MONTEGO BAY, St James – The Jamaica Union of Travellers Association (JUTA) has put on hold its planned protest for today, aimed at pressing government to roll back the general consumption tax (GCT) applied to the transportation component of all-inclusive hotels.

President of Negril chapter of JUTA, Clive Gordon, told the Observer Wednesday that a decision had been taken by the association to call off the protest in light of a meeting scheduled for Monday with Finance Minister Dr Omar Davies to discuss the vexed taxation issue.

“We got information today that the finance minister has invited us to a meeting on Monday at 3:30 pm to deal with the matter, so we have decided to put the protest on hold pending the outcome of the meeting,” Gordon said.

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 would protest in Ocho Rios, Negril and Montego Bay.

Gordon told the Observer that JUTA would be calling for a “total roll-back” of the tax at the meeting next Monday.

“We will be calling for, and we are expecting a total roll-back of the tax, nothing less,” Gordon said, noting that if the tax was not repealed hundreds of its members would be forced out of business.

On November 1, Sandals Resorts International served notice on JUTA that come December 31 the all-inclusive hotel chain would end its 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.

The Opposition Jamaica Labour Party (JLP), in the meanwhile, has come out in support of JUTA in its lobby for the government to repeal the tax.

The party’s spokesman on tourism, Ed Bartlett, said the Opposition had long warned that the tax would have a negative effect on the tourism sector.

“I have raised it in my budget presentation and we (later) raised it again and warned that the large hoteliers were going to be forced to do it (end guest transportation agreement with JUTA).

“.This government has not been responsive to informed suggestions, because we have been pointing out to them that the tax would have a negative impact on the industry, particularly the JUTA people who are involved in transport,” Bartlett added.