Barbados has declared a 50% reduction in airport taxes for interregional travelers. The announcement was previously made by the President of CARICOM and Prime Minister Gaston Browne to reduce taxes on airline tickets by 50% for the same cause in order to encourage interregional travel.
Tourism and International Transportation Lisa Cummins said Cabinet had agreed there should be a 50 percent reduction in airport service charges for regional travelers. This would bring them roughly closer to what they had heard from other markets, and in particular from Antigua, which had wanted to reduce taxes on interregional travel. The Cabinet had also accepted “this significant reduction.
Tourism and International Transport Lisa Cummins said that later this month the Cabinet will also discuss the issue of reducing taxes on full-price intra-regional travel from the competitor’s analysis for Barbados.
Tourism and International Transportation Lisa Cummins said the analysis will focus on a comprehensive review of the industry.
Lisa Cummins said she had to admit that she always told people she was from the public sector. She specialized in international trade, she came from the international community and the private sector, so she tends to try to combine all of these things into one, and so what they started to do is to consider the tourism sector as globally as they could structurally as well as their price competitiveness.
Previously, Prime Minister Gaston Browne reduced the tax on airline tickets by 50%. Prime Minister Browne said they believed in the days when regional travel was relatively weak, extremely flat, that there was very little to lose and although that might not be the best condition for analyze the elasticity of ticket prices, this would give them an indicative indication of the impact of a reduction in prices on demand without creating financial pressure.