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Travel agents will be `hit' by tax voucher

That fear was expressed yesterday by Meyer Agencies in the wake of the Budget.The company's vice-president Mr. Carl Paiva said agents would face extra costs from supplying vouchers.

unless they receive Government commissions.

That fear was expressed yesterday by Meyer Agencies in the wake of the Budget.

The company's vice-president Mr. Carl Paiva said agents would face extra costs from supplying vouchers.

He also described voucher systems as "clumsy'' and "unacceptable''.

Yesterday's Budget outlined plans to increase departure tax from $15 to a flat $20 per passenger over the age of two years.

Said Finance Minister the Hon. David Saul: "Bermuda residents are inveterate travellers and on average pass through the Airport twice a year, whether it be to do business, to vacation or to shop. Obviously, the international airlines which service Bermuda also make a part of their income and profit from the use of the Airport.

"It is therefore only natural that all who benefit from our Airport be prepared to increase their contribution to the cost of operating that sophisticated facility.'' Dr. Saul said at the same time it was proposed to introduce legislation requiring the tax be paid by a voucher bought from hotels, guest houses or travel agents issuing tickets locally.

This would virtually eliminate the inconvenience experienced by travellers when dealing with this tax at the Airport check-in counter, he said.

He estimated this measure would raise $2.4 million in a full year. Mr. Paiva said Meyer had already a voucher system in place -- but not across-the-board.

Currently, it only related to their "corporate or VIP'' clients.

"Now it is being proposed that it be brought in carte blanche,'' said Mr.

Paiva.

It meant travel agents would have to fork out in advance for books of vouchers.

This would be an unacceptable "cash burden'' for agents, unless they received commissions.

"I know Government gives commissions to hotels, but travel agents do not, which is quite interesting. It has been a bone of contention for quite a while. We will have to do some research to see whether Government now proposes to give us commissions.'' On the proposed increase to $20 Mr. Paiva said: "I can't understand why Government cannot negotiate to have taxes incorporated with airline tickets.'' Bermuda Industrial Union president Mr. Ottiwell Simmons was fiercely critical of such a rise.

It amounted to a 30 percent increase which was "very substantial''.

Many Bermudians who go abroad for shopping trips and medical treatment would be badly affected.

"It is a must for many people to travel and the increase will impact on workers and BIU members.'' Bermuda Hotel Association executive officer Mr. John Harvey said he understood the reasoning behind the increase.

The Island faced many challenges -- such as the Base closures -- and funds were needed to meet them.

President of the Hotel Employers of Bermuda Mr. Roger Borsink also appeared philosophical, while adding any tax increase was not "something we are looking for''.

Mr. Borsink said his hotel -- Marriott's Castle Harbour -- already had a voucher system in place.

This was provided for the benefit of guests.