OCHO RIOS, St Ann – The Jamaica Union of Travellers Association (JUTA) has threatened protest action if government does not roll back the general consumption tax (GCT) that has been applied to the transportation component of all-inclusive hotels.

Government increased the GCT on the hotel sector from 6.25 per cent to 8.25 per cent in October and changed the way in which GCT from the sector is calculated, resulting in all-inclusive resorts, which bundle transportation costs in their holiday package, now having to pay GCT on transportation costs.

It would mean that all-inclusive resorts would end up paying more GCT or, alternately, pass on the costs to JUTA operators. But JUTA members say they cannot absorb the tax.

At a meeting in Montego Bay on Monday, the JUTA national board decided that if government did not remove the GCT, their 3,000-strong membership across the island would join in protest action in Ocho Rios, Negril and Montego Bay.

JUTA, in a statement, said members of the association would be mobilised to show the numbers of persons who could be put out of business by the government’s tax changes.

The statement did not say what protest action would be

employed and JUTA all-island president, Donald Jackson yesterday declined to elaborate.

The transport operators said they would remain resolute in their response to the “attack on their viability”, despite an indication from state minister for tourism, Dr Wykeham McNeill, that a formula was being worked out to correct the tax implication.

JUTA said that in the event that government does not reverse the tax, its members would be prepared to show that it is “unacceptable for ground transportation to be singled out in this way”.

On November 1, Sandals Resorts served notice on JUTA that come December 31 this year the all-inclusive hotel chain would end their guest transportation agreement because of the new tax regime.

This action means that approximately 90 per cent of JUTA’s total membership would be affected.

JUTA provides ground transportation for Sandals Resorts in Negril, Whitehouse, Montego Bay and Ocho Rios resort areas.

Jackson said yesterday that “nearly 14,000 individuals stand to be affected by this tax” as in addition to JUTA’s 3,000 members, the association employs 300 people, who each has a family of four persons on average.

The Montego Bay meeting was attended by representatives from the Jamaica Hotel and Tourist Association, Sandals Resorts, SuperClubs, and the Negril and Montego Bay Chambers of Commerce.