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LETTER TO THE EDITORWhy doesn’t anyone question the figures?Saturday, August 12, 2006Dear Sir:
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 Most popular articles: viewed, printed and e-mailed
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