EDITORIAL - The TEF and the public's right to know

Published: Sunday | March 22, 2009


Last week, John Issa, the principal of the SuperClubs hotel group, fingered cruise-shipping lines that have failed to pay billions of dollars in passenger tax charged by Jamaica and how, in effect, they have been facilitated in their bad behaviour by quiescent public officials.

We now hope, tenuously, of course, that Mr Issa's public spotlighting of the issue will shame the cruise lines into meeting their obligations, as the tourism minister, Edmund Bartlett, has pledged himself to ensure.

But the matter, it seems, at least from this distance, raises fundamental questions about the accountability of public officials and what happens when public policy and the interests of various arms of the Government collide. What is the public's right to know?

The issue of controversy is the Tourism Enhancement Fund (TEF), formally launched in 2005, a vehicle for financing projects to enhance tourism products, such as the beautification of resort areas.

The TEF was to be funded by a special US$10 levy on passengers who arrive in Jamaica by air and US$2 on those who come by sea. Between May 2005 - when the collection started - and December 2008, airline passengers have paid US$61 million into the fund. The cruise lines, which, by Mr Issa's estimate, should have paid more than US$8.5 million, on the basis of the near five million passengers they have brought to Jamaica, have paid nothing. Zilch!

Role of the PAJ

In the case of cruise liners, the collecting agency is the Port Authority of Jamaica (PAJ), which, at first blush, makes sense. For the PAJ was ceded the authority not only over the management of ports, but Jamaica's relationship with the cruise lines. So, the PAJ negotiates schedules and supports projects, such as the development of the port in Falmouth, Trelawny, being undertaken in partnership with one cruise line.

The Port Authority is at once partner in, and police of, the cruise-shipping operations in Jamaica. We have no evidence that any such thing has arisen, but there is potential for conflict in this arrangement.

The cruise business is an important element of Jamaica's tourism but, that notwithstanding, it contributes, directly, only about 10 per cent of the country's gross earnings from the industry. Land-based tourism, which Mr Issa represents, contributes around 90 per cent. Hoteliers, Mr Issa included, often complain about the amount of taxes they pay and how little the cruise lines pay.

The failure of the cruise lines to pay to the TEF is likely to be seen by hoteliers as just one area of privilege enjoyed by competitors, even as they, too, enjoy the benefits of the fund. Unfortunately, there was no immediate statement by the cruise companies on the reason for their decision, and the head of the PAJ told this newspaper, disingenuously, that he did not know if his agency had collected the money. The public, perhaps, has no business knowing.

Tourism Minister Bartlett does not need to tell anyone about the unfairness to land-based operators of cruise lines not paying the tax. What he must now ensure, as he promised, is enforcement. Or, drop the tax all together, which would be problematic.

We also urge Mr Bartlett to end the practice, identified by Mr Issa, of throwing TEF money at "anything remotely connected to tourism". At that rate, the coffers will soon be empty.

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