Tourism Stakeholders Warn Proposed Hotel Tax Increase Could Hurt Belize’s Competitiveness

Opposition continues to grow against a proposed increase in Belize’s hotel accommodation tax from the current 9% to 12.5%. Tourism stakeholders on the cayes and across the country believe the increase could make Belize a more expensive destination and place the country at a disadvantage when competing with other destinations in the region.
One of the first organizations to weigh in on the government’s proposal was the Belize Hotel Association (BHA). Its president, Reynaldo Malik, believes the proposed increase could negatively affect Belize’s tourism product. “Our largest tourism market is the United States, and they are also going through an inflationary period as well. So, their discretionary spending has diminished as well,” he told the media. Malik noted that Belize competes with destinations such as Cancun, Mexico; Jamaica; The Bahamas; the Dominican Republic; Costa Rica; El Salvador; and Panama. He added that becoming one of the more expensive destinations in the region could hurt the local industry, which is already dealing with high operating costs.
Hoteliers in Caye Caulker have also expressed concerns, saying they receive limited government support, including assistance with import duties on supplies and equipment needed for their businesses. Similar concerns have been raised in San Pedro Town, where several tourism stakeholders continue to report a decrease in business. They believe increasing the hotel tax now may further affect the industry and that the proposal requires additional analysis.
Belize Tourism Industry Association (BTIA) President Efren Perez also believes the proposed increase could negatively affect Belize’s tourism product and its competitiveness internationally. “We are exploring Europe, and travelers from there are very price sensitive,” he said. “When you are marketing yourselves internationally and looking at positioning the Belize brand out there, you’re competing against countries like Costa Rica, like the Dominican Republic, whose pricing is much different than us.”
The Opposition United Democratic Party (UDP) has also spoken against the proposed increase. “This is not economic growth. It is economic extraction,” the party stated. The UDP argued that the government should focus on expanding the tax base rather than placing additional taxes on existing industries. The Opposition also called on the Belize Tourism Board (BTB) to justify the proposed increase.
While the government has not provided recent details on the proposal, in January 2025 it indicated that the measure formed part of a broader strategy to enhance tourism infrastructure and support national development. At the time, the government said the proposal aligned with its goal of generating additional revenue from what it described as a thriving tourism industry.
Meanwhile, tourism representatives have approached the central government seeking additional support for the sector. The Ministry of Tourism is reportedly discussing proposals submitted by stakeholders as concerns continue over the potential impact of a higher accommodation tax.