MONTEGO BAY, St James – The Jamaica Labour Party (JLP) has called on the government to amend the Tourism Incentive Act to allow hotel properties older than 10 years to benefit from tax breaks when they undertake refurbishment.

It is a move that the party’s spokesman on tourism, Ed Bartlett, said would help to give older, smaller properties a chance at survival in the tourist industry.

At the same time, he said that it was a move the JLP would take should they control the government following the next general elections.

“A new JLP government will repeal (that section of the Tourism Incentives) Act to give small hotels a chance to compete, and create a powerful niche in the tourism industry,” Bartlett told the Observer.

He has, in the interim, recommended that government effect the change to help put small hoteliers on an even keel with their more modern and far larger competitors on the island.

“Abolish the fixed period of 10 years for taxed holiday to allow continuous refurbishing and upgrade of the smaller hotels that they will now be able to be on the cutting edge of products and services and be able to build a powerful niche within the industry,” Bartlett said.

“Almost all the small hotels and villas are 10 years and older and they are at a disadvantage at providing the quality of product, which will make them as competitive as the new and larger properties,” he added.

Godfrey Dyer, former Jamaica Hotel and Tourism Association (JHTA) president, and Vana Taylor, head of the Jamaica Association of Villas and Apartments, supported Bartlett’s position.

“I am happy to hear Mr Bartlett come up with it, and I hope that the matter will be addressed speedily to help rescue the small hotels,” said Dyer.

“One of the main reasons for it is now with all the new hotels coming on stream, most of them (small hotels) can be medium priced and that makes things difficult for the small properties, which are not in condition and, therefore, not in a position to offer better competition,” Dyer added.

Taylor expressed a similar sentiment.

“We have been calling for the 10 years incentive to be addressed for a long time,” she said. Bartlett has also called on the government to redefine small hotels as properties 150 rooms and under. The new definition would give an increased number of small hotels – currently defined as having between 10 and 50 rooms – access to incentives provided for the sector.

“In the context of the new landscape of mega hotels, a small hotel now is perhaps what we used to call a medium-sized hotel in the past (when the Act was drafted),” noted Bartlett. “The Act did not envision that we would have these mega hotels now. The smaller hotel needs a repeal of this act to free them up,” he added.

hinesh@jamaicaobserver.com