By Dana Malcolm
Staff Writer
#TurksandCaicos, May 1, 2023 – Both private and public money will be poured into the new Destination, Marketing and Management Organization to fund it as it carries out its mandate to diversify the TCI’s tourism product. This is according to Premier Washington Misick as he detailed the financial model of the organization in an April 24 press conference and it also means a new tax on visitors to the islands.
“TCI Government contribution to the DMO based on the current budget allocation is four percent, and by 2027 it will move from $3.4 million to $5 million,” the Premier explained in a media event on Monday April 24.
An even larger income source is from private sector partners; that money is to be derived, according to the premier, due to a new tax of $10 per visitor and other contributions from tourism stakeholders who have Institutional membership in the DMO.
Guests will pay the one-time fee at the point of arrival into the country, Missick said, noting it was the levy model that stands to make the country the most money by charging all stayover tourists regardless of length of stay.
“Based on the amount of passengers by 2027, we will generate 8.7 million dollars,” he explained.
DMO Institutional members, like the Turks and Caicos Tourism and Hotel Association will pay a percentage fee that decreases as the amount of visitors increases and is set to reach $250,000 by 2027.
All of this money from the private sector will flow into a Tourism Enhancement Fund that will be used to increase the destinations appeal, directly upgrading infrastructure and more.
The final source of income is listed as revenue from the DMMO/DMO activities.
As a non-profit, none of the revenue from the DMO can be shared among members. Josephine Connolly, Minister of Tourism, had told Magnetic Media: “How the funds allocated to the DMO are spent will be based on recommendations from the Board and presented to the Minister in formal detail. The DMO will follow the TCI Public Management Funds Ordinance, which all entities receiving public funds must follow. The DMO must produce an Annual Report about the objectives achieved, any deviation from the objectives, and how the financial resources have been used,” she said.
Total income for the organisation is set to reach $16 million by 2027; operating costs pegged at $3 million.
Despite the massive projected windfall from the private sector, the premier defended the Government’s four percent contribution, maintaining that tourism was ‘everybody’s business,’ and it was through investment that growth would occur.
“The Government can’t divorce itself from supporting the industry” he said.
In the long term, the Destination Marketing and Management Organization, amidst controversy, skepticism and pushback from the Opposition PDM, is touted to boost the country’s revenue by over half a billion dollars; money that the country would never see with the current TCI Tourist Board.
The operationalization of the DMMO will bring the tenure of the TCI Tourist Board to an end; a redundancy which is met with some resistance.
Premier Washington Misick took to a slide show in his press event a week ago, presenting to the live audiences never before seen details on the new institution which had its bylaws signed on April 14.
“The increase in wealth will be equal to almost $640 million,” he said.
This massive jump is projected to push the country’s total tourism revenue to $1.7 billion by 2032. This would be more than triple the $506 million that the country was making from its number one industry in 2010-2011 according to Misick’s numbers
But without the DMMO Misick shared the most, the TCI is projected to get out of tourism over the next decade is barely over $1 billion slow crawl of an increase leveling off to a plateau rather than the sharp rise the Government wants.
He maintained this would stimulate the job market and the overall economy resulting in a better quality of life for residents.
The press event was held at the Shore Club.