WESTERN BUREAU:
OPPOSITION SPOKESPERSON on tourism, Edmund Bartlett, says hotels will not be the only entities to suffer as a result of the imposition of the increased tourism tax but also ground transportation contractors who conduct business with them.
Mr. Bartlett cited the specific example of the Jamaica Union of Travellers Association (JUTA), which he says does 80 per cent of business with these properties.
"The timing of the increase could not be worse. It is coming at a time when there is a sharp downturn in visitor arrivals and significant increase in inflation from rising gas prices, and these impact the cost of utilities, all of which are used in the sector," Mr. Bartlett explained. "We are calling on the Government in light of obvious negative implications to the industry that a further stay of the increase be implemented."
TWO PER CENT MORE
The Ministry of Finance announced in April that a further two per cent would be added to the six per cent charged as tourism tax. However, the ministry decided to review the proposal following outcries from the tourism sector and the Opposition. A moratorium was subsequently placed on the duty until October 1, when the increase became effective.
"Hotels are going to be driven to use their own transportation or tour operators. Therein lies the negative impact on JUTA members as a substantial amount of their business comes from contracts with hotels," Mr. Bartlett said.
JUTA President, Gary Williamson, is worried that if the all-inclusives, from which a majority of their business is derived, decide against absorbing the added cost, his membership will lose its viability. "There is talk that one of the hotel chains is going to ask the overseas operators to do the transfers directly. If and when this happens very likely those operators will do so with tour companies with whom they have contracts in Jamaica," Mr. Williamson said.
"There is also another far-reaching effect, which is likely to come about from cruise ship business. We have 734 members in Montego Bay alone, 350 in Negril, and Ocho Rios has 220 members. Can you imagine the impact such an effect will have?"
The president said he is calling on the Government to urgently establish a system to protect their livelihood and investments, in the form of vehicles, made in the tourism sector.
