TEF reports 80% drop in revenue from airline fees
Published:Saturday | April 30, 2022 | 12:08 AM
The Tourism Enhancement Fund (TEF) has reported that an 81.3 per cent decline in airline passengers and the closing of cruise lines resulted in a significant plunge in fees collected from airlines for the financial year 2020-2021.
In its annual report for the period ending March 2021, the TEF reported that it collected $1.58 billion in fees from airlines. This was significantly lower than the $7.927 billion pulled in for the fiscal year ending March 2020.
The TEF, a Budget-funded entity, managed its operations with fees from airline passengers which were deposited into the Consolidated Fund.
In 2018, TEF was restructured to operate as a centre for innovation for tourism, with responsibility for strategic and targeted projects that support key activities aimed at realising growth targets.
TEF Executive Director Dr Carey Wallace reported that the agency’s budget was adjusted three times during the fiscal year, “a prime example of the depth of the challenges we faced”.
The TEF’s final budget was $2.96 billion, significantly less than the pre-COVID-19 target of $3.67 billion.
Tourism Minister Edmund Bartlett stated that, in spite of the many challenges, the TEF forged ahead with crucial projects and initiatives across the island to improve the industry’s infrastructure, help diversify the tourism product offerings and create new opportunities for locals to earn.
procurement subcommittee
Meanwhile, for the period under review, the board of directors of the TEF established a procurement subcommittee of the board in February 2021. This came on the heels of a procurement department being approved by the Ministry of Finance and the Public Service and recruitment of personnel for that department.
A public procurement manager was recruited in November 2020. One procurement subcommittee meeting was held in the financial year ending March 31, 2021. The committee is responsible for oversight and monitoring of the procurement processes and procedures operating within the TEF, to ensure compliance with both the Government’s and its own procurement policies.