Tourism mogul Gordon 'Butch' Stewart, chairman of the Sandals Group, and Deputy Chairman Chris Zacca at a press conference held yesterday to discuss the state of tourism at the Appliance Traders Limited offices on Half-Way Tree Road. - CARLINGTON WILMOT/FREELANCE PHOTOGRAPHER
CHAIRMAN OF the Sandals Group, Gordon 'Butch' Stewart, yesterday lashed the Government for new taxes on the tourism sector which came into effect this month. General Consumption Tax of 8.25 per cent became effective October 1.
"Only in Jamaica could a tax like this be raised with so little dialogue as to why and what are the ramifications of the tax," Mr. Stewart said during a media briefing in Kingston.
"You cannot raise taxes of this nature at a time that tourism is on the decline, that your stopover arrivals number is going down; at a time that you have increased hotel capacity coming on ... you cannot do that ... you're gonna end up cannibalising the hotel sector." Mr. Stewart stated.
He warned that the new tax hikes, combined with inflation and declining tourist arrivals, is a "formula for suicide" and may cause some small hotels to close during the fall season. He cautioned that the needs of the economy will be greater if hotels are put out of business.
WEAK MARKETING
Mr. Stewart noted that the problem of fewer visitors coming to Jamaica started after spring break and is due in part to the weak marketing and advertising programme that was in place leading up to that period.
He suggested that a 15 per cent annual growth rate for the next five years may increase occupancy levels up to 65 per cent, from the low 50s.
In the meantime, Director of Tourism Paul Pennicook said that a joint marketing meeting would be held today where the marketing and advertising plans will be outlined.
"I know the figures are low and strange enough I expected them to be lower. But I will present the plan to show what we will be doing. I expect a good winter," he said.
