TCI News
TCI Gov’t called on to activate lenience on outstanding accommodation taxes
#Providenciales, Turks and Caicos Islands – May 13, 2020 – The Hotel and Tourism sector of the Turks and Caicos Islands will inevitably lose 44 per cent of its workforce in the coming weeks as the coronavirus continues to hold the global travel and tourism industry hostage.
Recommendations emanating from an April survey, commissioned by the Turks and Caicos Hotel and Tourism Association, TCHTA and conducted by KPMG are direct.
Government should support a Staff Retention Program.
Government should work with lending institutions to secure low interest; low risk loans to cover debt.
And Government should defer tax payments and waive penalty fees and interest charges for tourism businesses.
From the survey report: “Most of the resorts in question are amongst the largest in terms of revenue generation and therefore tax generators. They indicated they had an exemplary prior payment record but with the onset of the pandemic they were experiencing cancellations at unprecedented levels and also had greater difficulty collecting receivables from similarly impacted tour operators. Such receivables included significant accommodation tax components.”
An impressive, 73 per cent of TCHTA members have paid their taxes up to February, but it is unlikely the Government will see any more revenue from the sector anytime soon. There are no tourists in the country and it appears the ban on in-pound passengers via flights or cruises or pleasure craft will persist for at least three more months.
The remaining 27 per cent, who did not pay taxes in February expressed this in the survey: “All of the respondents who had not paid their accommodation tax for February would support the deferral of payment of this amount along with the waiver of interest and penalties and would commit to pay all outstanding amounts.”
Loss of this revenue to the Turks and Caicos Islands Government is already hurting, and the report survey heralds that more fiscal pain is on the way. The majority of survey-taking TCHTA members who have not yet paid taxes for February 2020, admitted that catching-up may not be possible within this year at all, without government leniency.
“If interest and penalties on outstanding amounts are not waived only 33% of the respondents who had not paid their accommodation tax for February could commit to pay all outstanding amounts in financial year 20/21.” Add to the loss in tourism revenue, the loss of economic activity predicated on tourism employees’ salaries. Already, 14 per cent of hotel and tourism workers have been terminated and at this time, those employees reflected in the survey are receiving around 55 per cent of basic pay.
TCIG knew from April that fuel factor could surge almost 80%; Minister says $500 cost-of-living payment was part of Government’s response
PROVIDENCIALES — The Turks and Caicos Government knew months before July’s shocking electricity bills that consumers faced a potentially massive increase in the fuel factor.
Minister of Information Technology and Energy E. Jay Saunders revealed Friday that Pelican Energy warned his Ministry in April that generation fuel costs were projected to rise from $3.09 per gallon in May to $4.79 in June and July.
That translated into a projected fuel factor jump from about 17.5 cents to 31 cents per kilowatt-hour — an increase of almost 80%.
Saunders said he personally advised Cabinet of the projected increase and presented options for cushioning the impact.
He characterised Government’s $500 cost-of-living payment as its “initial response” to rising fuel costs, before a separate fuel-factor subsidy was approved.
Cabinet records show Government agreed on June 24 to provide funding to mitigate the fuel-factor impact, with the relief programme approved July 8.
Eligible residential customers — those averaging less than $1,500 monthly over the previous three bills — are capped at 22 cents per kWh from July through October.
Pelican confirmed Friday that Government’s contribution was already applied to July bills, meaning the bills now triggering widespread public outrage would have been even higher without the subsidy.
Saunders did not disclose the programme’s total cost.
His admission that Government knew since April, however, raises another question amid the backlash: why were consumers not directly warned by Government about the scale of the approaching increase?
PROVIDENCIALES — New commercial Crown Land applications are facing a six-month pause as the Turks and Caicos Islands Government takes inventory of its holdings.
During Cabinet meetings held July 15 and 16, an immediate six-month moratorium was approved on the acceptance, processing
and approval of new applications for commercial Crown Land grants, leases and allocations.
The pause will remain in place pending completion of the Crown Land Inventory Review. Cabinet’s summary did not state what prompted the review or indicate whether availability of commercial Crown Land is a concern.
The two-day meeting also advanced major consumer legislation. Cabinet approved the National Fair Competition Policy 2026 and drafting instructions for a Fair Competition Ordinance, moving TCI toward stronger consumer protection and fair competition rules.
In Grand Turk, Cabinet approved rezoning land in the North West Suburbs from low-density to medium-density residential use to facilitate a new apartment development.
Cabinet also advanced fisheries reforms, water legislation allowing private and public-private investment, minerals legislation and appointments across tourism, health and finance.
Progress toward establishing a TCI Credit Union was also noted.
PROVIDENCIALES — Major development projects outside Providenciales received Cabinet attention on July 8, with Government approving agreements connected to the redevelopment of Dellis Cay and a resort development in North Caicos.
Cabinet approved a Development Agreement between the Turks and Caicos Islands Government, Desarrollos Hotelco DC Ltd. and
Desarrollos Hotelco Astoria Ltd. for the redevelopment of Dellis Cay.
The long-discussed private island development sits between Providenciales and North Caicos and its return to Cabinet signals another step toward redevelopment.
Cabinet also approved amendments to an agreement involving SPR LND Ltd. (Royal Reef) and TCIG Development Agreement for a resort/hotel development in North Caicos.
Other decisions included approval of the First Supplementary Appropriation Bill 2026 for onward transmission and the appointment of Cindy Ewing as Chair of the Invest TCI Board, effective August 1 for three years.
Cabinet also noted consultation outcomes concerning changes to business licensing, approved professional membership expenses for qualifying Telecommunications Commission staff and approved advice relating to the Interim Clinical and Estates Services PPP.
The July 8 meeting was chaired by Acting Governor Anya Williams.
Photo Credit: Royal Reef (Keith)
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