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CHTA President calls for “Dynamic Tax” to address high cost of air travel

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#CaymanIslands, September 26, 2022 – The President of the Caribbean Hotel and Tourism Association (CHTA) is recommending a tiered “dynamic taxation system” as a novel and potential solution to address ongoing concerns about the high cost of air travel within and to and from the region.

Calling for a flexible approach to levying airline taxes, CHTA’s President Nicola Madden-Greig said one of the major constraints facing Caribbean travel is the heavy burden of taxation, and governments could well consider successful revenue management tactics employed within the tourism and aviation sector.

Understanding that the full removal of taxes may be challenging, the CHTA president suggested a tax policy that is responsive to international travel demand seasonality. “For example, governments can affix a higher airline ticket tax in the peak winter season and lower taxes in the summer when demand is weak,” she said, adding that giving consumers better prices to drive visitation during the slow season could boost tourism, commerce and intra-regional VFR (Visiting Friends and Relatives) travel.

Speaking recently at IATA Caribbean Aviation Day in Grand Cayman, the successful Jamaican hotelier said the economics of such a variable policy may in fact result in a net gain in tax revenue to Caribbean governments. “As travel becomes more affordable and we stimulate more travel, this will result in more local spending, and consequently an increase in local tax collections,” she said, underscoring there will be an overall net benefit to the consumer thanks to lower ticket prices.

“I think it’s a concept that should be explored,” said Madden-Greig, who argued that a well-developed strategy could address diverse perspectives on taxation. “There’s a way to do it that allows for flexibility so you still have taxation on the front end, but when you need to drive demand, you can reduce those taxes and make up the difference on the tail end,” she said. The taxation details however must be transparent, she warned.

Madden-Greig, the Jamaica-based Group Director of Marketing & Sales at The Courtleigh Hospitality Group, said she hopes to explore the “dynamic taxation strategy” at the upcoming Caribbean Travel Forum, taking place at CHTA’s Caribbean Travel Marketplace in San Juan, Puerto Rico, October 3 to 5, 2022.

“This could definitely answer the call for reduction in taxes, but not a reduction necessarily all year-round,” the CHTA president explained, suggesting that policy makers could consider alternate tax regimes for regional and international flights in order to drive multi-destination and intra-regional travel.

She admitted that research is required on the technological options to implement the system: “It may not be an immediate solution, but it’s a solution we can work towards.”

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Bahamas News

RBDF Operation Strengthens Maritime Security Amidst Regional Turmoil

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Defence Headquarters, 17 MAR. ’24: A joint operation between the Royal Bahamas Defence Force (RBDF) and the Royal Bahamas Police Force (RBPF) led to the apprehension of 50 Haitian migrants approximately 5 nautical miles west of Bell Island on Saturday, March 16th.

The operation was initiated following the initial sighting of a sailing vessel, believed to be of Haitian origin, 8 miles southwest of Staniel Cay in the Exumas. RBDF swiftly deployed air and surface assets stationed at Matthew Town Inagua, supported by Police officials in Staniel Cay who verified the sighting. The migrants were intercepted by RBDF personnel stationed at the Land and Sea Park, Wardrick Wells Exuma, and subsequently handed over to the safe boat crew. They are currently under apprehension pending further investigation, with the imminent arrival of HMBS Rolly Gray.

In response to the ongoing instability in Haiti, Commodore Raymond King has announced the implementation of a strategic blockade in the southern Bahamas. This initiative includes the deployment of six surface vessels, one aircraft, and 120 highly skilled RBDF personnel. Patrol operations will be concentrated in critical areas such as the northern coast of Haiti, the Old Bahama Channel, and the Windward Passage, with the aim of deterring unauthorized entry attempts and preserving maritime security in the region.

The effectiveness of these decisive measures is evident, with recent apprehensions totaling 247 individuals by the RBDF. Commodore Raymond E. King emphasizes the commitment to bolstering maritime security through collaborative efforts with regional partners and local law enforcement agencies.

The Royal Bahamas Defence Force remains committed to safeguarding the nation’s borders and territorial integrity, working collaboratively with regional partners.

(For further information please contact the RBDF Public Relations Department or visit our website: www.rbdf.gov.bs, follow us on Facebook, Twitter and view our Youtube channel)

-rbdf-

#GuardOurHeritage

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Caribbean News

Wildfire Guyana, STAY ALERT

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Rashaed Esson

Staff Writer 

A wildfire in Guyana claimed the life of a 93 year old man on Tuesday March 12th and Guyanese people are now being urged to take precautions against these unpredictable phenomena.

The Guyana Fire Service reported that the fire seemingly started on an open farmland near the Parakies Village Community (the main road) located in the North West District, where the victim, Alexander Josephine, resided. 

Josephine was caught in the fire while working on his farm. Reports say he left home early at around 9 am to tend to his farm and later at about 1 pm, his family unfortunately received news he was injured during the fire and sadly died from his injuries.

Emergency officials arrived at the scene to find him lifeless and covered in burns. He was pronounced deceased after being transported to the Kumaka District Hospital.

A post-mortem examination will be performed on the deceased and an investigation into the causes of the fire is being conducted. 

The fire service, in providing tips to Guyanese on how to defend against forest fires, advised that they dig trenches around their homes to direct the fires elsewhere, specifically chosen areas where it can be burned out. And, people are told to not burn garbage or grass outdoors as this is a recipe for wildfires. 

They also recommend that people stay alert and  have evacuation plans in place in case they fall victim to these fires at home.

Additionally, the fire service informs that wildfires are common during the dry season and that they have been fighting wildfires and large grass fires over the past two months.

Wildfires have become a major issue globally.last year, 2023, Maui Hawaii suffered what was dubbed, one of the worst wildfires in the US since 1871. Many people lost their lives; loved ones, family and friends, and many were displaced as their homes were destroyed. 

The World Resources Institute in an August 2023 article says recent data reveals that wildfires are becoming more widespread, worsened by climate change, “burning nearly twice as much tree cover today as they did 20 years ago.”

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Caribbean News

GOV’T LOOKING TO EXPAND JAMAICAEYE

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KINGSTON, March 7 (JIS):

The National Security Ministry is looking to expand the national closed-circuit television (CCTV) surveillance programme ‘JamaicaEye’.

Portfolio Minister, Hon. Dr. Horace Chang, made the disclosure at the Standing Finance Committee meeting at Gordon House on Thursday (March 7).

JamaicaEye falls under Plan Secure Jamaica, which is geared towards creating a safe, secure, cohesive and just society, thereby providing an environment for increased and sustained growth and prosperity.

“JamaicaEye… we are expanding, but it has some challenges with the private sector. The security issue is that most of our connection, especially in the residential areas, are what we call the variable internet protocol (IP), and it is difficult to connect variable IP to the central system,” he pointed out.

Dr. Chang said that while it a cheaper system to use “and companies have used that in all the residential communities, it is posing as a challenge”.

“We are having discussion to see how we can overcome that, and the technical teams involved are looking at how we can… get that part of the programme going. In the meantime, we are expanding across the country, and we also ensure that the legal side of it is clear to the residents,” he indicated.

Jamaicans interested in connecting to JamaicaEye can register online at https://jamaicaeye.gov.jm/.

To participate, persons should have camera systems that are outside the home or business and face a public space; that can be connected to the Internet; have an IP-based system, preferably, although persons with older cameras will not be excluded; and have a resolution of two megapixels or higher.

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