low. Many are therefore tempted to go try their luck with gambling. But the hope and dreams of striking it big one day will not be easy.

I believe every government also has a responsibility to the moral behavior, safety, and well-being of its citizens. Their concern should be as to what impact too much gambling can have on its citizens. I have visited some of these casinos, not to play the slots, (because I have better things to do with my money), but rather to observe the players at these machines. I have seen some players, who were drained of their hard-earned cash, just sitting there motionless staring in unbelief at the machines, as if contemplating their sorrows. Others in a desperate attempt, refusing their defeat, still trying to regain their loss as they continue to rage their battle with the merciless machines. But there are also those who seem to see some light at the end of the tunnel, and may still be able to walk away with something in their pockets.

I met a gentleman some time ago, who use to work in a casino. He told me that one day his boss once told him not to ever be tempted to play the slots. He said those slot machines are there to pay our bills, and of course to make a profit for the casino business. The machines are set in such a way as to make maximum gain, and minimum loss.

It is not my intention to stop any one from gambling. That’s a choice every individual must make for themselves.

We can talk about finding ways of eradicating the poverty and financial need of many people here on our island. But my question is if we allow more casinos to operate, are we then helping to solve this problem, or causing it to get worse? People will be tempted to gamble, as a way of getting more money. However to hit the Jack-pot, or even winning big time, will not be an all-time experience. It is only reserved for a minor few who have that luck. Most of the players at the slots are people of a low income. (The big-shots or high rollers, are mostly attracted to the tables.)

In the end, on one hand, government will continue to give out more licenses for more gambling establishments to operate, because for them it’s a good source of revenue, and the other hand more casinos will continue to open, because the gambling business is a great lucrative way of profit for the casino owners. They know that people are in need of more money, and moreover that there will always be far more losers than winners. So the citizens who are caught then in between are the ones who have to decide how they will spend their hard-earned money. Either gamble foolishly, or responsibly.

Concerned citizen

Name withheld at author’s request.

The Great Election Paradox

By Alex Rosaria

The paradox of our elections is this: how is it that the most vulnerable groups – those who most need good governance to help lift them out of dependency and urgent need – continue to vote for the very people who do not stand for good governance?

Good governance means having capable and ethical leaders managing our democracy and democratic institutions. However, not only are many candidates far from being the sharpest tools in the shed, but some also lack integrity.

Yet, the most vulnerable groups are often satisfied with handouts, parties, and rum, entertained by leaders who dance and celebrate as if jumping at their command. They accept it when politicians act as if they are doing the people a favor, when in reality, it is their duty to work for the common good.

They do not question politicians who make empty promises about reopening the refinery, bringing in 1,000 cows, or those who decide how many children a woman of a certain background should have – going as far as forcing the insertion of an IUD into her body.

While Caribbean leaders elsewhere discuss geopolitical shifts, climate crises, gun violence and the well-being of shrinking populations, some politicians in Curaçao continue to enjoy the moral and financial support of the Catholic Church and Christian sects, along with wealthy individuals who have already chosen their future outside of Curaçao.

We, and no one else, are complicit if we continue on this same path – if we fail to educate the vulnerable groups about the consequences of their choices.

~ Alex David Rosaria (53) is a freelance consultant active in Asia and the Pacific. He is a former Member of Parliament, Minister of Economic Affairs, State Secretary of Finance and UN Implementation Officer in Africa and Central America. He is from Curaçao and has an MBA from University of Iowa (USA). ~

We like it so? Not really – Open letter to Anguillians

Dear Fellow Anguillians,

Article one of the United Nations International Covenant on Economic, Social and Cultural Rights, a crucial document that outlines the fundamental rights of all peoples, provides that “all peoples have the right to self-determination.” By virtue of that right, they are free to pursue their political status and freely pursue their economic, social, and cultural development.

However, in Anguilla, our Premier has been acting like he’s running to be an elected monarch. He has acted in ways not commensurate with his office, failing to look out for his constituents while making reckless decisions over and over. He has bullied those with whom he disagrees and used the courts to stifle free speech. How can we voice our displeasure with any sitting government if we are singled out for retribution for doing so?

That said, the ruling party recently announced its platform, and lo and behold, two weeks later, the Premier calls a snap election. The only other Chief Minister to so was the Honorable Ronald Webster. It did not turn out well for Mr. Webster, and if the past is prologue, I suspect it will not turn out well for this Webster.

It is the job of a government, any government, to do for the people what they can only do together. Not things like handouts for older people, the so-called senior shield and subsidized payments for electricity. That’s nothing more than welfare, lulling the citizenry into a false sense of security with their own money – after taxing. Away their pride. Was that the change that couldn’t wait?

This government promised change, and one must ask if the change that they brought benefits Anguillians. Let’s ask this government what has it done for District One, the district forgotten by its own representative, the Premier? What was the purpose of dumping steel and leaving it to rust on the Island Harbor Pond fill – for show.? Maybe we need to remind the Premier from whence he came, and Island Harbor is still a part of Anguilla and as such deserves the same treatment as the Valley and every other place. I could go on and on.

It's a shame when one goes to the Princess Alexandria Hospital with a broken needle lodged in one’s finger and there is no doctor on call and to add insult to injury, when one is finally called, they refuse to come out, telling the patient to come back in the morning. The patient then calls a private doctor who comes out and treats him. When the minister of health is a physician, why are our healthcare facilities in such disarray?

My fellow Anguillians, there is a lot on the line this February 26th. Do we take the road less travelled, or the one with potholes that dot the journey? In Lewis Carol’s “Alice in Wonderland”, Alice has a conversation with the Cheshire Cat, who tells her, “If you don’t know where you are going, any road will take you there.” With that said, where are we going?

Well, let’s take a look with the current administration. We have the main one, the penchant for not being honest with the people they purport to care about, who voted for them on a promise they broke on Day one. Next there is their disregard for many, forced to seek education and employment offshore, calling us Tourist Voters. A lack of compassion comes next. While it may look like a lot is being done for the people, it’s nothing more than handouts and enriching contractors especially in the last months and weeks of this administration. Did anyone ask, why is this happening and “why now?”

Once again, my fellow Anguillians, ask the question, why did our Premier call snap elections a couple of weeks after running out their platform or whatever you choose to call it. We have seen this play before. Will the results have unintended consequences?

For far too long now, we’ve listened to the promises of wanna-be politicians who don’t have a clue of what it takes to run a district, much less an entire island. After all the hard work of my dad Walter Hodge, Peter Adams, Ronald Webster, Bob Rogers, Wallace Rey, Jeremiah Gumbs, Atlin Harrigan, my brother, Cardigan Hodge, Kenneth Harrigan and a host of others, too many to mention, we find ourselves gravelling for what is rightfully ours, the right to freely pursue our economic, social and cultural development, without fear or favor.

Colville Petty summarized our problem many years ago. He wrote “Seven Seals”, where he methodically delineated Anguilla’s issues.

Petty’s “Seven Seals” foreshadowed the problems we currently face. Unfettered tourism, social decay, materialism, parentless homes, children raising themselves (back then with television – and today, their phones and social media). Petty saw children exposed to all sorts of vice, pornography, guns, gangs, violence, drugs and promiscuity. He saw unsupervised children who ought to be asleep, running the streets, smoking, drinking, using foul language, and the like.

He called out the church leaders for their silence and hypocrisy, who opposed same-sex marriage but looked the other way while Anguilla’s youth floundered and too many mothers suffered abuse.

My fellow Anguillians, once again, we face a myriad of problems, problems which, like a rotting sore, left to fester. The Bible tells us in Galatians 6:7 that “whatever a man sows, that he will also reap.” Years of neglect have come full circle.

Petty’s “Seven Seals” is as relevant today as it was when he wrote it. Our problems are now tenfold. Instead of moving forward, we have gone backward while taxing the vulnerable into poverty. Life in Anguilla is unsustainable. Our young people are leaving the island because they don’t see a future in the land of their birth. And for those who stay, their parents are forced into neglect from multiple jobs – just to feed them. To our government and especially the leaders, I say shame.

So, the question is this: Do we like it so? Do we want this authoritarian government we now have? Do we see that they lack compassion and would rather go dine alone at our expense than interact with the people? Are we satisfied with this government focused on its own gratification without a care for us?

My fellow Anguillians, in 5 days, we can all have a say about the direction we want your beloved Anguilla to go. We can vote for more of the same vengeful and menacing treatment that starts at the top, more intrusive and extortionate laws like GST and price controls, plans to destroy our culture and serenity with dangerous jet skis, casinos, cockfights and crowds from cruise ships, while making clandestine deals that will now cost us more than the banking resolution in just the nest 3 years.

Or, we can vote for those who genuinely care about the People of Anguilla. Let us vote for those who will protect the People from the worst challenges of GST, protect ANGELEC from being sold to foreigners, take back our sovereignty from the Central Bank, protect our right to vote in the first place. So, I say to those who would maintain the status quo, who think that we like it so, in the words of the Mighty Sparrow, take your steel beams and go.

’Til next time, may God bless Anguilla.

Tyrone Hodge

Largest quake since 2023 leads to disaster management officials studying impact

Dear Editor,

Caribbean leaders and disaster management officials are still studying the impact of the February 8, 2025, 7.6 magnitude Caribbean earthquake – the largest in the world since 2023 – that occurred near the Cayman Islands and north of Honduras, and the threat of a tsunami after the NWS Pacific Tsunami Warning Center issued a tsunami alert for the Caribbean Basin.

From time to time, regional leaders are alerted by an earthquake/tsunami alert in the region or by Kick-’em-Jenny – the active undersea volcano on the Caribbean Sea floor off the coast of Grenada that rises 1,300 meters above the sea floor – which raises temporary awareness for risk management planning about the threat level and steps that need to be taken to keep populations safe.

The National Emergency Management Agency (NEMA) of the Federation of St. Kitts and Nevis says the alert was an opportunity to reinforce the importance of disaster preparedness for residents and citizens of the federation.

The Cayman Islands Hazard Management Agency director stated that Cayman residents should understand and be aware of their tsunami risk, especially in the context of where they live and work and if they have children, and where their children go to school.

Cayman Islands Hazard Management Agency is working to make the information available from their tsunami inundation model available to residents, so they can make informed decisions about where to go and how to react in the event of a tsunami threat.

The Prime Minister of St. Maarten Dr. Luc Mercelina last week announced that the Government is set to launch a new cell broadcast emergency warning system on June 1, to enhance the country’s disaster response capabilities. Testing of the new system will begin in March.

Caribbean leaders and disaster managers have to be prepared for the worst-case scenario. Annually, the world’s largest tsunami exercise – “Caribe Wave” – takes place in March coordinated by the U.S. NOAA Caribbean Tsunami Information Center.

The 14th annual Regional Tsunami Exercise, Caribe Wave 25, will be conducted on the 20th of March 2025 at 1500 UTC. UNESCO/IOC Intergovernmental Coordination Group for Tsunamis and Other Coastal Hazards for the Caribbean and Adjacent Regions (CARIBE EWS) Member States and Territories will have two scenarios from which to choose: a tsunami generated by a magnitude 8.0 earthquake located along the Enriquillo-Plantain Garden Fault Zone (EPGFZ) and a tsunami generated by a magnitude 8.6 earthquake located approximately 270 km off the Portugal coast.

Tsunami exercises such as Caribe Wave are important to validate and advance end-to-end tsunami preparedness across the Caribbean and adjacent regions. All 48 CARIBE EWS Member States and Territories, stakeholders, and communities at risk have been encouraged to plan for and participate in the exercise.

Roddy Heyliger

The Daily Herald

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