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Luke Espat adamant ? Min. Mark Espat concerned!

GeneralLuke Espat adamant ? Min. Mark Espat concerned!


The contention over the project reached new heights this week when tourism industry stakeholders staged a two-day forum on the impact of local cruise tourism.


Incidentally, the Belize Cruise Terminal, partly owned by the world-renowned Carnival Corp. and PLC, had planned to begin construction at the Belize Port this month. It reportedly began its geo-technical survey of the site in May, dredging may commence shortly, but construction work is now behind schedule, an investor in the Belize Cruise Terminal, the Southside project, told Amandala tonight. He said that the project is still scheduled for completion in 2006.


Despite recent controversy surrounding the project, Luke Espat, speaking as the head of Port Belize Limited (partner in Belize Cruise Terminal), said that it would still proceed.


While the Prime Minister, Hon. Said Musa, could not be reached for comment on the matter today, Minister of Tourism, Hon. Mark Espat, who said that Cabinet has asked him to renegotiate the contract, pointed out that there were concerns about certain clauses in the agreement that deal with the licensing process for ships to come to Belize, the ability of Government to impose taxes and fees, the cruise tourism policy, the opportunity for Belizean individuals and companies to participate in the project, the timing of the increase in the per head fee charged to tourists (from US$5 to US$7), and guarantees on the minimum number of passengers per year.


?The current language for those areas are not beneficial to Belize,? Minister Espat told us. ?When a destination as reputable and lucrative as Belize ends up paying out instead of receiving benefits, then we have to seriously re-examine our position??


But Luke Espat said that he understood that re-examination to be limited to improving the clarity of the language of the contract, and nothing else. Additionally, he told us that the Prime Minister, whom he last spoke with today, has given him the assurance that the project would proceed.


Amandala sources say that some members of Cabinet have expressed concerns over the agreement to build the cruise terminal, which the Prime Minister signed on behalf of the Government at the end of April.


Minister Mark Espat, who was notably absent from the Carnival project launch, informed us that he has had initial discussions with Carnival, and expressed his hope that they would be long-term partners in Belize?s tourism industry.


For his part, Luke Espat told us tonight that he has an interest in seeing this project succeed, and the plans for the port, which would be contained inside a free zone, are what convinced him that it was worth it to place his bid for the port, when Government sold 96% interest in Port of Belize for $74 million over two years ago to Luke Espat?s company, Belize Ports Limited.


Luke Espat said that he bought into the agreement with the understanding the cruise port and free zone would be realized, and he is insisting that the contract for the cruise port will remain unchanged.


He told us that his agreement with the Tourism Minister was that they would clarify the language of the contract in three specific areas: labor, the number of passengers, and limits on cruise passenger visitation.


Recently, there have been news reports indicating that the project had reached an impasse, because of Carnival?s opposition to Government?s move to tighten regulations that govern the sector.


Luke Espat told us that he does not agree with the ceiling of cruise visitors that is enshrined in the current cruise policy. He said that the 8,000-passenger daily limit is ridiculous, and thinks that the cap should instead be placed on specific tourist sites and removed from the cruise ports.


He claims that the Southside Belize Cruise Terminal would be able to handle up to 20,000 visitors a day, more than double the current cap.


Additionally, he claimed that the project would not only create employment opportunities for upwards of a thousand Belizeans, but would also encourage further investment in Belize, since the project represents one of the largest single investments in our country in recent years.


But the Minister of Tourism this week expressed very strong concerns about the trickle-down effects that the project would have on the public and private sectors of the country, given the present form of the contract.


Hon. Espat said that the cruise lines are already aware that Government plans to increase head tax from US$5 to US$7 on January 1, 2005. Out of that, the Belize Tourism Board, a Government agency, would get US$2. (The contract reportedly gives a four-month break to Carnival.)


Last Friday, the Belize Tourism Industry Association (BTIA) issued a firm statement, in which it decried ?subsidies for the cruise tourism industry at the expense of taxpayers.?


However, Luke Espat claimed that government is not giving away any subsidies; he said that they are getting the same tax perks that the investors in the Philip Goldson International Airport are getting.


The BTIA also charged, ?The negotiations leading up to the Carnival contract were handled without consultation with the BTIA. As a result, the contract may give Carnival the opportunity to plunder Belize at the expense of Belize?s workers and taxpayers.?


Our sources also claim that Government had appeased Royal Caribbean, to ensure that even with the new Belize Cruise Terminal port, Royal Caribbean?s bottom line revenues would remain unaffected.


This resolution reportedly came after Government allegedly breached the exclusive contract Royal Caribbean had bought from the former owners (the Feinstein Group) of the Belize Tourism Village, when the cruise line bought part interest in the village in later 2003. In May, a week after Government signed the Carnival deal, Royal Caribbean threatened to pull its ships from Belize.


Minister Espat told the BHA forum that, ?The overarching fear is that cruise passengers, by the hundreds of thousands, will overrun the popular destinations, diminishing the premium you can charge, destroying the exclusivity of Belize, and after a few good years.?


He noted that the Government is in the process of developing a Cruise Tourism Act, which will be introduced to the House of Representatives at its next sitting, possibly next month.


He informed that Government is also in the process of establishing zoning restrictions for tourist attractions that come under its domain.


Regulation of the cruise tourism has sometimes proved to be a big challenge across the region, and some point to the influence of these big money companies over countries with small economies like Belize. The Minister pointed out in his address that Carnival?s reported annual earnings is US $1.2 billion on sales of US$ 6.7 billion for the year ending November/03, while Belize?s GDP (Gross Domestic Product) is comparatively small, at US$1 billion.


Luke Espat commented that these cruise lines have been in the industry longer than we have, and know what is needed to make the industry work.


We note that the two cruise lines, Royal Caribbean and Carnival, had pledged on-the-ground investments in Belize around the same time. Their apparent fight for one of the region?s newest and hottest destinations has led them to move to establish their foothold in ?the Jewel.? While some believe this is a sign of a long-term alliance with Belize, there are some who are fearful that, if these big powers don?t get their way, they will simply pack up and leave.

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