The Falkland Islands Government has today provided details on a range of support schemes designed specifically to mitigate the effects of the global pandemic on tourism businesses, operators and employees over the next twelve months, as well as prepare the sector to take advantage of renewed demand in 2021 and beyond.

(Picture FITB)

Tourism is an increasingly important sector for the Falkland Islands, which saw an 11% increase in cruise tourist arrivals between over the past five years and a 24% increase in land-based tourists between 2016 and 2018. Prior to Covid-19, the sector generated approximately £16 million in annual sales.

The overall package of support has three main components across eleven schemes. The components are:

First, a time extension for existing Covid-19 support schemes for businesses and individuals. This will have an impact across the whole of the Falkland Islands economy, not just the tourism sector. However, there will also be some amendments to the guidance to meet specific needs of businesses and individuals working in the tourism industry.

Second, a domestic tourism incentive programme to help sustain revenues for tourism businesses during the difficult 2020/21 summer season, which will have the added benefit of helping people who live in the Falklands to enjoy what the Islands have to offer.

Third, a range of measures to help the tourism industry prepare to bounce back in 2021/22 and beyond, including small grants and access to deferred loans for eligible businesses; infrastructure improvements; and feasibility studies for longer-term developments and capacity building.

The eleven schemes comprise:

1. Extension of the Business Grant Scheme until 30 September 2021
2. Extension of the Self-Employed Income Supplement Scheme until 30 September 2021
3. Extension of the Job Retention (Furlough) Scheme until 31 March 2021
4. Extension of the Unemployment Subsidy Scheme until 31 March 2021
5. Tourism Recovery Incentive Programme (TRIP)
6. Bounce Back Grant Scheme
7. Deferred Repayment Loan Scheme
8. Leisure visitation feasibility study
9. Business visitation feasibility study
10. Feasibility and scoping study for Cape Pembroke lighthouse
11. Feasibility and scoping study for improving the utility of the pontoons at the public jetty

Government officials have consulted extensively with tourism industry stakeholders during the development of these schemes. Detailed data-gathering and analysis have helped inform a range of measures intended to ensure equity across the sector and to recognise that, due to the complexities of the industry, that there cannot be a ‘one size fits all’ approach.

There has also been significant collaboration with the Falkland Islands Tourist Board, the Falkland Islands Tourism Association and the Falkland Islands Development Corporation, in relation to the design, implementation and financing of these schemes. Together these measures demonstrate the government’s commitment to, and support for, a strong tourism sector across the Falkland Islands.        

MLA Mark Pollard, portfolio lead for tourism, said: “The Islands Plan states that government will ‘work with the industry to ensure the right infrastructure and economic conditions to support growth’ and I think that this suite of new schemes demonstrates that commitment in action. We have worked closely with the industry to ensure that we considered the depth and the breadth of the challenges facing tourism over the next six months and beyond, to not only help the sector to survive, but to thrive once demand for international tourism resumes. I believe that this far-sighted approach will stand us in good stead for the future and that, as a result, the Falkland Islands will secure its position as a preferred tourist destination for anyone intending to travel to this part of the world.”

The following summary provides a general overview of the support schemes. Detailed information on how each will be implemented will be available once all practical considerations have been agreed.

Extension of existing schemes

1. Extension of the Business Grant Scheme until 30 September 2021
2. Extension of the Self-Employed Income Supplement Scheme until 30 September 2021
3. Extension of the Job Retention (Furlough) Scheme until 31 March 2021
4. Extension of the Unemployment Subsidy Scheme until 31 March 2021

Despite the diverse and seasonal nature of the tourist industry, a review of the existing schemes concluded that they were as applicable to the sector as other types of businesses, in that they address identified needs related to loss of liquidity, difficulty paying fixed costs, loss of key employees and loss or reduction in personal income. Collectively the schemes will provide a “safety net” for affected businesses and residents until 31 March 2021 and, in the case of the Business Grant Scheme and the Self Employed Income Supplement Scheme, until 30 September 2021.

After consultation with FITB and FITA, certain amendments to the current guidance will be made in order to make the schemes more responsive to the seasonal nature of the sector. Although the guidance will be amended to ensure greater alignment with the tourism sector, these schemes will remain open for all businesses to the extent that they are affected by the pandemic.

Stimulating domestic tourism

5. Tourism Recovery Incentive Programme (TRIP)

In the absence of international tourism, the Government also wants to encourage tourism operators to stay commercially active over the course of the 2020/21 season. This will not only help to sustain employment levels in the industry, but also to maintain operational capacity for subsequent seasons. The Tourism Recovery Incentive Programme (TRIP) is intended to stimulate domestic demand from 1 October 2020 until 31 March 2021 and will be open to everyone ordinarily resident in the Falkland Islands.

The key elements of the programme are:

• Each adult will be entitled to a digital voucher equivalent to £500, while children over the age of 2 and under the age of 16 will be allocated a digital voucher equivalent to £250
• Each voucher can be spent in a single transaction or across a number of smaller amounts
• Of the £500 voucher allocation:
  • £400 can be spent on registered tourism accommodation or an experience provided by a tourist operator on a 100% redemption basis
  • £100 can be spent on meals and non-alcoholic beverages in a registered tourism-orientated café, restaurant or gift shop on a 50/50 basis – i.e. a meal costing £25 will result in £12.50 being spent using the digital voucher
• Of the £250 voucher allocation:
  • £200 can be spent on registered tourism accommodation or an experience provided by a tourist operator on a 100% redemption basis
  • £50 can be spent on meals and non-alcoholic beverages in a registered tourism-orientated café, restaurant or gift shop on a 50/50 basis – i.e. a meal costing £25 will result in £12.50 being spent using the digital voucher – businesses may choose on which days of the week vouchers apply

• Vouchers will not be transferable and cannot be extended; all vouchers will expire on 31 March 2021
• One return trip on FIGAS or the Concordia Bay, over the course of the season, will be subsidised by 50% of the existing fare for residents. Such a trip would need to be linked to a confirmed booking with a registered accommodation or experience provider. No discount will be available for flightseeing tours
• TRIP administration will be contracted out to a private sector agent through a competitive tender
• FIG will develop and publish a list of criteria for eligible tourism businesses that wish to participate in TRIP in consultation with FITB and FITA; this list will enable the development of a register of participating businesses
• Businesses that meet the criteria and that wish to participate in the Scheme shall apply to FITB to be included on the register and the registration details will be provided to the private sector agent
• The private sector agent will establish a database for individuals to sign up to the TRIP
• FIG will provide verification to the private sector agent that adults and children applying for the TRIP are eligible to register
• An announcement with further detail will be made once the private sector agent has been awarded the TRIP administration contract 

BFSAI personnel are an integral part of the Falkland Islands community and economy. As such, it is recognised that BFSAI personnel also contribute to domestic demand by participating in local tourism, while at the same time adding to their enjoyment of the Islands during their tour of duty.

• Personnel working for BFSAI including service personnel, civil servants, contractors, their employees and dependants will be eligible to apply for a separate BFSAI Tourism Recovery Incentive Programme (BFSAI TRIP) which will be set at £100 for an adult and £50 for a child aged between 2-16 (over the age of two and under the age of 16)
• Vouchers will be redeemable for a tourist experience only as supplied by a registered tour provider
• Eligibility for BFSAI TRIP will be subject to criteria as determined by FIG.

Helping the tourism sector prepare for renewed demand in the 2021/22 season and beyond

The support measures described above will help mitigate the effects of the global pandemic on the 2020/21 tourism season for tourism related businesses and residents in the Falkland Islands who derive a significant proportion of their income from tourism. The measures described below relate to helping prepare the sector as a whole to take advantage of renewed demand in 2021/22 and beyond.

6. Bounce Back Grant Scheme

This direct business support scheme will be available from 1 July 2021 and will be administered by the Falkland Islands Development Corporation. It will offer a grant of up to £3,000 to registered tourism operators who were in business during the 2019/20 season and that have committed to operating in the 2021/22 season.

The grant will help all eligible tourism businesses whose revenues from tourism operations will have decreased by more than 20% over the course of the 2020/21 season. To apply, eligible operators will have to submit a brief description of their anticipated expenditures and budget, describing how they would apply the grant to their business to help them to prepare for the new season. Eligible expenditures include, but are not limited to: training, recruitment costs, public health-related safety measures, insurance, promotion and supplies.

7. Deferred Repayment Loan Scheme

This direct business support scheme will be available from 1 October 2020 and will be administered by the Falkland Islands Development Corporation. It will enable registered tourism accommodation providers to borrow up to £50,000 to improve the quality of their premises and facilities during the 2020/21 season; the loan will have an interest-free, three-year repayment deferral period. This scheme aims to incentivise operators to invest in improvements to their accommodation that will make their tourist offering more attractive, and consequently more competitive, within the international marketplace when demand for services resumes. At the end of the deferral period, borrowers will be required to repay the loan in instalments at a rate of interest and over a repayment term as agreed by the FIDC and the borrower in the loan agreement.

8. Leisure visitation feasibility study

This study is the first in a series of feasibility studies intended to identify and evaluate opportunities within the sector for the development of two major ‘Antarctic Gateway’ facilities. It is a leisure visitation feasibility study to investigate the viability of establishing high-end, world class tourism facilities in the Falkland Islands. The development of this concept will entail a detailed and phased process of discovery, which will also draw on previous work and include stakeholder engagement and consultation activities.

9. Business visitation feasibility study

This study is the second in a series of feasibility studies intended to identify and evaluate opportunities within the sector for the development of two major ‘Antarctic Gateway’ facilities. Working closely with SAERI, this feasibility study will investigate the viability of establishing a dedicated, well-equipped scientific research facility, offering logistics support, that will encourage researchers and scientists to base their projects in the Falkland Islands. The development of this concept will entail a detailed and phased process of discovery.

10. Feasibility and scoping study for Cape Pembroke lighthouse

As a highly visible symbol of the important role that the Falkland Islands has played in maritime history, the Cape Pembroke lighthouse is an integral part of local landscape, however, it is in need of significant restoration. This feasibility study will build upon scoping work already undertaken, to examine not only the potential physical refurbishment of the lighthouse but also the viability of enhanced visitor services, including interpretive and hospitality services at the iconic landmark.

11. Feasibility and scoping study for improving the utility of the pontoons at the public jetty

Owned by the Falkland Islands Tourist Board, the free floating pontoons adjacent to the public jetty were installed as a temporary measure approximately 15 years ago. Since that time, use of the facilities has increased to the point where an evaluation is needed as to potential capacity and safety improvements. A scoping exercise will be undertaken to develop options in relation to improving the utility of the pontoons at the public jetty and this exercise will include discussions with the private sector.

Falkland Islands Tourist Board

The Falkland Islands Tourist Board has also worked alongside the Government to identify ways in which it too could assist with helping position the sector to take advantage of demand in 2021/22 and beyond. To this end the tourist board has reallocated existing budgets and earmarked funds totalling £380,000 as follows:

• An increased level of accommodation grants up to £140,000
• The establishment of special Covid-19 grants aimed at capacity building in the amount of £30,000
• An increased allocation of infrastructure improvement grants in the amount of £25,000
• A new allocation for domestic tourism marketing of £35,000
• Design, supply and installation of a set of publicly accessible tourism projects in the amount of £150,000.

The publicly accessible tourism projects will be identified in consultation with Government and will be aimed at improving the visitor experiences for all travellers to the Islands. The projects are yet to be finalised but could include assets such as interpretive signage, including marine and military interpretive signage, a new ‘Welcome to Stanley’ sign, boardwalk extensions, new viewing platforms, picnic tables and improvements related to enhancing accessibility.