Jamaican Hoteliers Lobby Against Tax Hike

Sandals hotel chain boss Gordon “Butch” Stewart yesterday blasted the Jamaican government for its proposal to raise taxes on the hotel sector as the industry face reduced revenues and growing costs.

He said government should reconsider its plans, as well as conduct a complete review of its strategy of encouraging foreign investment in the hotel sector saying that the development strategy was not well planned.

While he welcomed the new investment, he said, the impact could be devastating to small hotels, which, in some cases, were already suffering from a collapse in rates.

But Stewart´s most immediate concern was the government´s decision to go ahead with its plan to implement an increased GCT on the tourism - moving it from 6.25 per cent to 8.25 per cent.

The tax increase was first announced by the finance minister, Omar Davies, at the start of the fiscal year.

Major players in the tourism industry, represented by the Jamaica Hotel and Tourist Association, had opposed the move and had lobbied to have the decision changed.

The government expects the increase to net an additional $607 million in GCT, which is already its single largest income stream. GCT earned $18.7 billion of the $68.2 billion the government collected in taxes between April and August this year.