Hoteliers want Gov't to give account for TEF handling

Janet Silvera, Senior Gleaner Writer

WESTERN BUREAU:

Two of the island's leading hoteliers - Sandals Resorts International's Gordon 'Butch' Stewart and SuperClubs' John Issa - are calling for better accountability and more transparency in the collection of the Tourism Enhancement Fund (TEF).

The two are responding to the announcement from the Government that there would be a 100 per cent increase in the TEF.

The move will see the current fees moving from US$10 per airline passenger to US$20.

Stewart says he will support no more than a US$5 increase.

no head tax for ships

Yesterday, the hoteliers pointed to the fact that their main competition, the cruise lines have been allowed to dock at the island's ports for the last five years since the TEF was imposed without paying the US$2 head tax.

"The cruise ships are 100 per cent tax-free; from construction, to staff, to food and beverage, and literally every other form of taxation.

"The sooner everyone realises that cruise ships are the hotels' main competition and not each other, the sooner we can understand that every dollar of tax is a nail in the coffin of land-based tourism accommodation," Stewart said.

Issa agrees with Stewart. He argued that the increase in the TEF would put a greater cost burden on the hotel sector at a time when airline rates have gone up and the industry continues to battle high utility fees.

"At a time like this, they are skimming money off the tourists," Issa said.

Issa has estimated that cruiseliners owe US$12 million to the TEF.

Meanwhile, the Jamaica Hotel and Tourist Asso-ciation, through its president Wayne Cummings, has encouraged international carriers to resist the increase in the TEF.

unwise increase

The Opposition People's National Party has also come out swinging against the increase, saying it is unwise and hypocritical.

Dr Wykeham McNeill, the opposition spokes-man on tourism, in a media release, noted that Jamaica, along with other Caribbean countries, has been lobbying the United Kingdom to reduce the increases that they have recently made to their air-passenger duty.

"And for us at this time to increase our travel tax would be contradictory, and confusing to our partners, the UK government and the British travelling public," McNeill said.

He also argued that the TEF is being used for purposes other than it was intended.

"Over the past three and a half years, we have seen it used for all manner of things, including trips to Beijing, extravagant sponsorships of the jazz festival and Sumfest, misguided revenue support to airlines on scheduled routes and, to date, we still have not seen one transformational project that the fund has implemented", McNeill argued.

janet.silvera@gleanerjm.com