The International Air Transport Association (IATA) recently urged stakeholders in the Caribbean to work to maximize the benefits of aviation connectivity.
Approximately half of the tourists who visit the Caribbean arrive via aircraft, making the industry vital to tourism. Airlines also connect Caribbean islands to the mainland when there are natural disasters.
Aviation contributes 14 percent of the Caribbean economy, $35.9 million in gross domestic product, and supports 1.6 million jobs.
“Aviation can do much more if governments work with industry to maximize the value aviation delivers,” Peter Cerda, IATA regional vice president for the Americas, said at Aviation Day Caribbean. “Unfortunately, too many of the region’s governments still see air travel primarily as a luxury for the wealthy – and an easy target for taxation. Making matters worse, these taxes and fees usually are not spent on boosting the efficiency and capacity of the airport and airways infrastructure, but rather to put money into the treasury.”
In 11 Caribbean markets, taxes and charges range from 30 percent to 70 percent of the ticket price.
Barbados recently imposed a tax that adds $35 per ticket for Caribbean residents and $70 per ticket for North American and European residents.
The high cost of operating in the Caribbean also adds to ticket charges.