Increased allocation for tourism sector

“This Budget provides for EC$12.2 million for airlift, an increase of EC$4.2 million over previous years. Of this sum, EC$5 million is expected in private sector contribution.”

This was among announcements from Prime Minister Dr. Keith Mitchell, who is also Minister of Finance, when he presented the 2013 Budget on Tuesday.

The tourism sector is an important sector to the economic development of the country, but in recent years, it has experienced continuous decline in activity, which has mainly been blamed on the global economic downturn. Among the major impact is the pullout of two airlines and a reduction in flights from other carriers.

However, Dr. Mitchell said that since taking up office on February 20, 2013 after winning the February 19 General Elections, his Government has reviewed all the existing airlift agreements and is actively engaging the major airlines to finalise more cost-effective arrangements.

“A central issue in these discussions is finding ways to use more of these airlift subsidies for direct marketing of Grenada. In the meantime, we are pleased to note that American Airlines will commence a five-time weekly service in July and August of this year,” he said.

He gave the assurance that Government is also actively looking for direct airlift arrangement to Continental Europe. The Finance Minister said that unshackling of Grenada’s tourism demands institutional transformation and his Government will be aiming to convert the Grenada Board of Tourism to the Grenada Tourism Authority.


“The sum of EC$3.5 million has been allocated to facilitate the establishment of the Tourism Authority. We anticipate the creation of the Authority will lead to a modern and more effective approach to the management of the Grenada’s tourism business,” he said.

He further disclosed that since coming into office, many investors have approached him with various initiatives and one of the many that will be realised is the establishing of a 70-room five-star property on the famous Grand Anse Beach. He did not disclose the investor behind the project.

By December, two international brand-name companies are expected to be managing properties
in Grenada. Sandals and Radisson are set to commence operations for the 2013 winter season. (LS)