Tourism

Mr. Speaker I now turn to the tourism sector which is expected to continue to the main engine of national economic growth into the foreseeable future.
Recent increases in tourism arrivals during the third quarter of the year, after a decline in the first half have been welcomed. It is important however that this pattern however be sustained if we are to return positive growth to the economy.

Government has already begun the process aimed at strengthening the viability of the sector by offering significant new incentives through the new Tourism Development Act. This new comprehensive piece of legislation has broadened the range and scope of incentives available to the sector.

Many of the concessions given under the Tourism Development Act are new. In addition, for the first time these benefits are now also being made available to the ancillary industries. Although it is foreseen that these concessions must be given time to take effect, the sector is encouraged to take full advantage of the comprehensive provisions under the new legislation.

Mr. Speaker, representation has been made by the industry for further reductions in taxes on inputs. However in addition to those tax incentives given under the new legislative arrangements, the industry stands to reap significant benefits in the form of the reduction of import duties and taxes as we meet our FTAA and WTO obligations within another 18 to 24 months.
The sector has been given a new, attractive and enabling environment and the financial resources for marketing have been substantially expanded, despite the decline in Government revenues.

We, however, believe that at this stage, product development must become our principal priority. It is clear that Barbados like many other destinations in the Caribbean is a mature destination and that many of the main product elements which make up the sectors are in need of renewal and upgrading.

Our objective is to develop Barbados as an upscale destination, without the introduction of mass attractions like casino gambling or the use of a variable currency exchange rate. As such, it must be recognised that a premium be placed on the improvement in the quality of the products and attractions we offer.

The work of the Barbados Tourism Investment Incorporated during the past 5 years has seen substantial improvements being made to our product base. This effort must now be accelerated.

The BTII's urban renewal programme has brought new life to our Capital City.
Additionally infrastructural improvements work in the St. Lawrence Gap and Speightstown will build new tourism investment capacity and facilitate greater scope for marketing.

Additional emphasis now needs to be placed on continued product renewal and development and the building of new capacity. The Government will therefore support a bond issue of up to $150 million to be utilised by the BTII and other relevant agencies for an expanded programme of product development.

Areas that will be considered for funding under this new programme include the dredging and redevelopment of the inner and outer careenage, redevelopment of the street scape of Bridgetown and the transformation of Independence Square.

Similar enhancements are planned for the other city centres and phase 2 of the street scape improvements at St. Lawrence Gap will be undertaken.

Airport Facilitation at the Grantley Adams International Airport including an upgrade of all services offered and an improved ambience will be part of the programme. This will be achieved through improvements to signage, training for red caps and security personnel and the deployment of additional immigration and customs officers as necessary.

The programme will also provide for the development of interpretative and directional signage island wide to allow for the island to be traversed with ease and comfort.

Part of the proceeds will also be committed to an expansion of the existing programmes for human resource development in the industry, to promote a culture of excellence in service delivery.

It is further envisioned that a part of this funding will be utilised to permit BTII to be involved in joint venture arrangements to build new capacity for the sector; pertaining in relation to the creation of more heritage assets.

Tourism like most of our other productive sectors has also came under pressure from rising insurance costs. To counter this trend, Government is prepared to provide the sector with support for an initiative to establish its own captive insurance enterprise.

Mr. Speaker, for our tourism to continue to develop and to move to the next level we must continue as well to diversify out product offerings. As such boating and yatching as a natural fit will upscale our image.

Indeed, Barbados has never leveraged to the fullest extent, our geographic location as the first port of call for vessels traversing the Atlantic Ocean.

We intend therefore to offer a new range of concessions and to extend new legislative and administrative arrangements to offer the boating and yatching community a much improved and welcoming environment.

The Government therefore proposes to address this matter principally by amendments to the Shipping Incentives Act, improved marketing of the sector and improved institutional arrangements with an emphasis on facilitation.

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