Encouraging Interest in Antigua and Barbuda.

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Encouraging Interest in Antigua and Barbuda . Local strategies to open worldwide open doors in the tourism segment Corthwright Marshall Ministry of Tourism and Common Flying. Presentation.
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Encouraging Investment in Antigua and Barbuda Domestic arrangements to open worldwide open doors in the tourism segment Corthwright Marshall Ministry of Tourism & Civil Aviation

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Introduction “Foreign direct interest in Antigua and Barbuda has declined from the 1980s to the early piece of the 21st century. As indicated by IMF International Finance Statistics, amid the 1980s, the FDI to GDP proportion came to somewhat more than 10 percent; more than 5 percent in the 1990s; and 5.1 percent in 2000-2002. However, one must consider that the test is to pull in FDI, as well as to utilize the speculation proficiently and towards creating other beneficial divisions. Pulling in private venture will oblige an enhanced speculation atmosphere with better government advancement and help administrations, less government formality, for the most part higher quality administration, a more appealing arrangement of speculation motivating forces and a superior speculation law. Adroitly, the legislature can give all of these”. Antigua and Barbuda: qualities and shortcomings examination of universal exchange intensity. (USAID January 13, 2006)

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Travel and tourism travel and tourism industry is the world’s quickest developing industry and the world’s biggest head honcho tourism is the most essential financial movement in Antigua and Barbuda -utilizing an expected 40 percent of the workforce -represents 85% of outside trade earnings and 70% of GDP -in charge of 52% of aggregate ventures

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the worldwide commercial center is to a great degree focused and Antigua and Barbuda’s piece of the pie is little globalization makes it progressively imperative to get the “investment climate” right Tourism – worldwide commercial center.:

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Gross Investment crosswise over Caricom- 1985 - 2003

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Tourism FDI inflows, 1998 - 2002

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GDP development and Gross Investment-to-GDP Ratios, 1995-2004

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FDI to GDP Ratios, 1980-2002

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Investment and Growth, 1990-2003

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Investment patterns in the Caribbean

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What is the “investment climate”? “the arrangement, institutional, and behavioral environment, both present and expected, that impacts the profits and dangers connected with investment” (Stern 2002) three expansive arrangements of elements that make up the speculation atmosphere include: • large scale basics — macroeconomic steadiness, monetary openness, aggressive markets, social and political dependability • administration and organizations —transparency and effectiveness in regulation, levy, and the legitimate framework; an in number and well-working money related area; work market adaptability; a talented work power • base —transportation (streets and ports), information transfers, influence and water supply

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Investment atmosphere

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Tourism venture atmosphere

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Ratings of the Investment Climate in the Caribbean

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the part of Government is to make the empowering environment that sets up an alluring atmosphere for speculation this identifies with all parts of working together, running from regulations representing the foundation of organizations to the straightforwardness with which benefits can be repatriated Facilitative environment – part of the Government

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Tourism related enactment Hotels Aid Act Income Tax Act Income Tax Amendment Act 2003 Cricket World Cup Projects (Incentives) Act 2005 Additional Incentives

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Hotels Aid Act stipends exclusion from traditions obligations on all imports of building materials, hardware, gear, and furniture for the development or augmentation of inns. An expansion as a rule must be at least ten rooms to qualify Drawback on the buy of merchandise in Antigua and Barbuda or the exportation of building materials and articles of inn gear

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Income Tax Act concedes an expense occasion of five years to an inn extra right to discount against resulting benefits 20 percent for each annum of the capital expense of the inn over any five of the eight years taking after the duty occasion period

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Income Tax Amendment Act permit as per Hotels Aid Act exception from installment of corporate salary charge Construction of new lodging minimum of 100 rooms – 25 years augmentation of existing inn 30 – 49 rooms – 7 years 50 – 99 rooms – 15 years 100 or more bedrooms -25 years exclusion produces results from the year of evaluation beside the year in which the consummation or expansion of the inn is accounted for, in composing, to the Commissioner

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Cricket World Cup Projects (Incentives) Act 2005 a corporate wage assessment occasion for a period taking into account the quantity of spaces for the occasion alleviation on stamp obligations, property charges and non-native landholding permitting charges in light of the aggregate number of spaces for the occasion a rate assessment credit for monetary organizations in light of the measure of venture waiver of traditions obligation and utilization charge on the imports of building materials, hardware, machines, and vehicles utilized for the occasion the privilege to repatriate every single capital royaltie, profits and benefit free of all duties

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72 new undertakings more or less EC$203 million greater part mainly possessed more than 1000 rooms Cricket World Cup Projects (Incentives) Act 2005

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Additional motivating forces an ensured number of work grants are accommodated remote nationals gain land property, subject to the procurement of a permit, as set out in the Non-Citizens Land Holding Regulations Act exclusion from withholding assessments on premium installments prepared repatriation of capital and benefits exchange alliance enrollments include: Caricom, Lome Convention, CBI, and EU-Caribbean Economic Partnership Agreement

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government’s uplifting state of mind and ability to allow motivators general area of the nation, with expanded coastlines and safe harbors common harbors can possibly pull in top of the line tourism in yachting Investment atmosphere: Key variables for speculators - qualities

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inspirational mentality of neighborhood persons and organizations steady, vote based government steady and solid local cash great universal interchanges vicinity to the U.S.A Investment atmosphere: Key components for financial specialists - qualities

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entrenched nearby and outside private division focused with different nations overall national dialect (English) “Antigua and Barbuda” is a brand name known in tourism around the globe Investment atmosphere: Key elements for speculators - qualities

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a great pool of talented money related and administrative experts instructed and dependable workforce government-private segment dialog No critical hindrances to exchange tourism administrations Designation under the CBI, Canada’s Caricom Program, EU EAP, and so forth. Venture atmosphere: Key variables for financial specialists - qualities

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social and legacy tourism marine and journey tourism Accommodation area cooking tourism agro-tourism Investment atmosphere: Key elements for speculators - opportunities

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therapeutic tourism sports tourism religious tourism curios and workmanship generation other tourism related administrations Investment atmosphere: Key elements for financial specialists - opportunities

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frail physical base high expenses of working together Absence of area utilization approach Government formality Customs and exchange regulations Investment atmosphere: Key elements for financial specialists - shortcomings

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wrongdoing and instability expanding rivalry from destinations offering better esteem for cash -Cuba and Dominican Republic in the Caribbean -India in Asia Investment atmosphere: Key components for speculators - dangers

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Investment goals to establishment venture impetuses upheld by effective empowering systems ensuring that Antigua and Barbuda’s tourism division turns into an energizing, danger lessened speculation open door for universal and local speculators alike To keep up quality items and also extending the monetary effect of the part To make a prominent picture of the nation to urge existing properties to grow and climb the worth chain, thus raise the destination\'s picture

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TAX CONCESSIONS - avocation! a focal segment of the improvement methodology ordinary in created and in addition creating nations defended against the background of expanded rivalry in the tourism business sector and the reported risk by firms that they would leave generally conceded to elevate venture or to accomplish characterized social destinations allowed to recently settled endeavors as well as to entrenched firms

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Efficacy and expense adequacy of concessions assessment concessions are not among the key determinants of speculation duty concessions were not even in the main 15 of the 40 territories that organizations considered basic for their ventures (see FIAS, 2004; and World Bank, 2005) key determinants of speculation -information transfers -power supply -political strength -a great state of mind towards FDI -work profitability

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Revenue Costs of Concessions Revenue sworn off from Import Related Taxes may have surpassed 8 percent of GDP in 2003

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Revenue Costs of Concessions, 1991 - 2003 - Customs income misfortunes

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Revenue Costs of Concessions - Corporate salary charge (CIT) occasions Revenue renounced from CIT occasions surpassed 5 percent of GDP in 2003

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Friendly facilitative environment for speculation Policy structure -Tourism Master Plan -Antigua and Barbuda Tourism Strategic Policy and

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