“ASK NOT…” PM TUILAEPA & TOURISM MINISTER SALA
By Nanai Taofiga Laveitiga Tuiletufuga
“Ask not what your country can do for you but what you can do for Your Country,” the immortalised quote by the late USA President John Kennedy in his inaugural address on January 20, 1961.
The late US President’s moving appeal resurfaced in Parliament Monday night as the guts of a joint public plea by Prime Minister Tuilaepa Sailele Malielegaoi and Tourism Minister Sala Fata Pinati in that evening prior to the House endorsing the $960 plus million tala budget for Fiscal Year 2020-2021 which starts today July 1st 2020.
The Prime Minister and the STA Minister respective calls for the country’s understanding and universal support was in response Opposition MP Olo Fiti Vaai constant inquiries on the floor demanding an Action Plan by STA to deal with the consequences of the virus.
Addressing issues raised by Parliamentarians during the 2020-2021 Budget debate, Tourism Minister acknowledged that the Sector is one of worse hit since the Measles outbreak and further compounded by the COVID19 pandemic.
Under these treacherous circumstances beyond anyone’s control Sala assured the House that Government has responded to the best of its capabilities to the two uninvited crisis through the two Stimulus Package and the 2020-2021 Budget approved Monday night.
In total, the Stimulus Package with a dollar value of close to $150 million tala is spread across the board providing relief for employees both private and public servants as well as the private sector via cash and in kind assistance.
A handful of features in the two Stimulus Package targeting employees in the Tourism Industry and Tourism Operators include;
• Unemployment Subsidy
o The Ministry of Finance will work in collaboration with the Samoa Chamber of Commerce to distribute monetary compensation for all workers who have been laid off, been put on leave without pay or have had their working hours reduced due to the COVID19.
• Short Term Paid Training for the Hospitality Sector
o The Government will work in close collaboration through the Samoa Tourism Authority with the Australian Pacific Training Coalition (APTC) to provide a 4 week training program on soft and minor skills for the service sector targeting workers in the hospitality sector who have been laid off due to the COVID19. To compensate for travel, food and other expenses each participant will be paid $100 per week of attendance.
• 2% Interest Relief for all Business Loans with Commercial Banks for 3 months
o The Government of Samoa will carry 2% of all interest charged on loan repayments for all business loans with Commercial Banks. This assistance by the Government is put forth on the condition that all 4 Commercial Banks operating within the country would match Government’s assistance as their contribution to the country’s recovery.
• Credit Facility at the DBS for Specific Sectors focused primarily on COVID19 recovery
o Capital Injection from the Government to DBS to extend to specific sectors who were impacted from COVID19.
As one of the worse affected, Sector the Tourism Minister did not mince words in notifying Parliament.
“Tourism revenues is a telling story,” revealed the Minister. “In 2014-2015, STA collected close to $350 million tala in revenues. Fast forward to today, tourism revenues as of March this year is in the $375 million neighbourhood which reflects close to $140 million tala drop compared to total revenues of $514 million tala in the previous fiscal year.”
He said that along with the drop in revenues, hundreds of workers in the industry have also been laid off since the Samoa’s borders were closed. And the same effect is worldwide with the businesses like tourism resorting to drastic decisions to survive.
For Samoa, Sala is calling for the public’s support.
“Now is the time for everyone to help ourselves as government’s does not have the revenue luxury like New Zealand or Australia.”
Supporting his Tourism Minister, Prime Minister Tuilaepa refuted claims that Government is not doing enough at this time of great need for the Tourism Industry.
“These delusional claims does not do justice to the millions of tala worth of cash and in kind relief that Government has initiated,” said the Prime Minister. “At this time, Government needs the support from across the board include the Tourism Industry to survive these trying times.
“Most importantly, accommodation service providers should have been innovative to initiate marketing and sales campaigns to remain competitive,” he added suggesting local tourist as a viable market which needs to be exploited.
“Lower the costs for hotel rooms to attract our local residents and offer competitive package using our national carrier to entice visitors to come to Samoa.
“For all Samoans, now is the time to help ourselves and ask ourselves what we can do for our country and not what the country can do for you,” reiterated the Prime Minister.
Finance Minister Sili Epa Tuioti also notified Parliament that the Government’s Tax Credit Was one of many incentives and concessions exclusively dedicated for the Tourism Industry.
The Tax Credit Scheme was enforced in 2003 under the Income Tax Amendment Act, which allowed hoteliers not to pay taxes but invest in other hotel developments.
“After it was discontinued in 2017, the Tax Credit balance was $142 million tala. Today over 50% or $75 million tala has been utilized by hoteliers for improvement projects leaving a balance of $67 million tala,” explained the Finance Minister.
For the new fiscal year, $12.7 million tala has been approved for the Samoa Tourism Authority;
• $10.5 million for the planned operations of the Authority;
• $2.2 million for Transactions on Behalf of the State.
The STA will also lead the implementation of key development programmes of which the largest is the $1.7million allocated under the assistance of the Government of New Zeeland for the Tourism Growth Development Project.
Parliament is now in recess and will return to work in August after approved the $950 plus million tala fiscal year budget for 2020-2021 which starts today.
