Shadow Tourism Minister Zane DeSilva has lambasted Government for cutting the grant given to the Bermuda Tourism Authority.

Mr DeSilva told the House of Assembly on Friday night that “it makes no sense” to reduce the BTA’s budget by $1.4 million to $21.7 million for 2015/16. He also criticised the $15 hike in the departure tax announced in the budget.

But Tourism Minister Shawn Crockwell hit back saying the BTA’s budget was “not ideal” but “the reality” due to the financial legacy of the PLP.

In setting out the BTA’s budget for 2015/16 Mr Crockwell maintained that the outlook for 2015 was promising and he commended the authority, its employees and its board for their work and commitment. In a heated debate Mr DeSilva called for a more detailed breakdown of where public money was being spent within the authority.

Mr DeSilva said: “We take 1.6 million out of the budget this year, 5 million last year; we are doing it donkey backwards. We cut the budget when we should be increasing it by $10, $11, $12 million.

“Then in spite of that we increase the departure tax by $15 a head and wonder why airlines are flying over Bermuda.”

The Shadow Tourism Minister also took a swipe at BTA CEO Mike Hanbury, who recently disclosed his $295,000 wage figure and $75,000 housing allowance.

“I hope I can say one day that the wage is worth it,” said Mr DeSilva.

“But the CEO makes more than our Premier, he makes more than the Governor and more than the President of the United States.

“Until we see anything different I will not change my tact and I will not be satisfied. I want results.”

During a speech that lasted more than two hours Mr DeSilva called on the BTA to provide financial backing to Cup Match and lamented recent Caribbean visitor statistics, which he claimed showed the region had experience an increase in arrival numbers.

Mr DeSilva urged the BTA to look at advertising more on global television channels and make contact with the advertising agency, GlobalHue, which he said had been largely responsible for helping Bermuda to achieve its peak visitors numbers in 2007.

“If I was in the BTA I would go to GlobalHue,” said Mr DeSilva.

“That is when we had most success, I don’t think we could go wrong with a conversation.”

In outlining where the funds would be allocated within the BTA Mr Crockwell revealed that the sales and marketing division would be receiving the lion’s share at 62.7 per cent with the operations division taking the next largest share at 17.7 per cent.

The Minister justified the formation of the authority saying that it addressed a structural flaw in the management of tourism in Bermuda.

“We believe that our challenge was based on the structure of how we managed tourism — which is essentially a business — through Government.

“Government isn’t always the most efficient entity. We thought the best approach was to have an Authority independent of Government.

“[Previously] it maybe that there was an idea from a former Minister — we all remember the Beyonce concert — and projects happen on the caprice of Ministers.

“If you can’t have consistent leadership you know you will have challenges in that industry. Before we see the results we had to address and fix the structure I believe that we have done that.”

Mr Crockwell said the BTA has formed a committee to look into establish new revenue steams such as tax fees and other earnings.

The issue of vacation residencies was raised with Mr DeSilva warning Govnement not to over regulate them. He, along with Shadow Economic Development Minister Wayne Furbert, who declared his interest owning two vacation rentals, pointed out that the small “mom and pop” businesses have to pay a fee, are not subject to the same concessions that hotels enjoy, and have to foot the bill for their own advertising.

Government whip Cole Simons made an upbeat presentation commending the work of the BTA but stressing the need to focus more on inward investment once the economy turns around. “We know that capital moves quickly,” he said. “And people are competing for direct investors globally.”

He talked of hotels in Trinidad (Hyatt) and Barbados (Hilton) which are built by the respective Governments,

Mr Simons said: “When the economy turns around this is an option that we can examine when we are in a more robust financial position to make inward investments and captail investments for the industry.”

He said that The World Trade Organisation had predicted a 3.4 per cent cent growth in tourism in 2015 and so he expected the BTA to grow our tourism market by a similar amount.