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Minister defends deal with American Airlines
Opposition says it's a misuse of tourism fund

Saturday, September 06, 2008

TOURISM Minister Edmund Bartlett says the benefits to be derived from his ministry's arrangement with American Airlines to protect tourism airlifts to Jamaica, are in keeping with the objectives of the Tourism Enhancement Fund (TEF).

The minister said that while the arrangement could cost the ministry between zero and US$4.5 million, it would earn US$1.2 million for the fund, and US$96 million for the country, in terms of the 3,000 seats per week which are involved.

He was responding yesterday to criticisms levelled at the arrangement by Opposition Spokesman on tourism Dr Wykeham McNeill.

McNeill's comments followed a report Thursday that the Government could pay as much as US$4.5 million (J$324 million), over a one year period, starting November 1 this year, to maintain American Airlines flight from three US cities - Dallas, Chicago and Miami - to Jamaica.

The Tourism Enhancement Fund, McNeill said, was established by an act of Parliament to provide funding for the development of the island's tourism product, adding that the American Airlines deal was a misuse of the fund.

According to the Opposition spokesman, it has always been the practice to provide funds to Jamaica Vacations (Jamvac) to allow it to offer seat support for charter services seeking to open new gateways.

However, he said it was never a practice of Jamaica Vacations to provide financial support for routes that are in direct competition with the national carrier.

Bartlett, speaking with the Observer yesterday, said the arrangement with the US carrier was among new initiatives being pursued, globally, by the tourism industry to ensure airlifts, which he described as the lifeblood of the tourism industry.

"Seat security is critical to the enhancement and sustainability of theses destinations," he said.
Bartlett also responded to criticisms from McNeill, and others, that the move was difficult to justify in light of the financial problems afflicting the national airline, Air Jamaica, which covers two of the routes - Chicago and Miami.

He said that while this was the main argument being projected against the deal, the fact was that Air Jamaica does not connect with Dallas, while peculiarities with the situation in Chicago and Miami's excess capacity made the decision sound.

The minister said that he has a responsibility to protect the viability and promote the development of the industry, which is also the objective of the Tourism Enhancement Fund, in light of dramatic changes taking in the airline industry due to high energy prices which is costing the industry thousands of seats and causing flights cancellations.


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