Holness to meet tourism leaders July 2 over planned GCT rise on sector

Prime Minister Dr Andrew Holness is scheduled to hold talks with senior figures from the tourism sector next week, as the Jamaica Hotel and Tourist Association (JHTA) has sharpened its resistance to a planned general consumption tax (GCT) increase on tourism-related services.

Speaking at the association's 65th annual general meeting on Saturday at Sandals Dunn's River in Ocho Rios, St Ann, JHTA President Christopher Jarrett said the body had been pressing the Government for dialogue since March. Holness is expected to receive the industry's case on July 2.

Jarrett told delegates that while the JHTA backs sound fiscal stewardship and understands the strain on public finances in the wake of Hurricane Melissa, the sector cannot endorse the tax proposal. He pointed out that numerous hotels and attractions remain bound by rates and terms fixed in contracts signed years earlier.

"The Jamaica Hotel and Tourist Association cannot support the proposed increase in general consumption tax on tourism activities, not because we oppose taxation but because we believe there is a better path."

Under the revenue measures outlined for this fiscal year, the Government intends to lift GCT on designated tourism activities from 10 per cent to the standard 15 per cent rate, effective April 1 next year. Officials estimate the change could yield roughly J$11.4 billion per year and plan a two-year rollout.

Jarrett contended that operators cannot simply transfer every new levy to guests, given that many agreements run through 2027 and beyond. In his view, businesses would have to shoulder part of the burden, with knock-on effects on margins, capital spending, staffing levels and Jamaica's standing against competing destinations.

He described the JHTA's stance as a call for engagement rather than a standoff, arguing that rules touching the country's top foreign-exchange earner ought to be developed with input from those directly affected.

Jarrett said the association will bring economic data to the prime minister and press for a route that meets the state's revenue goals without undermining investment, employment or the industry's ability to compete internationally.