Two private sector groups have welcomed the government's $68.9 billion national budget presented in parliament on Friday.

They are the Tourism and Hospitality Association of Guyana (THAG) and the Guyana Film Distributors and Exhibitors Association (GFDEA) whose members should benefit from concessions in the budget.

THAG President, Gerry Gouveia, contacted by Stabroek News, described the budget as "very encouraging", adding that the government had responded to THAG's representations. He said that with the incentives offered in the budget, "we feel confident that the tourism sector is being primed to move forward massively this year."

The GFDEA said it welcomed the reduction in the entertainment tax for cinemas announced in the national budget last Friday.

In a statement issued through PR Counsellors, the GFDEA said the reduction in tax was an essential first step in the series of legislative and other measures needed to revitalise Guyana's cinema industry.

The press release stated that the move only partially addressed the concerns of the industry and reiterated its call for the establishment of copyright legislation to provide adequate protection against piracy.

"The association believes that the main contributory factor to the demise of the local cinema industry continues to be the widespread and unchecked piracy of films by television stations, bottom-house operators, and video clubs," the release stated.

GFDEA said it was committed to working with government to achieve the objectives and expressed the hope that cinema owners would now see the benefits of working together and give the association the support, which has so far been lacking.

GFDEA noted that the relief came as a result of intense and sustained lobbying by the association and particularly its president, Muntaz Ali, to bring the crisis facing the industry to the attention of government, the public, and other stakeholders in the private sector.

Over the past five years the decline of the industry has been dramatic.

Approximately 25 cinemas have been closed and about 200 workers put out of jobs.

GFDEA had requested a waiver of the entertainment tax for an initial period of five years or until such time as the industry rebounded.

However, GFDEA expressed satisfaction that government considered its representations as promised by President Bharrat Jagdeo as a meeting in November last year and it asked that they be kept under review.

The entertainment tax has been reduced from 20 per cent to ten per cent for urban cinemas and from 20 per cent to five per cent for rural cinemas, with effect from April 1, 2002.

In the tourism sector, the remission on duty and consumption tax, equivalent to 50 per cent of the investment, for the expansion of existing and construction of new hotels has been increased with effect from April 1, 2002.

Also from April 1, the ten per cent room tax for tourism facilities deemed to be resorts would be abolished.