The Jamaica Hotel and Tourist Association (JHTA) is renewing its call for urgent engagement with the Government regarding the proposed increase in General Consumption Tax (GCT) on tourism activities, stressing that timely consultation is essential given the potential impact on investment, employment, competitiveness, and economic growth.

While acknowledging the Government’s ongoing focus on national recovery efforts following Hurricane Melissa and its responsibility to manage the country’s fiscal affairs, JHTA President Christopher Jarrett said the continued absence of dialogue on such a critical issue is causing growing concern throughout the industry.

“The tourism sector has always been a committed partner in Jamaica’s development,” Jarrett said. “We are therefore disappointed that despite repeated requests since March, we have not yet had the opportunity to discuss a proposal that will have significant implications for businesses, employees, investors, and communities across the country.”

Jarrett emphasised that the Association is seeking consultation, not confrontation.

“We are simply asking for the opportunity to be heard. Decisions of this magnitude warrant meaningful engagement with the sector they will directly affect. Tourism deserves a seat at the table, and dialogue should be a fundamental part of the process.”

The JHTA noted that many hotels, attractions, and tourism operators are bound by long-term contracts extending into 2027 and beyond, limiting their ability to absorb or pass on additional tax costs without affecting profitability and competitiveness.

“Many businesses have already committed to pricing and contractual arrangements years in advance. Any sudden shift in the tax structure creates operational and financial pressures that deserve careful consideration and discussion.”

Jarrett also highlighted tourism’s role as one of Jamaica’s largest employers and a major source of foreign exchange earnings, supporting thousands of small and medium-sized enterprises across the island.

“We support the Government’s objective of maintaining a strong fiscal position. However, achieving that objective should include consultation with one of the country’s most significant economic sectors. We believe there is sufficient goodwill and expertise on all sides to find a balanced solution.”

The Association is therefore urging that discussions be convened without further delay.

“Every day that passes without engagement creates greater uncertainty for businesses making investment, operational, and employment decisions. The sector stands ready to engage constructively and work toward common ground, but the time for meaningful dialogue is now.”

The JHTA remains confident that through direct engagement and collaboration, a solution can be reached that supports both the Government’s fiscal priorities and the continued strength, resilience, and competitiveness of Jamaica’s tourism industry.