Tax breaks could revitalise tourism, say hoteliers
the private sector hope to see air visitor numbers bottom out after a dismal 1999. Following Bermuda's recent admission to the Caribbean Tourism Organisation, The Royal Gazette's chief reporter Tim Greenfield hit the road to see how a few of its members have fared. He files his stories on Page 2.
Channelling a slice of the taxes collected from visitors into a "tourism revitalisation'' fund could help push the recovery of the industry, it has been claimed.
The idea has been a success in at least one Caribbean country, where the private sector has matched the funds raised from taxation to pump millions of dollars into tourism.
And organisers of the new hotel organisation, which is to succeed the current Bermuda Hotel Association (BHA), have also dropped hints that they may look to Government for some assistance.
Antigua operates a scheme whereby two percent of the 8.5 percent hotel occupancy tax is diverted into a separate fund, to be matched by business.
So far it has raised $2 million for overseas marketing.
Tourism Minister David Allen has yet to respond to questions on the scheme, but Shadow Tourism David Dodwell said he believed such schemes could be a success, but only if the money was not in the hands of Government.
BHA executive director John Harvey said the idea was worth looking at as options for the industry were explored.
Mr. Dodwell said the concept was a good one and was similar to what the UBP were planning to do if it had set up its planned tourism authority.
But he warned that it would require the Minister to give up some control to a separate body, who would then administer the money.
The funds would be used to compliment work already done by the Department of Tourism.
Tax scheme could spell relief And it would also need a change in legislation to enable the tax to be diverted, he said.
The Southampton West MP said he was prepared, before the UBP were voted out of power in 1998, to hand over budget administration to a tourism authority made up of private and public sector directors -- effectively leaving the Department of Tourism to formulate policy.
"It would have put power in the hands of the people who deliver the product -- hotels don't really have participation control right now.'' At present, Mr. Dodwell said, there was no body that could take on that role.
He said the Tourism Board and National Tourism Action Group could only make recommendations to the Minister, who could then accept or reject them.
Mr. Allen did not reply to faxed questions on the issue.
Mr. Harvey said the BHA was aware of such schemes, in particular of those in Antigua and the Bahamas.
"It is our view that we have to look at all avenues of raising funds to address the new initiative that the BHA is going to do,'' he said.
Mr. Harvey added that it was clearly not an option at present, but said open minds had to be kept on such issues.
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