Page 14 - ARUBA TODAY

A14 LOCAL
Monday 10 June 2019
Restaurant Study Impact:

Pressure points increase challenges within the business

ORANJESTAD — Aruba Gastronomic
Association (AGA) was launched in 1993
and one of its founding members, Mr.
Eduardo Ellis, will soon be honored during
the launch of their new web-site. The
association has close to 60 members and
is still growing. Besides the objectives of
marketing the restaurants, their mission is
to be the voice of the Food and Beverage
industry in Aruba. Recently the University
of Aruba (UOA) conducted an Economic
Impact Study for the association. easy business one will get rich soon. To This leaves still space for that the tax is included in
which we answer: Wrong! We see many accounting and legal fees the invoice, subject to a
Why an Economic Impact Study? Before F&B outlets open and close in Aruba and and reaching over the 90% fine. It is so inconsiderate
the outcome the economic impact the truth of the matter is that one needs cost line is not too hard. of the industry…..
of the F&B scene in Aruba was just a savings for back up for at least the first two As one can see, margins and is commerce not
guessing game. AGA estimated 500 years. Profit margins are small, and cost of are consequently small the backbone of our
establishments, 500 million florins in sales, business is high. In a nutshell: and most operators do well economy, AGA wonders?
and 5000 employees. With ‘One Happy An F&B business will typically encounter as 6 months a year and have Consequently, AGA
Island’ and us catering those seeking a general rule of thumb: to make ends meet for the does not ask for another
One Happy Island, it is the F&B operators F&B Cost 35% other 6 months, says AGA. extension they were
that do not always experience this Happy Cost of labor 35% While most folks focus on granted until July 1st,
Island phenomena. There are several Rent and Utilities/ Gas 12% the food and beverage they simply ask for the
myths about their industry and they would Advertising 4% products, utilities, fiscal idea of the inclusion be
like to address just one: This is a fun filled Administrative and Other 6% and other obligations abandoned until the next
and rent do affect our fiscal phase is announced
business and many times and hopefully the private
reason a business closes sector will be part or
at the end of the day. We involved in this discussion.
consequently fear that not The current idea of the
all operations in this study inclusion is unpractical,
pay their fair share. Aruba is in- transparent and seems
considered expensive and to have been designed
we are! In a meeting with by those not having a
the Minister of Finances it business. Several letters
was mentioned that Aruba implicating the negative
is only the number 12th most consequences have been
expensive island among sent to the Government
19 Caribbean neighbors. and a response was
However other sources like labeled valid by the
the Travel Index bring us to PM….and a commitment
number 6 and close to 4 followed by the PM in
according to AGA. Parliament towards the
private sector that a
Outcome of Study postponement would be
The industry’s costs this coupled to fiscal phase 2 in
past year increased and July or another period. “We
partially was passed on to kindly urge the Minister of
the consumer due to: Finances to comply with
Government taxes (BBO) the PM commitment as
increased from 3.5% to 6% many small businesses will
and as of July 1st, 2019 will either not comply or will
have to be included in the not be able to comply
price which again will be at with this unnecessary
a cost in re-printing menus. administrative burden that
For some restaurants re- is not generating more tax
printing on average that income but comes as a
is about Afl. 4000 and the cost to the private sector in
sad part: when the BBO money and time.”
is replaced for whatever
tax, menus have to be re- Plastic bags were banned
printed again. Perception (good idea) but the cost for
of having increased the other bags was eight times
prices without a doubt the cost of the plastic bags
will affect the average and replacing foam boxes
checks. AGA still does not and straws (good idea) will
understand the reasoning again be passed on to the
or the lack of transparency consumer or absorbed by
in including the tax in the the operator.
price as we are even not
allowed to make mention Continued on Page 15