Aviation officials critical of gov’t fees and taxes

Regional aviation administrators have taken Caribbean governments to task for imposing high fees and taxes on tickets and failing to introduce adequate technology at airports.

However, the Caribbean’s largest airlift security systems company, Sectus Technologies, has not only refuted claims of poor technological infrastructure but justified the cost of some ticket prices and air charges.

On Caribbean Aviation Day on Wednesday, during the Caribbean Tourism Organization (CTO)/International Air Transport Association (IATA) conference being held at the Ritz-Carlton Hotel in Grand Cayman, IATA’s regional vice president for the Americas Peter Cerdá said the Caribbean was pricing itself out of global travel and tourism competition with high ticket prices.

He warned that this ticket overpricing could lead to the demise of air travel to the region since tourists had alternative and cheaper destinations to choose from.

“We understand that the provision of adequate infrastructure for aviation comes at a cost, but very often it is difficult to see the correlation between the level of cost and charges and the actual service provided,” Cerdá said.

“Taxes and fees added to airline tickets substantially increase the cost of air travel to and from the region. By way of comparison, at a global level, taxes and charges make up approximately 15 per cent of the ticket price, and in the Caribbean, the average is double this at approximately 30 per cent of the ticket price.”

The IATA official noted that on a flight from Barbados to Barbuda, for example, taxes and fees represented 56 per cent of the ticket price, while 42 per cent of the ticket price on a flight from The Bahamas to Jamaica represented taxes and fees. That was also the case on a flight from St Lucia to Trinidad and Tobago, while on a flight from Port of Spain to Barbados, 40 per cent of the ticket price represented taxes and fees.

“Today’s passengers have a choice and as the total cost of vacations increasingly becomes a decision-making factor, governments must be prudent and not price themselves out of the market,” Cerdá cautioned.

Vice president of Sectus Technologies Maureen Allen agreed that taxes on intra-regional flights could be adjusted to promote more Caribbean travel. However, she told Barbados TODAY, that the taxes and fees associated with international flights to the Caribbean should remain.

“I don’t disagree with the ‘One Caribbean’ movement . . . but one of the comments being made here is that the taxes are too high. But Caribbean islands can’t be compared to the United States, Great Britain, or Dubai. Guess where they get all of their tax money? Not from tourism. So having higher prices should not affect whether you do business or not and when you have to put all this infrastructure in place for aviation. It costs a lot of money and you are mandated to do it,” she reasoned.

“Each government that I have worked with over 37 years has done their best. A lot of people come down to this region and say ‘we can do this or that’ but they don’t have the experience or knowledge of the technology that is actually out there because it changes every day.”

Allen said tourism was the main economic driver in the Caribbean and the high rates were necessary in some instances to maintain international aviation requirements and high air travel standards.

“You are not gas and oil, you are tourism so you need those taxes to make this all work,” she insisted.

During a panel discussion entitled Infrastructure in the Caribbean – Opportunities, Challenges, and Best Practices, aviation administrators charged that regional airports lacked appropriate technology. They also complained about slow processing times and custom checks at the region’s airports.

Director-general of the Airports Council International for Latin America and the Caribbean Dr Rafael Echevarne said the customer experience, as far as processing times were concerned, should be urgently improved.

He said congestion was a major problem that led to customer frustration and dissatisfaction, adding that upgraded technological and security services would give Caribbean travel a competitive edge.

Echevarne’s sentiments were supported by the director for International Airports at Spirit Airlines, Camilo Martelo who said an enhanced tourist experience would guarantee more repeat customers and result in more earnings for destinations.

He said security check lines and the time it took to clear customs and collect luggage were factors that impacted the customer experience.

“So, investing in technology, investing in infrastructure, investing in air navigation efficiency is investing in the guest experience. All of that would support the airline industry, support the travel and tourism industry and that is the direct connection with value,” said Martelo.

However, Allen argued that congestion at airports in more developed countries was worse than what occurred in the region.

She called on aviation administrators to stop crying down the Caribbean.

“Passenger flow through the region I wouldn’t even consider a problem. I don’t know where that comment came from because you can’t compare it to Miami, Toronto, New York, or London where you spend hours, and people don’t complain there. You [the Caribbean] have the best technology in the industry available today . . . ,” she said.

Allen said keeping the region’s borders safe from threats such as terrorism cost regional governments millions of dollars and the technology was changing at a rapid pace – about every five to ten years.

She said it was mandatory for governments worldwide to keep abreast of the technology, adding that the Caribbean was close to being on par with more developed countries in that aspect.

“Security is very expensive . . . . They [Caribbean governments] are all doing it. . . and up-to-date,” said Allen.

sheriabrathwaite@barbadostoday.bb