Tourism Minister Pushes Back Against Proposed Accommodation Tax Increase

As opposition grows against a proposed increase in Belize’s hotel accommodation tax from 9% to 12.5%, Minister of Tourism Honorable Anthony Mahler has said he does not believe the timing is right. He noted that discussions have been ongoing for nearly two years but described the recent announcement of the proposal as premature.
Mahler said he has consistently opposed placing additional taxes on the tourism industry. However, he explained that the proposal is tied to the need for additional funding to address the ongoing influx of Sargassum affecting Belize’s coastal communities and tourism destinations.
The minister estimated that Belize needs approximately BZ$20 million in equipment to strengthen its response to the seaweed. He noted that the country lacks access to the large, specialized vessels used in destinations such as Mexico and said that much of the funding for the response has come from the Belize Tourism Board (BTB).
“We are losing this battle,” Mahler said while discussing the financial and operational challenges associated with removing Sargassum from affected coastlines.
According to Mahler, discussions on increasing the hotel accommodation tax have been ongoing for almost two years. He said private-sector representatives have met with the Ministry of Finance, Prime Minister Hon. John Briceño, and other officials, sometimes without BTB involvement.
“They knew it was coming or it was supposed to come,” he said. However, Mahler stated that he had expressed his concerns about the timing to both the Belize Tourism Industry Association and the Belize Hotel Association. “I don’t think it is time,” Mahler said.
The minister added that no increase should take place until another meeting is held with tourism stakeholders, with the Ministry of Tourism directly involved in the discussions.
Mahler also commented on the planned BZ$10 aviation security fee for each passenger departing through Belize’s municipal airports. While he questioned the additional charge, he acknowledged the need to fund improved security measures and infrastructure.
The fee was announced after increased attention to security at municipal airports following an American passenger’s attempted hijacking of a domestic Tropic Air flight on April 17, 2025. The incident led to enhanced passenger screening and other security measures at facilities across the country, including the John Greif II Municipal Airport in San Pedro.
The proposed hotel tax increase has raised concerns within tourism-dependent communities such as San Pedro Town, where accommodation providers and other tourism businesses already face high operating costs. Stakeholders continue to seek greater support from the Central Government for infrastructure and essential services needed to accommodate residents and visitors.
At Secret Beach, residents and tourism operators have repeatedly called for improvements to the road network, an organized sanitation system, and access to utilities such as electricity and water. Most homes and businesses in the area currently rely on solar power or generators and must arrange their own water supply and waste disposal.
While hotel and accommodation taxes are also collected throughout the Caribbean, their structures vary considerably. Some destinations include value-added taxes, service charges, or other tourism-related fees, making direct comparisons difficult. Industry stakeholders have cautioned that any increase in Belize must take into account the country’s overall cost as a destination and the additional expenses already borne by tourism businesses.
The proposed increase has not been finalized. Mahler maintained that further consultation with the private sector should take place before any decision is made.