Regional governments moving forward on cruise ship tax

Mr. Hilary Modeste
(Photo: www.sluonestop.com)

Sunday, October 12, 2003

CASTRIES, St Lucia: The US$20 per person tax on cruise ship passengers may soon become a reality. Regional governments are said to be moving forward with implementing the tax on the cruise line sector despite strong objections from cruise line associations.

The controversial tax, agreed to by the tourism ministers in June of this year, comes up for review next week at the 26th annual Caribbean Tourism Conference in St Thomas, United States Virgin Islands, CMC said last night.

The news service quoted St Lucia's director of tourism, Mr. Hilary Modeste, as saying that while the cruise lines have been engaged in an aggressive campaign to ensure that the levy is not introduced, they have failed to convince tourism officials in the region that the measure is not necessary. 

"As far as I know all the directors of tourism are supportive of the idea and have all recommended that to their ministers. We have no official information that any island is planning to back out of this arrangement and we expect it (the tax) to be taken to the next level," Mr. Modeste told CMC on Friday, 10th October. 

He said that one of the major costs currently facing regional ports was that of implementing new security arrangements, adding that in much the same way as airlines have borne the cost of additional security at the airports, the cruise sector will also have carry its fair share of the burden. 

Mr. Modeste said while reports have circulated of unnamed regional countries reneging on the decision to implement the tariff, the ministers were going to the 16-18 October meeting in St Thomas with a firm commitment that the next step is taken to ensure that the measure is introduced. 

He said the levy will create a cruise Caribbean zone and all cruise lines will be required to pay the tax irrespective of whether or not they only visited one island. 

"So individual territories will not be imposing the levy but will give the authority to another organization within CTO (Caribbean Tourism Organization) to collect the levy, which will be paid directly at the purchase of the cruise package," he added. Mr. Modeste said this was a novel idea and so had to go through the full stages of implementation. 

"As a result different islands will need to enter into different legislative arrangements before complying with the new measure, so the meeting will receive the advice of an expert who will present model legislation for the consideration of ministers," he said. 

The legislation is expected to give the new entity life and authority to collect the levy on behalf of member countries of the CTO. 

  Back...

  Printable version