Barbados applies mandatory room rate levy on all tourist accommodations

Barbados applies mandatory room rate levy on all tourist accommodations

(CMC) — Effective Sunday, July 1, all tourism accommodation providers will be required to implement a mandatory “Room Rate Levy” to all bedrooms per night in Barbados.

In a notice issued on Friday, the Ministry of Tourism and International Transport stated that the levy will be paid by guests.

The ministry requested that the levy be fully disclosed to guests through signage at the front desk, or by email or written correspondence in the absence of front desk facilities.

“Guests should be informed that the levy will be applied to the full duration of stay for persons who will be travelling to Barbados from July 1. Guests, who checked into accommodation before July 1, should be notified that the levy will be applied to the duration of their stay,” the notice said.

Tourism accommodation providers have been warned that failure to comply with the payment of the Room Rate Levy will result in penalties as prescribed in the governing legislation.

Also taking effect on Sunday, will be a 2.5 per cent Product Development Levy on Direct Tourism Services as defined in the Value Added Tax (amendment) Act, 2013-22 and the Value Added Tax (Amendment) Act, 2018-12.

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 as outlined under legislation.

The Room Rate Levy and the Product Development Levy are part of the fiscal measures being implemented under the 2018 mini-budget, which was laid in Parliament earlier this month, to help stabilise the country’s economy.


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  1. The tourist sector is a good performer if you tax it so that you are not competitive that is a bad application of economic theory. If Barbados is too expensive I am going to go elsewhere. To keep me from going elsewhere you have to sell it to me and so far there is no marketing message. I am going to say that tourist come to Barbados because they want a good holiday and visitors return because they have tried Barbados love it and love the people; they have become extended family. You have to sell it to this extended family and you are silly if you don't.


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