ATTENTION BTIA MEMBERS WHO OPERATE HOTELS
As you may be aware, a subcommittee of the BTIA national board is currently engaged in negotiations with BTB and Government to offer a better alternative to the new tax proposal for hotels which was tabled in the Prime Minister's budget speech.
While the outcome of that effort may not be clear for several months, what is clear is that come January 1, 2013, the new tax on rooms will be raised to the rate of 12.5%. The immediate question for hoteliers is what to do about room reservations now coming in. While the CEO in the Ministry of Tourism was not able to give any solid advice on this matter, after consulting with a number of major figures in the industry it is suggested that hotels should begin from now to quote the new rate for all reservations made beginning on the night of January 1.
As for what will be done for any 2013 reservations already quoted at 9%, we cannot be certain but your BTIA negotiators will certainly push for the position that any documented reservations made at the 9% rate will be honored by the taxation authorities at that rate.
Please be aware that the above advice to quote the 12.5% rate has no official status but is simply a recommendation from your BTIA representatives. Comments from members are welcome.