Leading United Kingdom-based specialist insurer, Columbus Travel Insurance Services Ltd, trading as Columbus Direct, recently published the results of a survey which was picked up and carried in most major British newspapers and online, including the mass circulation tabloid, The Sun.
Based on the responses of 2 000 British adults, it revealed that 16 per cent (eight million Brits) have opted for a staycation this year in the UK rather than travel abroad as the pound sterling now buys fewer euros and dollars than it did at the beginning of last year.
High up in terms of choice are US dollar destinations where 500 pounds buys 70 pounds less than it did in 2016. Conversely, those heading to other long haul destinations like Japan, Mexico and Malaysia will get better value for their sterling when compared with August 2016.
The Sun, which boasts a daily print and PC readership of 4.36 million, highlighted several ways to save money with a small number of holiday tops.
It was encouraging to see that No.3 on that list was to “choose a fixed-price set menu in restaurants to ensure you’re not overspending”. It appears many holidaymakers – especially the Brits and Canadians – are heeding this advice as this is reinforced by the increased number of requests for the re-DISCOVER lunch and dinner voucher.
Number five on the Sun savings is “claim back local sales tax on shopping” and they mention Singapore and Morocco in particular who appear to both have well thought-out and implemented schemes. Is this an area where Barbados can be more proactive? Our Chamber of Commerceand Industry and various trade associations surely can devise a much wider scheme where the scope and depth of a greater number of participating merchants can be enhanced.
Clearly, with years on internal inflation, we have become a very expensive destination. I doubt that many of our visitors consider that we truly offer value-for-money any longer. To the better off visitor, this, of course, is only one consideration. But the recent record number of long-stay arrivals with depleted spending is starting to take a toll, according to the many tourism partners to whom I have spoken.
At the media and industry conference hosted by Minister of Tourism Richard Sealy last week, I suggested that Government consider lowering the rate of value added tax (VAT) on stand-alone restaurants, activities, attractions and car rental to 7.5 per cent, the same percentage as most hotels enjoy.
At best, the suggestion received a very lukewarm response. But where this has been enacted in other holiday destinations, in every case it has driven more arrivals and more net spend, which has resulted in a higher overall tax contribution to government coffers.
Staying with the lower prices drive demand concept, it was interesting to see American Airlines (AA) offer a US$189 return fare from Miami at US$198 in the opposite direction (presumably the VAT element).
Most surprisingly, this fare, at the time of writing this column, was available during most months of this year.
With JetBlue’s announced reduction in their Fort Lauderdale service, it would appear AA is fighting back.
Email: re-discover@caribsurf.com