Sun | Nov 18, 2018

New tourism taxes take effect in Barbados today

Published:Sunday | July 1, 2018 | 12:00 AM

Effective today, a mandatory room rate levy will be applied to all tourism destinations in Barbados as part of efforts to raise money to reduce its overwhelming deficit.

The additional fees range of 2.5 per cent of the nightly rate, capped at US$10.00; with the lowest rate being US$2.50 per room per night, depending on accommodation class.

The money will be collected in resorts and is applicable to all existing bookings.

Also taking effect today is a 2.5 per cent Product Development Levy on direct tourism services.

This includes island tours, cruises other than international cruises, meals, drinks and dining services, as well as goods and services provided by spas, retreats and marinas.

The new charges follow the introduction of an "airline travel and tourism development fee" of US$70 to be imposed on travellers leaving the country from October 1, while VAT in the tourism sector will rise from 7.5 per cent to 15 per cent in 2020.