Some of Barbados’ long-time and most frequent visitors appear to be wary about the suite of tax measures imposed on the tourism industry – leaving them with a “very nasty taste”, on the verge of cancelling future trips or possibly slashing the length of their stay.
Barbados TODAY contacted a number of frequent visitors who suggested the Prime Minister Mia Mottley needed to reconsider the taxes imposed on the sector during the June 11 mini-budget.
A regular visitor who took his concerns to the Prime Minister in an email said he feared many fellow nationals from the island’s number one source market – the United Kingdom (UK) – would choose other destinations.
Describing the measures as “foolhardy”, Michael Bowler, who is booked to take his 23rd Barbados vacation with his wife later this year, told Barbados TODAY he was on the verge of cancelling “as we are very opposed to these taxes”.
“I think that Barbados is about to find out that Barbados needs tourists more than tourists need Barbados. This is foolhardy policy, and it needs to be stopped before very real damage is done,” warned Bowler.
Effective July 1, a Room Levy was introduced at a rate of US$2.50 for B Class, US$5 for A Class and US$10 for luxury hotels per room per night, Mottley, who is also the Minister of Finance, announced in the mini-budget.
A Product Development Levy of 2.5 per cent on Direct Tourism Services was also introduced on July 1, while a ten per cent tax on all shared economy was implemented on August 1.
Mottley had also announced that effective October 1, passengers flying within the Caribbean would pay an Airline Travel and Tourism Development tax of US$35, while passengers flying internationally would pay a fee of US$70.
The International Air Transport Association (IATA) has already warned that the departure tax could harm the bread-and-butter sector. Minister of Tourism Kerrie Symmonds, while acknowledging that the tax would cause some level of discomfort, insisted that it was an investment that was needed to tackle some of the island’s economic challenges.
Bowler, who described the measure as a “holiday ransom on visitors”, said he was strongly considering cancelling his trip, adding that he had sent “numerous emails” to the Prime Minister and had not received a response.
“We are now seeking to cancel what would have been our 22nd visit to Barbados. Clearly no one in authority gives a damn about the feelings of longstanding visitors. This has left us with a very nasty taste,” he said.
In his email, shared with Barbados TODAY, Bowler outlined that he and his wife were due to vacation here in November but was “most unhappy” after learning that his trip would attract an additional US$195, which he was not prepared for.
“Whilst we understand the financial dilemma facing Barbados, we are most unhappy about the costs which are being forced upon us,” he said.
“Prime Minister, these taxes will alienate the tourists. They are very bad call and because of these taxes we will be seeking to cancel our holiday to Barbados,” he added in the email.
Regular Canadian visitor Alex Currie, who has been coming to Barbados for the past three decades and has spent as much as seven weeks at a time, said he would be reducing the time spent here as a result of the new measures. But he said that he did not foresee a grave impact on his future visits.
While the room tax would not affect him and he considered the departure tax of US$70 to be “insignificant”, he was “still likely to come but maybe reduce my stay by three to seven days if I felt it too much,” he said.
Currie reasoned that the removal of the National Social Responsibility Levy (NSRL) would offset some of the costs, but quickly pointed out that when the Value Added Tax (VAT) was raised from 7.5 per cent to 15 per cent in 2020 as outlined in the budget, he would then decide how often he would vacation here.
“I think there is a short term possibility that some new travellers will stop and think about the taxes being applied and perhaps be more diligent in comparing destinations,” he said, adding that Barbados had long been considered one of the more expensive destinations in the region.
But he said he did not believe the taxes would be a deterrent to regular visitors.
“I do not think these taxes will deter regulars such as us, and over the long haul it will get absorbed into the background,” said Currie.
“There is not much that I can see on the horizon that will deter me from coming to Barbados short of a huge increase in crime to the point it is unsafe (which poverty can generate) or civil war,” said the 74-year-old pensioner.
Insisting that the Barbados economic problems could not be fixed overnight, Currie said: “Accordingly, you have to adopt an attitude that can be describe by the following: how do you eat an elephant? One bite at a time. So I see this as future of small bites to get this thing manageable.”
The boss at one regional airline service told Barbados TODAY he had already stated his dissatisfaction with the new taxes particularly the US$35 departure tax, which he argued could deter people within the region from visiting Barbados.
Speaking on condition of anoymity, he said “the numbers collected in taxes at the airport are small compared to what is lost if they don’t come”. (MM)
We shall see where this brilliant idea goes.
The smartest of the smart are now in charge.
I could now sleep like a baby and have my dreams.
What capital expenditures do the airlines contribute for grounds, and facilities? They fly most where there customers want to go. They could reduce there baggage fees to offset the tax. The tax they save by not coming to the island, could be used to offset expenses traveling elsewhere.
“Describing the measures as “foolhardy”, Michael Bowler, who is booked to take his 22nd Barbados vacation with his wife later this year, told Barbados TODAY he was on the verge of cancelling “as we are very opposed to these taxes”.
A guy who previously took 23 vacations to Barbados is squabbling over a $70 departure fee. Give me a break Mr.Bowler, you qualify as a real, real, real “el cheapo”.
“Prime Minister, these taxes will alienate the tourists. They are very bad call and because of these taxes we will be seeking to cancel our holiday to Barbados,”
What an arrogant guy!!!!!!!!!!!! How dare you insult the intelligence of our PM? Can a Barbadian send an email to Elizabeth May over a policy she implemented that they do not agree with? Barbados does not need el cheapos like you.
Stay in the UK Mr.Bowler. They are thousands of other Brits who will gladly pay the measly $70 to help “Little England” in this troubled time.
The airlines tagged on all kinds of unreasonable baggage fees, gives six peanuts in a bag and a can of soda served 3 people and we still pack our readily, pay without a peep and head on to Miami. Bajans your real fight should be with the Banks who charge you a fee for lending out your money, charge you a fee for holding your money, and charge you a fee for withdrawing your money and if it falls below a certain balance, add on another fee for not having enough money in the bank.
The Dems were told, and rightfully so. “You cannot tax your way out of dept.” Remember?
What is this administration doing? Just the same, only with different taxes.
So the visitors are saying what several local economists were saying for the last five years. What has changed suddenly? Where is Jeremy Stephens and the others? Why no voice now? Has your relationships taken you too far out to sea?
Why would we wish to castigate our long stay visitors for voicing their concerns? I’m sure they would prefer to spend some of that money on leisure activities in Barbados. Why can’t we not focus on increased activities to enhance our tourism spending, and encourage local businesses to deposit their foreign exchange by offering some small incentive based on foreign exchange deposits.
can we give the tax at least on tourist season and see how it works??
@Greengiant – “So the visitors are saying what several local economists were saying”
What visitors are you talking about? One el cheapo guy name Bowler equal visitors in your mind?
Don’t bury your head in the sand because you’re hoping the measures work.
Many nations, including Great Britain, have significant departure taxes. I’m sure they are complained about as well, but it seems like the attitude is “The destination gets my money already! Why am I being taxed more?!?” I’d say, mostly because the costs of maintaining the country you wish to visit and take advantage of are not being met!
I may have to budget a little more carefully, but these taxes seem quite in line to me and will not deter me from visiting.
@ PETER – “I may have to budget a little more carefully, but these taxes seem quite in line to me and will not deter me from visiting.”
I could not have put it any better myself. Below are some departure fees from various airports.
Australia= $55 AUD
Fiji=$198.93 FJD
Air Passenger duty in the UK for passengers travelling outside Europe is over $200
Fees for baggage on a budget airline in the USA can cost a traveler $100
Cartegena= $92 (Don’t know if this is still the case today).
Cartagena $92
@Donild Trimp – seems like this entitlement mentality is catching – lol. So correct on ur first entry DT.
@Greengiant – THINKING and INGENUITY are a big problem here in little England isn’t it. Maybe that needs to go onto the education curriculum.
you need to read the Barbados Tripadvisor Forum. This gentleman isn’t the only one who is concerned. remember.. he comes here every year. . many people only come once and will not bat an eye.. but they issue at the moment is.. many people have already PAID for their holiday.. through Virgin Holidays or Air Canada Holidays etc.. and suddenly they are being told they have to pay a hotel levy that wasn’t part of the deal when they made their payments or the new tourism departure tax when they made their flight arrangements prior to the 11th June, when the new taxes were announced. THOSE travelers should NOT be made to pay anything extra.. period. But the Government has also not said anything about how they plant to charge those travelers from the 1st of October, who’s tickets were purchased prior to that date.. NOTHING. .no word from anyone.. and NOTHING has been placed in the Airline systems to charge people after the 1st of October..
1 family of 9 is considering NOT coming here because of the 70.00usd extra per person they are NOW going to have to pay.. Call them cheapskates?? I don’t think so.. 9 people x 630.00usd that they could be spending in food, entertainment and directly into the economy, rather than giving it to a tourism tax that hasn’t been though out properly yet..
and don’t forget.. every time a Barbadian flies out of Barbados, they too will be subject to that 70.00USD Fee.. it’s not just a tourist fee. I’m not saying it’s not going to raise a lot of money.. but there are many many tourists who will simply go elsewhere..
.
I think the comment ‘Barbados needs us, more than we need Barbados’ is so right.
It is a wonderful island with fabulous people and is definitely my favourite – hence over a dozen long-stay visits. But St Lucia is beautiful too, and Antigua, and Grenada, and the BVIs, and ………..
.
Donald Trimp is as deluded as his US namesake! Barbados has to be really careful here. Too many tax rises all at once….some even after you thought you had paid “all fees and taxes”, will simply stop many from coming. The dollar is too strong against the pound / Euro as it is. The beautiful Island has massive issues with sewage, seaweed, shrinking beaches, Zika virus and now you want to charge people more?! Apparently the increase in departure tax actually goes to the Tourist Board? So you are taxing tourists to promote tourism? It is not a wise or well-thought through plan. Get the tourists to come….they really want to come and spend their hard saved cash if they can. Don’t scare them off. If fewer come then your taxes are worthless.
@ BARBADOSBELLE – Last time I checked a comparable vacation in the BVI is way more expensive than in Barbados.
What is your point el cheapo?
There is little point using BVI as an example of anything. Barely any British tourists go there, while Barbados is a major destination for Brits. The simple reality is that more taxes added to an already expensive destination like Barbados will deter some. It is simply a matter of how many, and the degree to which it will affect hotels and businesses dependent upon the tourist trade.
Economists have for a long time written about how there are tipping points with tax – at a key rate it starts to operate as the law of diminishing returns. Have the government added these taxes with any proper research or advice? It appears not as they will not be transparent and release anything. So it’s probably guesswork and hope that they can just get more dollars out of the same number of tourists with this big hit. If they do, great. If not, then hopefully we will be told and not just see yet further decline badly managed by more bad government, incompetence and cover-up, with them blaming the private sector, as usual…
Having just returned from a wonderful 2 wk holiday on your amazing Island – being made to pay a hotel room levy that didn’t exist when I booked the holiday has left a nasty taste in my mouth and it’s surely plaine stupid to calculate it according to length of stay. Remember this has come in the same year as the island has been plagued by sea weed. For some this surprise levy will have been the final straw. Same goes for the departure tax if it’s being imposed on children at the full rate.
Please stop robbing the tourist, we have been coming to Barbados for 34 years and last year we came for 13 weeks as my husband had been ill and the sunshine does him good.
We had a massive room levy bill and it has made us think about returning after this year, we spend lots of money in your supermarkets and restaurants so stop taking more and more from us
Don’t kill the hen that lays the golden egg. After Tourism, what else do you have?
You need the Tourist, the Tourist doesnt need you.
Be careful.
Like a lot of people on here we have been coming to the rock for many years with family and lots of friends sometimes three times a year we work hard for our holidays but the cost of living in Barbados is so high we on average spend £ 5,000 for two weeks at Xmas this year we went to Thailand and spent £3,000 and eat out every day and night with beer and wine with all transfers ferry’s taxis bike hire and three different islands superb weather lovely people like bajan folk even the reggae bus has gone up to 3.50 dollars I don’t honestly know how your own people afford to eat from the supermarket shops like people have already said you need us not we need you