Barbados - new taxes & impact on travel

Old Jun 12, 18, 7:39 pm
Original Poster
Join Date: Jul 2002
Location: YUL
Programs: Various airline, hotel and credit card programs
Posts: 1,737
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?
Vaclav is offline  
Old Jun 12, 18, 7:52 pm
A FlyerTalk Posting Legend and Moderator: Air Canada Aeroplan & Manufactured Spending
Join Date: May 2002
Location: YEG
Posts: 48,703

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.

Air Canada forum moderator
tcook052 is offline  
Old Jun 13, 18, 8:06 pm
Join Date: Dec 2009
Location: New York, NY
Programs: UA, Marriott Gold, Hilton Gold, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,546
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.
Yoshi212 is offline  
Old Jun 30, 18, 12:48 pm
Join Date: Jun 2009
Location: London, United Kingdom
Programs: British Airways Gold
Posts: 2,475
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....
ajeleonard is offline  
Old Jan 8, 19, 1:35 pm
Join Date: Jun 2010
Location: CHS
Programs: American Exec Platinum, Former Delta Diamond, Hilton Diamond, Marriott Titanium, United Silver
Posts: 203
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, 19 at 3:20 pm
lrbenko is offline  
Old Jan 9, 19, 3:18 pm
Join Date: Jan 2018
Location: BGI | CMH
Programs: AA Platinum Pro | HH Diamond | SPG Gold
Posts: 259
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.

Shadowfactor is offline  

Thread Tools
Search this Thread