{"id":214846,"date":"2024-10-28T09:15:41","date_gmt":"2024-10-28T13:15:41","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=214846"},"modified":"2024-10-28T09:15:42","modified_gmt":"2024-10-28T13:15:42","slug":"antigua-and-barbuda-pm-hotels-must-contribute-fair-share-of-taxes","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/antigua-and-barbuda-pm-hotels-must-contribute-fair-share-of-taxes\/","title":{"rendered":"Antigua and Barbuda PM: Hotels must contribute fair share of taxes"},"content":{"rendered":"
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Source: https:\/\/www.guardian.co.tt\/ (Trinidad and Tobago Guardian) – Prime Minister of Antigua and Barbuda Gaston Browne is advising that the time has come for a re-evaluation and realignment of hotel concessions in the Caribbean to arrive at a more equitable and sustainable incentive regime that is fair and equitable to all stakeholders.<\/p>

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His comments came in wake of a statement issued last week by the Caribbean Hotel and Tourism Association (CHTA), which warned that the removal of long-standing tax incentives could negatively impact tourism\u2019s contribution to the Caribbean\u2019s economic development, employment and tax revenues.<\/p>\n\n\n\n

Tax incentives in the region are meant to encourage investment in hotels and generally take the form of tax holidays, tax equality and tax stability as well as import duty concessions and tax allowances.<\/p>

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These incentives, the CHTA explained, help offset the region\u2019s high operating costs and attract vital business investment.<\/p>

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Acknowledging the fiscal challenges Caribbean governments face post-COVID-19, the organisation emphasised public infrastructure, healthcare and social services are critical for citizens and the success of tourism.<\/p>\n\n\n\n

It reiterated that while investments in infrastructure support a stable environment for both residents and visitors, removing tourism tax incentives without offering alternatives risks stalling growth, reducing competitiveness and limiting job creation.<\/p>

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However, Browne, in a WhatsApp message to the Sunday Business Guardian, advised, \u201cWe have gone beyond the days of plantation economies with the philosophy of \u2018industrialisation by invitation\u2019 with overly generous concessions and heavily subsidised, or free, prime real estate.<\/p>\n\n\n\n

\u201cHotels, as significant revenue earners must now serve the developmental needs of Caribbean countries, by contributing their fair share of taxes and to provide lucrative compensation packages for their employees, so that they can enjoy good living standards.\u201d<\/p>

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Noting that Antigua and Barbuda has had its best tourism year in 2024, Browne said the country has attracted more tourism investment on a per capita basis than any other Caribbean country.<\/p>

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\u201cOur tourism incentives rank among the best in the Caribbean including up to 25 years corporate tax relief, duty and tax waivers on all building material, fixtures, fittings, furnishings for new builds and significant improvements,\u201d he added.<\/p>\n\n\n\n

Hotel owners and operators alone, Browne said, do not make a successful hospitality industry, saying that all stakeholders must benefit equitably.<\/p>\n\n\n\n

At a press conference in July this year, Antigua and Barbuda\u2019s Minister of Tourism, Max Fernandez reported a significant increase in that country\u2019s tourism for the first half of 2024, with stop-over visitors reaching 176,665, a 15 per cent rise compared to the same period last year.<\/p>\n\n\n\n

\u201cStopover visitor arrivals increased from January to June 2024, from 154,333 in January to June 2023 to 176,655 in January to June 2024, when comparing the same period in 2019, which was our best year. This represents a ten per cent plus increase from 161,434 at the end of June of that year. We are well on the way to a record year for tourism arrivals,\u201d he stated.<\/p>\n\n\n\n

Meanwhile, T&T\u2019s Minister of Tourism, Culture and the Arts, Randall Mitchell, who also spoke to the Sunday Business Guardian assured that the T&T Government continues to offer an enabling, facilitative, and competitive investment environment for tourism investment.<\/p>\n\n\n\n

He said the current tax regime, and the incentives offered to tourism investment, is reflective of Government\u2019s recognition of the importance of the tourism sector to job creation, foreign exchange earnings, tax revenues and economic growth.<\/p>\n\n\n\n

With respect to T&T\u2019s investment environment, Mitchell said its tourism sector offers the following incentives for approved tourism projects (which include transportation: the purchase of taxis and buses, accommodation properties, marinas, boat yards, golf courses, dive operations, water sports tour operations etc):<\/p>\n\n\n\n

    \n
  1. Exemption from corporation tax\/income tax for a period up to seven years with the possibility of an extension of that period;<\/li>\n\n\n\n
  2. Tax exemptions from the profits or gains from the sale of villas and\/or condominiums in an approved integrated resort development;<\/li>\n\n\n\n
  3. Accelerated depreciation of depreciable equipment owned by the owner or operator and used in an approved tourism project;<\/li>\n\n\n\n
  4. A capital allowance in respect of approved capital expenditure incurred by the owner or operator in the creation of a new tourism project or the expansion of an existing tourism project;<\/li>\n\n\n\n
  5. A carry-over from a tax exemption period, if any, of any loss arising out of the operation or renting of an approved tourism project;<\/li>\n\n\n\n
  6. Exemption from taxes on the importation of vehicles for approved tourism operators; and<\/li>\n\n\n\n
  7. Exemption from custom and excise duties on the importation of articles for use in approved tourism projects.<\/li>\n<\/ol>\n\n\n\n

    In addition, the tourism minister noted that Government reduced the rate of Value Added Tax to from 15 per cent to 12.5 per cent in  fiscal year 2016 and provided an increase in income tax allowances for people earning under $90,000 annually or $7,500 per month.<\/p>\n\n\n\n

    Further, Mitchell said Government also provides non-legislated incentives in the form of the Tourism Accommodation Upgrade Programme where participants received a reimbursable grant of up to 50 per cent for capital improvements to accommodation properties, and a Government loan guarantee programme for tourism projects in Tobago through the T&T Tourism Business Development Company up to a maximum of $10 million.<\/p>\n\n\n\n

    \u201cTrinidad and Tobago continues to offer a competitive investment climate, and there is no policy at this time to make our investment climate any less attractive,\u201d Mitchell added.<\/p>\n\n\n\n

    The 2024 Review of the Economy noted that this country\u2019s tourism sector\u2019s continued recovery in 2024, which is supported by increased arrivals across all major segments, reflecting successful post-pandemic revitalisation efforts. The document added that growth in airline and cruise ship arrivals, along with resurgent Carnival arrivals, supports a positive outlook as the sector continues to regain its global market presence.<\/p>\n\n\n\n

    It further noted that during the five-month period January to May 2024, T&T recorded air passenger arrivals of 138,670 persons, a 7.3 per cent rise compared to the 129,229 air arrivals during the corresponding period in 2023.<\/p>\n\n\n\n

    Specifically, Trinidad recorded a 7.9 per cent increase in air passenger arrivals, representing 131,535 people; up from 121,875 people received in the previous comparative period.<\/p>\n\n\n\n

    In contrast, Tobago reported 7,135 air passenger arrivals, marking a three per cent decline from the previous period.<\/p>\n\n\n\n

    Leisure and recreation (47.7 per cent); visiting friends and relatives (29.7 per cent); and business or work 67 (14.6 per cent) were identified as the primary reasons for visiting T&T during the five-month period.<\/p>\n\n\n\n

    According to the most recent available data from the CSO, T&T welcomed 28,700 visitors during the 2024 Carnival period; a 4.8 per cent increase over the previous year. Although the average expenditure per visitor dipped slightly to TT$14,403, from TT$15,313 in the previous Carnival period, it remained well above pre-pandemic levels, which averaged TT$10,154 between 2018 and 2019.<\/p>\n\n\n\n

    The 2024 Review of the Economy further stated that in calendar 2023, the average occupancy rate in Trinidad rose to 52.2 per cent, from 43.2 per cent in the previous year.<\/p>\n\n\n\n

    Tobago also registered growth in room occupancy rates from 34.6 per cent in 2022, to 38.1 per cent in 2023.<\/p>\n\n\n\n

    In August, both islands achieved peak room occupancy rates, with Trinidad reporting 66.8 per cent and Tobago 47.0 per cent.<\/p>\n\n\n\n

    As it relates to tax incentives in the Dominican Republic Sanovnik Destang, president of CHTA explained that its tourism development has been driven by the Confotur tax incentives law.<\/p>\n\n\n\n

    He noted, from 2013 to 2023, investment in that country\u2019s tourism sector grew 361 per cent; in 2022, 19 per cent of the DR\u2019s GDP was produced or induced by tourism.<\/p>\n\n\n\n

    \u201cClearly, these incentives have helped stimulate growth and development of the sector. Removal of incentives without a replacement legislation will stifle growth and development and investment from both foreign and local investors,\u201d he added.<\/p>\n

    \"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

    Source: https:\/\/www.guardian.co.tt\/ (Trinidad and Tobago Guardian) – Prime Minister of Antigua and Barbuda Gaston Browne is advising that the time has come for a re-evaluation and realignment of hotel concessions in the Caribbean to arrive at a more equitable and sustainable incentive regime that is fair and equitable to all stakeholders. His comments came in […]<\/p>\n","protected":false},"author":3,"featured_media":213115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-214846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nAntigua and Barbuda PM: Hotels must contribute fair share of taxes - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/antigua-and-barbuda-pm-hotels-must-contribute-fair-share-of-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Antigua and Barbuda PM: Hotels must contribute fair share of taxes\" \/>\n<meta property=\"og:description\" content=\"Source: https:\/\/www.guardian.co.tt\/ (Trinidad and Tobago Guardian) – Prime Minister of Antigua and Barbuda Gaston Browne is advising that the time has come for a re-evaluation and realignment of hotel concessions in the Caribbean to arrive at a more equitable and sustainable incentive regime that is fair and equitable to all stakeholders. 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