Aviation experts urge closer Gov’t-business cooperation

eading figures in Caribbean aviation and tourism have urged governments and private companies to work more closely together to significantly improve intra-regional air links.

The call came amid concerns that high taxes and other fees are pricing many Caribbean citizens out of intra-regional air travel.

While international flights to the Caribbean are increasing, travel between islands and coastal nations remains stagnant – a situation that must be addressed, according to a senior official.

The experts appeared at a forum on “Pathways to Improving Intra-Regional Air Transport Connectivity in the Caribbean – Industry Perspective” during the inaugural Global Supply Chain Forum at the Lloyd Erskine Sandiford Centre.

While tourism remains the engine of economic activity and jobs across most Caribbean nations, affordable and accessible intra-regional air links are also seen as vital for the free movement of people and boosting regional integration as thousands travel for work, study, family and friends.

Aviation officials argue that current ticket taxes, as well as a lack of harmonisation on regulations between different governments, are hampering connectivity.

At the forum, the Caribbean Tourism Organisation (CTO) urged bold steps to tackle “the elephants in the room” around taxation, passenger services and initiatives to stimulate demand on less viable routes. It urged a new collaborative approach bringing together governments, airlines, airports and the wider tourism industry to find equitable solutions.

For the regional carriers, striking the right balance between operational efficiency and resilience in the face of future shocks, such as the COVID-19 pandemic, is an additional challenge.

Dona Regis-Prosper, CTO secretary-general and chief executive, said: “The Caribbean as a whole will recover by over 13 per cent compared to 2019, so that is significant growth in terms of international arrivals. Intra-regional movement is a different story, unfortunately. There are many things that we need to tackle and we cannot do it alone, or we can’t do it without an all-sector approach. We have to be bold as we move forward in tackling the elephants in the room; that could include taxation, passenger services and demand creation price points.”

She added that high travel costs are “one of the biggest prohibitive factors”, noting: “When we break down the cost of an airline ticket, we see taxes added on to that. It’s a catch-22 for us; the taxes are to fund the airports, to meet international requirements, customer demands or airline requirements.”

Isaac Solomon, acting president of the Caribbean Development Bank, conceded that while international crises impact airfares, differing taxes and subsidies between Caribbean states should be a focus.

He said: “The way governments approach the international carriers and the regional carriers is totally different. I think there is scope for us to relook how we treat all players within the space. If we are able to do that, we can find less controversial means of addressing the tax issue.”

Solomon stressed that costs linked to increasing efficiencies also affect ticket pricing, saying comprehensive private-sector partnership is needed for affordable fares. “Government needs to look at the private sector differently; if it contributes over 85 per cent of growth in national income, the private sector is very critical to our livelihood and development.”

Lyndon Gardiner, founder and chairman of interCaribbean Airways, backed Solomon, declaring some routes are unprofitable so governments must “take a more proactive approach in supporting the airlines – not necessarily giving handouts, but support based on performance”.

He argued: “Not all routes will perform, but if you are taking people, they need to have the view that the airport is a public service, like roads, schools and hospitals.”

Gardiner added: “A lot of us in this room came by [aeroplane], and a lot of us because we don’t live here, we are going to put money into the economy, with the hotel, with the car rental, with the food – those are things you can’t quantify easily.”

The forum’s consensus was that as the global economy grapples with high inflation and the rising cost of living, making intra-regional travel more affordable for Caribbean nationals could be as crucial to driving the tourism recovery as tourists from outside the region.

shamarblunt@barbadostoday.bb