PRIME MINISTER CHRISTIE CALLS FOR DELAY IN WHTI

UNCLAS NASSAU 001611

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR RCBUDDEN, CA/P DSTAEBEN, CA/PPT FMOSS

E.O. 12958: N/A
TAGS: CPAS PREL ECON BF
SUBJECT: PRIME MINISTER CHRISTIE CALLS FOR DELAY IN WHTI
IMPLEMENTATION

REF: NASSAU 305


1. (U) SUMMARY: Prime Minister Perry Christie called on
Caribbean countries to form a united front in seeking to
postpone implementation of the passport requirement until the
land and sea requirement is implemented in 2009. Addressing
the 29th Caribbean Tourism Conference in Freeport, Christie
said delaying WHTI implementation would allow the rules to be
applied uniformly and create a "level playing field."
Christie suggested that the WHTI would severely impact
"impulse" travelers who come to the region for a quick
weekend getaway, and called for the U.S. to waive current
expediting fees for passport applications. Christie's public
call follows a direct appeal by Foreign Minister Mitchell to
Ambassador Rood for flexibility in implementation. Bahamian
hoteliers regard the newly announced delay in implementation
of the sea travel documentation requirement as giving the
cruise industry an unfair advantage that could have an impact
on their business comparable to a major hurricane. End
Summary.


2. (U) Following the recent announcement of changes to the
Western Hemisphere Travel Initiative (WHTI) that would delay
implementation of documentation requirements for sea (cruise)
travelers, Bahamian government leaders and tourism executives
have been stepping up efforts to delay WHTI implementation
dates. During previous consultations, (reftel) U.S.
officials had provided general assurances that implementation
dates for air and sea travelers would be the same, thus
preventing any competitive disadvantage for Bahamian
hoteliers. When recent legislation emerged from Congress
delaying sea but not air implementation dates until June
2009, Bahamian interests began an aggressive campaign to
challenge this threat to their livelihood. They have lobbied
the Bahamian Government, which has now embraced the issue and
is promoting a coordinated lobbying effort to delay WHTI air
travel deadlines until June 2009.


3. (U) At the opening of the Caribbean Tourism Conference on
October 22, Bahamian Prime Minister Perry Christie urged
tourism officials from the 33 nations represented to forge a
united front to fight WHTI. "Those of us who remain affected
by WHTI must band together and mount a united effort to
persuade the US Department of Homeland Security to extend us
the same consideration given to the cruise lines" said
Christie. He called for delay in implementation of WHTI for
air travel until June 2009, and further called for a US
waiver of fees to expedite passport applications. Christie
suggested that the sea implementation date had been extended
because the cruise industry had been able to lobby more
successfully than Caribbean countries.


4. (U) Prior to Christie's comments, the Caribbean Tourism
Organization (CTO) had been vocal in its opposition to the
new timeline. On October 3, immediately following the
announcement that new passport deadlines would be delayed
until June 2009 for air passengers, the CTO -- led by
Bahamian Vincent Vanderpool-Wallace -- likened WHTI to a
"category six hurricane" for the Caribbean, calling the
potential economic impact "catastrophic" with "nothing
potentially more devastating." CTO also cited a recent study
of the World Travel and Tourism Council that 30 percent of
travelers to The Bahamas - over one million travelers per
year - do not carry a passport. (Post's CBP pre-clearance
staff estimate 15-20 percent without passports.) The study
estimated 188,000 thousand jobs could be lost in the
Caribbean, leading one local politician to call the
initiative "an American layoff of Bahamian workers."


5. (U) Vanderpool-Wallace's concerns have been echoed by the
local business community, including the influential Bahamas
Hotel Association. In public appearances and private
discussion with Post, Association representative Frank Comito
challenged the fairness of the program's favorable treatment
of cruise passengers -- visitors less valuable to the
Bahamian economy than stopover visitors -- over hotel guests.
Vanderpool-Wallace and Comito have both expressed their hope
that an intensive regional lobbying effort could change the
WHTI requirements. Ambassador Rood, the DCM and the Consular
Chief are scheduled to meet with Hotel Association executives
October 27, possibly with CA participation via DVC, to
discuss the issues.


6. (SBU) Other Bahamian government officials have expressed
similar views. Minister of Tourism Obie Wilchcombe called
for the appointment of a lobbyist to better address
legislative concerns in Washington on issues of importance to
the region. Wilchcombe lamented the lack of parity in rules
recently adopted. Minister of Foreign Affairs Fred Mitchell
has privately raised concerns regarding WHTI with Ambassador
Rood, most recently on October 23.


7. (SBU) COMMENT: Prime Minister Christie's decision to
weigh in publicly reflects the serious concern within The
Bahamas about the impact the new WHTI implementation date for
sea passengers could have on the Bahamian economy. He is
under pressure both from the hotel industry and the
opposition FNM, which has accused the government of
neglecting the country's vital interests in the U.S. and
instead attending NAM meetings and opening an Embassy in
Cuba. Prior to the change in the sea implementation date,
the government had reluctantly accepted the January 2007
date. As Christie noted, they now believe the playing field
is no longer level between cruise and long-stay tourism, and
can be expected to press hard for a change that would bring
the implementation dates back in line. With tourism-related
income accounting for over two-thirds of the Bahamian economy
and Bahamian elections just around the corner, WHTI will
remain a top priority for the Government. END COMMENT.
HARDT