I would like to voice my support for the stance being taken by the minister of tourism, Ed Bartlett, on behalf of the Government and people of Jamaica. The airline-passenger duty that will soon be levied on travellers from the United Kingdom to destinations like the Caribbean is indeed unfair and represents an example of economic rents being stolen from the people of the region.
While I agree that it is important for society to incorporate the costs of emitting carbon dioxide to the atmosphere, this 'environmental tax', as Bartlett rightly argues, is indeed unfair. Our coastal tourism product is based on the white sand beaches and clear blue waters that attract visitors to our shores. Visitors have a benefit over and above what they might pay for a vacation to Jamaica; this benefit is also called 'consumer surplus'.
Steal consumer surplus
This proposed tax at UK exit points will effectively steal a portion of the consumer surplus or economic benefit associated with a trip to Jamaica. In my opinion, this capture of Jamaica's economic rent by the UK government is unfair and could be considered to be discriminatory. The minister may seek advice as to whether this situation may warrant an official complaint to the World Trade Organisation.
While I would not consider myself a cheerleader of the minister, particularly with respect to his ideas on how the TEF funds are currently used, on this point I have to give him my full support. I hope that other Caribbean governments will see it fit to follow suit.
I am, etc.,
Dr PETER E.T. EDWARDS
pedwards@udel.edu
Marine Scientist and
Environmental Economist