UDP Rejects Proposed Increase in Hotel Tax

The United Democratic Party (UDP) is rejecting a proposed increase in Belize’s hotel accommodation tax from nine percent to twelve percent. The Opposition says the three-percentage-point adjustment represents a thirty-three-percent increase in the tax and could make Belize less competitive as a tourism destination.  The UDP argues that higher accommodation costs could cause visitors to shorten their stays, choose less expensive lodging or spend less on tours, restaurants and other activities. It says the effects could extend beyond hotels to tour operators, guides, transportation providers, artisans, farmers and other small businesses that depend on tourism.  The party is also calling on the Belize Tourism Board to disclose the justification and economic analysis behind the proposed increase. It wants the BTB to explain the possible effects on visitor arrivals, hotel occupancy, length of stay and visitor spending, as well as any alternatives that were considered.  The UDP says the Government should instead focus on attracting investment, creating new businesses and expanding the country’s tax base. It is calling for the proposal to be abandoned and for the Government to consult tourism stakeholders before making any changes to the accommodation tax.