The Government of St Lucia is to introduce a new government tax named the ‘Tourism Levy’, which is aimed at helping the country market and develop the destination.
The tourism levy is the result of two years of consultation and will take effect come December 1, 2020 with the St Lucia Tourism Authority responsible for administration of the tax.
Travellers, staying at a registered accommodation provider, will be required to pay a prescribed nightly levy on their stay.
A tourist will have to pay either US$3 or $6 per person per night, depending on a room rate below or above US$120.
Reduction in Value Added Tax
Travellers 12 to 17-years will only pay 50 per cent of the rate. The rate does not apply to children under 12.
While the tax is expected to make the destination more expensive to end-users, the government has given businesses in the sector a reduction in the Value Added Tax (VAT) from 10 percent to seven per cent.
“Our Saint Lucia hotels appreciate the importance of an appropriately funded Tourism Authority to promote the destination and maintain our competitive edge by further developing our amazing and diverse range of island experiences,” said President of the Saint Lucia Hospitality and Tourism Association, Karolin Troubetzkoy.
“This is why we support the introduction of this tourism levy and will do our utmost to facilitate its implementation.”
Despite the levy, the taxation on accommodation in Saint Lucia is among the lowest in CARICOM.