Bahamas Unites With Jamaica, Barbados, Dominican Republic, Dominica, Saint Lucia, and Others to Surge Caribbean Travel with New Tourism Taxes: Everything You Need to Know

Published on November 20, 2025

Bahamas has joined Jamaica, Barbados, Dominican Republic, Dominica, Saint Lucia, and others in introducing new tourism taxes to boost Caribbean travel. These taxes aim to enhance infrastructure, support sustainable tourism, and contribute to regional economic growth. By implementing measures like tourism levies, VAT on services, and departure taxes, these Caribbean nations are strengthening their tourism sectors and improving the visitor experience. The new taxes will provide essential funding for the development of tourism infrastructure, help maintain the region’s natural beauty, and ensure long-term growth in the highly competitive global tourism market. As these countries work to enhance their tourism offerings, the added taxes play a key role in securing a brighter future for Caribbean travel.

Jamaica: Taxes That Enhance Your Stay

Jamaica’s tourism taxes include the Tourism Enhancement Fee of US$20, typically included in the airfare, to help improve the country’s tourism infrastructure such as airports and cultural sites. Additionally, a Room Rate Levy ranging from US$1 to US$5 per night is charged based on the accommodation rate, contributing to tourism sector development. Visitors also pay a Departure Tax of US$20 when leaving the country by air.

Barbados: A Mix of Levy and VAT to Boost Tourism

Barbados imposes a Tourism Levy of US$5 per night for hotel guests, depending on the price of accommodation. The island also applies a 13% Goods and Services Tax (GST) on various tourism services, such as accommodation, car rentals, and tours. However, there is a 7% VAT applied specifically to tourism accommodation services, helping to maintain affordability for visitors while supporting the tourism sector.

The Bahamas: Departure Taxes and Sustainable Fees

The Bahamas charges a Tourism Levy that ranges from US$3 to US$6 per night, depending on the accommodation price. This levy helps fund tourism infrastructure. Additionally, a Departure Tax of US$20 per person is usually included in flight tickets. There are also proposed Environmental and Cruise Fees for cruise passengers, aimed at promoting sustainable tourism practices, which would further impact visitors using cruise services.

Current Tourism Taxes in the Dominican Republic

The Dominican Republic charges a tourist fee of US$10 for most foreign visitors, which is typically added to the airfare upon arrival. This fee helps fund tourism development and infrastructure. Additionally, non-residents who overstay the permitted 30-day tourist stay will face an overstay tax when departing the country. The government is also reviewing the taxation of online platforms (such as Airbnb and other lodging rentals), which could impact how visitors book accommodations, especially as a 2024 tax reform proposal suggests removing VAT exemptions for lodging rentals through platforms.

Anguilla: Contributing to the Tourism Economy

Anguilla’s Tourism Levy varies from US$3 to US$6 per night, depending on the room rate, and contributes to tourism development. The island also imposes a 13% General Services Tax (GST) on tourism services, including accommodation, car rentals, and tours. Additionally, a 5% Hotel Occupancy Tax is applied to hotel stays, providing further funding for the tourism sector.

Dominica: Funding Growth with Visitor Taxes

Dominica charges a Tourism Levy of US$3 per night for hotel guests, contributing to tourism development. The island also applies a 5% Hotel Occupancy Tax to hotel bookings and a 15% VAT on various services, including tourism-related services such as dining, tours, and activities. These taxes help support the local economy and enhance the visitor experience.

Saint Lucia: Structured Taxes to Support Tourism

Saint Lucia charges a Tourism Levy ranging from US$3 to US$6 per night, depending on the room rate, to fund tourism infrastructure. Additionally, the country applies a 7% Goods and Services Tax (GST) on tourism services and 7% VAT on tourism accommodation services. These taxes are intended to enhance the tourism sector and support the island’s economic growth.

Bahamas has joined Jamaica, Barbados, Dominican Republic, Dominica, Saint Lucia, and others in introducing new tourism taxes to boost Caribbean travel. These taxes aim to enhance infrastructure, support sustainable tourism, and contribute to regional economic growth.

Conclusion

Bahamas’s decision to join Jamaica, Barbados, Dominican Republic, Dominica, Saint Lucia, and other Caribbean nations in introducing new tourism taxes is a strategic move to surge Caribbean travel. These taxes are designed to boost regional economic growth by enhancing infrastructure and supporting sustainable tourism. As more countries across the Caribbean implement similar measures, the overall goal remains clear: to ensure that tourism continues to thrive while also maintaining the natural and cultural heritage that makes the region so attractive to visitors. By investing in the future of their tourism sectors, these nations are strengthening their economies and providing a more sustainable travel experience for all.