JHTA renews call for urgent talks on proposed GCT increase

KINGSTON, Jamaica — Jamaica Hotel and Tourist Association President Christopher Jarrett says the tourism industry remains concerned about the proposed increase in General Consumption Tax (GCT) on tourism activities and is again urging the Government to meet with stakeholders.In a release on Wednesday, the JHTA said it has repeatedly sought discussions since March but has not yet received an opportunity to engage on the proposal, which it argues could have significant implications for businesses, employees, investors, and communities across the country.Jarrett said the association recognises the Government's focus on national recovery efforts following Hurricane Melissa and its responsibility to manage the country's fiscal affairs, but maintained that consultation is essential on a matter of such importance.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.He stressed that the association is seeking dialogue rather than 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, which it said limits 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 said.He also pointed to 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, he argued.The association is urging that discussions be convened without further delay, arguing that continued uncertainty complicates investment, operational, and employment decisions.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, Jarrett said.The JHTA said it remains confident that direct engagement between the Government and the tourism industry can produce a solution that supports both fiscal objectives and the continued competitiveness of Jamaica's tourism sector.