(CMR) After 26 years at CI$1, terminal charges at the Cayman Islands airports are expected to increase to CI$5 per passenger under the Terminal Charges (Validation) Bill, 2023.
The Bill was accepted for a second reading during the sitting of Parliament on Tuesday, 19 September, the commencement of the First Meeting of the 2023-2024 Session.
Minister of Tourism and Ports Kenneth Bryan said the current terminal charges have been in place since October 1997, and it was evident that there needed to be changes to align with present times and to maintain and enhance airport facilities.
The Minister in charge of the airports also pointed out that current terminal charges did not exist in legislation, and this Bill will address this.
Bryan said the Bill is a crucial step towards legalizing and regulating terminal charges and ensuring fairness and transparency in an effort to enhance the aviation industry.
“This Bill seeks to validate the payment and collection of terminal charges between the period commencing 1st October 1997 and ending on the commencement of this Act,” he said.
He said the terminal charge will allow the airports to continue to provide efficient service to passengers.
Opposition leader Roy Taggart said he was happy that an oversight of so many years has been identified and legislation is being implemented to give footing to the collection of terminal charges. However, he questioned the reasoning for the increase to $5 and the ability of passengers to absorb it.
Minister Bryan said while the increase of 400 percent may sound like a significant increase, the increase was a small increase after years of remaining at $1.
He explained that the money would go towards upgrades in technology and safety at the airports. He pointed out that the technology used now is more costly than 1997 when the current fee was implemented.
Bryan further stated that the increase may seem like a significant jump because Cayman has not increased its fee over a long period; however, he said he has been advised that the increase is below the margin and allows Cayman to remain competitive.
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