Adrian Frater, News Editor
WESTERN BUREAU:
HOTEL MOGUL Gordon 'Butch' Stewart has joined the growing list of persons calling for a roll-back of 2 per cent increase on the tourism sector, which was recently announced by Finance Minister Dr. Omar Davies during his budget presentation in Parliament.
"Every time you put a tax on what is basically an export industry you are removing jobs out of the system," said Mr. Stewart, who is head of the Sandals resort chain. "Everybody has to live so employment is the first and most important thing."
The tourism tax measures presented by Dr. Davies in opening the 2005/2006 Budget Debate on April 14 included the capping of commissions at 15 per cent of gross income and gratuities at five per cent of gross income in the tourism sector. Additionally he had proposed raising the general consumption tax rate in the sector from 6.25 per cent to 8.25 per cent
In explaining how tourism could lose business, Mr. Stewart said because of the high cost within the sector prospective visitors are likely to bypass Jamaica for other destinations offering similar services at a much lower rate.
"The tax on air ticket alone to come here, for a family of four, is the better part of US$500. You are going to get diversion. People are going to go to Mexico. You can fly from New York to Miami for US$23 to US$25," argued Mr. Stewart. "If you want to expand your industry, you must keep the taxes down."
