JHTA renews call for meeting on GCT increase

Jamaica’s tourism industry has renewed calls for talks with the government over a proposed increase in the General Consumption Tax (GCT), warning that the absence of consultation risks unsettling one of the country’s most important economic sectors.

The Jamaica Hotel and Tourist Association (JHTA) says the planned rise in GCT on tourism activities—from 10 per cent to 15 per cent by April 2027 — could weigh on investment, employment and competitiveness if implemented without engagement. The measure, announced in February by the finance minister, Fayval Williams, is expected to generate some $11.4 billion annually, and will be phased in over two fiscal years.

The government, grappling with reconstruction following Hurricane Melissa and broader fiscal pressures, has defended its revenue measures. But, for industry leaders, the issue is as much procedural as it is financial. Christopher Jarrett, the JHTA’s president, noted that repeated requests for discussions since March have yet to yield a formal meeting.

“The tourism sector has always been a committed partner in Jamaica’s development,” Jarrett said. “We are therefore disappointed that, despite repeated requests since March, we have not yet had the opportunity to discuss a proposal that will have significant implications for businesses, employees, investors, and communities across the country.”

Tourism operators argue that the proposed tax increase comes with practical constraints. Many hotels and attractions operate under long-term contracts extending several years ahead, limiting their flexibility to adjust prices or absorb higher costs. That, the association warns, could squeeze margins and erode the island’s competitive position in a crowded regional market.

 “We are simply asking for the opportunity to be heard. Decisions of this magnitude warrant meaningful engagement with the sector they will directly affect. Tourism deserves a seat at the table, and dialogue should be a fundamental part of the process,” Jarrett said in a statement.

He said tourism stakeholders support the Government’s objective of maintaining a strong fiscal position, adding: “However, achieving that objective should include consultation with one of the country’s most significant economic sectors. We believe there is sufficient goodwill and expertise on all sides to find a balanced solution.”