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HomeNewsArchivesBUSINESS LEADERS: AIRPORT FEE HIKES WILL BACKFIRE

BUSINESS LEADERS: AIRPORT FEE HIKES WILL BACKFIRE

Jan. 31, 2003 – Calling the move "economically repressive," "a poor course of action" and "a terrible mistake," private sector leaders with a stake in the territory's tourism industry see nothing but trouble ahead from the Port Authority's decision to increase airport landing and passenger fees.
A question being heard in the business community is: If the Port Authority will now make more money on the big jets, how much will it soon make on no jets? As negative public opinion is escalating, so is anxiety about the cutbacks in service which most of the major carriers are vowing to make if the fee increases, which take effect Saturday, remain in place.
Joe Aubain, executive director of the St. Thomas-St. John Chamber of Commerce, commented on Friday: "Can we afford to lose even one flight?" The fee increases send the airline industry the message "that we are not serious about tourism," he said, but "we depend on those flights as much as on the cruise industry, maybe more. It's a terrible mistake at this time; it's a terrible mistake, period."
What really troubles Aubain is the increases coming in the midst of the threat of impending war with Iraq. "Why do we, at this point, make it harder to travel?" he wondered. "We have the good fortune of being an American territory. People will seek the comfort of an American destination now, where they will feel safe to travel, and, after Sept. 11, they want a direct flight."
He continued: "Tourism is our lifeblood; what about those of us who live here? Most jurisdictions are doing their best to lower fees to attract additional carriers. I don't understand why more effort isn't being made to lure carriers."
Frank Fox, St. Croix Chamber of Commerce president, greeted the fee increases in much the same manner as Aubain. "It's terrible, absolutely terrible," he said Friday. "And they misquoted the increase as 25 percent — if it goes from $22 per passenger to $30 per passenger, that's a 36 percent increase." (Port Authority financial adviser Bob C. Arthur had used those figures at Wednesday's board meeting where the increase was approved.)
"I think they are following a poor course of action," Fox continued. "When you see a shortfall coming, the knee-jerk reaction should be to cut expenses by whatever means is required. They should reduce their budget by 36 percent. I think this is the wrong time to do this."
Fox continued: "Look at this scenario. If a war with Iraq brings on a shortfall, they could increase fees again, and then what would follow? They need to cut expenses."
The owner of the largest travel agency on St. Croix is appalled at the increase. Mary Simpson of Southerland Tours said: "You don't lure more landings to the V.I. by upping fees; you increase the Port Authority take by luring more people to fly on those big jets."
In general, Simpson said, "increasing fees is repressive. It discourages commerce — it has the exact opposite effect. Every person in politics knows this; it's Lesson 1."
Simpson said she found it upsetting to read the news about the fees along with the Port Authority board's unveiling of plans for the long-awaited Charlotte Amalie waterfront beautification project. "One thing is obvious," she said. "They don't care what anybody thinks."

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