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'Butch' criticises tourism plan, calls for less hotel taxes
published: Thursday | October 9, 2003

By Denise Clarke, Staff Reporter

WESTERN BUREAU:

JAMAICA'S TOURISM Master Plan has come in for strong criticism from hotel mogul Gordon 'Butch' Stewart, who has described the plan as "a lot to do about nothing."

Speaking to journalists in Providenciales, Turks and Caicos Islands on the weekend, Mr. Stewart, chairman of Sandals Resort International, said he has not seen any indication in the document as to how the viability of the industry will be addressed.

He added that the announcements regarding the Master Plan suggest that the players in the tourism industry will be further burdened to fund it.

"We are accustomed to a lot of announcements ­ it's a lot to do about nothing as I have seen so far," Mr. Stewart noted. "I haven't seen anything yet to suggest that the plan has started or when it will start or when it will start addressing the viability of the industry."

Government estimates that it will take $1.6 billion to implement the plan, with the private sector expected to take up $1.4 billion of the cost.

Mr. Stewart is contending that the Master Plan needs to be implemented promptly and should address the viability and the continuous improvement of the tourism product, items which he said are crucial to profitability of the industry. Another contentious issue, he said, is the matter of taxation on the hotel sector, which according to him needs to be reduced if the hotels are to become profitable. "The Jamaican hotel sector is not a profitable sector right now; that's why you see so much depreciation in the product," said the Sandals chairman. "What has to happen is instead of talking, they need to do it. I think we have to wake up before we damage the industry any further."

He said freeing the hotel sector from taxation would increase the viability of the tourism product and attract new investors, and that the upcoming winter tourist season would be the ideal time for the government to launch a reduced taxation programme, to increase Jamaica's competitiveness in the market.

"If the plan is addressed in terms of the taxation elements that are spoken about, and it is addressed quickly then it (Master Plan) can have a really good effect," said Mr. Stewart.

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