Belize tourism stakeholders oppose proposed hotel tax increase

Tourism stakeholders and the opposition United Democratic Party (UDP) are protesting a government proposal to increase Belize’s hotel accommodation tax from 9% to 12.5%.

Industry leaders, including the Belize Hotel Association and the Belize Tourism Industry Association, warn that the hike could diminish the country’s competitiveness against regional destinations like Mexico, Jamaica, and Costa Rica. Stakeholders noted that the United States market is currently facing inflationary pressures, and travelers from Europe are highly price-sensitive. Concerns were also raised regarding high operating costs and limited government support for import duties on business supplies.

The UDP has called for the tax increase to be suspended pending an independent economic impact assessment. The party argues that the cumulative effect of the tax hike, combined with new aviation fees and rising fuel costs, could threaten the livelihoods of the approximately 35,000 Belizeans employed in a sector that contributes roughly 40% to the national GDP.