OECS Authority outlines regional response to safeguard tourism sector

By VonDez Phipps
Reporter-SKNVibes.com

BASSETERRE, St. Kitts – IN light of the continued international financial and economic crises and the resulting job losses and cutbacks in hotel development projects, the Organization of Eastern Caribbean States (OECS) Authority and the Eastern Caribbean Central Bank (ECCB) Monetary Council have outlined their plans to protect the region’s tourism sector – its most important income earner.

During a special joint assembly of both organizations, held in St. Kitts January 15-16, representatives from various countries attempted to frame a response to the emerging challenges in an effort to mitigate the adverse impact on tourism in the OECS

Member States. The representatives formulated short-term and long-term plans as it was noted that projections for 2009 reveal that the downward trends will continue and may worsen, particularly in light of the continued recession in major tourism source markets.

According to a communiqué issued after the meeting, member states are expected to provide a short term tax relief package to the hotel industry tailored specifically to the individual circumstances of each territory. OECS countries were also urged to take “proactive, innovative measures to preserve employment levels, increase operating efficiency and reduce operating costs”.

~~Adz:Right~~The news release also stated that member governments would strengthen their partnership with the tourism industry in supporting marketing, product enhancement and other facilitating measures that “position the industry to respond readily when the tourism source markets recover”.

The meeting also saw the proposal of a number of medium to long-term plans to allay the negative impact on the industry in the case of a deepened recession in source markets. Member States agreed in principle to the establishment of an Executive Committee of Ministers of Tourism to “oversee and give direction to the long-term OECS tourism development agenda”.

The release also stated, “Member States agreed in principle, subject to the determination of the specific functions and costs of operations, to the possibility of setting up an OECS Tourism Authority with the capacity for planning, coordinating, regulating, marketing, and research and development, which will initially function as a Secretariat to the Executive Committee of Ministers.

The proposed Tourism Authority will initially play a coordinating role, working in tandem with OECS Ministries of Tourism, and drawing on the resources of the ECCB and the OECS Secretariat.”

Another major proposal resulting from the commitment of Member States to collaborate more closely in the marketing of the region was the implementation of a US $3 levy on airline tickets for persons travelling to the OECS and the wider Caribbean originating in overseas markets.

Countries agreed in principle, subject to agreement by the wider Caribbean, and indicated that proceeds of the new initiative would be used to establish a sustainable funding mechanism to “ensure adequate public funding of regional market campaigns”.

In an urgent attempt to further linkages between tourism and the rest of the economy, Member States also agreed to schedule a video-conference between the Ministries of Finance, Ministries of Agriculture, Ministries of Tourism, the OECS and the ECCB in the near future.