Come Feb. 1, overnight tourists will have to shell out a few more dollars every time they book a hotel room in the territory.
The hotel accommodation tax will rise from seven to ten percent at the beginning of next month, according to Government Information Services. Any reservations booked prior to Feb. 1 will be charged only seven percent.
“The hotel accommodation tax applies to any hotel in which persons are ordinarily provided with board and lodging,” according to GIS. “Additionally, hotel means any building or group of buildings within the Virgin Islands which are occupied together for the purpose of accommodating guests.”
Lawmakers unanimously passed the tax increase in the House of Assembly in October. While introducing the bill, Premier Dr. Orlando Smith (R-at large) noted that the Virgin Islands has not raised the tax since 1984, when it was increased from three percent.
At the sitting, Archibald Christian (R-at large), the junior minister for tourism, explained that 17 jurisdictions in the region have an accommodation tax of at least 10 percent.
Opposition member Andrew Fahie questioned whether the government had sought enough input from professionals in the hotel industry, and criticised the lack of evidence and data brought to the House.
“How do we know on the flip side that it will not have a negative effect on the hotel industry?” he asked.
See the Jan. 12, 2017 edition for full coverage.
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