UDP Joins Growing Opposition to Proposed Hotel Tax Hike

The United Democratic Party (UDP) is rejecting a proposed increase to Belize’s hotel accommodation tax from 9 to 12 per cent, calling the 33 per cent hike a threat to tourism at a time when travellers are comparing destinations on affordability.

“This is not economic growth. It is economic extraction,” the party said. It argues that the government should focus on expanding the tax base rather than taxing existing industries. The UDP is calling on the Belize Tourism Board to publicly justify the increase before proceeding.

The UDP stated, “The consequences would be devastating for an industry that supports thousands of Belizean livelihoods. Hotels, tour operators, restaurants, tour guides, taxi and transportation providers, water taxi operators, local airlines, artisans, farmers and countless small businesses all depend on visitor spending.”

The UDP joins the Belize Hotel Association and BTIA in opposing the hike. BHA President Reynaldo Malik cited a thirty per cent rise in fuel costs already squeezing hotel margins, while BTIA President Efren Perez said the government should close expenditure leaks instead of raising taxes on tourism. Perez says BTIA will demand two per cent of any increase go toward a climate adaptation fund if it proceeds.

The party is also calling on the Belize Tourism Board to publicly justify the proposed increase before it moves forward, questioning what economic analysis has been done and what impact is expected on visitor arrivals, occupancy, length of stay, and overall visitor spending.