Tourism executive: Government must take responsibility before placing further burdens on businesses

ORANJESTAD — An executive in Aruba’s tourism sector has strongly criticised the Tourism 3.0 report recently published by Noticiacla. His main message is that the Government must take responsibility for its own performance before placing further burdens on businesses. The executive’s identity is known to this news outlet, but he prefers to remain anonymous for personal reasons.

"It is not just one tax; it is all the taxes combined,” the executive said. He was referring to the cumulative effect of taxes, minimum wage increases and other costs facing businesses, while, in his assessment, the Government continues to expand its workforce without addressing low productivity and bureaucracy.

The executive cited customs delays, building permits that can take more than a year and unanswered land applications submitted to DIP. According to him, these obstacles complicate investment and access to land. He argued that, without sufficient land available on long lease, those with greater financial resources ultimately have the best opportunities to purchase land.

MORE OVERSIGHT OF VACATION RENTALS

One of his main criticisms concerns a lack of compliance and enforcement, particularly in the vacation rental market. He called for checks on tax obligations and long-lease conditions, especially where land designated exclusively for residential use is being used for commercial activities.

“There is a general lack of compliance in Aruba. That is why everything is getting out of control,” the executive said.

He also questioned how concerns about overtourism align with efforts to attract more flights, including from Argentina and Colombia. According to the executive, flight capacity will increase by 6% during the coming winter season.

SUPPORT FOR HOMEOWNERS AND TENANTS

The executive raised several questions about the proposal to help homeowners with mortgage payments. He pointed out that assistance with interest payments could come on top of the existing mortgage interest tax deduction, while people renting homes at high prices receive no comparable support.

“Why subsidise homeowners twice, through interest assistance and an interest deduction, while tenants pay high rents without a subsidy?” he asked.

On sustainability, he called for greater Government responsibility in wastewater treatment, waste management and its own water and electricity consumption. He proposed charging those connected to wastewater treatment plants and considering a contribution through fuel excise duties linked to road use.

The executive also warned of potentially sharp increases in water and electricity rates if there is no protection against oil price fluctuations. He said this could put further pressure on businesses.

He acknowledged that businesses have a responsibility for their employees’ income and well-being, as well as for the wider community. However, he insisted that the Government must also fulfil its part.

“Create a legal framework, and businesses will comply,” the executive concluded.