ANTIGUA-Pime Minister Browne reiterates call for unity in dealing with cruise liners.

ST. JOHN’S, Antigua, CMC – Antigua and Barbuda Prime Minister, Gaston Browne, is urging Caribbean Community (CARICOM) countries to collaborate to establish a regional minimum head tax in negotiations with cruise lines, warning that the sector is becoming less profitable for regional governments despite rising passenger volumes

“Thirty years ago, CARICOM tried to set a common rate, but two countries broke ranks. This time, we must move together. If we can unite around a minimum of five to 10US dollars per head, our countries and our peoples will finally see a fairer share from cruise tourism,” Browne said.

His remarks follow a World Bank report confirming that the Caribbean generates the lowest revenue globally from cruise tourism, which Prime Minister Browne says Antigua and Barbuda has long fought to change.

He recalled that when Antigua and Barbuda previously pressed for an increase in passenger head taxes, Carnival Cruise Lines responded by diverting ships to other regional destinations, and that some Caribbean countries, rather than supporting the position taken by St. John’s, sought to capitalise on the situation by luring the cruise vessels to their shores.

“Instead of the region collaborating with us, they were mocking us, encouraging Carnival to send ships their way,” Browne said

CARICOM leaders later collectively met with Carnival’s then-chairman, Arnold Donald, to negotiate higher fees. Still, Prime Minister Browne said that despite eloquent appeals from leaders, Donald repeatedly dismissed calls for higher rates, emphasising “volume” over revenue.

Browne said several years on, no additional revenue has been gained regionally and warned that without a united stance, cruise tourism will continue to place a greater strain on infrastructure while delivering minimal financial returns.

“All we will see is more tourists, more burden on infrastructure, and fewer returns,” he said, urging CARICOM to adopt an ordinary minimum head tax.

Currently, many ports charge as little as US$1.50 per passenger, with Prime Minister Browne stating that this figure should rise to at least US$5.00, if not US$10.00, to ensure governments recoup a fair value for decades of public investment in port infrastructure.

Prime Minister Browne noted that Antigua and Barbuda’s experience in financing cruise facilities highlighted that, over the course of three decades, the government had invested US$300 million in cruise infrastructure but earned only US$30 million in returns, resulting in a net loss of US$270 million.

The Nevis Street Pier, financed through a US$22 million loan, saw nearly all passenger head taxes over 20 years diverted to debt servicing. Yet, when Global Ports took ownership, the outstanding balance was US$21.5 million, with less than five percent of the principal repaid.

“Clearly, the cruise sector as currently structured is unsustainable. It requires a recalibration, and Caribbean countries must demand more, Prime Minister Browne said, explaining that such unsatisfactory returns were among the reasons his administration pursued a 30-year lease agreement with Global Ports Holding, which has already invested around US$70 million, with total commitments expected to reach US$85 million.

He said if the government had financed the expansion directly, including dredging and land-side development, the estimated costs would have exceeded US$300 million with little guarantee of returns.