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Head tax angers Canadians
Greg Dixon (left), president of the Flight Centre Travel Agency in Canada poses with his Hall of Fame award presented to him by chairman of Sandals Resorts, Gordon‘Butch’ Stewart (right) for excellent sales performance of the Sandals product, during the Ninth Annual Sandals Travel Agency Star Awards at the SandalsWhitehouse in Westmoreland on Saturday. Sharing in the moment are (from second left) chief executive officer of Sandals Resorts International, Adam Stewart andGary Sadler, Sandals senior vice-president of sales for North America. See related story on page four. (Photo: Jermaine Barnaby)
News
BY INGRID BROWN Observer senior reporter browni@jamaicaobserver.com  
December 12, 2010

Head tax angers Canadians

‘Ignorant’ decision will keep tourists away, travel agencies warn

CANADIANS are not prepared to pay a 100 per cent increase in head tax as proposed by Jamaica’s Tourism Enhancement Fund (TEF). This was the news from two major travel agents from the North American country where Jamaica has seen increased visitor arrivals in recent times.

President of Flight Centre Travel Agency Greg Dixon, and president of Air Canada Vacations, Zeina Geddeon said they would support the local sector in rejecting any such increase.

“I honestly don’t know who would have made that decision but whoever did it would be an ignorant person or organisation because we are in a recession where people are afraid to book because of all sorts of fears, and so for more taxes to be added that would be too much,” said Geddeon.

Last week, Jamaica Hotel and Tourist Association (JHTA) president, Wayne Cummings said the TEF board of directors had voted to double the tax from US$10 to US$20 per landbased visitor to Jamaica.

According to Geddeon, an increase in this tax would make it even harder to sell the destination given that there are many other places which do not attract a similar tax.

She and Dixon expressed their views to the Observer at Saturday’s night ninth Sandals Travel Agent Star Awards at the Sandals Whitehouse European Village and Spa in Westmoreland.

The travel agency head said the Canadian travel agency sector would be willing to support local hoteliers in flatly rejecting the proposal.

“We would support the fact that this does not make any sense and this is not the time to start adding any more taxes,” she reiterated.

She said that since the 911 disaster, where the United States came under attack from terrorists, tourists had been hit with one tax after another, expecially in security cost.

Geddeon argued that while to some an additional US$10 may not seem to be much, to a family of four or five that would amount to the cost for another night’s stay at some hotels on the island. For his part, president of the Flight Centre Dixon, said that in a competitive market where everybody was fighting for the tourist dollar, even an extra charge of US$10 would turn off visitors.

“People have a certain amount of money to spend when they travel and so if it is a family of four people, US$40 would make a difference towards coming to Jamaica or going to Mexico or Florida,” he told the Observer.

He warned also that the travel agency industry would be prepared to support any rejection of the proposal.

“People get stung left right and centre with all sorts of nickel and dime taxes and in times like these when you’re trying to get as many tourists as possible and in a country which really relies on tourism for its economy, you will do everything possible to encourage people and even a small issue like that will turn people away,” he warned.

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