By V. Lloyd Simpson, ContributorIT IS with some measure of reassuring optimism that action to reform the horseracing product towards greater viability seems to be developing.
It was announced recently that the Prime Minister will meet with a coalition of the various interest groups to ventilate the various problems requiring attention, and that an alliance along broad lines between the hierarchies of the hotel sector and horseracing has been forged.
LACK OF CO-ORDINATION
While that is interesting, it is an indication of the lack of co-ordination at the top when the Prime Minister has to be called in to do what others should have been sorting out despite the facts of his tight priorities schedule and his instruction some months ago that Ministers should be given greater autonomy in their various areas of responsibility.
The foregoing apart, the entire horseracing fraternity as well as the general public seems confident that Wednesday's meeting is likely to produce a wealth of rewarding decisions - including the most critical component of the lowering of taxation on the handle from the current excessively high level of seven percent to the preferred average three percent that obtains in the United States.
It is even more relevant to the prosperity of horseracing in Jamaica, if the change is made, when it is taken into account that in the United Kingdom only the net profit of bookmaking enterprises is taxed.
It should be obvious that an imposition of General Consumption Tax on bets would drive the bookmaking business underground, would provide more room for gaming companies to invade the already beleaguered intake of the promoting company (CTL) and its affiliates, the 'off-track-betting' outlets (OTBs), and would ruin the service which legitimate bookmaking enterprises take care of throughout the remote locations of the country.
That would be apart from the fact that a sales tax on bets would be double taxation of dividends payable to bettors. There is the taxation that was imposed on bets some decades ago (a turnover tax on dividends) to make up for the understating of income by bookmaking companies to evade income tax and now the proposed GCT on bets.
It is reassuring that the government seems convinced that it should forget this bit of insanity, and it would be equally reassuring if after tomorrow the government has lowered the seven percent.
NEWLY PROPOSED ALLIANCE
Regarding the newly proposed alliance between hotels and horseracing to not only diversify the product but also to promote tourism and elevate the country's international image in the marketplace, the move will have introduced an admirable and highly rewarding 'agent-of-change'.
In the seventies horseracing operated by CTL was a tourist attraction. Tourists from the major locations of Montego Bay, Ocho Rios and eastern areas could be seen doing business at the crafts market and other downtown enterprises in their hundreds before going to Caymanas Park to spend the rest of the day. The hotel entrepreneurs were then alert to the value of horseracing as an element of the entertainment package.
The crime situation that has so retarded the desire of the tourist to move freely throughout the metropolis has probably had its negative effect, but the activity of attracting foreign visitors to the track disappeared owing to the discontinuance of cruise-shipping at the port of Kingston.
The new initiate to revive the lost activity will mean that the powers-that-be in horseracing and the hotel proprietors will have to move in astutely planned co-ordination to make the proposed thrust a winner.
It is understood that the tourists in attendance at the track will be accommodated in the North Lounge, but steps will have to be taken immediately to upgrade the facilities in that area in order to induce comfort and customer appeal.
Another important aspect of any arrangement to use that particular area is that the noise factor could be an irritant. Hence, officialdom will have to understand that respect must be paid to the cultures of visitors who are not accustomed to the rowdyism that has overtaken us.
As beautiful as it is, Jamaica is often far too noisy.
