Will the law-makers listen to their Advisory Council?

We were recently told that Parliament will be debating and deciding on a National Ordinance to amend the licensing of hotels and by doing so regulate the number of all-inclusive rooms offered on the island.

The ordinance was to be signed by the MinTour, MinJust & MinHealth, and the opening paragraph of the draft explains that the government would like to maintain some kind of “balance” in Aruba’s tourism product mix, so that a good variety of accommodations is available, but not too much of just one kind.

That famous “balance,” is believed to be 40% of hotels offering all inclusive, 60% of hotels offering transient or EP accommodations, and among the transient hotel, just 20% of all packages sold may be all inclusive. Then the MinTour may reassess the situation every five year, and make changes according to his findings.

Basically they explained: “Regulating all-inclusive accommodations and preserving a balanced accommodation mix is necessary and efficient, according to the government, particularly considering Aruba’s great economic dependence on tourism.”

(You know the argument, right? Taxis, bar & restaurants, suffer a reduced level of income if tourists remain in their hotels, for breakfast, lunch & dinner.)

Anyway, you should know that at the same time the law-makers were debating the perfect mix of all inclusive & EP hotels — which the hotels believe is none of their business — they wanted to kill two birds with the same stone, and also in the name of safeguarding the “balance,” set some rules for the “Other Accommodations,” or “Lodging,” the fastest growing segment of hospitality.

Additionally, the law makers recommended that the MinTour charged with tourism affairs should also be involved in the issuing of licenses to hotels and lodgings, not just the MinHealth, as is the practice up till now.

They went on the define “lodging” as an establishment that may accommodate up to 10 people, with or without service against payment; and “hotel” as an establishment that may accommodate ten or more persons, with or without service against payment.

So….if you have a small guest-house, vacation rentals, with a maximum capacity of 10 guests, you’re defined as “lodging.” If you have room for more than 10 guests, you are a “hotel.” With two different license requirements and regulations, yet to de defined.

I read and read and fell asleep trying to finish the suggested documents, three nights in a row.

God bless Raad Van Advies, the Advisory Council.

They sent the Governor of Aruba a nice letter saying not so fast. You did not study sufficiently, you did not prepare, the ordinance you are using is inappropriate, you did not present sufficient evidence for your claims, there is no socio-economic impact study, why is the lack of rules a problem, we think your solutions are not relevant to the challenges on hand, we think you should switch strategies and pursue a “market-oriented” approach that would give tourists what they want rather than offering tourists what you are prepared to give. Why would you be restricting competition? Why would you create an unfriendly environment for foreign investment?

Lodging? Give us more insight on that market, study it a bit longer, and get back to us.

The only remark left is the following: Will the law-makers heed the advice of the council they created for the purpose of giving them well-thought-out advice?!

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April 20, 2016
Rona Coster