ROSEAU, Dominica, CMC:
The Dominica Hotels and Tourism Association (DHTA) said Monday that the 15 per cent Value Added Tax (VAT) and high energy costs are making the sector very uncompetitive.
In a statement, the DHTA said that it agreed with a 2006 United States Agency for International Development (USAID) funded report on the “Impact impact of VAT and High Energy cost on the tourism industry in Dominica”.
The DHTA said that action is needed to reduce the impact of VAT and high energy cost, noting that the industry is integral to the growth of Dominica’s economy.
“The enabling environment should be conducive to making business competitive and profitable, so that their economic contributions can be sustainable.
Tourism has the capacity to create more jobs than any other sector and its critical function as the “engine of growth” for the economy must not be underestimated.”
The DHTA said that it was reiterating its position on the matter, noting that “with the imposition of 15 per cent VAT resulting in higher prices of our tourism products and services, we have become uncompetitive.
“Compounded with the reduction in cruise calls and the limited and costly access, the tourism industry is in dire need of assistance,” the group said.