Too good to be true?

This is a fantastic offer. Click the link below to see it:

$479 Barbados: 7 Nights in a Beachfront Room incl. Air *

The fine print does not look bad:
“Restrictions apply. Taxes are additional. See Web site for details. Pricing is per person, based on double occupancy.”

Does this mean that a couple can spend a week in Barbados for about US$1,000?

Who is paying the bill? Are the hotels and airlines taking a loss or is the Government using local taxpayers’ money to subsidize them? 

This old BFP article may offer an explanation:
Best Of Barbados Travel Programme Brings In The Least Desirable Tourists And Minimal Profits