ST Lucia’s Tourism Minister Lorne Theophilus has responded to accusations made by Opposition spokesman Guy Joseph that the government is responsible for a possible massive decline in cruise ship arrivals this year and the effects the introduction of the Value Added Tax (VAT) is having on the tourism sector.

Theophilus, during an interview said there is no information from the Florida-Caribbean Cruise Association (FCCA) on projections for cruise calls that indicates such a massive decline. He said this information has not reached the ministry.

The tourism minister further questioned the authenticity of the information that a member of the opposition party continues to present to the media. However, Theophilus admitted that there will be a slight reduction in cruise ship arrivals in the 2014/2015 tourism year, from 361,000 to 351,000 – but not to the extent that Joseph, an opposing MP, indicated.

Despite this, the minister stressed that there will be an increase overall in the number of visitors coming to St Lucia, which is projected to move from 627,470 to 684,370.

This information, he said, could be verified with the Saint Lucia Air and Sea Ports Authority (SLASPA) and the Saint Lucia Tourist Board.

Meanwhile, in addressing the issue of VAT purportedly destroying the sector, Theophilus said the VAT put in place is not unfair. Instead, he believes that the subsidised VAT for the tourism sector, which is set at 10 per cent, is reasonable. He explained that in order for government to enhance the sector, it must generate revenue to do this.

The government currently borrows EC$40 million annually to promote the destination. Theophilus is hoping that with VAT

in place, it reduces this debt significantly.

Joseph told media operatives during a recent press conference that Saint Lucia will witness a decline in tourism this year. The island, he said, could lose 190,000 passengers in the tourism sector from arrangements with the FCCA. Joseph said this could have a massive impact on the local economy, specifically the tourism sector, and accused the government for this development.

An estimated 300,000 passengers are expected to visit the island from the FCCA. This is a decline from the annual estimated arrivals which once stood at 490,000. The passengers, he said, will be lost to St Kitts and Nevis, which is expected to see an increase in arrivals of up to 472,000 passengers this year. He expressed dissatisfaction at this development.

Joseph is of the view that this loss in revenue from tourism this year is linked mainly to the introduction of VAT.