Airline, cruise fees boost TEF earnings
Published:Saturday | November 25, 2023 | 12:06 AMJanet Silvera/Senior Gleaner Writer
WESTERN BUREAU:
The Tourism Enhancement Fund (TEF) recorded a robust 13.54 per cent growth in inflows.
As of the current fiscal year, Tourism Minister Edmund Bartlett says that the TEF has collected J$5.6 billion, a significant increase compared to the similar period last year and a 15.68 per cent rise from the corresponding period in 2019.
These funds, generated through a US$20 fee for incoming airline passengers and a US$2 fee for cruise passengers, directly contribute to the Consolidated Fund.
Projections for the full fiscal year (April 2023 to March 2024) are equally promising, said Bartlett, noting that the TEF is estimating a total collection of approximately J$9.3 billion.
“This signals a robust 14.98 per cent increase over the last financial year and a substantial 14.89 per cent rise compared to 2019, showcasing the fund’s record-breaking trajectory,” said the minister.
Expressing optimism, Bartlett added: “The TEF is on a record path for this fiscal year and is now projected to bring $9.3 billion to our revenue, which is $1.2 billion more than the last fiscal year. That represents almost 15 per cent more than our best year, 2019.”
Twenty-nineteen was Jamaica’s best year in tourism.
The news aligns with the recent economic report from the Planning Institute of Jamaica (PIOJ), which revealed a 1.9 per cent growth in the economy during the July-September 2023 quarter compared to the similar period last year.
The hotel and restaurants industry experienced an eight per cent real value-added growth during this quarter.
The tourism industry continues to flourish with increased foreign national arrivals. Stopover visitor arrivals surged by 5.5 per cent to 682,586 visitors during the mentioned quarter, contributing to the 10th consecutive quarter of growth.
Cruise passenger arrivals saw a decline of 20.5 per cent, totalling an estimated 178,412 visitors compared to the corresponding quarter in 2022.
Dr Carey Wallace, executive director of the TEF, stated: “The continued growth in our collections is a testament to the resilience and appeal of Jamaica as a premier tourist destination. The funds generated will contribute significantly to the ongoing development and enhancement of our tourism sector and Jamaica in general.”
Established under the TEF Act, the fund derives its revenue primarily from the Tourism Enhancement Fee, set at US$20 for incoming airline passengers and US$2 for cruise passengers.
The TEF transitioned from a self-financing entity to a budget-funded entity in 2017, resulting in changes to the financial reporting framework. The fund not only collects fees for all chargeable passengers but also ensures they are paid directly to the Consolidated Fund.
Managed funding supports various tourism projects aimed at enhancing Jamaica’s tourism sector, emphasising the country’s position as a global tourism hub.