It should be a very interesting Cayman Islands Tourism Association (CITA) General Meeting on Wednesday (9) where Gaming is one of the six issues up for discussion.

The CITA meeting is at Grand Cayman Marriott from 3:00pm to 5:00pm.

Harry Lali, President of CITA, will give the welcome before a presentation by Jane van der Bol, Executive Director of CITA. Pilar Bush, Atwater Ltd., will then introduce and facilitate the following six top tourism issues.

CITA’s Top 6 Tourism Issues (draft)  Marriott Grand Cayman Beach Resort

Wednesday, January 9th, 2013

1. CRUISE BUSINESS a. Desired Outcome The Board of Directors of Cayman Islands Tourism Association [CITA] and their members have long recognized the value cruise tourism brings to both member businesses and the overall economy as well as the significant contribution to government revenue. As such, CITA is dedicated to the following outcomes:

i. Developing new and improving existing relationships with all key Cruise Tourism stakeholders (FCCA, Cruise Lines, CIG, CIG Agencies/Authorities, CITA Membership, local operates and Trade Groups)

ii. The immediate, overall and ongoing enhancement of all guest experiences for cruise visitors to the Cayman Islands with a long term objective of converting 5% per year to stay over visitors.

iii. CIG to urgently prioritize the process ending in the ultimate development of berthing facilities appropriate to the needs of both the Cayman Islands and our Cruise Line customers and in parallel to immediately address the short term Grand Cayman cruise customer experience during the time until such facilities are completed.

b. Assumption of Roles CITA recognizes the role of the many stakeholders that play a part and influence the outcomes of this sector. Such as: i. CITA seek to engage fully in all aspects of the development of key laws, strategies, policies, initiatives and projects relating to the local cruise industry.

ii. CITA membership has a broad base of subject matter experts that can be called upon to assist with key elements of our desired outcomes

iii. Specific to the development of cruise berthing, CITA will offer to advise all stakeholders on the project in order to achieve the appropriate outcome and further specific to the parameters of the cruise berthing RFP, CITA recommends that the scope of works include the immediate improvements needed to improve the cruise experience during the time required to complete the project.

c. Characteristics i. CITA will be included in discussions with relevant stakeholders on topics of importance to the cruise sector (i.e. a member of the CITA Board on the Port Authority Board)

ii. CITA subject matter experts will be utilized or engaged in pertinent discussions on the development of this sector.

iii. CITA membership base will be utilized as a body that can be used for pre-screening of concepts.

iv. Customer service standards for this sector will be benched marked as a matter of urgency and a strategy developed and implemented by the 1st November, 2013.

v. The impact of any development of berthing facilities will included a process that will include the Framework for Fiscal Responsibility, local laws, protection of the environment and with a view of expanding the economic impact on the local business community.

d. What do we do in the meantime… i. The RFP process for the development of berthing facilities should be restarted with the full involved of the Government and Opposition

ii. In conjunction with the relevant stakeholders, immediate steps shall be taken to improve level of customer service for cruise passenger.

iii. CITA will develop a working group to assist with items 1 and 2

iv. CITA membership survey to gauge current views of issues impacting this sector.

v. Update the cruise industry section of the TMP and aligned key strategies and deliverables.

vi. Create a post under the Cayman Islands Port Authority (Cruise Development Manager).

 

 

2. IMMIGRATION a. Desired Outcome: Board of Directors of Cayman Islands Tourism Association (CITA) and their members have and continue to believe in having a transparent immigration process while developing a population growth management strategy, which should include: i. Minimum population size, starting point of 60,000 (2010 Census Population 55,456), and the required annual growth

ii. Review the type of skill sets and expertise required, specifically within our industry & while reviewing our industry quotas

iii. Review the present and projected demographic mix of the population

iv. Immigration polices & procedures should be formatted in a manner in which unique talents, abilities & needs of the Tourism Industry are accounted for, enabling the industry to deliver on a world class product.

 

b. Assumption of Roles: CITA recognizes the role our stakeholders play, engaging in creating a more synergistic collaboration effort between all parties. (Government, CI Immigration and CITA). And as such: i. CITA seeks to be fully engaged in the review and/or development of key laws, strategies, policies, initiatives and projects relating to immigration.

ii. CITA will provide advise/expertise, by our stakeholders, on immigration issues.

 

c. Characteristics: i.CITA will be included as part of immigration boards; example: work permit board, business staffing plan board

ii.CITA membership can be utilized as an incubator for prescreening of new/revised/changed immigration polices & procedures.

iii.CITA members can be advocates; given policies & procedure are deemed to follow our desired outcome of a transparent immigration process while developing a population growth management strategy

 

d. What do we do in the meantime: i. Review the effects of the current immigration law on our industry

ii. Review the current work permit fees & work permit process to achieve a more cost effective & efficient permit process.

iii. Request that decision be taken after a timely review of the Term Limit Review Committee report and after public consultation. (Reference seven points)

iv. Change the practice for business visitor

v. Allow permit holders to have a voice, during the immigration process, permit renewals if deferred or denied

vi. Business with approved Business staffing plans; allow permits to be approved immediately.

vii. Implement an effective and timely plan where outbound airport immigration is removed

 

 

3. COST OF DOING BUSINESS a. Desired Outcome: Annual shortfalls of revenue due to excessive spending by the Government are absorbed by raising import duties & increase in fees with direct impact to our industry. Shortfalls of revenues are punishing the Industry with excessive increases in fees. The goal is to evaluate excessive spending by new projects of the island with excessive tax incentives and evaluate the impact to existing business and the impact of increases in duties and their impact to the industry. Make elected official responsible to operate within the budget and create an annual decrease in fees and eliminate long term incentives for new investors increasing the “ Cost of Doing Business” i. Increases are reflecting the prices on island and make us ever increasingly expensive

ii. Destination competing in a regional market where mass tourism is promoted in “All Inclusive Resorts”.

iii. Restaurants & hotels set cost are 70%, we have no control over these expenses

iv. Electricity, cooking gas, water, rent, food & beverage cost, payroll, pension, licenses building & medical insurance and work permit fees.

v. All these set cost are provided by either monopolies or prices and are heavily regulated with annual increase in import duty. The business operators have no option but to buy locally and support our own economy. As an operator we are forced to pass the cost to our consumers. With ever increasing duties to the cost, the island becomes ever more expensive as a destination.

vi. New licensing fees for commercial boats are too high

 

b. Assumption of Roles: i. CITA representatives to be invited in the annual budget debate and present our industries position and suggest relevant changes to keep our industry competitive in the region.

ii. Establish trade schools to create qualified employees for our industry.

iii. Government assumption to increase duties will increase revenue is not necessarily correct, it can out price itself. Consumers have choices, and may just choose another destination.

 

c. Characteristics i. 5 year freeze on all increases of duties and licenses for the tourism sector

ii. Eliminate import duty on fuel, this will directly impact cost of many main services

iii. Evaluate excessive tax incentives being given to new projects, and evaluate the impact to existing business. Evaluate the impact of increases in duties on the industry.

iv. If these operations are not operated efficiently, to be placed on notice and a new provider of the same service to be invited to make a presentation, to operate within the island

 

d. What do we do in the meantime… i. Evaluate excessive spending by new projects of the island with excessive tax incentives and evaluate the impact to existing business and the impact of increases in duties and their impact to the industry.

ii. Make elected officials responsible to operate within the budget and create an annual decrease in fees and eliminate long term incentives for new investors increasing the “ Cost of Doing Business”

 

 

4. STAYOVER TOURISM/AIRPORT a. Desired Outcome: Airport arrivals are just getting back to their levels achieved before hurricane Ivan. CITA will continue to push for more growth of tourist air arrivals which will allow our businesses to grow and become more profitable. Air arrival growth will be achieved in the following manner.

b. Assumption of Roles: i. Continue to identify and develop new air routes in consultation with the DOT and private sector members.

ii. Use Cayman Airways and other airline partners to make travel easier to and from our source markets

iii. Dallas was a success this past year

 

c. Characteristics: i. Encourage government to work with developers to open up new opportunities

ii. Repair current derelict hotel for room stock growth.

iii. Airlines will want to fly here so long as we have the hotel room stock to bring guests to and increase their load factors.

 

d. What to do in the meantime… i. Continue to work with the CIAA and relevant bodies

ii. Make the visitor’s first and last impression of their stay on island a positive one.

iii. The CIAA has made strides forward in this area by continued airport renovations

iv. Continued airport improvements in the future

 

 

5. GAMING a. Desired Outcome: The Cayman Islands Tourism Association (CITA) recognizes that Gaming is a controversial topic for tourism in the Cayman Islands. The pros and cons of gaming should be carefully weighed before making any such recommendation to the Government. The World Casino Directory website says there are at least 15 island nations with casino gaming. The Cayman Islands have never had legalized gambling, and the development of the country’s tourism product to date has explicitly excluded gaming. i. “For” gaming: 1. Gaming (in the form of a casino) is seen as a method of injecting tourism dollars into the economy.

2. Proponents of gaming argue that it would provide a revenue stream to the government coffers, create new jobs, add another attraction to Cayman, help fund projects, increase construction jobs and attract a wider demographic to the island.

 

ii. “Against” gaming: 1. Gaming has proven to cause increases in crime and other social problems.

2. Gaming may cannibalize revenues from other businesses serving tourists.

3. Gaming would change the tone and character of Cayman’s tourism product. Cayman would be “less differentiated” from other island destinations.

4. Gaming would attract a different type and “caliber” of tourist.

 

b. Assumption of Role: i. If Gaming were to come to Cayman, the CITA recognizes that many stakeholders would be involved.

ii. CITA would want to be involved in the decision-making process of whether or not to introduce gaming, in which island(s), and what form(s) of gaming would be introduced.

iii. CITA would want to be involved in the development of key laws, strategies, policies and initiatives relating to gaming.

 

c. Characteristics: i. If gaming is going to be introduced in Cayman. CITA member(s) would be involved in the planning and creating of the gaming laws and policies of Cayman.

ii. There should be presentations from experts on gaming and planning for introducing gaming.

iii. Each type of gaming (e.g. lottery, games of chance, casino) should have clear laws and regulations on participation of tourists and residents.

iv. There should be laws to protect the locals who cannot afford to gamble, for instance, by charging a high fee to enter a casino (like $100/person entry).

v. Government revenues from gaming should be earmarked for certain projects and fall into the Framework for Fiscal Responsibility, local laws, and protection of the environment.

vi. If gaming is to be introduced it should be done slowly by first implementing the lottery, then games of chance and after review and then casinos.

vii. Government would need to create a gaming oversight department to support and enforce gaming regulations.

 

d. What to do in The Meantime: i. Send out a country wide survey to get the pulse of the people on whether gaming should be allowed in Cayman and if so, in what form(s).

ii. Meet with official gaming planning companies to learn how to set up gaming and how to manage the outcomes, what are the pitfalls to avoid, etc.

iii. Determine the value of gaming financially and economically.

 

 

6. ENVIRONMENT a. Desired Outcome: Assure the biodiversity for future generations of Caymanians whilst simultaneously protecting the environmental tourism product. To achieve this, the National Conservation Law, Marine Parks Expansion, Endangered Species Protection and Lionfish Invasion all need immediate attention. i. The Cayman Islands are at an environmental precipice. Ocean Acidification, Climate Change, Coral Bleaching, Overfishing, Lionfish Invasion, Leachate run-off and emissions are pushing the Caribbean Sea to its limit. These extraneous stressors along with insufficient management resources from Government and apathy on the part of elected politicians perpetuate inadequate legal protection and inadequate enforcement of the laws currently in place. We are all inadvertently contributing to the loss of biodiversity and the most valuable natural resources of the country as well as one of the most needed tourism products.

ii. The Cayman Islands were trendsetters for the environment in the 80’s, however have not focused enough on the growing problem of loss of habitat through over development on land or the loss of coral cover on the reef. Both of these factors severely impact the future of the environmental conditions in Cayman.

 

b. Assumption of Roles: i. CITA’s role is to highlight environmental issues through our membership as it directly affects their future ability to be competitive in the market place. All Tourism sectors are positively affected by sustainable environmental practices which in turn support viable longevity to their businesses.

 

c. Characteristics: i. National Conservation Law: This must be passed. It is the base for all further protection across the board, whether terrestrial or under water. CIG needs to take a strict approach to conservation or openly risk losing what will be lost forever.

ii. Marine Park Expansion: The planned revisions to the park areas and types are supported by CITA and must be implemented. The marine park laws protect the reef from future damage through control in all areas, thereby promoting biodiversity and sustainability for future generations.

iii. Grouper Spawning Aggregation – Areas must permanently be protected. Recovery of the endangered species Nassau Grouper is reduced by only protecting during the spawning season.

iv. Lionfish Management – Population densities of this invasive species are fast approaching the numbers of the Bahamas (considered an ecological disaster by many) and the time to act proactively has passed, leaving us with the only option to manage this growing epidemic long term. Additional management solutions must be implemented immediately to combat this environmental threat on all 3 islands in all reef habitats.

 

d. What do we do in the meantime…

i. Open discussions on applying for World Heritage Site status for the Cayman marine parks. (Bloody Bay and Stingray Sandbar as examples)

ii. Implement a National Recycling Plan.

iii. Solve the Solid Waste Management issues on all 3 islands.

iv. Stimulate Renewable Energy projects for Tourism properties.

v. Findings of the public consultation must be presented and revisions and necessary approvals be made before May 2013 or as soon thereafter as possible.