AmbergrisCaye.com Home Forums Talk Belize Travel Air Fare

Good job Jesse.

Let's get real. The tourism ministry or the BTB or tourists to Belize or residents of Belize can't do anything about high airfares to Belize.

The culprits, plain and simple, are the high costs in Belize or at least the widespread perception of high costs ... for hotels, tours, diving, groceries, etc.

This keeps a lot of people from choosing Belize as a destination, which in turn keeps the number of people flying to Belize lower than to other countries in the region (such as Costa Rica), which in turn keeps airfares high as the airlines do what Belizean businesses have always done -- raise prices to keep margins up instead of lowering prices to attract new customers.

The solution? It starts with tourism businesses in Belize becoming more efficient and more competitive in pricing.

The solution also needs to address ways for the government to get revenue without regressive, consumption-based taxes. Right now, import duties and the GST, both highly regressive, represent more than two-thirds of government revenue. Add taxes on fuel and the fact that government policies often work against competition by creating and supporting monopolies, and the result is prices that are higher than they should be.

That

This is partially correct for San Pedro as margins can be inflated comparative to the mainland and transportation costs. However I'm not sure it's relevant for the whole country though. I think we're a small country with a small population that has to import almost everything it uses and the main form of revenue for the Government is duty on imported items with little to no income tax.

Perhaps to improve and sustain the tourism the gov't could get it's revenues from other sources such as land tax (for non-Belizian citizen owners) and maybe a slightly higer sales/good and services tax instead of duties, landing fees and departure tax. I know some of the people who have built houses and condos at a steal won't like that idea but it may be best for Belize in the long run. I mean to pay $100 or $200 land tax/year is unbelievable compared to the $3000 to $5000/year we pay at home. Who knows maybe there will be some money left over to put into the education system to really get Belize going forward.

Phil, most of the Caribbean islands have to import all of what they use except for maybe food and rum... Antigua even imports water! I'm not sure how Belize is different.

I guess you live some place expensive, but we have 10 acres of land and a nice house and only pay $900.00/yr in taxes (in USA)

Consider yourself lucky........

Very lucky! We live in a subdivision with a standard size lot 3 bedroom backsplit (2200 sq.ft.) with garage and we pay $3500.00/yr. and thats considered a deal! Houses down the street are paying close to 6000. In the US does money from land tax go towards the education system or is that a separate tax?

It does in Idaho

Property taxes do in Massachusetts and some state funding from the lottery system (though that is questionable)