Hoteliers to Increase Workers’ Wages to Qualify for Increased Incentives as Part of Tourism Development Act

Tuesday, Feb 27

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arliament met on Tuesday 20th February to pass the landmark Tourism Development Bill which promises to include locals in the country’s growing tourism industry.

The multifaceted legislation is forecasted to dramatically change the way tourism exists in Saint Lucia as the government prepares for increased foreign investment in the coming years.

Tourism Minister Dr Ernest Hilaire, ahead of the Sitting’s commencement, said one of the more notable provisions of the legislation is the new regulations relating to incentives.

Hilaire says hoteliers will have to prove that they are meeting certain sustainability requirements to qualify for concessions. One of them, he says, is higher wages.

It also causes persons seeking concessions to be more accountable. So, therefore, the old system of persons being given 100%, whether it's import duty, whether it is corporate and tax waiver. They're now going to get a lower base rate and they now need to show commitment to a number of fundamental principles of sustainability and higher wages for workers to be able to get more incentives,” the Minister stated.

Hotels will also have to go through a certification process, Hilaire said. This will help accommodations on-island meet international standards.

The new bill will also introduce a certification regime in Saint Lucia, where we seek to get all tourism service providers to be able to meet world-class standards and to be certified when they do so.”

Opposition Leader Allen Chastanet, however, has his misgivings relating to the new incentives regulations.

I think that the bill suspends the incentives and the stimulus bills that existed. But the bill has certainly not replaced the details of what those incentives are. And as we speak right now, it would appear that it's the discretion of the minister and cabinet as to what incentives people are going to get. And I think that that's very, very scary to put that level of discretionary power into one person's hands,” he expressed.

Hilaire, however, says incentives will also be offered to small accommodations to encourage their development. This, he says, will allow locals to tap into the potential of Saint Lucia.

 

We are going to ensure that Saint Lucians at all levels get support so they can invest in a tourism industry and become owners of the tourism industry. The waterfalls, the beaches, the forests—all the attractions of Saint Lucia are the heritage of all Saint Lucians, and therefore, the people should benefit more from the tourism industry.”