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On June 11, 2018 a mini-budget was laid in Parliament by the Government of Barbados in which the new administration reiterated an urgent need to stabilize the country’s economy by implementing a series of fiscal measures. These measures are intended to assist with the improvement of the national infrastructure in order to maintain Barbados’ competitiveness as a destination for the benefit of all partners and stakeholders. All Barbadians, those who love Barbados, and those who are key partners in the country’s development have been called upon to play a part in this social and economic restoration.

Effective July 1, 2018, a mandatory “Room Rate Levy” will be applied per bedroom per night on all tourist accommodation, to be paid by guests for their stay, at the following rates:

  • Villa Sub Sector and all other Vacation Rental Properties however defined - 2.5% of the nightly rate capped at USD $10.00
  • Luxury Class Hotels- USD $10.00
  • “A” Class Hotels- USD $5.50
  • “B” Class Hotels , Apartments and Guest Houses- USD $2.50

The Ministry of Tourism and International Transport is requesting that in the spirit and action of full disclosure and transparency, and also in an effort to ensure that guests are made aware of this new levy, signage should be erected at the Front Desk of properties where appropriate.  In the absence of these facilities, an e-mail or written correspondence should be disseminated to our visitors.

Guests who are travelling from July 1, 2018 or who will be on property from that date, should be notified that the levy will take effect for the full duration of their stay. For guests who have checked in before July 1, 2018, the levy will be applied to the duration of their stay after that date.

Payment of the “Room Rate Levy” is to be made by all Accommodation Providers to the Barbados Revenue Authority (BRA). The Ministry of Tourism and International Transport is therefore advising Accommodation Providers that are not registered or classified to contact the Barbados Tourism Product Authority in this regard. Failure to comply with the payment of the Room Rate Levy will result in penalties as prescribed in the governing legislation.

For further queries, kindly contact the Product Quality Unit of the Barbados Tourism Product Authority at 535-3700.


Effective July 1, 2018 there will be a 2.5% Product Development Levy on Direct Tourism Services.

Direct Tourism Services refer to those services as defined in the Value Added Tax (Amendment) Act, 2013-22 and the Value Added Tax (Amendment) Act, 2018-12.

Ministry of Tourism and International Transport


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