Accommodation Head Tax takes effect 1st April 2020

The St. Lucia Hospitality and Tourism Association [SLHTA] Secretariat has informed its members that an Accommodation Head Tax will be implemented from April 1st 2020. 

The SLHTA was informed of the decision by the Minister for Tourism who also advised that the tax will be charged to guests at check-in.

The SLHTA members were told that this model is designed to ease the impact of the tax on existing contract arrangements, ensure implementation as of 1st April 2020 and supplement financial resources for the Tourism Authority for the next financial year. 

The accommodation based Head Tax, as approved by Cabinet, will be two-tiered, not applicable to guests under the age of 16 years and applied as follows:

  • US$ 3 per night per guest staying at a hotel with an average ADR below US$120; and
  • US$6 per night per guest staying at a hotel with an average ADR above US$120

This fee is to be applied to all non-sharing platform accommodation providers.

The rate of value-added tax (VAT) on hotel accommodation providers will be lowered from 10.0% to 7.0%.

In the coming weeks, the Tourism Authority is to spearhead further discussions with the sector on the most effective modalities through which accommodation providers will collect and remit the fee to the Tourism Authority, to ensure high compliance levels, amongst other aspects related to implementation of the fee.