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Peter Cerda, IATA's regional vice president for the Americas
The trade association for the world's airlines, the International Air Transport Association (IATA) is advising Caribbean governments to cut passenger taxes if they want to be competitive when service is restored.
Peter Cerda, IATA's regional vice president for the Americas, has described travel as being in a free fall and the airline industry as being bare bones due to the impact of COVID-19.
Mr. Cerda said the global airline sector, including carriers in the Caribbean, will need government support to resume any form of service.
Speaking on the Caribbean Tourism Organization's podcast, COVID-19: The Unwanted Visitor, Mr. Cerda warned that the aviation sector will emerge from the crisis with fewer carriers offering leaner services to fewer routes and flying smaller aircraft.
He said regional governments must prepare for this eventuality by taking steps to reduce the cost of air travel by lowering passenger fees and taxation fees.
The IATA executive predicts that in the early stages of the resumption of air travel the people who fly would rather remain close to home.
Mr. Cerda said the Caribbean's proximity to the United States and Canada gives it an advantage in this case, but it can quickly lose this advantage if the countries fail to be prudent and position itself as competitive, especially in terms of medical services and health protocols.
With international travel expected to return to the Caribbean by next month, it is estimated that regional economies could lose US$740 million in Gross Domestic Product and face job cuts if borders remain closed through to the end of June.
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