TOBAGO HOTEL AND TOURISM ASSOCIATION

“Together! Getting Tobago Tourism Right”

Member of

FOR IMMEDIATE RELEASE

October 9th 2020

CONTACT
Email: tobagohoteltourismassoc@gmail.com
Phone: 1 868 639 9543 / 868 793 9391

T.H.T.A RESPONSE TO NATIONAL BUDGET 2020/2021

The Tobago Hotel and Tourism Association (THTA) wishes to comment on the budget
statement presented in Parliament by the Minister of Finance, the Honourable Mr. Colm
Imbert on October 5th, 2020. The budget presentation was in our opinion prudent and
conservative; rightly so given the economic fallout we face from battling the ongoing
worldwide coronavirus pandemic. We were however surprised by the relatively few stimulus
initiatives for Tourism, given Prime Minister Dr Keith Rowley’s recent announcement that
Tourism and Agriculture would be at the forefront of the economy’s diversification from gas
and oil.

We welcome the continuation of the Tourism Accommodation Upgrade Project until

September 2023. Additional assistance for the Tourism sector and the Tobago economy in
general could have been given in the form of the following recommendations:

• Expand the Government Loan Guarantee Programme – Since 2012 a guaranteed

loan facility has been in place for qualifying properties in the Tobago Tourism sector.
The loan facility has so far only been offered to properties with between 6 to 50
rooms and the take up has been low. One of the reasons for this is that smaller
properties are unable to meet the strict lending criteria. The loan facility should be
extended to include -
o properties with more than 51 rooms; and
o businesses within the allied tourism sector.

Board of Directors Executives Chris James, President; Carol Ann Birchwood James, Vice President; Dorian Neckles 2 Vice President
Dorian Neckles, Treasurer; Lezlyn Rollocks, Secretary
Apt. 1 Lambeau Credit Union Bldg., Auchenskeoch Road, Carnbee, Tobago. P.O. Box 295, Scarborough, Tobago
Phone/Fax: 1(868) 639-9543 E-mail address: tobagohoteltourismassoc@gmail.com Web site: www.tobagohoteltourism.com
 Qualifying businesses should be given the opportunity to consolidate existing loans
for 15 years at a low interest rate, thereby ensuring business continuity.
• Grant Value Added Tax (VAT) exemptions for Tobago registered businesses for
five years – This will have the double impact of stimulating economic activity and
giving business owners much needed time to recover from the effects of the
pandemic.

• Make Tobago a Duty-Free Zone – This will greatly stimulate economic activity
and encourage local, regional, and foreign patronage. It will enable Tobago
businesses to offer competitively priced goods and services, such as all-inclusive
accommodation, and attract visitors to the island.

• Make additional funds available to Tobago’s accommodation providers through

the Tourism Accommodation Relief Grant – We took note of the Honourable
Minister’s statement that “The Tourism Accommodation Relief Grant is to facilitate
upgrades and financial support”. We are now almost seven months into the
coronavirus pandemic. The $50M grant was announced in March and the Tobago
Tourism Agency Ltd (TTAL) began accepting applications to facilitate upgrades
(excluding financial support) at the end of June. To date 53 properties, mostly small
guesthouses and villas, out of a potential 422 listed by the TTAL have applied and 6
properties have received 50% of the grant funds so far.

The THTA anticipated that the take up on this initiative would be very low given the
difficulty small business owners have in meeting the grant criteria. We also predicted
that the actual amount of money spent from the $50M would be minimal. Serious
questions must be raised as to what happens to the balance of the $50M.

In the seven months since the pandemic began, Tobago business owners have found
themselves mired in debt. They are struggling to meet continuing operating expenses
even though they remain closed and unable to earn revenue. Mortgages, loans,
payroll, utilities, maintenance, security, and creditors still have to be paid.

The $50M has already been allocated and any remaining funds should be made
available to qualified applicants to pay off debts accrued during the period in which
businesses were closed. This will not be an additional drain on the treasury and will
enable business owners to pay their staff and resume operations when advised by the
Government. This will also ensure that Government funds are being used for the
purpose for which they are intended.

Board of Directors Executives Chris James, President; Carol Ann Birchwood James, Vice President; Dorian Neckles 2 Vice President
Dorian Neckles, Treasurer; Lezlyn Rollocks, Secretary
Apt. 1 Lambeau Credit Union Bldg., Auchenskeoch Road, Carnbee, Tobago. P.O. Box 295, Scarborough, Tobago
Phone/Fax: 1(868) 639-9543 E-mail address: tobagohoteltourismassoc@gmail.com Web site: www.tobagohoteltourism.com
 • Grant Covid-19 Tax Relief – Any measures taken by a business place because of
the coronavirus pandemic – putting in additional infrastructure, staff training,
purchase of specialized equipment – should be tax deductible at 150%. This should
apply to businesses in Trinidad and Tobago.

• Use Hotel Tax Revenue for Marketing – Instead of paying hotel tax directly into
the Consolidated Fund, create a separate Marketing Fund for part or all of the hotel
tax revenue collected in Trinidad and Tobago. This is the norm in most tourism
destinations. The funds generated will be supplemental to Government allocations to
TTAL and Tourism Trinidad Limited (TTL). With this additional funding Trinidad
and Tobago can compete on an international scale.

• Abolish the Land Licence Order of February 2007 – This order has not worked
the way in which it was intended and has instead seriously hampered Tobago’s
economic development. Abolition of the Land Licence Order, together with VAT-
free and duty-free incentives, will actively encourage Foreign Direct Investment in
Tobago and boost the economy tremendously.

We noted with interest the Minister of Finance’s announcement about Special Economic
Zones. While it is not clear exactly what format these zones will take or what incentives will
apply, we await further details as to how this initiative could benefit Tobago. The Minister
also indicated that discussions on the future of Tobago Tourism are ongoing with the Chief
Secretary of the Tobago House of Assembly (THA). We hope the THA will invite and
consider stakeholder input about the way forward.

###

Board of Directors Executives Chris James, President; Carol Ann Birchwood James, Vice President; Dorian Neckles 2 Vice President
Dorian Neckles, Treasurer; Lezlyn Rollocks, Secretary
Apt. 1 Lambeau Credit Union Bldg., Auchenskeoch Road, Carnbee, Tobago. P.O. Box 295, Scarborough, Tobago
Phone/Fax: 1(868) 639-9543 E-mail address: tobagohoteltourismassoc@gmail.com Web site: www.tobagohoteltourism.com
Board of Directors Executives Chris James, President; Carol Ann Birchwood James, Vice President; Dorian Neckles 2 Vice President
Dorian Neckles, Treasurer; Lezlyn Rollocks, Secretary
Apt. 1 Lambeau Credit Union Bldg., Auchenskeoch Road, Carnbee, Tobago. P.O. Box 295, Scarborough, Tobago
Phone/Fax: 1(868) 639-9543 E-mail address: tobagohoteltourismassoc@gmail.com Web site: www.tobagohoteltourism.com