Dear Editor,
A Canadian asked me not long ago, why are Jamaican all-inclusive packages so expensive, at least relative to other destinations in the region?
Although I was aware of this, I couldn’t really give a specific answer, except to reason that Jamaica is the real deal, with beautiful beaches and scenery, mountains, rich vibrant culture, great authentic vibe, with music and good food, and the tourist demand is therefore very high, pushing up prices.
My colleague wasn’t convinced. He and his family, he said, would love to visit Jamaica some day, but always found prices too high, and found better deals travelling to places like the Dominican Republic, Mexico, and Cuba.
The law of demand and supply is always influenced by pricing, more so when quality is not compromised. Competitive pricing is likely to translate into increased revenues.
The Government’s decision to increase departure taxes from US$20 to US$35 per passenger, a 75 per cent hike, seems very unreasonable at this time. Everything is relative; all we have to do is to check other countries in the tourist market and we will see Jamaica will now have the highest departure tax in the region.
I agree with Jamaica Hotel and Tourist Association that the increase is too high. You don’t try to lure more visitors by increasing taxes. Locals departing the island will also pay the same increased taxes, almost $2,000 per passenger. A family of four will see a multiplier effect, almost a $10,000 increase in the price of tickets for a holiday.
Now, I don’t have a problem with an increase per se, it’s the size of the increase that matters. Most individuals travelling solo probably won’t notice the increase, as taxes are embedded in ticket prices, but families will certainly feel the pinch and may have to reconsider travelling overseas for vacation.
Government could be more reasonable. Instead of raising departure taxes at this time, we should be trying everything possible to increase our share of the tourist market, as every extra visitor will potentially spend on goods, services and entertainment, outside of hotels, at airports and elsewhere.
This will stimulate the industry and employment and increase foreign revenues, so it’s a win-win situation. There is no need for excessive departure taxes.
We hope the Government will reconsider the 75 per cent increase in departure tax and find other ways to stimulate revenues and growth. Taxes are not always the answer.
P Chin
chin_p@yahoo.com
A Canadian asked me not long ago, why are Jamaican all-inclusive packages so expensive, at least relative to other destinations in the region?
Although I was aware of this, I couldn’t really give a specific answer, except to reason that Jamaica is the real deal, with beautiful beaches and scenery, mountains, rich vibrant culture, great authentic vibe, with music and good food, and the tourist demand is therefore very high, pushing up prices.
My colleague wasn’t convinced. He and his family, he said, would love to visit Jamaica some day, but always found prices too high, and found better deals travelling to places like the Dominican Republic, Mexico, and Cuba.
The law of demand and supply is always influenced by pricing, more so when quality is not compromised. Competitive pricing is likely to translate into increased revenues.
The Government’s decision to increase departure taxes from US$20 to US$35 per passenger, a 75 per cent hike, seems very unreasonable at this time. Everything is relative; all we have to do is to check other countries in the tourist market and we will see Jamaica will now have the highest departure tax in the region.
I agree with Jamaica Hotel and Tourist Association that the increase is too high. You don’t try to lure more visitors by increasing taxes. Locals departing the island will also pay the same increased taxes, almost $2,000 per passenger. A family of four will see a multiplier effect, almost a $10,000 increase in the price of tickets for a holiday.
Now, I don’t have a problem with an increase per se, it’s the size of the increase that matters. Most individuals travelling solo probably won’t notice the increase, as taxes are embedded in ticket prices, but families will certainly feel the pinch and may have to reconsider travelling overseas for vacation.
Government could be more reasonable. Instead of raising departure taxes at this time, we should be trying everything possible to increase our share of the tourist market, as every extra visitor will potentially spend on goods, services and entertainment, outside of hotels, at airports and elsewhere.
This will stimulate the industry and employment and increase foreign revenues, so it’s a win-win situation. There is no need for excessive departure taxes.
We hope the Government will reconsider the 75 per cent increase in departure tax and find other ways to stimulate revenues and growth. Taxes are not always the answer.
P Chin
chin_p@yahoo.com