Sandals resumes accord with JUTA
MONTEGO BAY, St James – Sandals Resorts has withdrawn the notice it served on the Jamaica Union of Travellers Association (JUTA) last November, which would have effectively ended the hotel chain’s guest transportation agreement with the association at the end of last year.
“Based on an advisory that we got from the ministry of finance that the proposed GCT (general consumption tax) on ground transport – which was what the issue was – had been waived, we wrote to the presidents of the respective JUTA chapters withdrawing the notice of termination that we had sent out,” director of corporate affairs at Sandals International, Leo Lambert told the Observer yesterday.
T
he letters advising JUTA members of Sandals’ decision, Lambert added, was sent late last month.
Government had increased the GCT on the hotel sector from 6.25 per cent to 8.25 per cent in October, and changed the way the tax from the sector was calculated, resulting in all-inclusive resorts, which bundle transport costs into their holiday package, having to pay GCT on transportation costs.
But within weeks after the tax came into effect, Sandals Resorts advised JUTA that the arrangement to transport guests at their resorts would terminate at the end of December because of the imposition of the tax.
JUTA, which has about 3,000 members, reacted angrily to the resort’s decision and threatened an all-island protest if government did not withdraw the tax.
But following a meeting with finance minister Omar Davies and JUTA executives in November, a decision was taken by government to withdraw the tax.
Lambert said yesterday that Sandals was pleased that the issue had been amicably resolved.
Meanwhile, president of Negril chapter of JUTA Clive Gordon has welcomed the decision by Sandals to withdraw the termination notice.
“Everybody is elated about the withdrawal of the notice. It is a welcome Christmas gift”, Gordon said, adding that the membership of JUTA was confident that once the government had repealed the tax, their contract with Sandals would remain intact.
