DMMO money to stay private but directed by Government 

By Dana Malcolm 

Staff Writer 

#TurksandCaicos, May 5, 2023 – The Destination Marketing and Management Organization is moving full speed ahead but some members of parliament are worried about how the organization will be monitored and how much return on investment the government will get.

The concerns were tabled during the Appropriations Committee where statutory bodies were called up to defend and explain their budgets submitted to the house, which made up the total budget for the 2023/24 financial year.

Wesley Clerveaux, Permanent Secretary of Tourism represented the DMMO as did Interim Director of the Tourist Board Miquel Swann and Diandra Been, Financial Controller at the Tourist Board.

The board is predicted to make up to 11 million next financial year (2024/25) from member contributions, a guest levy, and its own revenue streams when all collection models are properly set up.

Edwin Astwood, Opposition Leader in his capacity as a member of the Appropriations Committee queried how the finances would be monitored and whether TCIG will make any money from it

Clerveaux with assistance from Athenee Harvey-Basden, Permanent Secretary of Finance explained that by virtue of the DMMO being registered as a nonprofit, as well as it being a corporate entity it was not a statutory body and its funds would not go back to TCIG

“This is not the same thing as a typical statutory body,” was Clerveaux’s response; “All funds would have to be budgeted appropriately.  In other words the government is coming out with a Tourism Policy, and that policy will give guidelines on how these funds are to be used, so once there is a surplus to what was projected, it wouldn’t be called excess.  It would just be a surplus that can now be used more effectively.”

He maintained that any surplus would be used more effectively within the organization, rather than being added as income to the Government.

Harvey-Basden explained that there were ways the DMMO could be monitored.

“Quarterly assessments can be produced based on the contribution that the ministry provides.  They can in certain instances request how those funds have been expended.” She said,

She explained this would be similar to the system used for organizations like the Red Cross, or the Turks and Caicos National Museum where the government would get a brief summary.

Fears of many residents that the government had handed over management of the number one industry to were confirmed somewhat under questions from Astwood.

“Is it just the government partnering with a corporate entity or is this a government entity?” He queried

“I think by the nature of registering in a nonprofit organization, as it says, it is a partnership between the Government and private entities,” Clerveaux responded.  He did clarify that board decisions needed a ⅔ majority vote.

In response to what the government would get back from subvention the PS confirmed

“This is not a revenue generating stream for the government.  This is a partnership that allows the body to discharge— the policy mandate that the government would be designing and developing for it to execute.  It’s not a revenue department like Customs where you are expecting money to come in.”

The money going into the organization, including the tourist levy will be managed by the DMMO to carry out its main functions; those functions will be guided by the government via the said tourist policy.  TCIG will be able to streamline where the money goes but will not make a direct profit

“Let me be clear, it’s not that the DMMO is going to be developing businesses directly, it will support business.” Clerveaux said that support would be through marketing local product to tourists directly and the creation of standards to improve local businesses.

“Why isn’t that being done in the tourism department,” Astwood queried.   “That can be done easily inside that department. Why do we need a Corporation to do those things and to generate all this money leaving TCIG hands?”

Clerveaux indicated this was an issue re-policy which was developed by the Government but maintained there was an accountability clause and the Government policy would direct all spending.