Tourism industry activities in the Caribbean are unduly subject to additional taxes that do not apply to other sectors, such as the room tax, the exit tax, and the import tax. This according to the findings of the study entitled "Taxes and Costs of the Caribbean Hotel Sector", carried out by the Caribbean Regional Tourism Sustainable Development Programme (CRSTDP), as part of the technical assistance provided to the Caribbean Hotel Association (CHA) with funding from the European Development Fund (EDF). The study analysed the competitiveness of Caribbean hotels, on their operational costs, levels of taxation, and other cost-free barriers that adversely affect the tourism sector. The research focused on three sample destinations: Dominican Republic, Barbados, Jamaica and St. Lucia.For comparison purposes with similar destinations, the report examined the incentive and investment regimes of the state of Hawaii and the Canary Islands; both destinations enjoy incentives that give way to a climate that facilitates investment in hotels, and also demonstrate a long-term commitment through several concessions that ensure that entries into the hotel sector do not have excessive tax burdens.
