CHTA head – keep politics out; work on seamless process for incentives

By Marlon Madden

A leading regional tourism industry official is warning Barbados and other tourism-dependent countries not to let politics stand in the way of them pushing forward with industry-related projects.

At the same time, President of the Caribbean Hotel and Tourism Association (CHTA) Nicola Madden-Greig told Barbados TODAY that learning from best practices in other jurisdictions could help to propel the development of the sector.

Insisting on the need to focus on building economic and social development through tourism, Madden-Greig said it is important for government, opposition parties and the business community to be on the same page when it comes to the building out projects in the sector.

“It is very important that strategic thinking is put into place and an understanding that these projects that we have are not just projects in and of themselves but a tool to economic growth and development . . . Once again, it requires buy-in because sometimes it is political issues that stall projects. I am not sure about the on-the-ground situation in Barbados, but if both sides of the divide in terms of the politics have the same vision for the country, it makes it a lot easier,” she said.

Acknowledging that some projects, depending on the scope of the investment and the requirements, could take longer to get started than others, Madden-Greig said having that buy-in across the board was absolutely necessary to help speed up the process.

“We are lucky in Jamaica that our tourism ministers over the years have been on the same page and we in the private sector have been on the same page. We have never made tourism a political issue. There has always been joint collaboration across the divide and I think that is something I would encourage any other destination, any other island, to make sure that tourism is not politicized. It is something that is a catalyst for growth, it is something that everybody has to be on the same page with in terms of development,” she suggested.

“I think if we continue to [look at] the best practices that have happened across jurisdictions then it is something we can move forward with and some of those projects may move a little faster,” she added.

Madden-Greig, a former president of the Jamaica Hotel and Tourism Association, also indicated that incentives were critical for the continued development of the tourism industry. According to her, how those incentives were provided could make a difference to whether people were encouraged to invest.

“We moved away in Jamaica from the Hotels (Incentives) Act to what we call an Omnibus Tax Incentive, the Fiscal Incentive Act, which still gives benefits, but now instead of it being discretionary where you have to go to a minister and apply, it is up front. You know exactly what you are going to get and everybody knows exactly what you are going to get,” she said.

For several years, officials of the Barbados Hotel and Tourism Association (BHTA) have complained about difficulties in accessing concessions under the Tourism Development Act (TDA) and the Tourism Development (Amendment) Act (TDAA).

Under the TDA, there is an application and three-step approval process, which involves the Minister of Tourism notifying the applicant of the approval, refusal or request for additional information to be submitted.

However, small hotels in Barbados have complained repeatedly that while they were able to make an application for concession on some items, it was the onerous and bureaucratic process that continued to result in delays with each application.

Madden-Greig, who was speaking with Barbados TODAY on the sidelines of the first Global Tourism Resilience conference in Jamaica, suggested that Barbados and other jurisdictions could learn from changes made in Jamaica when it came to the process of granting concessions for the vital industry.

“I know in some jurisdictions they still have discretionary incentives where you have to assess the project and depending on what the project is that would determine what level of concession you get. Our concessions are also now in perpetuity, so you don’t have to go back and apply again and again and have a discretionary conversation with the minister. That has given a level of confidence in investment

“It is a model that has worked for Jamaica. It was a big change for us, a massive change. I think that is maybe a model that other jurisdictions could look at. Incentives are important. You can’t really do without them. You do need to incentivise not only tourism, but all industries with the goal of growth. But making it seamless and transparent, making it easy, is what is important,” explained Madden-Greig. 

marlonmadden@barbadostoday.bb