MONTEGO BAY, St James — The Jamaica Hotel and Tourist Association (JHTA) says the uncertainty surrounding the Government’s proposed increase in the general consumption tax (GCT) on the sector is causing concern among potential investors.

According to JHTA President O’Brian Heron, the proposal has left some investors uneasy as they assess their plans for the local tourism industry.

“I have had calls from a number of investors who have told me point blank that they are concerned and they really want us to get this GCT issue resolved as quickly as possible because it does affect their ability, it does affect their excitement and their passion and their trust in the ability to invest in destination Jamaica,” Heron told the Jamaica Observer.

His comments come as tourism stakeholders and Government representatives continue discussions aimed at finding common ground on the proposal to increase the GCT applicable to sections of the sector from 10 per cent to 15 per cent.

“There are concerns; a number of investors are restive at this time and are really waiting to see what the outcome will be of these GCT discussions and negotiations with the Government,” Heron added on the margins of a HEART/NSTA Trust Priority Sector Industry Roundtable with tourism stakeholders on Friday.

The proposed increase was announced as part of the Government’s revenue measures during the 2026-27 Budget Debate, prompting widespread concern across the tourism industry.

According to Heron, the additional tax burden would further compound the challenges the sector is facing as it works to remain viable.

“What we are particularly concerned about is, our industry has been subject to a number of shocks over the years. From COVID-19, on the heels of that we had Hurricane Beryl, then there is Hurricane Melissa, there is increasing oil prices and fuel prices all over, there is significant pressure being borne by the industry right now that is trying to recover… trying to settle insurance claims and this is going to squeeze the industry to a point where we risk our own competitiveness,” added Heron.

He said these concerns prompted the JHTA to approach the Ministry of Finance for discussions on the plan.

“I believe that our focus and our push with ensuring the Government understands the affordability issue and the profitability issue is something we need to remain very strident on, we need to remain very steadfast on,” the JHTA president said.

He told the Observer that some progress was made during a recent meeting with officials of the Ministry of Finance.

“Where we are when we left the conversation with the minister of finance [Fayval Williams] is that we agreed to form a working group to really explore alternative solutions around opportunities to help the Government to meet its fiscal objectives without squeezing the industry to a point of not really being able to be competitive, or to perform,” Heron said.

The JHTA president argued that the tourism industry has consistently made significant contributions to Government revenue and continues to do so.

“The industry is not anti-tax. As a matter of fact, we already pay our fair share of taxes, whether it is through corporate taxes or other statutory taxes that actually exist,” he explained.

“To operate a hotel, we’re also subjected to a number of licences and fees that are renewable every year and come with their own sets of inspections,” Heron said.