Following reports of a potential increase in the hotel tax from 9% to 12.5%, the tourism industry has expressed concerns. However, the Ministry of Tourism has clarified that this is part of a broader tax reform discussion, and no decision has yet been made.
There are concerns about a potential increase in the hotel tax, which has not been raised for several years. Reports indicate that the International Monetary Fund has advised Belize to expand its tax base. Suggestions include increasing excise taxes, adjusting manufacturing taxes, and improving revenue administration. The Minister of Tourism, Honourable Anthony Mahler, stated that the matter is still under discussion and nothing has been confirmed. Mahler assured tourism stakeholders that there will be no changes to the hotel tax in the near future.
The Area Representative for Belize Rural South, the Honourable Andre Perez, has reiterated that the discussion about the hotel tax is part of the government’s efforts to secure additional income for public services. He highlighted that the income from the national lottery (boledo) is directed towards the National Health Insurance and other public services. Perez emphasized that while the government is exploring ways to fund public programs, no decision has been made about increasing the hotel tax.
The government is not denying the possibility of an increase in the hotel tax in the future. The San Pedro Branch of the Belize Tourism Industry Association (SPBTIA) is aware of this potential increase and has been discussing the matter. The chairman mentioned that the organization has not taken a formal stand on this topic, but they are closely following the discussion. According to the SPBTIA, they look forward to participating in the discussion when deciding to amend the hospitality tax. They emphasized the importance of consulting and including the full participation of key organizations and stakeholders in such a significant tax reform, which could significantly impact the Belize tourism industry.
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