Belize resists airline pressure to waive fees

In the wake of the September eleventh terror attacks on the United States, the U.S. airline industry has been in a tailspin, faced with fewer passengers and increased costs for security. But despite a multi-billion dollar assistance package from Washington, many carriers are looking for additional help. American Airlines in particular is pressuring destinations in the Caribbean to offer concessions to keep its planes flying south. Belize has not been immune from the cost-cutting campaign…but as Tourism Director Tracy Taegar explains, with our own resources rapidly dwindling, we are in no position to bend over for the foreign carriers.

Tracy Taegar, Director of Tourism

“The Tourism Board was asked in particular to consider exempting hotel taxes for crew or for passengers who will have to be delayed or cannot reach their final destination. Our response to that was that it’s very difficult for us to cut into our revenue base and that we could not support exemptions of that nature, but that we were prepared to support additional marketing initiatives, which would hopefully boosts consumer confidence and allow people to get back on the airplane and visit Belize, which would mean more revenues for that particular airline.

I think it is important to note that the airlines are lifeblood to our tourism industry and therefore we try to work with them in partnership to ensure that they can be successful and our destinations can be successful. But to ask for tax exemptions, especially at a critical time like this is very difficult for countries of small economies, and that goes to most of the Caribbean.”

Ann-Marie Williams

“They’ve also asked some of the countries to waive landing fees. Has that been asked of us?”

Tracy Taegar

“I believe that the requests that were made were made to the entire Caribbean. It included hotel tax exemptions, landing fees, income tax, sales tax, business tax, whatever taxes that government levy on the airline industry. As far as I’m aware, the Airport Authority not agreed to waive the landing fees, but has indicated other ways they would be able to support their operations at the airport. We received a circular recently from the Ministry of Finance that they agreed to the exemption of business tax for a month, from September fifteenth to October fifteenth for one of the major carriers, but I think that’s the extent in which government was prepared to go.”

The Caribbean Tourism Organisation, of which Belize is a member, is working to formulate a common response to the American pressure. For much of the Caribbean, American Airlines is the sole major carrier and the company wields tremendous power over the respective tourism industries.