The EC$30 million stimulus package announced by the Keith Mitchell-led government to tackle the problems on the island especially job losses and the temporary closure of some businesses due to the coronavirus has come under the microscope in some quarters.
A leading hotelier on the island has expressed concerns with the package in light of the forced closure of many plants due to the lack of guests.
According to a local economist, the COVID-19 economic support package that was unveiled about two weeks ago by Prime Minister Mitchell is not enough to make a dent on the island’s ability to move forward.
He noted that the $20 million in wage support to the Hospitality Sector “is distorted by but paradoxically, also inadequate” when a close look is taken at the 2017 Annual Report of the state-owned National Insurance Scheme (NIS).
He said: “Total NIS contributions for the year were $73 million of which Restaurants and Hotels contributed $6 million (8%). Yet the sector will receive $20 million of the $30 million of cash outflows promised by Government (67%). But, paradoxically, it is true that at least 10,000 work in the full “Hospitality Sector”. Therefore $20 million averages out to $2,000 per person. Spread over three months, this is about $700 per month per person – which is nearly not enough to support the sector”.
One of the frontline operators in the tourism sector has also expressed concern with the stimulus package for the industry.
He said that hoteliers would like to see $1200.00 per month across the board being given to industry workers instead of the approximately $700.00 being offered by the ruling New National Party (NNP) government of Prime Minister Mitchell.
“We proposed $1200 per person across the board but this has been rejected so far. We met with the Minister of Tourism last Tuesday with a proposal that she hadn’t read and all we have had since then is one delay after the other.
“We were supposed to meet (on line) tomorrow (Tuesday) at 10.00 a.m. with the Prime Minister but that has just been postponed. The industry is on its knees through no fault of its own. This is exactly the time a politician should show his leadership qualities. All we see is procrastination and delaying tactics. 5,000 direct tourism employees have a bleak outlook in front of them.
One of the island’s more accomplished economist questioned the methods used by the Mitchell-led government to arrive at the financial package that was put together for the island.
He said: “It was my understanding that the government was providing payroll support to the (tourism) industry. Hence, the hotels were expected to make contributions as well. The arguments (by hoteliers) would be valid only if the government was footing the entire bill. That aside, I have said from the very beginning of this thing that there was too much ambiguity in the announcement.
“I never thought the $20 million was based on any real number crunching. It was always an arbitrary figure. Again, look at how Trinidad came up with its figures. (PM Mitchell) is out of his depth when it comes to the handling of all aspects of this virus”, he added.
The noted economist also made some passing remarks about the “lip service” paid by Prime Minister Mitchell and his government to the key agriculture sector.
“I cannot understand why (PM Mitchell) isn’t paying lots of attention to agriculture at this time and giving the farmers financial support. That failure is mind boggling,” he said.
“This Covid-19 is really a test of leadership and many politicians are proving to have not even attempted the test”, he remarked.
In recent years, the main plank of the NNP strategy in earning foreign exchange has been on the development of the tourism sector and passport selling through a controversial programme known as Citizenship By Investment (CBI).