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November 20, 2003

Increase In Hotel Tax?

"V.I. hoteliers are voicing vehement opposition to a budget bill that would raise the hotel occupancy tax by 25 percent. "

So I guess I have been living in a cave - I just heard of this story this morning. The governmnet is actually thinking of raising the hotel tax? Obviously people in the industry are dismayed - but everyone should be. You can't keep grabbing from the same pot all the time. Here is a link to the story

Posted by afinta at November 20, 2003 09:37 AM


Perhaps the most troublesome part of this story is that our reps don't even know where the additional 2% will go. As if they know where the 8% they're already collecting goes!


Posted by: Brad at November 20, 2003 10:59 AM

While I can understand wanting to generate more money, and at the same time, not put more taxes onto the residents....

Increasing the hotel tax (that much any way) can only be a bad move. Tourists will surely stop coming (at 25% I would), hotels will have to decrease their room rates to compensate for the tax, their revenues will decrease, they'll lose money and thus employees and quality, then the tourists will stop coming. Tourists stop coming then fewer planes will come less often, the taxis run less often, the shops need to decrease prices or close all together, the restaurants are less busy. Now there are more people out of work (often leads to more crime?) and less revenue from tourism - who cares how much they spend on marketing now?!

Posted by: Jennifer at November 20, 2003 01:57 PM

Well, I was told yesterday by Senate President David Jones, that the 2% would be to fund the Tourism Authority that we are all much in favor of. So, it's like a condition for us to swallow, if we want the Tourism Authority! They win both ways! Yesterday was the first time they told us this!

Posted by: Ronnie at November 20, 2003 05:59 PM