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Saturday, June 30, 2012

The Jamaica Labour Party (JLP) needs clear position on Jamaica's accession to the criminal and civil jurisdictions of the Caribbean Court of Justice (CCJ)

JLP needs clear position on CCJ


Jamaica Gleaner Editorial




It is time for Andrew Holness to end his party's cat-and-mouse game on Jamaica's accession to the criminal and civil jurisdictions of the Caribbean Court of Justice (CCJ).

If the Jamaica Labour Party (JLP) doesn't want the court, it must assert its position with clarity, including saying why. If, however, it supports the court, but genuinely believes that the final decision on it ought to rest with the Jamaican people in a referendum, we expect to hear a commitment from the JLP to campaign for a 'yes' vote in a plebiscite.

We, however, sense that the JLP stands for neither position. It hopes, it seems, to engineer a referendum, then leverage the vote not as a test on the public's opinion on the specific matter, but the broad performance of the Government. Which is why governments are often shy of referenda.
The CCJ was conceived and established to be a final court for a number of Caribbean countries, replacing the United Kingdom-based Judicial Committee of the Privy Council.

Few courts in the world, in their governance structure, enjoy the CCJ's depth of insulation from potential political interference. Doubts about the quality of a regional court, which should never have been harboured, have long been put to rest.

Indeed, it was to this position that Bruce Golding, then the prime minister and JLP leader, appeared to have arrived 18 months ago in the face of a complaint from the UK's top judge that his justices were spending too much time on Privy Council cases at the expense of domestic ones.

Backing away from his party's formerly hard opposition to the CCJ - which was the basis of its moral leadership of a constitutional challenge to the manner in which the CCJ was being established as Jamaica's final court - Mr Golding said: "We have to dispense with the Privy Council."

He canvassed the possibility of a Jamaican final court, but that was deemed by many as part of a measured face-saving retreat. Mr Andrew Holness, Mr Golding's successor, appeared, prior to last December's general election, to have adopted a softer stance on the court.

Querying constitutionality

Recently, though, the opposition leader and his shadow justice minister, Delroy Chuck, have adopted a tougher tone on the CCJ and their interpretation of the Privy Council's ruling of the constitutional route for it to be our final court. The law lords held that to amend the Constitution to institute the CCJ as a superior court to the Court of Appeal would require that it be similarly entrenched.

On the face of it, this merely requires the passage of the bill with two-thirds majority of all parliamentarians. But Mr Chuck insists that securing the entrenchment of the CCJ would mean amending - thus requiring a referendum - of the deeply entrenched Section 49 of the Constitution, which sets out the processes by which constitutional amendments are achieved.

Essentially, the change to Section 49 would be to list the clause covering the CCJ among those subject to its cover. There are, however, those who believe that the same effect can be achieved differently: for instance, by indicating in the new CCJ clause that any future amendments to it would be subject to Section 49.

In Jamaica's 50th year of Independence, the issue of a final court should be a matter of mature discourse, not a scramble for political advantage.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.

June 29, 2012

Jamaica Gleaner Editorial

Friday, June 29, 2012

Neocolonialism and economic imperialism in the Caribbean

By D. Markie Spring
Turks and Caicos Islands


When God created man, He did so in His own likeness!

Nowhere have I known that God breathed into a ‘black man,’ ‘white man,’ or an ‘Asian,’ or any other so-called races. Neither did He make any of these humans superior to the other. However, there are people of one kind that devote their chief energies to thinking that they are superior to another.



Caribbean

Often, I refuse to use the word ‘race’ as I do not believe in ‘races.’ Conversely, I believe that there are people that happened to look differently on the outside, but on the inside the human body, regardless of differences on the outer layout of the person, our hearts, lungs, intestines and other body parts are shaped the same, located at the same dimensions of the body and have the same functions. Our blood is the same colour and it operates in the same areas of the body, transported by endless veins and arteries.

God is an omniscient Being and knew that the world would be one boring place without differences. Imagine a world filled with blacks or whites, or Asians. Visualize a world with one culture or language, or for that matter one climate. When fast forwarded in time, the world would seem like an austere, monastic, rootless ‘out-of-shape’ ball wriggling on its axis while it dances around the blazing hot sun, tormented into a monotonous brutish environment.

These facts have rejuvenated and given rise to modern day imperialism and colonialism. One would think that imperialism and colonialism have aged and that the world has rid these economic and financial, nonetheless, political exploitations – think again!

West Indians look around! The facts are surfacing and are evident like the shining stars in the night sky. Henceforth, the big regional cooperation are dominated, controlled and directed by mega metropolitan centres headquartered in the outer sphere of the Caribbean; and nonetheless, establishing and expanding settlements within the Caribbean Basin.

Furthermore, the colonizers are hiring liked-figured people, giving the impression that the regional boys and girls cannot perform certain categories of jobs, especially at management levels. West Indians are given the duties of the dirty jobs and lower end jobs when they are more experienced and qualified that the colonizers and their liked creatures; and their only experience and qualifications stems from their pale outlook.

They set up a ‘New World Order’ that is constantly and consistently merchandizing their kind into the work force; dodging all legality of the requirements, regulations and policies that directs the system. And for those of us who have made it to certain level, we ended up being paid at twice as lower than the non-West Indians on the jobs.

However, it must be noted that not all are the same, but there are the legitimate few who tend to contribute meaningfully to the regional economies and aid in lifting the standards of living for citizens.

Along this path, we cannot solely blame the imperialist-colonizers for their actions, but the local authorities, including our government, business entrepreneurs and lawmakers for solely concentrating on holding back one another especially those from neighboring islands and their constant disregard to neo-colonizers that are secretly spreading their empires.

Astoundingly, this fascist doctrine defeats the lure of economicinfrastructure, such as the ironic fate of the ‘Education Revolution’ in SVG, the surge for independence in the Turks and Caicos, or does it subjugate the strife for political and economic stability within the region?

Already, we are witnessing the aftermath of these two phenomena; impacts that are both immense and pervasive – and effects that are both instant and protracted on our societies from inequality, exploitation, enslavement, trade expansion and the creation of new literature and cultural institutions.

Our fall is subsequent to our failure in accepting our own while the rest take advantage of the vacuum within our system!

Wake up!

June 27, 2012

Caribbeannewsnow

Thursday, June 28, 2012

The Bahamas: Roman Catholic Archbishop of Nassau - Most Reverend Patrick C. Pinder announces program to protect children... Says: ...he would never tolerate any abuse within his Archdiocese

Pinder: I won’t tolerate abuse


By Travis Cartwright-Carroll
Guardian Staff Reporter
travis@nasguard.com



Catholic Archbishop Patrick Pinder said yesterday he would never tolerate any abuse within his Archdiocese and added that he knows of no one in the local Catholic ministry against whom any allegations of sexual abuse exist.

His comments came amid allegations of abuse that have swirled in various circles.

Pinder said it is unfortunate that there are some members of the Order of St. Benedict against whom allegations of sexual abuse have risen.

The archbishop said in a statement, “The Benedictines (Order of St. Benedict) had a long and distinguished association with The Bahamas which extended over a period of 120 years.  They have done a tremendous amount of good for the religious and social development of this community, particularly in education.”

Pinder said he would never tolerate abusive behavior period — whether sexual or otherwise.

Referring to allegations against some members of the Order of St. Benedict, the archbishop said, “This casts aspersions on their colleagues, the vast majority of whom were men of excellent character and exemplary virtue.

“This is a sad development.”

Pinder said he remains hopeful and prayerful that reconciliation can be achieved for those affected.

“I am thoroughly committed to maintaining safe environments for children and vulnerable adults in our community,” he said.

“In support of this, we have launched, here in the Archdiocese, the Virtus program for the protection of God’s children.”

The Virtus program, according to Virtus.org, identifies best practices designed to help prevent “wrongdoing and promote right doing within religious organizations”.

For more than a decade now, the international Catholic Church has been rife with allegations of sexual abuse brought against priests.

Some of the most senior officials in the Catholic Church in the United States and elsewhere have for years been accused of covering up reports of abuse and transferring clergy against whom those reports were made.

Last year, a group of victims abused by Catholic priests filed a formal complain to the International Criminal Court accusing the pope, the Vatican secretary of state and other senior officials of crimes against humanity.

The Catholic Church has spent years trying to sanitize its image amid the serious reports of sexual abuse and widespread cover up involving church officials.

Jun 28, 2012

thenassauguardian

The Bolivarian Revolution in the Context of the Third World Movement

By Matthew Siano:



Vijay Prishad in his work The Darker Nations recognizes that the worlds’ historically oppressed and excluded populations represent one of the most powerful forces for historic change towards social and economic justice. The rise of the Third World movement was a manifestation of these popular forces that developed before and after World War II in rejection of the bipolar, First World market capitalist, and Second World state socialist models. The Third World movement represented “the Darker Nations”, or the worlds historically oppressed and excluded majority, through the formation of international organizations, national liberation movements, and alternative development projects. Over time, due to a number of internal contradictions and external pressures, the Third World movement lost much of its political power, but not its’ importance to the lives of those people it represented and all those who desire global justice. Vijay Prishad only briefly mentions the Bolivarian Revolution in his book, and when he does he brushes it off as a colonels coup. Judging by the various similarities between the Third World movement and the Bolivarian Revolution, as well as by the entirely new context through which the Bolivarian Revolution has arisen; I believe that the Bolivarian Revolution represents a novel resurgence of the values and ambitions of the Third World movement.

Today, the First World, with the United States as its vanguard, operates through organizations like the IMF, World Bank and NATO, and has achieved a level of economic and military power that borders on hegemony. Through these institutions, many nations in the former Third and even Second World face the threat of neocolonialism. The neocolonialism of our time often wears a human face or obscures its true intentions through structural adjustment, debt bondage, capitalist culture, and NATO military “humanitarian” intervention. With a lack of any real check on these powers, it is now more important than ever that the voices and wills of the majority of the world achieve political and economic power, and organize themselves internationally to defend their collective demand for equality and justice.

In many ways, the Bolivarian Revolution in Venezuela is working towards this reality, and has already achieved economic and political empowerment of a large part of its historically oppressed and excluded population. In the context of a unipolar neoliberal world order, the Bolivarian Revolution has built upon many of the ambitions of the Third World movement. By championing regional integration, international nationalism, and by directly challenging First World ideology that there is no alternative to neoliberal capitalism, Venezuela is becoming possibly the vanguard of a new World movement. This new World movement builds upon the Third World movement by learning from its failures and striving towards similar goals of global justice and dignity for the historically oppressed and excluded. 

Popular Power

            The Third World movement was a manifestation of popular power. This popular power took various forms that included armed anti-colonial resistance (Algeria), non-violent anti-colonial resistance (Ghandi, India), and massive grassroots organizing with national liberation or socialism as its demand. A major failure of the Third World movement was that it did not live up to its promise of participatory democracy. Some nations within the Third World such as Saudi Arabia did not even have a semblance of democracy, while others like Tanzania took extremely top-down approaches to their ambitions. Even nations that had emerged from a long anti-colonial struggle and developed strong support like Algeria, “did not fully live up to its promise of radical democracy, where every person would be constituted by the state as a citizen, and where each citizen in turn would act through the state to construct a national society, economy and culture” (122, Prishad).

This failure to include popular forces into the Third World struggle made various states “vulnerable to the counterrevolution of the old social classes of property and the disgruntlement of those in whose name it ruled” (123, Prishad). Furthermore, the failure to include popular forces deprived the movement of its initial energy, and stifled much creative potential that may otherwise have been able to manifest.

The Bolivarian Revolution and government are also rooted in popular power against oppression. One of the earliest manifestations of this popular power came with the Caracazo. During this event, tens of thousands or more people, representing the millions most effected by the new neoliberal “shock” package proposed by Carlos Andres Perez and the First World, took to the streets in protest of rising prices, inequality and poverty. The popular power of this movement was violently repressed, but later manifested as political and economic power with the democratic election of Hugo Chavez and the creation of a new constitution.

Likely in response to the failure of Third World nations in their top-down approaches to global justice and national development, the Bolivarian Revolution has emphasized the construction of a participatory democracy. The government has facilitated this by granting legal authority and logistical support to the creation of communal councils; by opening up opportunities for referendum on national issues; and through its laws that support protagonist action.  Participatory democracy is antithetical to the assumption of the First World that only representatives and technocrats know what is best for the majority. Having travelled to Venezuela recently and listened to many people who have participated in community councils or participatory democracy in other more direct ways, it is quite apparent that these changes are building a society that encourages participation by its members in their own political and economic reality. It is most encouraging that the citizens of Venezuela have legal authority through the constitution to challenge the government, and the institutional framework through community councils and other organizations to do so. While there does still exist bureaucracy between these social forces and the government, it is a good sign that people are encouraged to self-organize to challenge the government, instead of being repressed or ignored. 

Economic Autonomy

            Economic autonomy, or economic self-sufficiency and determination, was equally as important to the Third World movement as political sovereignty. Many Third World nations realized that the economic policies promoted by the First World were the direct cause of their poverty and lack of development. A question arose:

“How can sufficient capital be harnessed to do the important work of reconstruction for economies battered not just by the world depression of the 1930s and the wars of the 1940s but by the centuries of colonial depredation?” (64, Prishad).

A possible answer to this question was Import Substitution Industrialization (ISI), which sought to limit their nations importation of goods from First or Second World countries with higher value-added, by producing those products within their own nations. This ISI model was accompanied by social investment in infrastructure and programs, and nationalization of key industries. The ISI model had its own contradictions, some of the most significant being that its main intentions were to protect domestic industry, and that this in turn led to the development of a national capitalist class detached from the interests of national liberation and the history of that struggle. This national capitalist class pushed the Third World into integration with the First World through globalization, which eventually destroyed one of the primary pillars of the Third World movement, economic autonomy.

The Bolivarian Revolution too has championed economic autonomy through endogenous development and a move away from neoliberal policies. The macro-level changes to the Venezuelan economy in many ways appear similar to the economic policies of ISI, including social investment, nationalization of key industries, price regulations and currency control. The Venezuelan government has achieved significant reductions in poverty and inequality, while increasing access to education and health care, primarily through reforms like these. What is inspiring about the Bolivarian Revolution and government is that they have realized the limitations of ISI development, and have sought out a social economy through endogenous development. Endogenous development according to the Venezuelan government is “a means to achieving the social, cultural and economic transformation of our societies, based on the revitalization of traditions, respect for the environment, and equitable relation of production” [2].

How endogenous development has manifested most significantly has been through the creation of a social economy, which attempts to break down capitalist work relations, and move away from capitalism towards democratic and participatory economics.

The creation of a social economy in Venezuela has been a slow process, which at first was primarily promoted through missions like Vuelven Caras and later Che Guevara that sought the creation of cooperatives. Cooperatives were understood to be a model that creates more equitable work environments, while promoting the values of solidarity. The social economy is also present in various worker-run and/or expropriated industries that have been granted legal recognition or are in the process of doing so. Socialist Production Enterprises (EPS) are another way the Bolivarian Revolution has sought to socialize the economy, by integrating production into the structure of the communal council. There are, however, some contradictions within the social economy. One is that many of the cooperatives facilitated by the government have not lived up to their expectations as real alternatives to capitalist relations, either in the workplace or with the community. Another is that the social economy has grown at a sluggish pace, and is still not a significant portion of overall economic activity. However, the very existence of a social economy is a powerful example of alternatives to neoliberal capitalism, and the growth or decline of this sector could very well determine the health of the Bolivarian Revolution in the future.

Internationalist Nationalism

            International nationalism was a theory for the construction of nations within the Third World movement, which built itself upon “the history of their struggle against colonialism, and their program for the creation of justice” (Prishad, 12). International nationalism manifested in the form of organizations like the G-77 and the Non-Aligned Movement, while pushing to democratize the United Nations, which was viewed as “a crucial forum for the Third World to raise issues of colonial barbarity and use the General Assembly as a medium to broadcast previously hidden atrocities before the world” (Prishad, 103). Unfortunately over time nations within the Third World movement began to move away from internationalist nationalism towards cultural nationalism that emphasized linguistic, racial or religious unity. This type of nationalism was deeply rooted in the pre-liberation social forces, and developed symbiotically with globalization. Saudi Arabia became a strong and sad example of cultural nationalism, which developed symbiotically with globalization in order to “open [the] economy to stateless, soulless corporations while blaming the failure of well-being on religious, ethnic, sexual and other minorities” (275, Prishad).

The Bolivarian Revolution is named after a revolutionary leader that helped to liberate many Latin American countries from Spanish colonial rule. The international nationalism of Venezuela today is not only apparent through its various references to Simon Bolivar, who believed in a Gran Colombia and the political unity of Latin America. The Venezuelan government since 1998 has built international relations with regional countries that in many ways challenge the international relations of the First World. The formation of the Bolivarian Alliance for the Peoples of Our America’s Trade Agreement for the People (ALBA-TCP) was initially a counter to the neoliberal Free Trade Agreement of the Americas (FTAA) that has become focused on Latin American and Caribbean integration.  ALBA has already proven to” allow for the creation of new forms of exchange and communication between countries that were once isolated” [3]. These new forms of exchange involve direct commodity trades such as oil for doctors with Cuba. In regards to new forms of communication between countries, Venezuela has established the regional television station Telesur, and launched the communications satellite Simon Bolivar, while also opening up the space for meetings between ALBA countries. Furthermore, Venezuela has been participating in trade agreements and commodity exchanges with members of the South American Nations (UNASUR). As a whole the organization is seeking the creation of alternative economic structures between participating nations, while basing its success on the well-being of its people rather than by profitability.

A more recent development with significant historical precedence is the formation of the Community of Latin American and Caribbean States (CELAC) in December of 2011. CELAC was pushed for hard by Hugo Chavez, and its first meeting was held in the capital of Venezuela, Caracas. The United States and Canada are intentionally absent from CELAC, due to their domination of previous organizations like the OAS. The official stated objectives of the organization are to “to deepen integration and political, social, economic, and cultural unity and to promote sustainable development” [4]. Leaders such as Rafael Correa have proposed an alternative Latin American human rights watch to combat the plethora of U.S. funded human rights organizations. At the meeting, Chavez also stated: “It’s an honour for Venezuela [to host the summit]… many talk about the dream of Bolivar [for a united Latin America] but few talk about it as a project, about actually putting it into practice. Today we’re laying down the first stone, a fundamental one for the unity of Latin America and for our real independence.” [4]

All of this certainly suggests that Latin America is moving further towards regional integration, seeking cooperation economically and politically to challenge the dominant First World of neoliberalism and imperialism. Venezuela and the Bolivarian Revolution have been at the forefront of this movement towards integration, through the formation of ALBA, the hosting of and push for CELAC, and increasing cooperation with UNASUR.

Conclusion

Within the context of a unipolar world order, the Bolivarian Revolution has been a critically important accomplishment of popular power. Its goals and values align with the historical struggles of the Third World movement, but in an evolved form that has learned from history. Venezuela today is living evidence that the historically oppressed and excluded are the protagonists of history, and that their struggle for political and economic justice has not ended.

Works Cited

Prishad, Vijay. The Darker Nations. New YorkThe New Press, 2007. Print


[2] Gobierno Bolivariano de Venezuela: http://www.pdvsa.com/index.php?tpl=interface.en/design/readmenu.tpl.html&newsid_obj_id=1947&newsid_temas=92

[3] Tahina Ojeda Medina , 7 Years on from the Creation of the ALBA –TCP : Venezuela Analysis http://venezuelanalysis.com/analysis/6972

[4] Ewan Robertson, CELAC Holds First Meeting of Triumvirate Countries, Designates Priorities: Venezuela analysis http://venezuelanalysis.com/news/6746

June 26, 2012

Saturday, June 23, 2012

Resolution from the Political Council of the Bolivarian Alliance for the Peoples of Our America (ALBA) ...for the immediate withdrawal of USAID from member countries of the alliance

ALBA Expels USAID from Member Countries

By ALBA-TCP


On behalf of the Chancellors of the Bolivarian Alliance for the Peoples of Our America, gathered in Rio de Janeiro, Federal Republic of Brazil, on June 21st 2012.

Given the open interference of the United States Agency for International Development (USAID) in the internal politics of the ALBA countries, under the excuse of “planning and administering economic and humanitarian assistance for the whole world outside of the United States,” financing non-governmental organizations and actions and projects designed to destabilise the legitimate governments which do not share their common interests.
 
Knowing the evidence brought to light by the declassified documents of the North American State Department in which the financing of organisations and political parties in opposition to ALBA countries is made evident, in a clear and shameless interference in the internal political processes of each nation.

Given that this intervention of a foreign country in the internal politics of a country is contrary to the internal legislation of each nation.

On the understanding that in the majority of ALBA countries, USAID, through its different organisations and disguises, acts in an illegal manner with impunity, without possessing a legal framework to support this action, and illegally financing the media, political leaders and non-governmental organisations, amongst others.

On the understanding that through these financing programmes they are supporting NGOs which promote all kind of fundamentalism in order to conspire and limit the legal authority of our states, and in many cases, widely loot our natural resources on territory which they claim to control at their own free will.

Conscious of the fact that our countries do not need any kind of external financing for the maintenance of our democracies, which are consolidated through the will of the Latin American and Caribbean people, in the same way that we do not need organisations in the charge of foreign powers which, in practice, usurp and weaken the presence of state organisms and prevent them from developing the role that corresponds to them in the economic and social arena of our populations.

We resolve to:

Request that the heads of state and the government of the states who are members of the Bolivarian Alliance for the Peoples of Our America, immediately expel USAID and its delegates or representatives from their countries, due to the fact that we consider their presence and actions to constitute an interference which threatens the sovereignty and stability of our nations.

In the city of Rio de Janeiro, Federal Republic of Brazil, June 21st 2012.

Signed by:

The government of the Pluri-national state of Bolivia.
The government of the Republic of Cuba.
The government of the Republic of Ecuador.
The government of the Commonwealth of Dominica.
The government of the Republic of Nicaragua.
The government of the Bolivarian Republic of Venezuela.

Translated by Rachael Boothroyd for Venezuelanalysis

Published on Jun 22nd 2012 at 4.32pm
               
Source: Diaro Granma

Friday, June 22, 2012

Cholera remains prevalent in Haiti

Cholera persisting in Haiti


By Amelia Duarte de la Rosa




CHOLERA remains prevalent in Haiti. The epidemic which began in October 2010, killing more than 7,000 people, is still in the endemic phase throughout the country. With the current rainy season, news agencies are talking of a fresh outbreak of the disease; however, the current behavior of cholera is precisely what was previously forecast.

Dr. Lorenzo Somarriba, head of the Cuban Medical Mission, explains, "The endemic phase moves through local epidemic outbreaks, given that cholera bacteria are in circulation, but the disease is behaving according to forecasts. From January through April, in the dry season, cases reported were very low; in May, the rains began and the number of people who contracted the disease increased.

"However, news agency reports are suggesting figures of up to 200,000 cases during the rest of this year and this is an overestimation, it would be half of the cases recorded in the first year of the epidemic. Endemic means that the disease remains at a stable level over a long period of time, including seasonal variations. On the basis of natural history in places where there is no adequate health infrastructure, such as Haiti, cholera remains in an endemic form for many years," he clarified.

In parallel, data from the Pan American Health Organization confirm that the global increase of cases is slow, given that there has been rain, but not as much as in previous years. The disease, principally acquired via contaminated water and food, is currently stable, with a tendency toward an increase due to the permanence of risk factors.

In Haiti, only 2% of the population has access to drinking water, there is no adequate environmental cleansing system and surface water sources are contaminated. These factors are compounded by high poverty figures, malnutrition, tuberculosis and HIV/AIDS, diseases which increase the risk of contagion.

For this reason, even though the accumulated mortality rate recorded by the Cuban Medical Brigade (BMC) continues stable – there have been no deaths this year – the brigade is ready to confront any case of contagion with focal controls on the part of its active monitoring groups.

In the BMC situation room, where a group of high-level cholera specialists work, all potential cases arriving at medical posts with a Cuban brigade presence are monitored, Somarriba notes. "The brigade has the personnel and resources to treat the disease. We have 33 observation posts, 30 cholera treatment units and two active centers prepared to receive, treat and report cases. Cases of acute diarrhea are now in third place on the chart of transmissible disorders and two departments are reporting the highest rates, Artibonite and Nord. Where there is a case we implement the epidemiological survey and act rapidly with all contacts.

"Any biological species is very difficult to eliminate, the Haitian and Dominican government authorities currently have a program to eradicate cholera on the island of La EspaƱola within a 10-year period; in other words, the non-circulation of the V. cholerae," he explained.

"In any event, the number of fatalities is in relation to the promptness or otherwise of focal controls in every case, which is why the differentiated and constant attention of our collaborators is focused on cholera. We are still distributing water-purifying chlorine tablets, monitoring and offering educational support. Thanks to all of this, Haitians now have knowledge of the disease and how to avoid it."

June 21, 2012


Thursday, June 21, 2012

Caribbean governments killing the hotel sector 'golden goose'

By Robert MacLellan:



Each of the Caribbean hotel investment conferences held in April and May this year included sessions to encourage closer cooperation between the public and private sector but, immediately prior to the Caribbean Tourism Summit in mid June, the governments of Jamaica and of Antigua and Barbuda announced significant new airport arrival taxes, with a new hotel occupancy tax also added in Jamaica. The Caribbean hotel industry’s greatest fear now is that other governments will follow.

Robert MacLellan is CEO of MacLellan & Associates, the largest hospitality, tourism and leisure consultancy based in the Caribbean. He has eighteen years experience in the hospitality industry in the Caribbean and was a cruise ship hotel officer and vice president, hotel services, of a cruise line earlier in his career
These extra charges target the region’s highest spending visitors – the stay-over guests. While everyone understands the difficulties that island governments currently face in trying to balance their own budgets in times of world economic uncertainty and with increasingly youthful populations, it is a fact that much of the region’s hotel industry is in deep financial crisis and has been for some considerable time. The region’s largest employer and biggest direct and indirect tax payer cannot be “the cow you take to market and milk it twice”.

Today, most lower and middle market Caribbean hotels, which have significant bank loans, are in default to some degree or other. Energy and water costs on many islands are as high as US$40 per day per occupied room – with little actual utility cost differential per day per room between budget hotels charging US$80 a night and luxury resorts charging US$800 a night. Reservation systems, like Expedia, and tour operators continue to negotiate aggressively low hotel room rates, such that Smith Travel Research projects that average room rates in the Caribbean will not recover back to 2007 dollar levels until 2014. My own research suggests that lower end hotels will not even achieve that level of rate recovery. More tour operators are pressuring hotels for all inclusive rates, where meals become part of the tour operator’s “commissionable” package, but Caribbean hotel restaurants are already incurring operating losses in the face of escalating world food prices. Inevitably, hotel refurbishment and marketing budgets continue to be cut.

Prior to this year’s two hotel investment conferences, I researched opinions from the hotel sector, relative to its perceived needs from Caribbean governments, and the following points summarise the concerns and suggested requests.

Hotel Taxation

Review taxation structures for new and existing hotels, “in their role as the region’s biggest export industry and foreign currency generator”. Many hotels currently require major re-investment and are struggling with bank debt and increased operating costs. Without new thinking, continuing low levels of inward investment in the sector and a downward spiral of standards are resulting in a consequent loss of global competitiveness for the overall Caribbean hotel product. At least a certain percentage of hotel taxation should go directly towards generic Caribbean global marketing in order to create world class campaigns of adequate scale.

If taxes are reduced on the hotel sector -- the current principal direct / indirect “tax cow” -- governments should seek to derive compensating levels of tax revenue from the following alternative targets: much higher cruise ship port fees; effective taxation of private condo / villa rental income; a wider property tax base; corporation tax increases paid by a wider range of businesses; abolish duty free concessions for car rental companies. Governments should also take steps to re-invigorate and grow the region’s agriculture and fishery industries as major components in sustainable economic activity – for export and for direct supply to the hotel / restaurant sector and to other local consumers.

Duty Free Incentives

Governments should simplify and improve duty free import concessions for refurbishment of existing hotels and for development of new hotels -- but also expand them to include incentives for furnished condos and villas, providing that those units are in a hotel managed formal rental program that generates taxable income on island. This latter action will speed up the recovery of the leisure real estate market, provide construction work, ultimately generate additional tax revenue and create new fresh resort inventory with extra earning potential for the region’s hotel companies. In general, current fiscal incentives are significantly better in many Central American tourism destinations than in most Caribbean countries.

Food Cost

In the light of rising world food prices, there is a need to eliminate import duties for hotels on all food items -- not available from local sources -- and governments should actively encourage the growth potential for local food supply.

Utility Costs

Reduce utility costs through part / full privatisation of existing electricity companies in order to finance investment in better infrastructure: the proposed gas pipeline from Trinidad or on-island LNG trans-shipment facilities; replacement of old diesel generators with efficient gas turbines, hydro, wind and tidal generators. Similar privatization of water companies should be undertaken for greater efficiency through re-investment in updated and extended infrastructure. Given likely increases in long term energy and water demand, this is a safe investment for the region’s social security funds, insurance companies, unit trusts, credit unions and private conglomerates – many of them still too risk averse to invest directly in the Caribbean hotel industry.

Human Resources

Re-invigorate human resources within the hotel sector and improve the industry’s profile as a career choice. Governments and the hotel sector should cooperate in developing and resourcing better, larger management and operative level training facilities throughout the region. Speed up and expand CSME to effectively allow CARICOM citizen managers and specialists to work anywhere within the region. In the meantime, expeditiously grant medium term work permits for other skilled personnel from outside the region - where their expertise helps to drive world class standards and disseminates their specialist knowledge.

Air Services

All stay-over visitors to the Caribbean (except yachtsmen) arrive by air. Greatly increased UK airline and regional airport taxes continue to have a significant negative impact on air travel to, and within, the region. The UK’s APD tax was highly discriminatory and costly for the Caribbean but lobbying by the public and private sector has been completely ineffective to date and must be more vigorously pursued with the UK government. The Caribbean Diaspora in Britain can be a powerful lobby at the next UK general election, if the APD issue is successfully communicated to them. The region now faces additional potential negative effects from the proposed European Union’s airline “carbon tax” and must avoid further increases in regional airport taxes.

Almost all Caribbean-based airlines are currently loss making but their ticket prices (including taxes) are some of the highest in the world per seat / mile. The private and public sector across the region should work together to help create, finance and under-write a viable pan Caribbean international and regional carrier, which will genuinely “partner” with the rest of the Caribbean tourism industry. Meanwhile, the cruise sector, which operates in the region virtually tax free and increases its “Caribbean hotel market share” year on year, must also be forced to make its fair share contribution to government tax revenues in the region.

I do not pretend that this commentary from the Caribbean’s hotel sector represents a panacea but the region’s most vital industry is on a slippery slope, with a significant part of it in danger of being decimated by strengthening world-wide competition. It seems very likely that middle market hotels on the islands with a lower cost base, like Dominican Republic and Cuba, will survive. Highly likely too that the region’s luxury resorts will survive, but what are the survival chances for some of the rest of the Caribbean’s hotels, particularly older properties with significant debt finance? Some of the dominoes are already falling.

Governments and the hotel sector should communicate quickly and effectively to act together with the greatest sense of urgency. Arguably, the French market has already left for the Indian Ocean and most of the Germans for South East Asia. And some people still think, “These islands market themselves!”

June 21, 2012

Caribbeannewsnow