BARBADOS’ STAYCATION PROGRAMME – which encourages Barbadians to spend their holidays in local resorts – needs to be expanded and made more attractive, says Opposition Leader Owen Arthur.
Arthur said his Barbados Labour Party strongly supported the Barbados Hotel and Tourism Association’s (BHTA) request for a staycation tax rebate as a measure to assist foreign exchange retention and improve tourism’s finances.
Speaking at the BHTA’s quarterly general meeting at Hilton Barbados last week, Arthur said that a rebate would be welcomed, even if it is temporary, until the sector regains its external vibrancy.
“We feel also that such a programme would benefit from a carefully measured programme of tax relief to expand the purchasing power available especially to middle class Barbadians to enable them to participate to a larger extent in this most worthwhile initiative,” he said.
With Barbados foreign exchange reserves standing $300 million in excess of the amount required for safety, the former finance minister said some stimulation of domestic demand should be encouraged to spur economic activity in Barbados.
“Such an initiative should not be seen as an alternative to stimulating the continued development of our export sectors but as a compliment to such a programme,” he said.
Arthur added that the proposed restructuring of the Barbados Tourism Authority had to be carried out and the Tourism Development Act needed to have its schedule revised, in light of changing needs, to encourage greater investment and reinvestment in accommodation and attractions.
He said the institutional arrangements that govern the involvement of the private sector in all aspects of the development, promotion and marketing of the tourism industry had outlived their usefulness.
