The Aruba Tourism Authority relies on two sources of income. These are the “Tourism Levy,” paid when staying in hotels, and the “Travel Promotion Levy,” paid when purchasing tickets. From the “Tourism Levy,” 99.2 million florins were collected, and from the “Travel Promotion Levy,” 22.1 million florins were collected, together forming an annual income of 121.3 million florins. Due to the increase in the number of visitors, the Travel Promotion Levy income increased by 2.7 million florins. Even so, there was less income in 2023 compared to the previous year, due to a change in the law that came into effect on January 1, 2023.
At that time, the Tourism Levy increased from 9.5% to 12.5%, but the government decided that 57% of the income would go to A.T.A. and the rest to the government’s treasury. Therefore, A.T.A.’s income decreased from 9.5% to 7.125%. Last year, 174 million florins were collected from the Tourism Levy, of which 99 million florins went to A.T.A. to cover its marketing expenses, and 75 million went to the Government of Aruba.
A.T.A.’s Revenues
In the figures, it can be noted that in 2022, A.T.A. had 123.8 million florins in revenue, while in 2023, it had 121.3 million florins, 2.5 million less. Marketing expenses totaled 76.1 million florins, while operational expenses remained at 12.7 million, the same as the previous year. After deducting all expenses, A.T.A. had 32.5 million florins left, which went back to the Government of Aruba.
Marketing Investment
Under A.T.A.’s expenses, marketing/promotion and destination services are included. In marketing, 59.7 million florins were invested, and in destination services, 14.7 million florins were invested, totaling 74.4 million florins. A.T.A.’s marketing expenses include marketing and promotions in international markets but also investments made, for example, in activities organized by the Aruba Convention Bureau and Airlift. Under destination services, investments are made in Cruise and events, and additionally, a portion of the income is invested in Aruba’s product to continue improving the Aruba destination. Finally, a part of the income is allocated to the emergency fund, as required by A.T.A.’s law. Last year, 1.7 million florins were allocated to the emergency fund.
They Invested 7 Florins per Tourist
For international marketing investment, A.T.A. determines each year how much needs to be invested to attract a visitor from America, Europe, or Latin America. In other words, what is the acquisition cost to attract a tourist to Aruba. In 2023, A.T.A. invested 7 florins per overnight visitor, while the average daily tourist spending was Afl. 532 per tourist per day, a 26% increase compared to 2019. A.T.A.’s strategy is to focus on tourists who spend more in Aruba.
Local Investment
Regarding local investments in the tourism product (which fall under destination services), projects that A.T.A. led or contributed to in 2023 included a mountain bike trail, buoys in the sea, the Baby Beach project, Stimami Sterilisami, the restart of the Bon Bini Festival, the Aruba Art Fair, the introduction of the Tourism Security Patrol Aruba, and so on.
Operational Expenses
While in 2022, 12.8 million florins were invested in operational expenses, last year it decreased to 12.7 million, almost the same. This is due to strict management of expense control. It should be noted that A.T.A. has offices in America, Colombia, and the Netherlands. A total of 30% of its employees work abroad.
Record Year
Although A.T.A.’s income decreased compared to the previous year, it can be said that it was a good year for Aruba. With the change in the Tourism Levy law, the Government of Aruba collected 75 million directly, and then 32.5 million from what remained of A.T.A., for a total of 107.5 million florins. This makes A.T.A. one of the main contributors to the treasury of the Government of Aruba.
