Inaugural landing
KRALENDIJK--Tourism Corporation Bonaire (TCB) is facing some scrutiny after it was revealed that the organisation made financial promises to airlines to attract new routes to the island – without first having secured funding to back those deals.
According to reports, in 2023 TCB entered into extensive agreements with multiple carriers, offering to compensate for any underperformance in passenger revenue. As it operates under the direct authority of the public entity Bonaire OLB, any financial fallout from these arrangements ultimately becomes the responsibility of government.
The most costly case involves American budget airline JetBlue. Bonaire currently faces a US $4.1 million liability stemming from that deal alone, while projections suggest that the damage could rise to $12.3 million over the course of this year and the next. The Executive Council of Bonaire is now reportedly trying to negotiate an early termination of the agreement with JetBlue to avoid paying the remaining $8.2 million.
While it’s not uncommon for destinations with many vacant hotel rooms to entice airlines with so-called “seat guarantees”, the financial risk involved makes the method controversial – especially when such promises are made without budgetary oversight or legislative approval.
The alarm has also been raised by the Committee for Financial Supervision CFT. In a meeting on June 24, with the Executive Council, chairperson Lidewijde Ongering expressed deep concern over the island’s participation policy, citing TCB’s “unfunded commitments” as a clear example of mismanagement.
JetBlue currently operates two weekly round-trip flights between New York and Flamingo Airport, offering fares as low as US $198 – roughly half the price of competing carriers. When the inaugural flight landed on November 5, 2023, it was celebrated with great fanfare. Then TCB director Miles Mercera called it “an important milestone for us”.
It remains unclear whether Clark Abraham, Bonaire’s current Commissioner for Tourism and Finance, was aware of the implications of this agreement when he participated in a promotional video celebrating the launch of the route that has since turned out to be quite expensive.
As the island attempts to mitigate the potential financial blow, questions are growing louder about oversight, accountability and the risks of chasing tourism growth at any cost.
https://www.thedailyherald.sx/islands/deal-with-jetblue-could-cost-bonaire-12-million
