Barbados - new taxes & impact on travel
Jun 12, 2018, 7:39 pm
#1
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Barbados - new taxes & impact on travel
Just found this:
Barbados PM announces new tax measures
Prime Minister Mottley said that there would also be increases in departure taxes to offset the collective marketing and product development of the tourism sector estimated at an average BDS$96 million, annually.
“Accordingly, my government has decided from October 1st, 2018 to introduce an Airline Travel and Tourism Development fee. This fee will be paid by passengers flying outside of CARICOM will be US$70.00 and for those within CARICOM US$35.00. This fee will be in addition to the Departure Tax.”
In addition, the government is also introducing new VAT fees for hotel accommodation in keeping with the cost of maintaining the infrastructure.
“Currently our hotels charge VAT for accommodation at a rate of 7.5%. It is my government's view that the fair sharing of the burden of adjustment requires a review of this rate to 15 per cent. We however accept that to introduce this without a sufficient lead period will cause harm to our hotel sector,” she said, adding that any such rate adjustment should be applicable from January 1, 2020.
This looks like a terrible blow to the travel budget of many. I love Barbados and visited many, many times. Last visit was a month ago, dealing with lots of seaweed on the South Coast beaches. Also learned about many problems that currently plague that beloved island: infrastructure (sewage disposal) in disrepair, huge country debt etc. This is not the news I am happy to read.
With the addition of the above listed taxes, I am not sure whether I will return there in the fall.
Anybody else has any thoughts on that?
Barbados PM announces new tax measures
Prime Minister Mottley said that there would also be increases in departure taxes to offset the collective marketing and product development of the tourism sector estimated at an average BDS$96 million, annually.
“Accordingly, my government has decided from October 1st, 2018 to introduce an Airline Travel and Tourism Development fee. This fee will be paid by passengers flying outside of CARICOM will be US$70.00 and for those within CARICOM US$35.00. This fee will be in addition to the Departure Tax.”
In addition, the government is also introducing new VAT fees for hotel accommodation in keeping with the cost of maintaining the infrastructure.
“Currently our hotels charge VAT for accommodation at a rate of 7.5%. It is my government's view that the fair sharing of the burden of adjustment requires a review of this rate to 15 per cent. We however accept that to introduce this without a sufficient lead period will cause harm to our hotel sector,” she said, adding that any such rate adjustment should be applicable from January 1, 2020.
This looks like a terrible blow to the travel budget of many. I love Barbados and visited many, many times. Last visit was a month ago, dealing with lots of seaweed on the South Coast beaches. Also learned about many problems that currently plague that beloved island: infrastructure (sewage disposal) in disrepair, huge country debt etc. This is not the news I am happy to read.
With the addition of the above listed taxes, I am not sure whether I will return there in the fall.
Anybody else has any thoughts on that?
Jun 12, 2018, 7:52 pm
#2
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As this isn't an Air Canada or Aeroplan thread it's been relocated to a suitable forum which is the FT Caribbean and nearby Atlantic including Puerto Rico forum for further discussion.
tcook052
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tcook052
Air Canada forum moderator
Jun 13, 2018, 8:06 pm
#3
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The double on the VAT I can understand but such a large departure tax is quite an additional shock to the tourism system.
I'm a big fan of Barbados so adding a few hundred won't ruin things but it would make me consider traveling elsewhere for long weekends.
I'm a big fan of Barbados so adding a few hundred won't ruin things but it would make me consider traveling elsewhere for long weekends.
Jun 30, 2018, 12:48 pm
#4
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Meanwhile taxes on locals will be reduced and Barbados government employees will get a 5% pay rise.
But obviously it was tourists who caused the budget crisis so they should suffer, not locals....
But obviously it was tourists who caused the budget crisis so they should suffer, not locals....
Jan 8, 2019, 1:35 pm
#5
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This tax increase has caused me to pass on visiting Barbados for long weekends. Jetblue advertises great prices, as does American, but the departure tax is extremely high! They have to be hurting themselves by doing this.
Last edited by lrbenko; May 13, 2019 at 3:20 pm
Jan 9, 2019, 3:18 pm
#6
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I regularly travel to barbados for work. The taxes almost exceed the cost of the actual fare.
its not only departure tax that they added. They also added taxes to hotel rooms as well.
its not only departure tax that they added. They also added taxes to hotel rooms as well.