Reprinted from Caribbean Net News
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Why doesn’t anyone question the figures?

Saturday, August 12, 2006

It was reported recently that the Barbados Tourism Authority is resurrecting the Best of Barbados programme in Britain.

Each person booking one of the packages will be given a £150 (US$283) subsidy and according to a senior BTA official stated ‘an estimated 15,000 people were expected to buy the package before 15 December’.

So that equates to a taxpayer subsidy of US$4.2 million.

The justification is that ‘they get out in the pubs and restaurants and obviously that is feeding a lot of money into the industry’.

But hang-on a minute, included in the package are daily complimentary breakfasts, a dinner at Oistins and a 5O per cent discount off a number of our attractions and services.

What’s left?

Dinner on 6 nights of their stay, lunch each day maybe and a bit of shopping.

15,000 people staying an average 7 days and two persons sharing one room gives a total of 52,500 occupied hotel room nights.

If you average a tour operator net rate of US$100 per night per room that would give Government US$393,750 revenue in VAT.

Another US$187,500 would be collected in departure taxes.

That still leaves a staggering US$3.62 million deficit between taxes collected and subsidy given.

Assuming everything that the 15,000 extra visitor’s purchase, being generated by the Best of Barbados programme is VAT rated at 15%, they would each have to spend US$1,600 over the one week stay or US$228.50 each daily to re-coup the marketing subsidy.

A considerably higher per capita spend than our guests who book normal priced holidays.

Doesn’t anyone sit down and calculate whether such expenditure is likely to be cost-effective?

Adrian Loveridge

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