Sunday, September 27 2009

Tobago’s tourism industry, already battered by the global economic downturn, is today under further assault by the sudden upsurge in serious crime and from continuing power cuts in the island’s electricity supply as a result of a damaged submarine cable through which Tobago is supplied power from Trinidad.

Each is potentially harmful to Tobago’s tourism plant but together they project a distinctly uncomfortable image. Although the power cut problem is expected to be of limited duration and should be corrected shortly, nonetheless the negative signal transmitted will be harmful, particularly as the loss of electricity at night can lead to an increase in crime and will affect decisions by prospective tourists as to whether to visit Tobago or not. Because the cuts in the electricity supply take place at night this effectively limits the visitors going out to dinner or taking in live entertainment shows. One local struck the proverbial nail on the head, when he protested: “Every night you have to sit down in the dark with nothing to do. It is horrible.”

The disruption in Tobago’s electricity supply has come on the eve of the start of the 2009/2010 tourist season and at a time when the island has had 12 murders for the year, including four murders in two days and the recent attack on two British visitors. What has aggravated the situation has been the shortage of police officers on the island, a point alluded to on Wednesday night by Tobago-born and resident Independent Senator Annette-Nicholson-Alfred in her contribution to the Budget debate.

While that has occurred, the recent damage done to the submarine cable can be construed as a force majeure event, as it could not have been reasonably foreseen that this would have hindered the Trinidad and Tobago Electricity Commission from fulfilling its contractual obligations, backup steps should be taken. Tobago once had its own power station and electricity supply, independent of Trinidad. Although it has proven more economic, in light of the development of Tobago, for the island to be supplied with electricity via submarine cable from Trinidad, nonetheless the authorities should seriously consider having a standby generating plant set up in Tobago.

Government could, in turn, however, seek to encourage the exploitation of natural gas off the island. Such a move, apart from generating increased State revenue as well as employment opportunities for Tobagonians would facilitate the establishment of a power generating plant in Tobago. A major obstacle, however, to the exploiting of natural gas off Tobago is the depth to which prospective investors would be required to drill.

In the meantime, not only does the disruption of the power supply have the capacity to act as a disincentive to the development of Tobago’s tourism industry, the island’s principal source of income, but it also impacts adversely on the island’s already limited ability to attract even small manufacturing industries. Such industries would need the assurance of a regular supply of electricity as any subsequent interruptions in the power supply as at present would represent a potential loss of earnings, specifically at a time when it is increasingly important for industries to be competitive.

The ongoing international economic downturn and the rise of low cost producer nations, such as China and India, along with the increase, globally, for the dwindling tourist market have heightened the need for Trinidad and Tobago to be even more competitive than in the past. This includes dealing with problems that much faster and more efficiently.