Guests staying with registered accommodation providers will be charged at US $3pp a night where the nightly room rate is up to US $120, rising to US $6pp for accommodation where the room rate exceeds US $120 a night.
The levy will be halved for guests aged 12 to 17, and will not apply to those under the age of 12. It means a family of four could pay up to an additional US $18 a night, which equates to US $252 over the course of a two-week stay.
Meanwhile, the government of Saint Lucia will also reduce the rate of VAT payable on accommodation by tourism accommodation service providers from 10% to 7% to further help the country’s tourism sector recover.
Plans for the levy, which had been due to be introduced from 1 April, follow two years’ consultation with the country’s tourism stakeholders, with proceeds earmarked for tourism marketing and development.
Tourism minister Dominic Fedee said the funds would be vital to help boost visitor arrival capacity, with the Saint Lucia Tourism Authority’s (SLTA) US $35 million budget set to be reallocated.
"The levy will strengthen the ability for Saint Lucia, as a tourism destination, to increase its marketing and to support tourism development in Saint Lucia with a tax that correlates to visitor arrivals," said the government.
"Consequently, revenue raised through this tax will be appropriated to the operations of the Saint Lucia Tourism Authority, Village Tourism Development, and the Tourism Council – the agencies mandated to undertake these tasks."
The government stressed tourism levies were "common practice" in other destinations, including many with "far greater resources than Saint Lucia", including Canada, Italy and the US, as well as several other Caribbean destinations such as Antigua & Barbuda, Barbados, Jamaica, Saint Kitts & Nevis, and Saint Vincent & the Grenadines.
Fedee added: “Saint Lucia is well placed to continue along the trajectory of increasing its visitor arrival capacity and although we continue to navigate through this time of crisis, our aim is to ensure that the Saint Lucia Tourism Authority is self-sustainable.
"The former budget allocation of approximately US $35 million shall be directed to other demanding areas within key sectors of education, national security, and health care. We thank the Saint Lucia Hospitality and Tourism Association and accommodation providers for embracing the way this levy will be implemented and for working with the SLTA towards this realisation.”
The SLTA, which will be responsible for administering the levy, will now begin registering accommodation service providers before approaching tour operators and booking websites about collecting the fee from guests.
Saint Lucia is currently on the UK government’s quarantine-free travel corridor list, meaning holidaymakers can travel to Saint Lucia once the various local and national lockdowns across the UK and Ireland come to an end without having to quarantine upon their return.
