Government proposes revamping taxes and resort rent

The government plans to revamp taxes and rent from tourist resorts to revitalise the industry, Tourism Minister Dr Ahmed Sawad has said

Speaking to Minivan News today, Sawad said the current fixed costs of bed tax and lease rents served as a disincentive to investors.

Under the government’s proposed scheme, tourists will pay an ad valorum tax instead of a fixed bed tax. This means tourists will pay a percentage of the room rate rather than the fixed rate of US$8 per bed.

Last month, Eugene Radilesku, a consultant from the International Monetary Fund, said the government needed to capitalise on revenue from the tourism industry. For a hotel room that ranges from US$200 to US$500 per night, he said, the government only earned about US$8 in revenue.