Effective October 1, 2018, the Barbados Government will be introducing an airline travel and tourism development fee.

As a result, passengers flying outside of the CARICOM region will pay US$70 and for those within CARICOM US$35. This fee will be in addition to the departure tax.

In making the announcement during yesterday’s Budget presentation in Parliament, Prime Minister Mia Mottley said “it is anticipated that this measure in a full fiscal year will realize $95 million. $75 million of this amount will go toward the BTMI and BTPI and the remaining $20 million will go towards regulation of Tourism, Civil Aviation and our shareholder responsibilities to LIAT”.

According to the Barbados Today, Mottley also announced that effective January 1, 2020, the rate of Value Added Tax (VAT) levied on the tourism sector will move from 7.5 per cent to 15 per cent.

In the interim, the Government will introduce a room levy to be applied to “B” Class and Apartments-US$2.50 per room per night; “A” Class US$5.50 per room per night and Luxury-US$10 per room per night.

“In addition, we will apply a 2.5% product levy on all direct tourism services. This will be collected on Government’s behalf by the providers of these services,” Mottley said, adding that a ten per cent shared accommodation levy will be introduced on all fees charged for the shared accommodation.

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