The COVID-19 pandemic hasn’t been good for any country’s economy. But in Barbados, a country whose economy is dependent on tourism, the lack of travel is noticeable. But, creative government officials have found a way to make the economic fallout hurt less.
Barbados was quick to act on COVID-19. Immediately, Barbados enacted strict social distancing, mask wearing, and occupancy limit policies. Guests from high risk countries are required to test negative at the airport, and quarantine upon arrival. Government facilities are available for free. Because of these measures, Barbados has only seen 249 confirmed cases as of November, 2020. Since May, all cases have been from visitors to the country, rather than permanent residents.
Though these measures have meant successful disease prevention, the economic situation has suffered. The projected GDP growth for Barbados in 2020 is -5.8%. This is problematic for more than one reason. The Caribbean, including Barbados, is one of the most indebted regions in the world, according to Regis Chapman, head of office of The World Food Programme Barbados. And the lack of tourism is only causing interest to hike.
What is Barbados doing about this impending financial storm? Immigration officials created the Welcome Stamp visa, which allows non-nationals working remotely to do so in Barbados. The idea behind it is that while people do their remote work, they spend rent, grocery, and entertainment money in Barbados, stimulating the economy. The visa fees are $2,000 for an individual, and $3,000 for a family. The visa lasts for 12-months, and applications are processed within a week.
Newcomers must make at least $50,000 a year to apply, and must have their own insurance to access Barbados’s robust healthcare system. The Welcome Stamp visa does not allow non-nationals to seek employment in Barbados; foreigners must have remote employment secured.
This visa has been popular with Americans and Canadians, and saw hundreds of applicants in the first few weeks of its launch. Those who were denied a visa were typically those looking for employment in Barbados.
The aim of the Welcome Stamp visa is to generate revenue that was lost due to lack of tourism and cancelled events. Two major events, the 2020 Crop Over Festival, and National Independence Festival of Creative Arts (NIFCA) were both cancelled to prevent the spread of COVID-19. And though this decision is effective in controlling the virus, it has meant job loss and revenue loss.
Chapman says that food prices have gone up since the wave of job losses. Surveys done by the World Food Programme report that 62% of respondents experienced job loss due to the pandemic, and 73% have noticed an increase in the cost of food items. This causes people to buy cheaper and less desirable products, and decrease the amount of food that they eat.
Though many events are cancelled and tourist activities are limited by COVID-19 guidelines, the Welcome Stamp visa is still expected to help mitigate job and revenue loss. Even by buying groceries and paying rent, visa holders are helping to stimulate the economy. Besides that, there is the hope that in their free time, foreigners will rent chairs on the beach, socially distance at one of Barbados’s world famous rum distilleries, and eat at restaurants that are hurting for tourist business.
COVID-19 has kept tourists away from Barbados. This has been a loss for the country, in terms of revenue and livelihoods. But, just as they acted swiftly to mitigate the risks of the pandemic, the government of Barbados found a way to make up for financial losses. The Welcome Stamp visa is an inventive program that has the potential to make up for tourism losses and restore livelihoods to the island’s residents. As Chapman says: “You’re already working remotely, why not do it in Barbados?”
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