(Source: Demerara Waves Online) – Director of Economics at the Caribbean Development Bank (CDB), Justin Ram has slammed regional governments for the high cost of air travel and he has called on them to slash the taxes and rake in more value-added and income taxes.
“What I’m saying to governments—and I go all over the Caribbean—I say to governments: ‘stop being so myopic, reduce taxes on travel and aviation and let’s get more regional travel. You will recoup the revenues because when those people come into your country they will be buying more stuff and they will be paying more VAT (value-added tax),’” he told a Georgetown Chamber of Commerce and Industry (GCCI) dinner held on Friday.
Ram, who was the featured speaker at the launch of the 10th edition of Business Guyana titled ‘Guyana: Potential Unleashed’, said the Caribbean faced a “real issue” when it comes to regional air travel.
Noting that over the last 10 years, most Caribbean people were travelling extra-regionally while intra-regional travel declined because of the high taxes and fees, he highlighted that 60 percent of the airfare for Barbados to St Lucia are made up of taxes.
Ram reasoned that if the taxes and fees on airfares are reduced, Caribbean governments would earn more from VAT and income taxes because Caribbean people will travel to other countries and spend more on goods and services, and more persons would be employed resulting in more income tax revenue.
The CDB official was also concerned about the many security checks that travellers have to undergo while transiting airports, and he called on Caribbean governments to reintroduce the Cricket World Cup 2007 security system that had provided for persons to be checked once.
“This is ridiculous and we really have to ask our policymakers to reform this,” he said.
would be great
Dalano R. DaSouza
Too expensive from island to island
I’m not an economist (yet) but I’ve been saying this for years
Yes very true too expensive
It is like tying a cow the same spot everyday and expect it to produce more milk. It going to dry up and no more milk to sell. LIAT fares to damn expensive because of GREEDY politicians.
Other airlines charge US $ 59.00 to US $79.00 to travel same distance and make money. Caribbean Government run entities are poorly run, inefficient and loaded with top heavy management and unmotivated workers. LIAT is a prime example of this and will never make money as it exists. It is not the high taxes but the reason for the high taxes.
Yes!!
Yes please can’t wait
I wont hold my breath
Need to reduce all those taxes on the airfare
Agree to travel in the Caribbean is real expensive
Well said
Hurry ,Hurry.
yes what he is saying is so true to expensive just to fly to a carribbean country
And more people will travel and travel more often. I can’t wait.
well they wont hear ..imagine yuh want ppl to rock and come in and yuh bussing we head
I think a flight between Barbados and Trinidad is more expensive than one between Orlando and JFK. Look at the EU. Air travel is very cheap in Europe. This is an advantage to tourists and Europeans. The Caribbean can benefit greatly. More islands could attract more visitors to boost their local economies. But how could this become a reality? Perhaps regional airlines can receive bigger subsidies or maybe lower the barrier of entry for more competition.
We the people have been calling for that for years. I hate to hear politicians talking about the need for more inter regional travel. The airfares are high because if the government taxes.
A reduction in airfares just means an increase in something else.
Don’t come at me for airing my views .
But I remember I use to get a flight to st Lucia for 199.00 bds. And I too been saying the islands are too expensive most of them .
A ticket is more than one to the USA and honestly the carribean has more to see and enjoy NATURE wise ..but I guess persons with a visa would buy a ticket to the U.S because they can shop!
It’s cheaper to fly to US that to St Vincent…can that make sense. Governments have taxes are about 100% of the base fare…
Now if these airlines charging so much and still in trouble wunna gine pun them airplanes with no Maintenance and drop out the air. It is alright for these people to come and talk ask he if he know what it take to run and airline.
I agreeeeeeeee
let me see which Caribbean leader have the (Guts and Balls) be the first to reduce the taxes,that country will benefit tremendously economically
I would love to travel the caribbean, but at the prices ,as well as the hotels ,america it is, until it costs 100us to go to the islands again
Duh!
Common sense is not common ! Enough talk drop the crazy taxes and we will travel to the Islands , keep the high class robbery airfares and we will go outside of the region where it’s cheaper every time they are cutting off the nose and spoiling the face because of pure GREED
Ricky Wilson … you were just talking about this the other day …
A fleeting illusion to be pursued but never attain. Those taxes are easy money for the Governments. Funny thing, the state pays for the airfare of the Government Ministers so they are not personally affected by those cumbersome taxes.
yesssssss !!! when you think that airfares between the US and Europe can be bought for as little as USD 199 RETURN ….and flying to the UK return is USD 1,500 ….we are all castaways !! Flights need to decrease …. if other airlines can do that then so can BA , Virgin and all of the others !! And let me not get started on LIAT and interisland flights ….cheaper to fly to the US than to Saint Lucia ….Barbados is outpricing itself …
The truest statement ever said! It would be nice to be able to truly see the Caribbean!
Every one in the street done known this .Nothing new here.
Man I would be on a plane to other islands almost every other month if they do this
From an operational point of view , it is expensive for airlines flying within the Caribbean region , wear and tear adds to high operational cost on equipment used for shorter flights . Despite that , it’s almost criminal those ridiculously high taxes that one has to pay for intra regional flights when the actual airfares are not excessively high . Let’s hope it’s more action now than talk .
Lawd please do!
It’s crazy what caricom gives are doing by charging punitive rates on air travel is destroying Caribbean economies
Not only airfares! Hotels are extremely expensive especially with the latest added taxes.
Yes!!!! I’ve been saying that for years. C’bean governments too greedy and slaughtering regional travel in the process.
To have to tell them that should tell you a lot about them.
And everybody blames LIAT and Caribbean Airlines for the high cost of regional travel. It is not the airlines fault; it’s the greedy governments. This has been the case for many years.
Hope Barbados gets smart and reduce taxes on airline tickets and get more passenger traffic heading its way.
Its now cheaper to fly to the UK than it is to fly to Jamaica or St. Kitts from Barbados and that sure says a lot. One would think it’s common sense to lower fares so intra-regional travel is more affordable which makes it more attractive for persons to island hop. I’m sure people will be more inclined to travel every couple months even if its just for a weekend getaway than being limited to traveling once or twice a year in most cases. But we have so call leaders with all the world of education and they still can’t seem to get even the basics right SMDH! #CertifiedIdiots
So what about the ferry that you hear about every now and again? That would certainly boost travel in the region.
He’s the only one seems not to be in slumber concerning the airfares for regional travel.
The taxes are killing regional travel. Talking about cutting your nose to save your face.
Airfares will never go down since most of the money goes towards taxes. Each island depends on collecting theirs. Even the fuel used also includes taxes as well! Without reduction or elimination of taxes, the cost of flying around the Caribbean will remain a pipe dream. I go back and forth to the US, and remain amazed to see that flying around the Caribbean is just as expensive.
Mr.Ram, do you believe the so-called heads, could not figure out the folly for themselves???
I guess it depends on which head on their bodies they are using, at big well publicized meetings.
I got lucky in February and found a tickets to St. Lucia for $232 rt each for my birthday in June! I was shocked because normally I would’ve paid that price for one. If fares were lower I’d travel between island every couple months. Until then I will continue to go to the states and initiate further international travel from there. It’s just cheaper.
I agree with you Sir
The fees are too high imagine right at your door step $900 and something dollars to travel to St Lucia I don’t know human beings are so mean to to each other especially the poor .
I agree we should not have to pay such exorbitant prices for airfare within the Caribbean region. Cheaper fares would allow me to see my family more often
Each time ferry services starts within the Caribbean , eventually they flop , not going to say go figure . Flog a dead horse but for the short time that Redjet operated , it forced the big two A’s in Trinidad and Tobago owned Caribbean Airlines and the Caribbean airline LIAT to significantly drop ticket prices to compete . Factors and forces dictated that Redjet will not be sustainable and the sequence continues . Saying that , it is a well known fact that in the aviation industry , anyone flying their aircraft between the islands on shorter flights sees high operational and maintainence cost compared to longer flights . An aircraft takes of and after reaching altitude , 25-30 minutes for some , longer for others , it’s time to deploy the landing gear and final approach to the destination . Wear and tear on aircraft equipment , however , some balance can be had that some of these taxes be decreased despite them being profitable revenue collections for governments .
I agree the ticket are too high to go just a stone throw away I’ve been saying it for too long that’s why people travel to North America countries instead but we love the Caribbean it’s beautiful
So so true a ticket to the states is 16 hun and change going to Guyana is 900 ridiculous
This information is over 30 years too late, plus in Barbados travel is supposed to be the domain of the wealthy.
The Heads of Governments will never agree to such a sensible move Mr.Ram. Each one of them wants to be the big chief in the Caribbean, and with their own selfish agenda, while claiming they want Caribbean unity. Another thing, is the benefits of having one common currency for Caricom.
duh!!! You need an economist to tell politicians that??? smh
Talk to PM Browne, he will soon be controlling LIAT and airfares across the Caribbean.
Hire BIM JIM ,he always
Have his finger on the correct pulse for LIAT.