The Executive Committee of the Sister Islands Tourism Association has taken note of the suggested Community Enhancement Fee and would like to offer the following statement:

As a tourism entity, our primary function is to assist our membership with regard to issues that affect their ability to participate at a competitive level in the tourism industry. The proposed tax will no doubt have a detrimental effect on our industry as it is based in large on the expat community, who are the backbone of the Sister Islands tourism industry.

The industry surrounding tourism in the Sister Islands has suffered greatly in the recent past because of the economic downturn as well as the corresponding dramatic increase in the cost of doing business due to increased government fees along with increased costs in food, gas and electricity. In addition to these serious financial considerations, hurricanes Gustav and Paloma devastated Cayman Brac in 2008, the effects of which are not only still reverberating through our community, but can visibly be seen in person four years later. In Little Cayman, tourism is the only industry of significance, without which the community would collapse.

The costs associated with doing business in the Sister Islands have always been significantly greater because of extra shipping charges, port fees, which don’t exist elsewhere as well as food, gas and electricity charges, which are far higher than those incurred by businesses in Grand Cayman. Correspondingly, salaries reflect this higher cost to do business and therefore salaries in the Sister Islands are significantly lower than elsewhere. The proposed tax combined with these factors will certainly be a significant detractor in attracting the qualified staff needed to contribute to the quality tourism product for this industry in the future.

The Miller Commission Report of 2010 concluded that “The Cayman economy and its Government’s revenue are highly dependent on the financial services and tourism industries, and additional levies on either would likely be counterproductive,” and recommended “Do not impose direct taxation.”

It is the hope of the SITA membership that Government will take note of the unique and delicate balance, which allows tourism to be competitive in the Sister Islands.

The expansion of the Cayman Brac airport to allow direct international return flights to the Sister Islands is a step in the right direction; however, other tourism related threats like the post hurricane derelict buildings in Cayman Brac and the Lionfish invasion are yet to be addressed with any significance, both of which have been highlighted to the Tourism Ministry.

We remain committed to working in association with the Cayman Islands Tourism Association, Department of Tourism and the Cayman Islands Government to advise our membership in manors to remain competitive in such a way as to allow for the required growth and advancement of the Sister Islands and the communities within, ensuring the future of this industry.

On behalf of the SITA Executive Committee.

Neil van Niekerk

President