Barbados is renowned worldwide as an unspoilt Caribbean island with beautiful beaches, clear, tranquil waters, an appealing year round climate and naturally warm and hospitable people. Added to this, Barbados has emerged on the global stage as a thriving, secure, reputable and rewarding international business centre particularly for businesses involved in international financial services, information communications technology, niche manufacturing, research and development as well as tourism related projects.
Investors interested in pursuing projects in the tourism and hospitality sector can take advantage of the incentives provided under the Tourism Development Act 2002. The Act aims to encourage the sustainable development of the tourism industry by providing duty-free concessions and income tax concessions for approved tourism projects.
Customs Duty or Income Tax concessions may be granted under the Tourism Development Act in respect of:
– Duty-free importation of building materials and equipment during construction and rehabilitation;
– Duty-free importation of supplies for refurbishment of hotels, restaurants, villas and sports and recreation facilities for tourism purposes;
– Extended tax holidays/write-off of capital expenditure and accelerated write-off of interest;
– Training of employees;
To be eligible for incentives/concessions under the Tourism Development Act, a project must fit into one of the following categories:
– Construction of a new hotel, the alteration or renovation of an existing hotel or the conversion of a building into a hotel;
– Furnishing and equipping of a building to be utilised as a hotel;
– Provision of tourist recreational facilities and tourism related services;
– Construction and equipping of a new restaurant or the alteration or renovation of an existing restaurant;
– Construction of a new attraction or alteration or renovation of an existing attraction;
– Restoration, preservation and conservation of natural sites;
– Construction and furnishing of villas and timeshare properties;
– Addition to a tourism product of facilities or services intended to increase or improve the amenities that the tourism product provides.
Incentives are also available under the Special Development Areas Act.