Barbados Sees Surge Of Tourist Investment

by Jason Gorringe, Tax-News.com, London

13 May 2005

Barbados' Minister of Tourism and International Transport, Noel Lynch says Barbados is seeing unprecedented levels of investment in its tourism sector as a result of the Tourism Development Act 2003, which has attracted US$800m in capital since it was passed.

Barbados has more than 1m tourist arrivals a year, spending in excess of US700m. Under the Act a total of 11 new hotels accounting for 406 rooms have been developed, with extensions and renovations to 10 other hotels, representing an investment of $306.7 million, resulting in an additional 483 rooms and 442 new jobs. New multi-purpose developments include 100 hotel rooms and 605 villa rooms and are expected to generate 506 jobs on completion of the projects.

The government says that even more needs to be done to prepare for this country’s hosting of the quarter final matches and the final match of the Cricket World Cup in 2007. The total room requirement to accommodate Barbados’ regular visitors as well as anticipated fans of the Cricket World Cup is approximately 12,000 rooms against a current stock of 8,000 rooms.

Mr Lynch urged the region to accelerate the creation of the long-mooted Regional Stock Exchange to encourage the formation of regional capital markets which could increase the flow of investment into tourism.

The Act allows investors in tourism projects to benefit from write-off of capital expenditure and 150 per cent of interest costs. There is also exemption from import duty, value added tax and environmental levy in respect of furniture, fixtures and equipment as well as building materials, supplies and equity financing.

Recommended