JHTA firmly rejects proposed increase in GCT on tourism activities saying any increase is untenable

The Jamaica Hotel and Tourist Association (JHTA), says it firmly rejects the proposed increase in the General Consumption Tax (GCT), on tourism activities.

Effective April 1 providers of tourism activities would move from the 10 per cent GCT rate to 15 per cent. JHTA says the 50 per cent increase would raise costs in the tourism sector significantly.

The association notes that although implementation has been deferred to the next fiscal year in recognition of ongoing recovery challenges, it maintains that any increase in GCT affecting tourism is untenable.

JHTA President, Christopher Jarrett states that the tourism sector is already operating in a highly competitive and cost-intensive global environment and that increasing GCT on tourism activities by five percentage points would directly impact pricing, competitiveness, and ultimately demand.

The JHTA says it stands unequivocally opposed to this proposed tax increase, emphasising that the sector continues to navigate elevated operating costs, recovery pressures, and global market uncertainties.

The hoteliers say an additional tax burden at this stage would risk slowing recovery momentum and placing further strain on operators across the value chain, including the small and medium-sized enterprises that form the backbone of the industry.

In the meantime, the JHTA further underscores that tourism is fundamentally an export industry earning foreign exchange for Jamaica and should be treated accordingly, within the national tax framework.

It says international best practice, generally supports zero-rating, or exempting exports from consumption taxes, noting that historically tourism has operated under a GCT regime that is inconsistent with this principle.

The JHTA says in the context of broader tax reform the association asserts that the treatment of tourism under the GCT system should be reevaluated not intensified.

President Jarrett adds that their responsibility is to safeguard the long-term viability of this industry, stating that any policy that increases operational costs, must be carefully measured against its impact on employment, visitor arrivals, and Jamaica’s overall economic performance.

The JHTA says it believes this proposed increase would have negative consequences across the sector.

The association says it will continue to advocate for policies that promote sustainable growth, resilience, and global competitiveness within Jamaica’s tourism sector.