Try the visa tax

RECENTLY, ST Maarten, a tiny Dutch dependency, imposed visa restrictions on Jamaicans going to that country. This follows similar actions of three British dependencies, the Cayman Islands, Turks and Caicos and the British Virgin Islands. These visa requirements are seen as an affront to Jamaicans, but it is important to perceive the said visa requirements as revenue measures, and the quicker Jamaica joins the band wagon, the better. And, as we undergo another Budget Debate, it is good to consider this proposal that I made two years ago in an article titled 'An Alternative to the Gas Tax' (April 2009).

I had warned, then, of the dangers of the gas tax and stated, "A gas tax is pressuring overburdened Jamaicans, most of whom are facing a wage freeze, or who got increases that were way below the inflation rate. An increase in gas tax would have adverse ripple effects throughout the economy. Furthermore, my understanding of the oil futures market is that by June 2009, a barrel of oil will increase to US$60."

Since then, gas has almost doubled in price and many groups have, belatedly, seen the dangers of the gas tax and the Government has effected a decrease in this tax. Since then, the economy has had eight consecutive quarters of negative growth; the number of persons living below the poverty line has reached approximately 20 per cent; about 70,000 Jamaicans have been laid off. It is possible that it is the gas tax along with increases in other taxes that has stifled this economy. Perhaps we should analyse why other Latin American and Caribbean countries have experienced economic growth and we have not. Part of the story would show that our energy costs are too high relative to other inputs.

revenue

It is unrealistic to expect to garner more taxes, in a declining economy, from ordinary Jamaicans. The Government has agreed that the people are overtaxed, therefore, we must cut expenditures or get the taxes from outside, or borrow the money.

Therefore, we need to increase the nation's income from tourists and members of the diaspora. In 2009, Delta Airlines, the largest airline in the world, instituted a US$50 charge on the second luggage for international travellers, not domestic travellers. We need to institute a Jamaican visa for non-Caricom residents. Other countries make billions of dollars from issuing visas and the revenue earned far exceeds administrative costs.

This is not a novel idea. The United States, United Kingdom and Canada have made it mandatory for Jamaicans to obtain visas before we can enter their countries. Even Jamaicans who fought as soldiers beside the British in World War have to get visas to visit Britain.

Furthermore, during the Cricket World Cup in the West Indies, we introduced a CARICOM visa and it did not have an adverse effect on visitor arrivals, and there was no bureaucratic bundling.

There are persons who will claim that requiring a visa will be a disincentive to foreigners. However, a similar warning was issued when the Tourism Enhancement Fund (TEF) was levied on visitors. The TEF has helped the Government coffers, and tourist arrivals have increased.

It is possible to charge a net of US$100 for a five-year Jamaican visa. And, since 1.2 million visitors arrive in Jamaica annually, it means that Jamaica could earn US$120 million or $10 billion. This can become operational in six months. The visas could be granted online. And, even if a person lands in the country without a Jamaican visa, it could be purchased at the immigration desk.

Unfortunately, so far, neither the Government nor the Opposition will even examine the idea.

Let us try this visa tax.

Devon Dick is pastor of the Boulevard Baptist Church in St Andrew. Send comments to columns@gleanerjm.com.