Southern Belize Needs Your Help!

[peterbj7]

I believe the problem is that the cruises are arranged such that people can only take excursions arranged by the cruise ship company. Virtually no money is left in the local economy - it all leaves the country with the cruise ship.

And although you're right that more cruise ship visitors doesn't necessarily mean fewer overnight visitors, it does in practice as we have only limited facilities available for visitors of any type, and "attractions" quickly get clogged by cruise ship visitors. Most tour guides don't run trips to popular sites when cruise ships are here, as they know they'll be packed.

 

[Ralph Capeling]

The people who cruise are not the same people who stay overnight. More of one doesn't mean less of the other.

The study done says more of cruise tourism means less of overnight tourism. That is the main conclusion. More cruise tourism means less overnight tourism.
Regards
Ralph

---------- Post added July 24th, 2013 at 03:40 PM ----------

. Most tour guides don't run trips to popular sites when cruise ships are here, as they know they'll be packed.

Peter is absolutely correct. At Splash we send customers to the places the cruise ships favour only on days where the cruise ships are not here.

---------- Post added July 24th, 2013 at 05:00 PM ----------

From Channel 7 News

Changes To Draft Norwegian MOU Still Leaves Head Tax Inequal
posted (July 23, 2013)

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Today Cabinet was scheduled to discuss the Memorandum Of Understanding put forward by Norwegian Cruise Line. According to our sources Cabinet agreed to the broad terms of the agreement from last week, and then the draft MOU was sent to the Solicitor General for review. But, those sources say the MOU that has been sent to us is not the current draft, but an earlier, initial version. The revised draft, they say, has additional safeguards plus the option to increase fees at periodic reviews; it also specifies carrying capacity; and it limits the development concession to the construction of the project, not its operation.As for the head tax – which sees 60% going to Norwegian, under the revised terms the company will still get four of every seven dollars paid per visitor but under the new deal, NICH and PACT would not have to pay a portion of their pennies into dubious funds
But what doesn’t change is clause 21, that the Government is to quote, “process on an expedited basis, the Environmental Impact Assessment Amendment, all permits, licenses, concessions, agreements, exemptions etc, required by Port.” Now, what this says is that no new EIA is to be done, that the Department of the Environment is to satisfy itself with a previous one which had been approved for a resort on the island. And that’s why environment Minister Lisel Alamilla told the media on Friday that her ministry had not done a site visit and has only had minimal technical input.
We’ll keep following the MOU as it gets ready for signing. Everyone in authority we’ve spoken to – including the Prime Minister - has directed us to Minister Godwin Hulse, but he has not responded to our requests for information.

 

[Ralph Capeling]

BTIA Says GOB Playing “Crackhead Economics” With Norwegian Port
posted (July 25, 2013)

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The resource rich and largely unspoiled southern Belize is also the scene for another battleground – that’s the latest one over whether there will be a cruise terminal close to Placencia AT HARVEST CAYE.We’ve been reporting on the terms outlined in a draft memorandum of understanding – which show the usual menu of concessions, tax breaks and a 7 US Dollar head tax that gives 60% back to the Norwegian Cruise Line so that they can recover their investment as quickly as possible.
It’s caused some consternation amongst the overnight tourism interests in the south and today the Belize Tourism Industry Association held a meeting to consolidate their position.
They say there’s been zero consultation on a project that – if approved – could have far reaching impacts on their overnight tourism product.
Herbert Haylock - President, BTIA

"Development in the South needs to be focused as it relates to cruise again in the realm of the master plan, specifically in the area of pocket tourism and not the mega developments that are being proposed at this time."







Stewart Krohn - Chairman, Placencia Chapter

"What introducing mass tourism to the south does is that it fundamentally changes the entire character of the tourism product. Belize invented eco-tourism - that word didn't exist until Belize brought it to the floor and held the first international eco-conference ever. Now what we're doing with mass tourism is really telling the world is that we're not really an eco destination - we are now a mass destination. You can't be both - you can't be all things to all people."






Dennis Garbutt - Chairman, Toledo Chapter

"I do understand that Toledo on a whole needs development and need money driven into that area. However, from the tourism stand point this type of development will not help with the existing tourism infrastructure we have - this will take away from the quality of service that we provide to our guest in the South. I think this is something tricky to look at - yes Toledo needs development but I think if we were to do this we should have done something in a more constructive manner and mass tourism is not the answer for the South - it's not the answer."
Herbert Haylock
"One of the specific things that we need to be clear on is looking at the MOU that we are seeing, you brought that to the public's eye a day or two ago, and we have been looking at a draft of that. Obviously there are some very specific blaring concerns that need to be brought out and that need to be presented - not only publicly but questions need to be asked. Why are these specific guarantees being placed in that MOU."
Stewart Krohn
"Essentially this MOU that Prime Minister Barrow is about the sign is virtually the exact MOU that Said Musa signed 12 years ago. Why on earth after Belize has now become a premier tourism destination - why would you sign the exact same contract with the cruise company that you signed 12 years ago when Belize didn't know anything about cruise ships. Government charges NCL $7.00 usd head tax which in itself is a ridiculously low amount - it should be about $20.00 but you charge them $7.00 and then you give them back $4.00? I defy anyone sitting in that Cabinet room to explain to me why you would give back $4.00 and they still own the port."
Jules Vasquez
"Some critics would say that this is the standard because there are not equal relations with the Cruise ship because of the volume of visitors they deal with - the volume of money they deal with. A small sovereign state cannot engage in an equitable relation with these people - that is how it works. How do you respond to that?"
Stewart Krohn
"I'll make it very easy for you Jules - I won't get into any complicated political argument. Let's say you drive an escalade and you want it washed and you drive down the street and you see your friendly neighborhood 'crack head' with his rag and his bucket - and you go up to him and say 'I want my escalade washed - how much will you charge me?' He says 'ten dollars boss' and I say to the crack head 'no man I won't pay $10.00' and then he says 'ok then $5.00' and I tell him 'I won't pay you $5.00' and then he says 'give me shilling (quarter) then' and then you pay the crack head a shilling. In that economic negotiation is Belize the guy with the Escalade or the guy getting the shilling to was the vehicle? We behave like crack heads - just like there's no reason for the crack head - no economic logic behind him washing your car for $0.25 - there is no economic logic for us giving away the candy store to NCL."
Herbert Haylock
"You are basically getting into a situation where you can earn in excess of $2 billion dollars from just the overnight sector and that's just considering just simply average growth over that particular area. When you look at the cruise sector and the returns that will actually come from the cruise sector and this is real tangible revenue that comes in from the head tax etc. - you are only talking about over a hundred and something million dollars then you begin to see the disparity. The economics of this issue don't add up when you're given such emphasis on a development such as this and not taking into consideration the overnight sector which again is the main stay, as Stewart pointed out - of this industry."
Stewart Krohn
"I think there's been a rush to judgment here and I think somehow maybe the timing was propitious for NCL, maybe they had someone from the inside pushing for them but I would ask the PM and the Cabinet to reconsider and think this thing through because the way it's going we are really going to pay a really high price if this decision is allowed to go through."
The BTIA will be putting out a formal position on the proposed Harvest Caye terminal by next week.

 

[Ralph Capeling]

Government Getting Ready To Sign Norwegian MOU?
posted (July 30, 2013)

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And one of the issues behind that discord might be – what we are told is the imminent signing of the Memorandum of Understanding with Norwegian Cruise Line for a cruise facility on Harvest Caye. Multiple sources suggest that it will be signed possibly this week. The MOU that we’ve seen is an initial copy, and some key provisions have since been revised. One provision that remains is that Norwegian would still get 60% of the 7 US dollar head tax.As we understand it, there was some push-back on it from the BTB Board because that body has not been consulted – and the possibility of a cruise facility on southern Belize runs afoul of the National Tourism Master Plan.
Government’s key man in the negotiation is Godwin Hulse, who heads a cabinet committee on investment. Despite numerous requests for comment, we’ve been unable to get any word out of him for two weeks. But today we caught him at an event, and here’s what he said:…
Hon. Godwin Hulse - Minister of Labor

"We have looked at the project in depth and it was a little unfortunate that there were lots of reports that this is happening and that serves to trump up hysteria. Remember first of all this is called negotiation and when you come into Belize - or being the business man I've been forever - if I can get 50 or 100 years concession I will ask for two then we work down and down until we get it. The whole idea - remember I have said, they had to be some standard by which we analyzed these investments. The standards were that one - the project would be socially and economically acceptable and legally doable so the technical people have looked at that. Two - it had to bring revenue to government - there is no shame in that, the government has to make revenue because there's cost, we have to make at least a dollar and it has to bring foreign exchange because that's what we live by. Three, it has to create meaningful jobs, we have negotiated with them what meaningful jobs are - we don't mean $3.00/hour jobs - we listed the meaningful jobs. Four it has to protect the environment and if possible - enhance it. So we are satisfied that those criteria’s have been met; remember this is an MOU - non legal and non biding - it says 'if you meet these conditions, the government will be prepared to do this'."
Daniel Ortiz
"Okay and you will release that tomorrow?"
Hon. Godwin Hulse
"As soon as the Minister returns and they sign - then we're free to go."
We’ll have more from Hulse later on another newsy subject.

 

[Downing]

So many people are against this and yet it sounds like a done deal.

 

[Ralph Capeling]

[h=2]

Capital NewsPost The Ministry of Tourism & Culture and the Belize Tourism Board wishes to respond to the ill-informed, irresponsible campaign launched by the Belize Tourism Industry Association on today’s Love FM Morning Show against the proposed Cruise Tourism Investment Project in Southern Belize. The Ministry of Tourism & Culture and the Belize Tourism Board would like to state the following facts: The National Sustainable Tourism Master Plan calls for the development of six tourism products, with cruise tourism being one of the six. That the National Sustainable Tourism Master Plan calls for the decentralization of cruise tourism in Belize in an effort to reduce overcrowding, provide better management of our tourism sites, enhance safety and security conditions for cruise visitors and increase local participation within this sub-sector. That the National Sustainable Tourism Master Plan recommends two approaches to achieving sustainable growth in the cruise sector: conventional cruise tourism and pocket cruises. That the National Sustainable Tourism Master Plan establishes that the future economic viability of this sector rests on the ability of the country to provide an onshore cruise port. That this proposed cruise tourism development project in the South will represent an initial US$50,000,000.00 investment in an island destination with a proper berthing facility. That this proposed project will guarantee a minimum of 130 calls per year in the first instance and generate 800-1000 direct jobs. That the cruise ship head tax of US$7.00 will remain the same with a revenue sharing agreement between the relevant parties. That the current average cruise ship passenger expenditure is US$73.00 per person per day and expenditure by the crew accounts for US$103.00 per person per day. That the proposed development will have to abide by all applicable Laws and Regulations of Belize. That the proposed development will not be exempted from either General Sales Tax or Business Tax. That the proposed development will not receive any incentives over or above what is currently being offered under the Fiscal Incentives Act. That a minimum of 75% of the labor force will be Belizean with only 25% of foreign labor within the first five years of the project. Thereafter, a 100% of the labor force is expected to be Belizean. That the proposed development, and all its undertakings, will be subject to a positive outcome of the Amended Environmental Impact Assessment. That no cruise ships currently scheduled to call in Belize City will be diverted to this proposed cruise tourism island destination. That this proposed cruise tourism development project will in effect ensure the distribution of passengers in accordance with the pocket cruise model as outlined in the National Sustainable Tourism Master Plan. The Ministry of Tourism & Culture and the Belize Tourism Board wishes to underscore that the overnight sector continues to be the mainstay of our tourism industry and that cruise tourism is considered incremental business. We wish to further reiterate that the growth in the cruise tourism sector, has not, in any way, impaired the growth or performance of the overnight tourism sector. We call on the BTIA to be respectful of the many tourism stakeholders who currently earn an honest livelihood from the cruise tourism sector. We urge the BTIA to refrain from any further use of exploitative and derogative paraphernalia and campaign messages that are not consistent with its stated vision, mission and guiding principles. It is also important to note that the BTIA is the only National Tourism Association who has not formally endorsed the National Tourism Master Plan to date. The Ministry of Tourism & Culture and the BTB will continue to actively engage key stakeholders in information sessions on this proposed cruise tourism development project.

[/h]



---------- Post added August 2nd, 2013 at 08:47 AM ----------

Norwegian MOU Gets Ready For Inking, But Resistance Mounting
posted (August 1, 2013)

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Today, Prime Minister Dean Barrow confirmed to 7News that a final Memorandum of Understanding will be signed with Norwegian Cruise Line in relation to a Cruise terminal to be built on Harvest Caye, just south of Placencia. Barrow told us that after all the relevant discussions; the Minister of Trade now has the blessing of the Cabinet to sign this agreement with NCL because all the terms in the final draft of the MOU are agreeable – those terms differ somewhat from those we saw in the draft copy. We note that the PM will not be signing the document, as was called for in the original draft. The PM told the Guardian that the MOU is not legally binding.So, it’s now only a matter of when the actual signatures make it onto the document to make it official, meaning that, despite vocal opposition, NCL will get the opportunity to develop Cruise Tourism in Southern Belize.

But with peninsula activists coming up with a slightly off color but visually potent campaign – embodied in this “noh bend down” t-shirt design, we doubt the opposition has been quelled.



---------- Post added August 2nd, 2013 at 09:18 AM ----------

E-mail to members of the Placencia Belize Tour Industry Association president


Dear members of Placencia BTIA:

By this time you may have heard of Cabinet’s decision to green light the project by Norwegian Cruise Line for a cruise port on Harvest Caye, the 70 acre island only three miles south of Placencia Village. Government has approved this project despite the clearly stated objection of our membership as well as that of virtually every other citizen’s group on the peninsula, including tour guides, tour operators, PCSD and the Southern Environmental Association.

The reasons for our opposition to this project are many and well publicized…and we will soon be publishing very clear documents on the subject. For now, however, the major question is what we will do in the face of Government’s disastrous decision.

I would like to assure you that your PBTIA board and our national board—based on previous feedback from you—is fully committed to fighting this project to the fullest extent of our resources. This will include public education and advertising campaigns, international media exposure and political pressure, among other tactics. Our national BTIA president, Herbert Haylock, and I appeared on Love FM/TV Thursday morning to explain our position and future media appearances by us and others are in the works.

To those of you fully committed to a sane and sustainable path to development of our peninsula, southern Belize and tourism in this country, I urge you to stay focused, united and keep the faith. For the time being we ask you to keep the issue on the front burner and apply maximum pressure on those politicians who are disrespecting our industry, our community and our nation. Remember that our opponents are fighting for shillings; we are fighting for our grandchildren.

Sincerely,

Stewart Krohn
Chairman, PBTIA

 

[peterbj7]

So many people are against this and yet it sounds like a done deal.

Money talks.

 

[Ralph Capeling]

PM Says Norwegian Deal "A Balancing Act"
posted (August 2, 2013)

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But, first, we turn to the done-deal between his government and Norwegian Cruise Line to build a port to call on Harvest Caye, just south of Placencia.This decision opens up the South to Cruise Tourism, which as we have shown you, is meeting quite a bit of resistance from overnight tourism interests on the Peninsula.
We'll have more from them shortly, but while we had the opportunity we asked Prime Minister Dean Barrow to explain what the final MOU looked like. Here's how he described it:
Hon. Dean Barrow - Prime Minister of Belize

"We took out the 20-year - the exemption from business taxes. That's been taken out. There is an insistence that after a certain number of years, the head tax will be increased. There is a great insistence on ensuring that the jobs will be had by Belizeans, even as we try to protect our sites against overcrowding. In other words, one provision says, 'You must take 25% or whatever the percentage is, of your passengers to our sites, whether marine or terrestrial, and all those tours must be for Belizeans. But, that percentage requirement has to give way to the fact that you have to check with the managers of those sites, and if they say that they could only take 100 visitors a day, or whatever amount, then you can't take more than 100 or 200. So, in every way, we're trying to ensure that we balance the need for employment, the need for investment, the need for Belizeans getting jobs. At the island itself, spaces must be reserved for Belizean businesses. They must be at a certain level. Only Norwegian Cruise Line ships can use that port, so there can be no diversion from Belize, and not even Norwegian can divert the ships they currently bring to Belize, to go down south. You must bring additional tours; so again, we're trying to protect the people in Belize City, while providing this new opportunity for those in the south. What I resent is people who suggest that this some kind of giveaway or sell-out. Man, it is always a balancing act. When enough foreign investment isn't coming, we're criticized for that. When you try to get the foreign investment, you're criticized for that. The Government is acting with good faith. Everything that is signed or initialed will be put out to the public. There will be no confidentiality, and not secret deals."

 

[chillyinCanada]

As ever, killing the goose that lays the golden eggs.

 

[Ralph Capeling]

BTIA: Harvest Caye Will Wreak Whirlwind Of Wreckage
posted (August 2, 2013)

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On the other side of the Norwegian dispute is the Belize Tourism Industry Association, the BTIA. They've opposed the Norwegian deal for months and the Placencia Chapter headed by Real Estate Developer Stuart Krohn has been particularly vocal.As the MOU came closer to signing, they stepped it up this week with a bawdy "nuh bend down" campaign and a no-holds-barred appearance on the LOVE FM morning show.
That prompted a detailed, 15-point response from the BTB – notable because for months the organization leading Belize's tourism industry had been mute on the pivotal, hot-button issue.
The release talks about the 800 to one thousand jobs that will be created, the 50 million dollar investment and the expected low numbers of cruise visitors – thus minimizing the impact on the Placencia peninsula.
We asked both Tourism Director Laura Esquivel Frampton and CEO Tracey Taegar Panton to amplify their comments today; both said they would call us back, but at news time we were still waiting for those call backs.
Who we did get to speak to were the heads at the BTIA, Herbert Haylock and Stuart Krohn who discussed the claims of job creation and foreign direct investment:
Stuart Krohn - BTIA Placencia

"I Think it's marvelous that Tracey Taegar Panton and Laura Esquivel, after 3 and a half months after we wrote them - and literally begged them to please explain what is going on - that now, when the Government is on the Verge of signing an MOU with Norwegian Cruise Line, now they have mysteriously decided it's time for them to speak."
Jules Vasquez
"How can you argue with 130 calls per year and 800 to 1,000 direct jobs? You don't have to worry about that because you are a property owner, but people need jobs."
Stuart Krohn
"Absolutely, let them list these 800 jobs."
Herbert Haylock - President, B.T.I.A.

"We talked about job creation, and we have a number that has been assigned in this particular list of things here, but exactly what type of jobs are we talking about? Let us look at the specifics of that. Who are we actually going to be giving jobs to, for how long? What type of wages are they going to be getting?"
Jules Vasquez
"There is no reason which would be applied to you all because you have interests to protect - your specific interests - and it's certainly within your right to protect those interests. But the decision makers in the country have a much broader range of interest that they have protect, and they have to protect the most marginalized in society. That's who all these 800 to 1,000 jobs will help, so while you all play the "Chicken Little", in fact, progress will happen and people will get employed."
Stuart Krohn
"But remember, the Government is saying that they can have up to 25% of the jobs filled by foreigners. So, do you think that the 25% are going to be security guards, or do you think the 25% might be all the good paying jobs? But virtually employee - I would say 95% to 99% - at our best hotels are locals. So, what is so special about the cruise industry that they get 25% of their employees as foreigners?"
Herbert Haylock
"We seem to be enamored, and we like what is sexy, in this instance, in terms of these particular types of developments because it's big money. 50 million dollars, again when you begin to look at it from and FDI perspective, that's real money, when you begin to look at what is reported, that FDI has been falling. So, yeah, that's going to give a boost to that particular realm of Government, and going back to your question, that's what they may be looking at. 50 Million dollars is surely a boost, but let us not take it out of the context of what are the real needs developmentally for this country."
Stuart Krohn
"This is a project about jobs alright; it is a project about economic gain, but it's about a few jobs, and a lot of economic gain for a very small number of people, and they don't live in the South. They're right there in Belmopan."
Jules Vasquez
They say that this proposed cruise development project would in effect, ensure the distribution of passengers in accordance with the pocket cruise model as outlined in the Tourism Master Plan."
Stuart Krohn
"You can't take a gallon of water and pour it into a pint bottle, so when they talk about doing some magic, whereby 4,000 cruise ship passengers are somehow the same as 250 in terms of impact, which defies the law of physics. The convoluted kind of reasoning that would make you believe that 4,000 passengers coming off a cruise ship will cause no less damage to the environment than 250 passengers defies the laws of physics, as much as the laws of common sense. And yes, Belize City will eventually be denuded of cruise business. You know it, I know it, and everyone sitting at that office at the BTB knows it."
Herbert Haylock
"Show us the information, the analysis that you've done to demonstrate that economically, Belize gets the better part of this deal in terms of the financial returns. So us that same information socially that Belize is better off with a development such as this in the location. So us environmentally as well that Belize is better off both environmentally, and we don't lose from a cost perspective, in terms of putting this development in place."
The MOU is expected to be signed next week.