CTO Drops Plans For A Caribbean Cruise Passenger Tax
by Amanda Banks, Tax-News.com, London
14 May 2004

A controversial proposal to introduce a $20 per head tax on cruise passengers entering the Caribbean appears to have been dropped, according to reports this week.

Proceeds from the tax, which was first proposed by the Caribbean Tourism Organisation two years ago, were earmarked to feed an environmental and infrastructure development fund. However, the idea met with fierce opposition from the cruise industry, which feared a significant fall in passenger numbers, exacerbating the fragility of an already weakened economic climate.

"At this time, there has been no consensus on levying the tax, and there is no point in being stuck along the way while the business of finding funds is ongoing," CTO Secretary-General Jean Holder told the Associated Press.

A tripartite commission consisting of the CTO, the Cruise Association and the Caribbean Hotel Association has been established to discuss alternatives to the $20 head tax.

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