P 0 Box 65
THE GREADA NEWSLaTTER
For The Week Ending August 1 'th 1977.
FUEL PRICES UP AGAIN
Retail prices of gasoline, kerosene and aiesel oil moved upward
again last Saturday (6th). Prices per imperial gallon are now
}C$2.50 for gasolene, EC$2.15 for kerosene and EC02.34 for diesel
This is the second increase in fuel prices this year. On January
15th, gasolene moved up to EC$2.35 per imperial gallon marking a
570 per gallon rise over the previous 12 months. Also effective
on January 15th, kerosene moved up to EC$2.03 and diesel oil to
EC#2.20, both being per imperial gallon.
The fuel distributors in Grenada are Shell, Texaco end Esso, and
sources close to these distributors told NiWSLETTER today (1ith)
that the prices of gasolene and kerosene are controlled by the
Government of Grenada while the price of diesel oil is regulated
by the distributors themselves on the basis of costs.
These sources said that, sometime in 1976, Government reached
agreement with the distributors as to the scale of price mark-up
which would be used and which was dependent on the world price of
fuel, transportation costs and other charges. When prices were
increased in January, the sources said, the increases wteo not in
accordance with the agreed scale and the distributors were not
Throughout this year, pressure has been brought on Government to
approve another increase and this pressure has been increased einso
April when Government introduced the Foreign Exchange Tax Act 1977.
According to the terms of this Act, there is a 2j tax "on all
transactions involving the purchase of foreign currency", and this
would be applicable to payments by the distributing companies for
NEWSLETTER is advised that the increases now authorised by
Government are considered inadequate by the distributing companies,
and further representations have been made for additional
price increases. ( 300 words)
THE GRENADA NEWSLETTER Week Ending 13.8.77
ITURISM OUTLOOK NOT IFUPAVDURABLE
The average annual payroll for hotels in the CaribLben is over
US$2,000.00 per room higher than the international average.
This was disclosed by Mr Roger Clyne, Manager of Measrs Harris,
Kerr, Forster & Co, tourism consultants, when he addressed the
1st Caribbean Tourism Conference which was held in Venezuela
Mr Clyne said the United States payroll in 1975 was US$4,000.00
per hotel room and the international average was US$5,000.00.
In Mexico is was US$4,200.00, South America US$4,600.00,
aErope US$4,900.00, Africa US$ 3,800.0,the Par East US$3,500.OO
and South Asia US$2,300.00 .
"These are all areas that compete for the international flow of
tourism", said Mr Clyne, "and yet the Caribbean hotel industry
has the distinct competitive disadvantage of operating with a
payroll that amounted to US$7,200.00 per room in 1975."
Mr Clyne said too that, in 1975, Caribbean hotels had a gross
operating profit ratio of only 10.46. The world average in
this connection is 24.4%o while, in Europe, it is 20.7, South
America 23.35o, Mexico 30.5% and in the Middle East 37.1%.
Dealing with occupancy rates, Mr Clyne said the average room
occupancy in the Caribbean had declined from 69% in 1974 to
60/o in 1976. At the same time, the Bermuda occupancy rate
was 759 and in Hawaii, 83V. With average room rates in
Hawaii at US$34.00, total sales per room in 1976 amounted to
US$17,900.00. Average room rate in the Caribbean in 1976
had been US$42.00 and total sales per room, US$18,300.00.
Bermuda had topped both of these with a room rate of US$54.00
and total sales per room of US$28,000.00 .
According to figures quoted by Mr Clyne, Canada spent UB$4.7
million to promote tourism during 1975. During that year,
the Bahamas spent US$2.7 million, Bermuda US$2.2 million,
Jamaica US$2.0 million, Puerto Rico US$1.2 million, Mexico
Uj.4994,000.00, Hawaii US$456,000.00, Curacao US$201,000.00
*;bados US$135,000.00, Trinidad & Tobago US$122,000.00 and
THE GREHADA NEWSLETTER Week ndling 13.8.77
Aruba US113,000.00. The Caribbean Tourism Asooointign spent
"It is clear, therefore," said Mr Clyne, "that substantial
variations exist with respect to Government spending on tourism
promotion. The hotel industry in the Caribbean, hard-pressed
for cash, must therefore budget very carefully promotion
expenditures. Squeezed by rising costs, price-conscious
consumers, increasing competition and aging property, the industry
clearly has to develop a rational policy for the late 1970s."
Mr Clyne said he did not went to suggest, however, that the
outlook is especially unfavourable. He thought the United
States economy is on the upswing, air transportation costs are
down and there are large new potential markets in the US to be
In order to capAtalise on the market potential, Mr Clyne thought
the Caribbean hotel industry should establish a number of
priorities, "principally to do with product maintenance and
improvement, energy efficiency, cost control, total marketing and
CARIBBEAN IMAGh TOO VAUE FOR EUROPEN TOURISTS
One of the facts emerging from discussions at the Caribbean
Tourism Conference held in Venezuela last June is that the
entire Caribbean region is too little known in Europe, even in
those countries which have old historic ties with the region.
European countries cited in this connection were Great Britain,
Holland, France and Spain, and it was felt that, generally
throughout Europe, the image of the Caribbean is too vague.
In a paper delivered to the Conference by Dr Malte BiechoTE, Vioo-
president for Marketing for the Lufthansa Airlines delegates were
told that the mental picture Europeans have of the Caribbean is
that of "a dream-world in a turquoise coloured ocean, with ideal
palm-beachea, continuous sunshine, with romantic dream-islands,
tropic veg-tation and with lively, happy people."
THE GRENADA NEWSLETTER Week Ending 1-.8.77
Dr Bischoff pointed out that, in Europe, the beaches of the
Mediterranean have the same image, are much less expensive,
end can be reached in 2 to 3 hours flying time. Further,
the beaches of Africa and the islands of the Indian and Pacifio
Oceans have much the same image and the Caribbean is not in
any way distinguished from them.
Delegates were told that the European tourist is more sophisticated
than the North American tourist and demands "much more than just
a comfortable hotel-room, a swimming-pool and a reasonable
cuisine." "These tourists want to see much more of the
country", said Dr Bischort, "its landscape, learn about its history
and the population, and even experience something of the living
conditions and habits of the native citizens."
Dr Bischoft expressed the opinion that the Caribbean does not
now meet the expectations of European tourists and he said that
the touristic infrastructure of the region will have to be
improved if a greater share of the European travel market is
to be captured.
NUTMEG PRODUCERS HOLD MEETING
Some 400 nutmeg producers met 4t i&Samoon woae traak lcit 8nday (tbh)
to discuss further action in the matter of the Nutmeg Board issue.
On July 28th, Mr Justice Archibald Nedd gave judgement in favour
of the elected Nutmeg Board whose members contested the
dissolution of that Board by the Governor General on July 4th
1975. Mr Nedd held that the Interim Board appointed by
Government was illegal, but a Stay of Execution has been granted
pending the hearing of an appeal by the Attorney General
against Mr Nedd's judgement.
The meeting on Sunday was called by Mr Fisher Archibald,
Chairman of the "dissolved" elected Nutmeg Board, and a
Resolution was passed that Government should be called upon
"to honour the decision of the High Court and uphold the
.rule of law."
THE GRENADA NEWSLETTER Week Rnding 13.8.77
The Resolution also recommended appointment of "a Steering
Committee of Nutmeg Growers to plan and implement an appropriate
course of action consistent with the decision of the High Court
and the wishes of the majority of nutmeg growers."
Mr Archibald, as President of the Grenada Cooperative Nutmeg
Association, was empowered by the Resolution "to hold area and
national meetings under the terms of the law and with the assistance
of the Steering Committee, for the purpose of electing a Nutmeg
Board for the 1977-78 year."
Commenting on the relative small turn-out at Sunday's meeting,
Mr Archibald told NEWSLETTER today (11th) that permission had
been applied for from the Police to use a public address system
for mobile advertising of the meeting. "The Police did give us
permission", said Mr Archibald, "but that permission reached us so
late as to be absolutely useless."
Mr Archibal said, also, that in granting permission for a public
address system to be used at Sunday's meeting, the Police had
stipulated a two hour limit.
Concerning implementation of the Resolution, Mr Archibald said the
Steering Committee had already been appointed and arrangements
were being made for the holding of Area Meetings. These Area
Meetings would elect delegates to a General Meeting which would,
in turn, elect the Nutmeg Board.
ELECTRICITY SERVICES REPORT SUBMITTED
The Commission appointed to investigate the working of Messrs
Grenada Electricity Services Ltd has handed in its Report.
This three-man Commission, comprising Mr Adrian Date, retired
Judge of the High Court, Mr Joseph Bain, the 4renada Government's
Director of Audit, and Mr Glyn Evens, the Grenada Government's
Electricity Inspector, was appointed on April 7th last and held
its first meeting on May 24th. Five memoranda were submitted
to the Commission, seven persons gave evidence and the Commission
held its last meeting on July 1st.
THE GRENADA NEWSLETTER week ending 13.-771
he Terms of Reference of the Commission were (1) to examine
and investigate all aspects of Grenada Electricity Services
operations, with particular reference to (a) the financial
operations of the Company, (b) an examination of the rate
structure and (c) the location of the seat of administrative
control and its effect on labour relations and costs of
electricity to consumers.
Accompanied by their Secretary, Mr Maudsley James, the
Commissioners handed in their Report on July 26th to Acting
Governor General, Mrs Marie Jo McIntyre.
Grenada Electricity Services Ltd was established on January jet
1961 as a joint venture of the Government of Grenada with the
Commonwealth Development Corporation, the former owning 40.7%
and the latter 59.3b of the share capital.
WORKSHOP FOR MILPLOYER
A workshop for employers in Grenada was organized last week-end
by the Rotary Club of Grenada and a Trinidadian was invited to
conduct the discussions.
This Trinidadian was Mr Cyril Greenidge, Personnel Manager of
the Neal & Massy Group of Companies and, in an exclusive interview
with NEWSLETTER on Monday (8th), Mr Greenidge said that,
throughout the Westindies, more emphasis should be laid by
employers on maintenance of good industrial relations.
Concerning the workshop in Grenada, Mr Greenidge said he had
emphasised to the organizers that the trade unions had to be
involved and, in this regard, Mr Curtis dtewart, Secretary
of the Grenada Trades Union Council, had been one of the
"Let me emphasise, said Mr Greenidge, "that what I have
brought home to the employers is the necessity for the
maintenance of close contact with trade unions.. "he trade
union's point of view must be appreciated if a favourable
industrial climate is to be maintained".
THE GRiRADA NEWSTL'TER Week Ending 13.8.77
Mr Greenidge was pleased with the success of the workshop and was
confident it would contribute to maintaining and improving
Grenada's industrial relations climate.
The following are statistics supplied by LIAT (1974) Ltd covering
the period January to June 1977 :-
Passengers Passengers Freight In Freight Out Mail In Mail Out
moth. In Out (kiloa) (1kiloe) kailn )kilas'
January 2,835 4,674 24,134.6 5,710.6 3,240.0 1,063.8
February 3,622 3,590 5,213.3 1,129.5 1,190.4 1,251.3
March 3,530 4,083 10,018.7 5,434.3 3,592.2 2,017.1
April 3,807 4,245 11,553.5 3,760.7 2,893.3 1,476.6
May 2,751 2,775 7,814.9 2,969.8 **
19,065 22,412 61,985.9 23,681.9 **2% 1ief4 8,770.1
Comparative figures for the first six months of 1976 are :-
January 3,236 4,083 35,921.4 6,251.8 2,618.4 1,177.9
February 3,445 3,641 3,320.2 5,507.4 13,438.1 6,140.5
March 7,166 5,777 18,821.6 2,902.6 6,987.5 6,995.9
April Not Available
May 2,125 2,306 9,175.6 4,231.0 2,499.0 1,230.5
June 2,334 2,571 13,042.0 4,319.5 2,613.1 1,099.2
** NEWSLETTER has been advised that there may be an error in the
figure given for mail inwards in May 1977. This is being 30oc /-
investigated and NWSLETTE1R will carry confirmation or correctioni-
in due course. t0o' f
The S S "Geestland" sailed on August 9th with 22,420 boxes of
bananas weighing 675,906 Ibs. Geest Industries paid 30.079
EG0 per pound making a total of EC$203,305.76. The price paid to
growers by the Greeada Cooperative Banana Society was 14.0 EB~ per
pound on the weight of bananas received at the boxing plants, but
this figure is not yet available. There were 789 boxes of
The weight shipped by the "oeestatar" on August 2nd was 451,827 Ibs
and the amount weighed in at the boxing plants was 463,323 Ibs,
making a difference of 11,496 Ibs between boxing plant weight and
shipped weight. (114 words)
CRUISE LINEl CALLS. ( b T
During the week ending August 6th, there was one cruise liner call
at Grenada. This was the "Cunard Countess" on August 2nd with
684 passenger. (25 word
^ ^X-^-i(25 words)
Alister Hughes 12th August 1977