Holness to meet tourism leaders on July 2 over planned GCT increase

Prime Minister Dr Andrew Holness is expected to meet with heads of the tourism sector next week as the Jamaica Hotel and Tourist Association (JHTA) ramps up its campaign against a planned increase in general consumption tax (GCT) on tourism-related activities.

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

Jarrett noted that the JHTA backs prudent fiscal management and understands the budget strain the country faces after Hurricane Melissa. He said operators still cannot endorse the tax move because many hotels and attractions remain tied to pricing agreed in contracts signed years ago.

"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."

The Government has put forward a plan to raise GCT on designated tourism activities from 10 per cent to the standard 15 per cent rate by April 1 next year. The proposal, unveiled as part of this year's revenue package, is expected to yield an extra J$11.4 billion per year and would be rolled out over two years.

Jarrett contended that operators cannot always transfer higher taxes to visitors when commercial agreements run into 2027 and beyond. In those circumstances, he said, businesses would have to carry the added expense themselves, eroding profits, discouraging new capital spending, threatening jobs, and weakening Jamaica's standing against other destinations.

He described the association's approach as one of engagement rather than conflict, insisting that decisions affecting the country's leading source of foreign exchange should be developed through serious consultation with those in the industry.

Jarrett said the JHTA will share economic analysis with the prime minister and make the case for a different course that supports the Government's revenue goals while protecting investment, employment, and the competitiveness of Jamaica's tourism sector.