#BTColumn – Explore other tourism markets

Disclaimer: The views and opinions expressed by this author are their own and do not represent the official position of the Barbados Today.

by Alessandro Giustolisi

After the latest news of the United Kingdom becoming a high-risk country and as a consequence, protocols change, we can see how fragile the tourism industry situation is by now.

The UK was Europe’s only open gateway for Barbados and now all will be more complicated, and it could reduce traffic. All this shows that we need alternative sources of markets to balance eventual future shutdowns, because we don’t know how the spread of the COVID-19 virus will develop and how long it will affect us in Barbados and the region, since we depend a lot on tourism.

Waiting to see what happen could be a wrong move against us. At the same time, I am happy how the Government is trying to put our safety first.

However, this does not take away from the fact that it is very important that we act now to find solutions for after COVID-19 to resume full tourism.

I hear some pessimistic statements about not moving until the virus ends, but I want to warn that doing that can bring the population to a sense of depression.  It is very important to be positive and every day the sun shines we must believe in the future and keep the hope high.

The result of the current situation is that people are not coming to spend and support the economy, which has slowed so much, and this can be very dangerous in the months ahead.

If we want to keep our businesses working then business owners need to see there is a future for them especially
foreign investors.

By the end of the COVID-19 pandemic, most large airlines will have plenty financial problems and some of them could disappear. Those that return will only operate profitable routes. So our market will be less profitable since we do not have many people from our end travelling.

Some airlines could ask for subsidies and they could also cause some problems for the new regional airlines receiving fewer connecting people. For example, I have some doubt about some airlines coming back including Copa, WestJet and perhaps Condor or Eurowings.

I hope everyone understands we cannot remain with the usual market sources like we have in the last 40 years. It is time to change since we need multiple sources of tourist market.

What is more, moving towards becoming more independent by becoming a republic, having a local airline would be good.

With a local airline, we could be in a better position to service the entire European market with more than 740 million people, instead of the current German and UK markets primarily, with only about 150 million people.

Then there are the South and Central American markets that we can only reach with one airline at present, which costs more than it is to go to Europe.

It also takes a longer time to fly to some countries because of the route via Panama. A national airline could service these markets via direct link.

Lastly, there is Africa and Asia that we can also establish direct link with a locally owned airline.

When I started to visit the Caribbean in 1995, I remember we had links with Sweden, Denmark, Italy, Switzerland, Finland, Argentina, Brazil, Venezuela. Let us get back there.

In addition to commercial flights, there is the business of cargo transportation, which I strongly believe has a future for us, especially if we have links to more southern countries where people are able to access more deals.

Today, what we buy in the US market for example, are mostly coming from South America.

I would like to also propose that authorities look at the establishment of a free zone shopping area in Barbados. As far as I know it has been discussed in the past, so the local private sector could come together and create such a project.

In the Caribbean thanks to business like Cave Shepherd, Dufry, Runway, and others, we have one of the best experienced systems in duty free so it should not be difficult. We could use an area close to the airport of this project.

If we go back to the issue of forming a national airline, we will need to ensure we avoid the same mistakes made with the regional carrier LIAT.

One way to ensure this is to have a joint venture between the public and private sector, where Government could invest in giving certain fees since airports are publics, the use of their offices abroad and the most important diplomatic support in receiving all permits, revenue taxation system on the a irline business.

The private sector will invest financially having in return the business they need. We all know that all governments are facing a very difficult situation with a lot of people losing their jobs, so I make a call to the private sector that has resources to not wait. Think about investing in a carrier that can bring us revenue, but try to find a way that your investment will be secure with the backing of the Governments.

A local airline will not only bring in foreign exchange, but it will also employ locals, offer services to other local businesses, and it will be an asset to Barbados and the region. It could also make the country more attractive to foreign investors.

A local airline, I would like to propose, will give to the entire Caribbean region a traffic of passengers, equivalent to 6 to 12 long and medium haul airlines.

We can’t be a good hub if we are just receiving flights from a handful of countries. Barbados could be the first true Caribbean hub for intercontinental flights with north/central/south America and the rest of the Caribbean if Barbados has its own airline. And Antigua could become a second hub too if we desire.

I do not have the financial resources to invest, but I can give the plan and my work, the Government can give their good offices and facilities, and private sector being the major shareholders, will invest financially but will get the major returns.

It is my intention to meet with local authorities and anyone interested in further discussion.

It would be very said if at the end of the COVID-19 pandemic we go back to doing business as usual, and there are more people willing to travel to Barbados and the region but go elsewhere because of the hassle associated with getting here due to a lack of direct air link in this century.

Alessandro Giustolisi is a former travel industry worker and businessman. He can be reached at alexsunshine@hotmail.com.