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MPs in clash over departure tax hike

People who use the Airport should pay for it, Tourism Minister the Hon. C.V.And he denounced a claim by an American travel writer this week that at $20 --

People who use the Airport should pay for it, Tourism Minister the Hon. C.V.

(Jim) Woolridge said yesterday.

And he denounced a claim by an American travel writer this week that at $20 -- Bermuda's departure tax is one of the highest in the world.

This was totally untrue, he said.

Other countries, such as the United States which charges $32 a head, have higher departure taxes but these are hidden in the ticket cost.

His remarks came as Tourism figures point to a significant drop in March air arrivals over last year.

Almost 3,000 fewer visitors arrived by air last month compared with March, 1994.

In particular, US visitors from the Northeastern US, including major markets Boston and New York, dropped sharply by 21 percent.

Mr. Woolridge who returned yesterday from a promotional trip to Raleigh, said he would further study the figures before commenting.

But he denied the increased tax was to blame.

After an initial negative reaction, it would be "business as usual'', Mr.

Woolridge said, adding it was needed to shoulder the burden of the cost of operating the Airport.

"I think it is a good system,'' he said. "People who use the Airport should pay for it if Bermuda is to maintain its first class facilities to attract top US airlines.

"It will not discourage the large majority of people from coming.'' But Shadow Tourism Minister Mr. David Allen billed the increase "ill-timed'', adding it fanned the perception Bermuda was over-priced.

"It has been very badly received in the market place,'' he claimed. "The perception is that we're getting pricey.'' Last months figures were the latest in a 15-year downhill trend, he charged.

"This is not the time for a 33 percent increase,'' he said. "It's inflammatory.

"It is something like that that catches peoples' attention.'' Airport surveys indicated visitors resented the added cost to their holidays, he said.

"Government is taxing a decreasing number of visitors,'' Mr. Allen said. It was particularly disturbing, he said, that even a late Easter which normally boosts arrival figures, had made a scant difference to arrivals.

But a press release from the Department of Tourism said March and April should be viewed together because of changes in the dates of Easter holidays and spring vacations.

And although air arrivals from the US, Canada, United Kingdom and Europe were all down last month over last year, 1994's arrivals were up over a third over 1993.

Total arrivals for the year to date are down by 4.5 percent while length of stay remained constant for all air visitors at 6.4 percent.

But total bednights -- an important indicator of visitor spending -- fell by 3.1 percent for the first three months of the year.