As Belize prepares to debate a proposed increase to its hotel accommodation tax, the country’s main opposition party has launched a sharp pushback, warning the change could deliver cascading harm to the nation’s tourism-dependent economy and the livelihoods of tens of thousands of workers.
The current government has tabled legislation that would lift the existing hotel accommodation tax from 9% to 12.5% — a 33.3% jump in the tax rate — alongside new domestic aviation fees that are already drawing criticism. United Democratic Party (UDP) chair Sheena Pitts is leading the opposition’s charge, arguing that when combined with already soaring business operating costs across the sector, the combined new charges will erode Belize’s competitiveness as a Caribbean vacation destination.
Pitts emphasized that the tax increase would not only impact hotels and guided tour operators. If visitor numbers decline or travelers cut back on discretionary spending during their stays, the slowdown will ripple outward to touch thousands of Belizeans across connected sectors, from taxi drivers and restaurant staff to local artisans and small retail business owners who rely almost entirely on tourism dollars.
Citing the government’s own 2026 tourism sector reports, Pitts noted that the industry contributes roughly 40% of Belize’s total GDP when direct, indirect and induced economic impacts are counted, and supports approximately 35,000 jobs across the country — a significant share of the nation’s total workforce.
Against this backdrop, the UDP is demanding three key actions from the ruling administration. First, the party has called for the proposed hotel tax increase to be put on immediate pause until the government commissions and publishes an independent economic impact assessment. That assessment must clearly outline how the tax hike would affect hotel occupancy rates, visitor spending, overall employment and the survival of small, locally owned tourism businesses, the UDP says. Second, the opposition is calling for a full review of the newly implemented domestic aviation fee, arguing that forcing both domestic travelers and visiting tourists to pay extra to move between destinations within Belize will only deter people from planning multi-stop trips to the country. Third, the UDP has demanded that Tourism Minister Anthony Mahler publicly account for how existing tourism revenue has been allocated and spent, and is calling for an immediate review of national fuel taxes alongside the development of a framework to stabilize fuel prices for tourism businesses and public transportation operators.
“Tourism workers and visitors moving between destinations must not, absolutely not, be made to burden additional prices for moving inside their own countries, and tourists will get deterred from coming here,” Pitts said in her public statement pushing for the changes.
This report is adapted from a transcript of an evening television newscast originally published online.