What is the percentage of the tourism accommodation tax (TAT) in the Cayman Islands?

What is the percentage of the tourism accommodation tax (TAT) in the Cayman Islands?

• A. 10%
• B. 15%
• C. 12%
• D. 13%

Answer: (D)

The tourism accommodation tax (TAT) in the Cayman Islands is set at 13%. This tax is applied to various forms of accommodation, including hotels, resorts, and other lodging services, contributing to the funding of infrastructure, tourism marketing, and public services that benefit both residents and visitors. The 13% rate reflects the government’s strategy to balance the need for revenue generation while promoting a competitive tourism industry. Understanding the specific tax rates is crucial for stakeholders in the tourism sector, as it impacts pricing, revenue reporting, and overall financial planning for accommodations. The selected rate aligns with standard practices in the region, aiming to enhance the sustainability of tourism while ensuring that the local economy benefits from visitor spending.

The tourism accommodation tax (TAT) in the Cayman Islands is set at 13%. This tax is applied to various forms of accommodation, including hotels, resorts, and other lodging services, contributing to the funding of infrastructure, tourism marketing, and public services that benefit both residents and visitors. The 13% rate reflects the government’s strategy to balance the need for revenue generation while promoting a competitive tourism industry.

Understanding the specific tax rates is crucial for stakeholders in the tourism sector, as it impacts pricing, revenue reporting, and overall financial planning for accommodations. The selected rate aligns with standard practices in the region, aiming to enhance the sustainability of tourism while ensuring that the local economy benefits from visitor spending.