The SLHTA Secretariat wishes to advise members that further to a discussion between the Honorable Minister for Tourism and SLHTA CEO, it has been brought to our attention that the Accommodation Head Tax, set to be implemented on 1st April 2020 will be charged to guests at check-in.
This model is designed to ease the impact of the tax on existing contract arrangements, ensure implementation as of 1st April 2020 and supplement financial resources for the Tourism Authority for the next financial year.
The accommodation based Head Tax, as approved by Cabinet, will be two-tiered, not applicable to guests under the age of 16 years and applied as follows:
US$ 3 per night per guest staying at a hotel with an average ADR below US$120; and
US$6 per night per guest staying at a hotel with an average ADR above US$120
This fee is to be applied to all non-sharing platform accommodation providers.
The rate of value-added tax (VAT) on hotel accommodation providers will be lowered from 10.0% to 7.0%.
In the coming weeks, the Tourism Authority is to spearhead further discussions with the sector on the most effective modalities through which accommodation providers will collect and remit the fee to the Tourism Authority, to ensure high compliance levels, amongst other aspects related to implementation of the fee.