Barbados Makes Rescue Funds Available to Tourism Sector

The Barbados government unveiled the Tourism Industry Relief Fund stimulus package on Feb. 26. In April, the government will pump an initial $7.5 million into the industry to help it pull through the global economic crisis, according to Tourism Minister Richard Sealy.

The money would be given to companies in Barbados’ main foreign-exchange earning sector, which incurred losses between January and March 2008. Sealy said that the companies would have to give back to the fund eventually.

“When things normalize and profits are back up, then the businesses which received help and are back to a profitable position can deposit money back in the fund. That is what makes this plan different from earlier efforts to revive the sector,” Sealy said.

The government plans to hold discussions with Tourism Development Corp. and other agencies to come up with other mechanisms to replenish the fund.

“This is about relief for the entire sector, so any player in the sector who can provide the necessary documentation can benefit from the fund,” Sealy said.

The required documents include accounting statements and proof of registration with relevant tourism organizations. Businesses receiving assistance will not be allowed to cut staff.

Sealy said the relief fund had become necessary because of a falloff in tourism arrivals, a drop in visitor spending and a decline in the value of the British pound.