Dear Editor,
If an airport in the Caribbean wishes to be an international hub, or even a regional hub, it is probably well advised to drop departure taxes and other passenger taxes. Passenger taxation is “swamp taxation” because no one besides the receiver wants it, and it sucks.
“Dutch Government ditches passenger ticket tax in efforts to halt declining traffic at Amsterdam International Airport,” the media reported in 2009. It was first camouflaged by the name “eco”-tax. The controversial departure tax ranging from 11 to 45 euros was blamed for a steep decline in passenger traffic within a year after its introduction. The tax was expected to raise around US $395 million a year but a commissioned report concluded that it would cost the Dutch economy US $1.7 billion in lost revenue. Passengers were driving across the border to neighboring airports in Belgium or Germany to avoid the tax.
Could that dynamic happen in the Caribbean? Sure! Passengers will opt for a different island hub or destination that doesn’t have the taxes, but does have the sun, the beaches and the palm trees, plus the new discovery may even have more to offer. competition in doubled degree.
A 2017 report of PwC (PricewaterhouseCoopers) commissioned by “Airlines for Europe” provided an independent overview of the current air passenger taxes in Europe and an assessment of their economic impact. PwC simulated the impact of abolishing the tax entirely in January 2018 in Germany. Some of the results of the study: 24.6 million additional arrivals by 2020; 10.5 million extra inbound tourist arrivals by 2020; US $1.8 billion additional expenditure by 2020. It was estimated that the total existing passenger taxes will raise US $1.2 billion in a year, however after the abolition of all taxes 108 per cent of this will be recouped in indirect tax income anyway. The abolition of the air passenger tax would boost the country’s GDP by US $79 billion cumulatively over the next 12 years.
ICAO is the International Civil Aviation Organization. a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. ICAO is distinct from other international air transport organizations, like the International Air Transport Association (IATA), a trade association representing airlines.
ICAO has clear policies on taxation and member states are urged to apply ICAO policies on taxation in regulatory practices. ICAO Assembly Resolutions have repeatedly urged Member States to follow the ICAO policies on taxation and not to impose taxes on the sale or use of international air transport. Yet, Member States have not included in their ASA’s (Article on Taxation) a commitment to reduce or eliminate taxes on the sale and use of international air transport.
Caribbean member states of ICAO are the sovereign countries Antigua and Barbuda, Bahamas, Barbados, Cuba, Dominican Republic, Grenada, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago.
Already, in 2013, at their Worldwide Transport Conference, the ICAO issued the following text to be included in their Template Article on Taxation (TASA) :
“… Each party shall undertake to reduce to the fullest practicable extent and make plans to eliminate as soon as its economic conditions permit all forms of taxation on the sale or use of international air transport, including such taxes for services which are not required for international civil aviation or which may discriminate against it.”
According to ICAO, a tax is a levy that is designed to raise national or local government revenues, which are generally not applied to civil aviation in their entirety or on a cost specific basis. ICAO has also recognized that in the past decades there is a development of tourism taxes in some regions, in particular Latin America, the Caribbean and to a lesser extent in Africa, up to US $55. In many cases, revenues from the tourism taxes such as Tourism Enhancement Fee and Travel Promotional levies are not being reinvested in tourism development. The Caribbean may get the reputation of being one of the bad guys on the block in that regard.
The main principles on taxation contained in ICAO policies are frequently adopted by international organizations in policy documents. Some regional organizations and industry associations, such as the Airports Council International (ACI) and the International Air Transport Association (IATA), have also developed policies that are opposed to discriminatory and unfair government taxation on air transport. The World Tourism Organization (UNWTO), while not opposed to taxes per se, as part of the overall fiscal responsibility of States, considers that travel taxes should be scrutinized objectively to avoid excessive burdens on travelers/companies with a view to reducing taxes that have a negative impact on travel and, hence, on tourism development.
Despite these policies, the past decade has seen an unprecedented proliferation of taxes levied on air passenger tickets in the region. This trend is causing serious concerns and has a negative impact on the sustainable development of air transport, which, ultimately, negatively impacts the tourism industry and the overall national economic development.
Caribbean governments are well advised that before making a decision, an independent evaluation by qualified professionals acquainted with economics should be made on the impact of passenger taxation. A “neat” idea to get some extra money in the coffers, may turn out to be a monkeynomics. What plays a crucial role and contributes significantly to an economy must not hindered by ineffective government taxation.
Commander Bud Slabbaert
Dear Editor,
Life is wonderful, but wonderful to me has a much different meaning maybe than most people.
There was a time when the love of the flesh and red wine was more important than changing me to be a better person.
The world has a need for people who need spiritual knowledge of God to attain peace of mind, many people search for happiness that leads to their own demise.
Happiness depends on something to happen to you for you to feel happy. Read well, that is very sad because if you need something to happen to you to feel happy it might never happen. In many cases, people spend money seeking happiness only to be disappointed by people who will deceive them because they get happy by fooling and deceiving others.
Joy, in the Biblical context, is not an emotion. Happiness is an emotion and temporary: joy is an attitude of the heart.
Having a nice car and big house and the most beautiful woman or husband can bring happiness, but what if that person betrays you, or your nice car gets totally lost in an accident or your beautiful house gets destroyed in a hurricane. Would life be over for you because the essence of your happiness is gone?
Having much money can bring happiness but if it is used wrongly it can establish sorrows and sadness. To me, joy is doing what is right and understanding that life has a purpose to please God and that only through Him life will bring Joy. Now, I am far from perfect and still a long way to go. But the fact that I understand that only God can give you a peace of mind and save you if you live pleasing to Him which is a relationship with God that cures all challenges in life. This is what brings joy.
Joy depends on my relationship with God and not what happens in the world with me. True happiness is joy, but not what happens to you. I now understand why some disabled people can have joy and why many healthy and educated people with money can be unhappy. Some people kill themselves because their lover does not want them anymore. That is because they depend on someone to make them happy.
2 Corinthians 6:10: As sorrowful, yet always rejoicing; as poor, yet making many rich; as having nothing, and yet possessing all things.
When God forgives us He demands a change in attitude and conduct. God does not forgive people to continue living in sin, He forgives people that you will turn away from sin.
Joy is established by righteous living, but living for pleasure in the end will bring sorrows, it never lasts. Only God lasts forever because righteousness and the grace of God establish joy which endures. Conclusion: seek joy. Joy always endures.
The Patriot Miguel Arrindell
Dear Editor,
When it come for safety of visitors on the island St Maarten policemen and -women are very serious about the safety of all the tourists visiting the Island.
The justice minister and police will never accept visitors traveling on gypsies.
The justice minister and police will always do what it takes to protect visitors on the Island. Gypsies are illegal and should keep off the street.
Cuthbert Bannis
Dear Editor,
Over the past years, there have been widely publicized media reports about issues surrounding insurance company ENNIA and the companies directly affiliated with it. All mentioned companies are part of the business conglomerate of the well-known billionaire Hushang Ansary.
The “ENNIA saga” seems to have started back in 2010. Since then, at least six employees of ENNIA expressed their concerns about “risky” intercompany transactions between ENNIA Caribe Investments (ECI) and ENNIA. In that same year, the Central Bank of Aruba instructed ENNIA to take risk-mitigating measures.
Reportedly, the Dutch Central Bank (DNB) was warned about the situation at ENNIA by different players in the financial markets as early as 2011. Despite these warnings, it took until 2015 for DNB to investigate the matter. In the resulting confidential report published in June of that same year, ENNIA was qualified as “failed” from a financial and organizational perspective, based on the risks of “… significant and non-transparent mutual financial positions within the group … .”
Since the publication of the DNB report, in which Mr. Ansary was accused of financially “draining” ENNIA’s pension funds, a number of subsequent events took place. Some examples are:
* Raids on ENNIA offices in Curaçao by the Prosecutor in relation with the Emsley Tromp investigation;
* Instructions issued by the CBCS to ENNIA to take the Mullet Bay property off its books;
* ENNIA transferring US $100 million outside of the company without the approval of the CBCS;
* Mr. Ansary announcing new appointments and a reshuffling of the Board and Management;
* The Supervisory Board and management of ENNIA, including Mr. Ansary, being subsequently relieved of their duties;
* The CBCS filing (and winning) court injunctions against ENNIA.
Most recently, the developments surrounding ENNIA took a worrisome turn for the worse, when reports regarding liens on Mullet Bay (valued at US $460 million) and nine other properties owned by ENNIA-related Sun Resorts were published. Unfortunately, these latest reports should come as no surprise, based on all the events which took place during the past few years.
Since 10-10-10, all political parties and successive Governments have made statements and promises about Mullet Bay and its importance to the economic development of Sint Maarten. What is very surprising to the St. Maarten Development Movement though, as well as a reason for grave concern, is that despite the widely publicized problems at ENNIA, neither the Government of Sint Maarten nor any of the political parties represented in Parliament have issued a formal response to any of the developments regarding the “ENNIA saga” as yet. Why the deafening silence from the political establishment on Sint Maarten on a matter of this importance? This unexpected silence is surprising to the St. Maarten Development Movement for two reasons.
First of all, ENNIA is the largest insurance company in the Dutch Caribbean, serving clients and/or having investments on all six islands including Sint Maarten. This means that the people of Sint Maarten will be directly or indirectly affected by the consequences of financial problems at ENNIA and its related companies. Insurance premiums, pension premiums, and pension payments to ENNIA policy holders could be in serious jeopardy. This would be an additional blow to all segments of the population, in addition to the material and financial losses caused by Hurricane Irma. Particularly those who are largely dependent on pension benefits to sustain themselves would see their livelihood drop dramatically.
Secondly, Mullet Bay was once the proud and prosperous flagship of the hotel industry, and the main economic pillar of the economy of Sint Maarten. Yet despite all the political rhetoric from parties represented in Parliament since 10-10-10 that the re-opening of Mullet Bay is crucial for the sustainable development of Sint Maarten as a country, no information on the recently reported liens placed on the property has been forthcoming to the general public from the Government or opposition parties.
The CBCS, in its capacity as regulator, is charged with safeguarding the interest of the general public and those entitled to insurance and pension benefits from ENNIA. As such, the CBCS has enacted emergency regulations.
However, it would behove both the Government, who appoints the Supervisory Board of the CBCS, and the opposition parties to inform the general public what their position is on the developments surrounding ENNIA and Mullet Bay, and how they intend to protect the interest of the people of Sint Maarten in the short-, medium-, and long term. Even the Dutch Parliament questioned former Minister Dijsselbloem on this matter back in June of 2016.
On behalf of the people of Sint Maarten, the St. Maarten Development Movement is therefore urging the political parties represented in Parliament, and the Government in particular, to address the general public of Sint Maarten on the ENNIA/Mullet Bay issue and provide much needed information.
Hard questions need to be asked and answered by the Government. How will the livelihoods of the pensioners, their families, and other vulnerable segments of society be protected and guaranteed now and in the future, and by whom? What will the effects be if those who are entitled to benefits from ENNIA are forced to switch to another company? How will the Government prevent situations like the “ENNIA saga” from happening in the future? How will Mullet Bay and other valuable assets belonging to the people of Sint Maarten be protected as part of the country’s national patrimony?
The people have the right to know, and the St. Maarten Development Movement looks forward to a swift response from the Government to these and other questions.
Benjamin Ortega
Leader of the St. Maarten Development Movement
Dear Editor,
As we are entertained by the discussion of the migration issue in the United States and the huge contradictions involved in that issue it struck me that it might be a good time to pause and look at the migration issue here in Sint Maarten.
There is a fundamental difference between Sint Maarten and the United States. It is that our land mass, capacity and absorption capacity is minimal whilst in the United States it remains substantial with substantial absorption capacity.
It is the same, however, insofar as these economies both (and many other economies) require immigration to drive growth with the consistent model of development. In fact, the issue is not really immigration at all; it is, particularly in Sint Maarten, about growth.
The tiny economy of Sint Maarten grew quickly in the 1980s and 1990s through outside investment and the construction of tourist infrastructure. If it had not been for immigration, this growth could not have occurred at the speed it did. The second generation of these immigrants is less enthusiastic about working in construction and other physical tasking and so once again there is a shortage of construction workers. However, in the meantime the population has grown with all the consequences following this immigration wave.
Whatever policy is followed, if growth is to occur on the basis of the same model as previously, we will need to have more immigration.
Which makes the real question not an immigration question but a question of: Does Sint Maarten want/need to grow and if so in what way?
One would imagine that the population of Sint Maarten would want to consider:
* The fact that continued growth along the same model is going to increase congestion and a reduction in attractiveness to tourists and a reduction of quality of life for residents.
* The fact that continued growth along the same model is not going to lead to employment that suits a newer generation expecting higher-paying non-physical employment.
* That to meet the demand for high-paying non-physical jobs Sint Maarten will need to diversify into targeted industries, something that will not happen without the necessary investment and focus.
* That if this newer generation cannot find these jobs on-island their skills in which we have invested will move to jurisdictions that are growing jobs of this nature.
The choices are simple conceptually but brutally tough for political-decision making. It is simply not possible in the long run to “have your cake and eat it.”
Robbie Ferron
