Tourism stakeholders in Belize are pushing back against a proposed 3.5% increase in the country’s hotel accommodation tax, warning it could weaken the destination’s competitiveness at a time when travellers have no shortage of alternatives, Greater Belize Media reported on August 25.
Belize Hotel Association president Reynaldo Malik said the industry is currently performing well, but cautioned that advantage could erode quickly if prices rise. “We’re fighting against Cancun, we’re fighting against Jamaica, we’re fighting against the Bahamas, the Dominican Republic, Costa Rica, El Salvador, now Panama,” Malik said, according to Greater Belize Media. “The first thing that will just basically melt our market share is if we become one of the most highly priced destinations in the region.”
Malik said the hotel sector is already managing rising costs and shrinking profit margins, adding that the proposed increase comes as the United States, Belize’s largest source market, faces its own inflationary pressures that have reduced travellers’ discretionary spending.
In Caye Caulker, hotel owners are already spending heavily to manage sargassum seaweed accumulation. Alina Saldivar, owner of Island Magic Beach Resort and Island Magic Villas, said operators receive no government assistance on import duties for essential supplies, including linens, appliances and disposable paper towels used to manage sargassum and salt-air damage.
Efren Perez, president of the Belize Tourism Industry Association, said price-sensitive international travellers, particularly from Europe, could be deterred if Belize’s pricing diverges further from regional competitors such as Costa Rica and the Dominican Republic.
Stewart Krohn, managing director of Naia Resort in Placencia, said the industry still lacks clarity on how additional tax revenue would be used, noting no written government proposal has yet been shared with stakeholders.
The Belize Hotel Association formally raised its concerns with the Ministry of Tourism, with discussions between the association and government now under way.