The Government of Belize (GOB) is considering a significant increase in the hotel tax, proposing to raise it from the current rate of 9% to 12.5%. This proposal follows a period of unprecedented growth in the country’s tourism sector. The planned tax increase is part of a broader strategy to enhance tourism infrastructure and support national development. This decision aligns with the government’s goal of taking advantage of the thriving tourism industry by generating additional revenue through higher taxes.
Prime Minister John Briceño stated in a January 23rd interview with News 5 that the tourism industry must contribute its fair share to the country’s economy. “I do believe the tourism industry needs to pay their fair share. We have invested tens of millions of dollars in the tourist industry, and we taxpayers have paid for it. When you put infrastructure development and beach development and marketing, you name it. And now it is time. This industry is growing and growing the fastest ever; we are the fastest-growing tourism in the region. So now we have done all that. I think it is only fair to get back some of that money and give relief to people who need it most, and we should be able to give relief to people who need it most. It is the lower middle class. We want to build more middle class. We have been saying that we want to eliminate the PAYE or remove it and just keep it in the higher upper bracket, fifty, seventy thousand dollars that would be ideal.”
On the other hand, Leader of the Opposition Moses “Shyne” Barrow, in a press conference on January 28th, said that the government has resorted to tactics that prioritize personalities over policies. He adamantly opposed plans to impose new taxes, claiming that the government is targeting struggling Belizeans instead of wealthy entities. He said, “A vote for this PUP government in the coming general elections will result in at least five new taxes and increased taxes.”
The proposed tax increase is currently under consideration and represents a strategic effort by the Belizean government to capitalize on the thriving tourism sector for economic growth. This decision aims to balance promoting tourism and ensuring that the industry adequately contributes to the country’s development needs. The additional revenue generated from this tax increase is intended to improve tourism infrastructure and support broader national development goals.
