Tobago needs investment incentives

THE Tobago Hotel and Tourism Association (THTA) is hoping to see improved incentives to attract investment to the island in Monday’s budget presentation.

“The Tobago Hotel and Tourism Association wishes to stress again the importance of the tourism industry to Tobago, in terms of its potential as a main economic driver of the economy, its potential as a major employer and of course its ability to generate much needed foreign exchange,” THTA president Chris James told Newsday Tobago.

“For this to happen, the tourism industry needs destination marketing, improved incentives to attract investment and an understanding and acceptance within the population and the policy makers of tourism’s importance to destination Tobago.”

In the THA’s last budget, $392.6million was allocated for the Division of Tourism, Culture and Transportation while the Tobago Tourism Agency Ltd received $140 million. James said these allocations must be honoured.

“Although still below our regional competitors in terms of “spend on tourism,” they will go some way in helping the Tobago Tourism Agency staying on course with its ‘Road Map For Growth’ plan presented and endorsed by the THTA.” James is also hoping to see some focus on the establishment of an international in transit desk in the budget.

“In terms of immediate action that would assist arrivals, THTA would like to repeat its request for an international in transit desk available to all arriving international flights, which would give assistance to passengers arriving in Piarco bound for Tobago.”

Meanwhile, Desmond Alfred, former executive director, finance and administration, Caricom Secretariat, believes Tobagonians must demand accountability for the allocation the island gets in the budget.

Saying Tobagonians have not been demanding accountability for money spent over the years, Alfred told Newsday Tobago: “Whatever money they give us in Tobago, we must make sure it is being spent effectively and efficiently. We must know at all costs what it is we spending the money on so that we can really maximise what is given to us.”

Alfred predicts there will not be any meaningful increase in the allocation primarily because the Government cannot afford it. He also claimed there has not been a major case put forward for the government to spend more money in Tobago.

“There have been some large numbers put up but, I mean, a meaningful convincing reason why they must spend more money in Tobago, I have not seen that put forward.” However, Alfred believes the budget may have contain some additional expenditure from the central government in terms of projects.

“The central government may be building some things in Tobago but not necessarily through the Tobago House of Assembly.” While he believes there could be some focus on private-public partnerships to incentivise the Tobago economy, Alfred does not predict any major increase for development works.

On a national level, Alfred said the ruling PNM’s “political enthusiasm will have to meet the economic reality. “There are less revenue coming in from oil and gas so they cannot continue on the wanton expenditure they have been doing. They have to contain there expenditure.”

He added: “Even though there will be expectations from the population, they have to manage those expectations.” Saying there may not be any new taxes and subsidies, Alfred believes there may be some incentives for businesses and manufacturing particularly geared towards getting foreign exchange.

He also believes there may be some “goodies” for the old age pensioners. “The government will try to make the budget palatable and smooth for the electorate in 2020.”