7 News Belize

BTIA Says GOB Playing “Crackhead Economics” With Norwegian Port
posted (July 25, 2013)
The resource rich and largely unspoiled southern Belize is also the scene for another battleground – that's the latest one over whether there will be a cruise terminal close to Placencia AT HARVEST CAYE.

We've been reporting on the terms outlined in a draft memorandum of understanding – which show the usual menu of concessions, tax breaks and a 7 US Dollar head tax that gives 60% back to the Norwegian Cruise Line so that they can recover their investment as quickly as possible.

It's caused some consternation amongst the overnight tourism interests in the south and today the Belize Tourism Industry Association held a meeting to consolidate their position.

They say there's been zero consultation on a project that – if approved – could have far reaching impacts on their overnight tourism product.

Herbert Haylock - President, BTIA
"Development in the South needs to be focused as it relates to cruise again in the realm of the master plan, specifically in the area of pocket tourism and not the mega developments that are being proposed at this time."








Stewart Krohn - Chairman, Placencia Chapter
"What introducing mass tourism to the south does is that it fundamentally changes the entire character of the tourism product. Belize invented eco-tourism - that word didn't exist until Belize brought it to the floor and held the first international eco-conference ever. Now what we're doing with mass tourism is really telling the world is that we're not really an eco destination - we are now a mass destination. You can't be both - you can't be all things to all people."







Dennis Garbutt - Chairman, Toledo Chapter
"I do understand that Toledo on a whole needs development and need money driven into that area. However, from the tourism stand point this type of development will not help with the existing tourism infrastructure we have - this will take away from the quality of service that we provide to our guest in the South. I think this is something tricky to look at - yes Toledo needs development but I think if we were to do this we should have done something in a more constructive manner and mass tourism is not the answer for the South - it's not the answer."

Herbert Haylock
"One of the specific things that we need to be clear on is looking at the MOU that we are seeing, you brought that to the public's eye a day or two ago, and we have been looking at a draft of that. Obviously there are some very specific blaring concerns that need to be brought out and that need to be presented - not only publicly but questions need to be asked. Why are these specific guarantees being placed in that MOU."

Stewart Krohn
"Essentially this MOU that Prime Minister Barrow is about the sign is virtually the exact MOU that Said Musa signed 12 years ago. Why on earth after Belize has now become a premier tourism destination - why would you sign the exact same contract with the cruise company that you signed 12 years ago when Belize didn't know anything about cruise ships. Government charges NCL $7.00 usd head tax which in itself is a ridiculously low amount - it should be about $20.00 but you charge them $7.00 and then you give them back $4.00? I defy anyone sitting in that Cabinet room to explain to me why you would give back $4.00 and they still own the port."

Jules Vasquez
"Some critics would say that this is the standard because there are not equal relations with the Cruise ship because of the volume of visitors they deal with - the volume of money they deal with. A small sovereign state cannot engage in an equitable relation with these people - that is how it works. How do you respond to that?"

Stewart Krohn
"I'll make it very easy for you Jules - I won't get into any complicated political argument. Let's say you drive an escalade and you want it washed and you drive down the street and you see your friendly neighborhood 'crack head' with his rag and his bucket - and you go up to him and say 'I want my escalade washed - how much will you charge me?' He says 'ten dollars boss' and I say to the crack head 'no man I won't pay $10.00' and then he says 'ok then $5.00' and I tell him 'I won't pay you $5.00' and then he says 'give me shilling (quarter) then' and then you pay the crack head a shilling. In that economic negotiation is Belize the guy with the Escalade or the guy getting the shilling to was the vehicle? We behave like crack heads - just like there's no reason for the crack head - no economic logic behind him washing your car for $0.25 - there is no economic logic for us giving away the candy store to NCL."

Herbert Haylock
"You are basically getting into a situation where you can earn in excess of $2 billion dollars from just the overnight sector and that's just considering just simply average growth over that particular area. When you look at the cruise sector and the returns that will actually come from the cruise sector and this is real tangible revenue that comes in from the head tax etc. - you are only talking about over a hundred and something million dollars then you begin to see the disparity. The economics of this issue don't add up when you're given such emphasis on a development such as this and not taking into consideration the overnight sector which again is the main stay, as Stewart pointed out - of this industry."

Stewart Krohn
"I think there's been a rush to judgment here and I think somehow maybe the timing was propitious for NCL, maybe they had someone from the inside pushing for them but I would ask the PM and the Cabinet to reconsider and think this thing through because the way it's going we are really going to pay a really high price if this decision is allowed to go through."

The BTIA will be putting out a formal position on the proposed Harvest Caye terminal by next week.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize