New Mandatory Tax Levy - 2019 Update

Sun Group Hotels Inc.

CWTS Complex, Lower Estate

St. George, Barbados

Tel: (246) 434-8410

Fax: (246) 434-8419

info@sungrouphotels.com

March 22, 2019

Dear Valued Operator,

On March 20, 2019, the Government of Barbados presented their budget and made amendments to the existing tax and room rate levies collected by the Tourism Industry for Hotels. Please note the amendments below:

Room Rate Levy

The changes in the mandatory room rate levy will take effect from April 1, 2019:
Category B Class and Apartments US$4.38 per room per night
Category A Class US$9.63 per room per night
Luxury US$17.50 per room per night

The following Hotels fall under each Category:

1. Savannah Beach Hotel - A Class
2. Sugar Cane Club Hotel & Spa - A Class
3. Time Out Hotel - B Class
4. Worthing Court Hotel - B Class

Guest in-house and all future guests should be advised that from April 1, they would have to pay the room levy directly to the Hotel on check-in.

VAT on accommodation

The VAT currently charged on accommodations is at a rate of 7.5%. Effective January 1, 2020 this rate will increase to 10%.

We will keep you updated as to any internal changes we will have to make given the new taxes and levies, but will do all we can to ensure our Hotels remain attractive to our customers.

Kind regards,

Rod Weatherhead

Managing Director