SCHOA to continue retention talks |14 May 2005

The forty plus members of SCHOA are scheduled to meet on Wednesday, May 25, at the Berjaya Beau Vallon Bay Hotel, where current SCHOA Chair Paul Hodoul said discussion would probably again target the amount of foreign currency which the car hire operators are allowed to keep.

Under the recent Tourism Incentives Act (TIA) the car hire operators were given an increased retention rate, but Mr Hodoul said it is still short of the amount needed.
Describing the MERP introduced 10 percent retention rate as "almost inoperable," Mr Hodoul said that the TIA upgrade to 25 percent is better, though still not enough.

"On a car everything is imported," said Mr Hodoul, arguing that losing 75 percent of the foreign exchange that they earn is placing a heavy strain on the car hire operators.

Mr Hodoul, who said that he has not decided whether or not he will stand to lead the association again, pointed to the reduction in car hire trades tax rate to 50 percent as a recent success for the industry, and one that was sorely needed in the face of the impact of the GST (goods and services tax).

Mr Hodoul said that the association's members "suffered a lot" from the 12 percent tax and that he felt the decision to lower the applicable trades tax was, "recognition by government that they weren't doing the right thing."

He said that the trade tax change has allowed some new cars to be imported by the rental companies, describing it as a little step in the right direction.

Mr Hodoul said that the economic situation faced by the SCHOA members had forced some operators to sell off parts of their business or to fold entirely, but that a number of new companies have recently joined the association.

"The more the merrier," said Mr Hodoul, saying that an increase in numbers adds more voices to the association for future negotiations.