Jamaica to levy new tax on tourists, support to Air Jamaica continues

Airline Industry Information, April 29, 2005

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As Jamaica's parliament passed a new budget it was also revealed that, separate from the budget, tourists arriving in the country by air will have to pay USD10 in entry tax.

The new tax will step into force from 1 May. According to The Associated Press, the government has said that it needs the money for cleaning up resort areas and to pay for other improvements. There will also be a USD2 tax for cruise ship passengers.

Meanwhile finance minister Omar Davies has said that the government will continue supporting the national airline Air Jamaica. The airline was reportedly brought back to state control in December last year, after being faced with long-term financial trouble. Davies said that the airline will get USD30m annually in subsidies. It is however also likely that Air Jamaica will be subject to major operational changes.

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