PLP's Allen claims tourism has suffered years of neglect
Tourism has suffered years of neglect at the hands of a United Bermuda Party Government, Shadow Tourism Minister David Allen claimed yesterday.
Mr. Allen was continuing the debate on the Throne Speech in the House of Assembly and berated Government for its handling of the tourism industry.
"We are debating the Throne Speech at a very interesting time in Bermuda's history. We are at a crossroads in Bermuda's history,'' said Mr. Allen.
He said during the UBP stewardship Bermuda had lost one in five regular visitors and the total number of bed nights -- rooms sold by hotels -- had also declined.
Mr. Allen said Government was now reacting to the malaise with a blind panic, quick fixes and advertisement campaigns which were not working.
He again criticised the `Let Yourself Go' campaign -- in particular the reference to Sin Island -- and said it had not achieved the extra 25,000 visitors this year which the Tourism Minister, David Dodwell, said was his target.
"We cannot afford to give a bumbling Government another year or two to get it right,'' said Mr. Allen.
The Shadow Minister said on one week last month a hotel had just 100 people staying -- an eight percent occupancy.
He said marketing should concentrate on Bermuda's traditional values as well as active sports and eco-tourism. In addition there should be greater concentration on the European market.
Mr. Allen also said he was concerned about visitor safety -- and went on to criticise The Royal Gazette Editor David L. White.
In the House of Assembly, Mr. Allen said Mr. White had written in a newspaper editorial that the PLP was soft on crime.
The Shadow Minister claimed the accusation was untrue and libelous and said Mr. White had sat on the National Alcohol and Drug Agency when he was convicted of drinking and driving.
"The Editor has acted irresponsibly and owes the PLP an apology. This Party has never condoned crime and drugs. I want the people to know that the Editor is playing a political game. He fears the next election and the PLP.'' Recently some international sporting events have lost their sponsors including the Gold Cup, sponsored by Brut Faberge.
Mr. Allen said a PLP Government would boost the Tourism Department's resources to help attract sponsors to large events.
He added that bringing in the Boston-based Monitor Group to discuss tourism was an admission of failure by the Government.
"We in the PLP can do the job and will do the job when we are given the chance.'' Former Premier Sir John Swan said it was important to send clear signals to Bermuda's young people that Government was looking to making the Island a community again.
"I am talking about the bonding together of our ideas, ideals and aspirations so we might realise that there are some fundamental changes that need to take place and they are not economic changes,'' said Sir John.
"We keep sending the wrong signals to our young people and they do not know what values to believe and which direction to go.
"We have got to set an example on the floor of this House if we are to save this Island.'' Sir John said the answer to tourism's crisis lay with improving the lot of people.
"When we make people feel better about Bermuda, only then will we fix tourism.'' Sir John hailed international business, and urged Bermudians to rejoice in its success.
Some Bermudians felt they did not derive any benefit from international business and were not employed in that sector.
But, said Sir John, they should realise the enormous contribution international business made to Government revenues -- bigger than that made by tourism.
Sir John said Bermuda was at a crossroads. And this was more true today than at any other time.
Today Bermudians enjoyed a lot more freedom than yesterday: they were able to travel all over the world and buy luxury goods.
But despite these advantages Bermudians were divided, Sir John continued.
One only had to look each day at The Royal Gazette to witness the seeds of anger in the community.
Bermuda was like a rich family whose members had turned on each other.
And this attitude was being inculcated into the young, said Sir John.
"What we have become is an individualistic-driven society...the danger is that you only see things in your own terms.'' Sir John urged Bermudians to become a more compassionate society, and less arrogant.
Bermuda had to stop assuming tourists would automatically flock to the Island.
"The world has changed and we have to recognise that. We tend to beat up on each other.'' Sir John said he spoke to one man who was already prepared to set up business in the Cayman Islands if Bermuda's economy disintegrated.
He believed such an attitude was "sick'', and provided no platform for Bermuda's continuing success.
Sir John said Bermuda had to move with the changing times.
Many Bermudians believed the only thing they had to do was say "good morning'', and everything would be all right.
But they had to do more than that if they were to give tourists the kind of vacation they wanted.
"I am not saying Bermudians should cease to be polite, but they should follow through with `good morning'.'' Sir John said Bermuda was in danger of becoming like Beirut unless it changed.
Beirut used to be considered the "Geneva of the East'', a tax-free zone with wonderful shops.
"Today it's an absolute shambles. How conditions have changed! Don't think it can't happen here.
"I don't mean we will be bombed, but we will be intellectually bombed out unless we are careful.'' Sir John said Bermudians needed to regroup and rebuild, and stop blaming foreigners for all the problems.
Opposition House Leader Reginald Burrows said Bermuda was at a crossroads in its development.
The return of the land formerly occupied by the US military provided huge opportunities.
The key question was: How are we going to use that land? Picking up Sir John's theme, Mr. Burrows said Bermudians had move with the times, especially in tourism.
They had to realise they were competing against the world and it was necessary to retool.
"The way we used to do things in the past will no longer hold true for our future development.'' Mr. Burrows suggested Government look at the example of Cyprus.
Cyprus had been invaded by Turkey, which occupied the country's tourism area, said Mr. Burrows.
Over the last 20 years Cyprus had to rebuild -- constructing new highways, first-class hotels and an airport. Now Cyprus had a flourishing tourism industry.
"It would not be a bad idea for our Tourism Department to go to Cyprus.'' On a different tack, Mr. Burrows expressed concern at the lack of skilled tradesmen in Bermuda.
He suggested those who produced apprenticeship schemes to help give Bermudians skills should receive tax breaks.
Mr. Burrows went on to attack those who suggested the Progressive Labour Party was soft on drugs and crime.
He said he had long called for Bermuda to tackle its alcohol problem.
"Until we can get to grips with alcohol we will never come to grips with illicit drugs. Our biggest problem is alcohol.'' Mr. Burrows poured scorn on the so-called war on drugs.
"There is no war on drugs. There has never been a war on drugs.'' Mr. Burrows also took a potshot at the public transportation system.
He said Bermuda had a good bus service, but it left a lot to be desired in terms of maintenance.
Finance Minister Grant Gibbons said Bermuda needed a strong economy to meet the challenges of the 21st Century.
Only with a strong economy could the Country fund its education and welfare programmes.
"We are in extraordinarily good economic shape compared to other countries,'' he said.
Dr. Gibbons said the PLP's Throne Speech reply contained old ideas, lots of cliches and little substance.
It outlined what a Government should do -- but did not show how the PLP would pay for all the projects.
Dr. Gibbons said the truth was Government was restricted in what it could do.
"There are limits to what tax and spending can do and what Government can buy.'' It was important to get away from an "entitlement'' attitude.
The way forward was for Government to form alliances and strategic partnerships.
Dr. Gibbons also defended Government's economic planning, saying its Budget forecasts had been remarkably accurate.
He added the PLP's approach of throwing money at problems was very dangerous, and not the answer.
Dr. Gibbons went on to point out Government had already carried out some of things the PLP were pushing for.
For instance, there had been a reduction in payroll tax for hotels during the off-season.
There was also the hotel refurbishment scheme providing incentives for properties.
And there had been a lowering of duty on such items as children's clothes, costume jewellery and china.
Dr. Gibbons chastised the PLP for trying to blame all the ills in Bermuda on Government, while attributing all the successes to "outside forces''.
Dr. Gibbons submitted that international business were looking for Government to achieve their goals cheaper and more effectively not by enlarging the present Governmental set up.
It was not felt that creating another Ministry was the answer but rather the continuing exploration and discussion of ideas through international business and Government working together.
The Opposition had not seemed to have grasped this concept, he said.
Dr. Gibbons added that Government's health insurance programme had been reviewed by a specialist who looked at the elements of reinsurance against catastrophic medical events such as large scale surgery.
A series of studies over the last few years had deemed this necessary, he said.
But it was possible, he continued, that reinsurance of the employee health programme may not be needed.
However Government had done the prudent thing by looking into it, he said.
He said a full scale review of all of Government's risks had also been undertaken and this had discovered that Government could spend less money in this area if it retained more risk.
Dr. Gibbons slammed the Opposition's comment that Government had persistently tried to conceal its intentions in regard to the Base lands.
Since taking over those lands, he said, Government had held large public meetings and created a broad use plan which was made public and debated in the House of Assembly.
Then there was the tendering process and he had even been admonished by the Speaker of the House for speaking on the subject for too long, said Dr.
Gibbons.
Government still intended a balanced approach to developing the area with a recreation base along with the development of tourism and business.
But he had never seen a land use proposal from the PLP, he added.
Dr. Gibbons said concerns that the Proceeds of Crime Bill would discourage businesses from coming to Bermuda because of the necessary internal screening were unfounded.
He said the proposed legislation was important to maintaining Bermuda's integrity in the international business world.
He reassured that it would be discussed with the private sector whose input would be registered.
Dr. Gibbons said it was important to keep in mind that money laundering could not be solved by individual states and Bermuda had to play its part to keep financial institutions clear of its corruption.
Bermuda needed a balanced approach to help maintain the high quality of the financial institutions on the Island and it was important to get the legislation correct.
Bermuda had a strong, prosperous society in place now which was not perfect but enviable, continued Dr. Gibbons.
But he said he would like to correct the impression that the international company sector was not part of the Bermudian economy.
In 1995, international business had spent $527 million in Bermuda and its benefits were widely felt.
He said $100 million was paid in Bermudian salaries, $143 million was spent in professional salaries and $133 million was paid to local companies for things like rents, retail, cleaning services, entertainment and office products.
Then there was over $46 million paid in taxes, duties and levies to Government.
Dr. Gibbons said almost $200 million came into Government revenue from the international business sector once its employees' purchases in the retail sector and other factors were considered.
And this amounted to almost 50 percent of Government's revenue which allowed Government to spend more on education, the Police, health care and other people orientated programmes.
There was also the number of individuals employed by international companies that had to be considered, added Dr. Gibbons, plus other jobs that depended on international business and their expenditure.
Now international business and tourism were working closer together to compliment one another and Government were facilitating this.
And international business continued to find Bermuda a very good place to do business in, he added.
Other parts of the community were also showing signs of growth including the construction sector which was enjoying the number of projects under way and it was expected that this would boost employment and possibly a rise in wages.
The net result of this, he continued, should be a strong recovery in the retail sector and good results overall in economic areas while inflation remained stable.
Bermuda's rating strength as an economy remained higher than Australia and Canada which was extraordinary for a country with few natural resources and this allowed Bermuda to borrow money at a better interest rate than otherwise.
The point he was making, said Dr. Gibbons, was that Bermuda had a very strong economy in place to meet the challenges that would come.
There were areas such as tourism that were not doing well but everyone had to work together to make Bermuda more competitive in that area.
There were some successes with cruise and air arrivals up even though Tourism Minister David Dodwell's goal of 25,000 extra visitors was not met.
Other factors had to be considered such as shorter lengths of stay and the decline in visitor spending when looking at this, he said.
Continued in Monday's newspaper