Action needed to reduce impact of VAT on Dominica’s Tourism Industry

first_imgLocalNews Action needed to reduce impact of VAT on Dominica’s Tourism Industry by: – July 6, 2012 48 Views   no discussions Share Share According to a post 2006 USAID-funded report on Impact of VAT and High Energy cost on the Tourism Industry in Dominica, “Action is needed to reduce the impact of VAT and High Energy cost on Dominica’s tourism industry.This industry is integral to the growth of Dominica’s economy. The enabling environment should be conducive to making business competitive and profitable, so that their economic contributions can be sustainable.Tourism has the capacity to create more jobs than any other sector and its critical function as the “engine of growth” for the economy must not be underestimated.” The DHTA reiterates its position and notes that with the imposition of 15% VAT resulting in higher prices of our tourism products and services, we have become uncompetitive.Compounded with the reduction in cruise calls and the limited and costly access, the tourism industry is in dire need of assistance.With regards to high energy costs, it should be noted that Dominica has one of the highest base rates for electricity in the OECS, even with hydro accounting for approximately 40% of the total electricity generated, we have seen regular increases in the price of electricity, with the cost for hotels showing an increase of 50-70% in a post 2006 two year period. We are confident, that all efforts by the government, to increase the effectiveness of the tourism sector and make the industry more competitive, will result in the tangible added value, to Dominica’s economic and social well-being. Press Releasecenter_img Share Tweet Sharing is caring!last_img

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