Tax increase

[DANNYO]

Guest tax increase now official
29 Apr, 2010, 14:48 (GMT -04:00)

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ORANJESTAD — With a vote of eleven to six, the law to increase the guest tax was approved by the parliament yesterday. That means the guest tax will increase with 1.5 percent per May 1st.
On reflection, the additional 2 percent-increase will not be introduced per July 1st, as originally planned by the government. The government thinks it is better to wait with the second phase of the increase until after the budgetary funds ATMF and TPEF (the Aruba Tourism Marketing Fund and the Tourism Product Enhancement Fund) have been established. A date for this establishment has not been fixed yet. Hotels are currently paying only 6 percent guest tax. That will become 7.5 percent per May 1st, and eventually 9.5 percent.
The MEP-party had voted against the increase. During the discussion of the enactment in the States, the opposition party had criticized amongst others the absence of a feasibility study. In addition, they stated they found it impossible to place the increase in a financial framework, as the parliament has not discussed the annual tourism budget yet. State-member Mervin Wyatt-Ras further states: “The government is also not considering the parliamentary budget right or the comments from the Advisory Council”. Wyatt-Ras warns for the impact of the increase on tourism. “Aruba is already expensive for tourists. It could also have an impact on the employment.”
In their counter-argument, the government stated one had seriously considered the increase, followed by extensive consultation with social partners, such as hotel association Ahata and the association for timeshare hotels ATSA, who had both agreed with the plans in writing. Regarding Aruba’s competition position, the government states the guest taxes are much higher on most of the other Caribbean islands. According to the cabinet, “With a good product, Aruba could be very successful”.

THIS WAS FROM AMIGOE.COM

[Andrea J.]

The Bbo tax had been decreased a little and now this took effect may 1.

[Arubalisa]

I have no trouble paying a "Guest tax" since they decreased the BBO.

[Love Aruba]

What is the BBO? Also, if you have already paid for the trip, will you have to pay more now, or should the hotel keep it as it is?
I hope these aren't dumb questions.

[Arubalisa]

“belasting op bedrijfsomzetten”,or “BBO” is a "turn over tax"...along the lines of a V.A.T.

Effective Jan. 1, 2010, the tax fell from 3% to 1.5%. One of the concessions in lowering it was raising room tax rates (as well as excise on alcohol and tabacco).

will you have to pay more now

Depends upon when your trip is.

Hotels are currently paying only 6 percent guest tax. That will become 7.5 percent per May 1st

If it is after May 1, contact your travel agent, unless your travel agent is willing to "eat it".

[Arubalisa]

Googling real quick, here are the government room taxes for a couple of other Caribbean islands:
"Antigua and Barbuda: 8.5%
Bahamas: 12%
Barbados: 7.5%
Dominica: 5%
Dominican Republic: 23%
Grenada: 8%
Haiti: 10%
Jamaica: 15%
St. Kitts and Nevis: 7%
St. Lucia: 8%
St. Vincent and the Grenadines: generally 7%
Trinidad and Tobago: 10%"

[danadog56]

I honestly don't mind paying the taxes, it just kills me though when I get to aruba and my TS gives me my bill which includes, energy surcharge, air conditioning charge, now more taxes.....yikes....I pay my maintenance fees and still have to pay additional fees on top of that.....If I didn't love Aruba so much I might conside going elsewhere,,,,,,

Naw,,,,,,,I was just blowing of steam.....keep the taxes coming....I'll keep going to paradise no matter what !!!!!!

[fattypatty]

“Aruba is already expensive for tourists"

at least they know.


if u look at your hotel bill, the average tax + hotel surcharge added onto the bill is about 22-27%.

[Arubalisa]

CHANGES IN ARUBA TOURISM AUTHORITY
www.aruba.com/news/general-news/changes-in-aruba-tourism-authority/

"At the General Session of the Annual Tourism Conference Aruba, Otmar Oduber, Minister of Tourism, Transport and Labor, explained that the Aruba Tourism Authority will be privatized as of January 1, 2011. This will allow marketing experts greater autonomy and speed in the decision-making process and will also financially link ATA with AHATA (Aruba Hotel and Tourism Association).

He stated that, starting July 1st, the marketing budget of the government and AHATA will become one fund – the Aruba Tourism Marketing Fund. Beginning May 1st, Aruba’s room tax will be 7.5%. On July 1st, the 2% fee now charged by AHATA will be converted into room tax, for a total of 9.5%. This room tax will flow into the Aruba Tourism Marketing Fund and will be earmarked to guarantee continuity and stability in the marketing of the destination."

[Andrea J.]

interesting