Hotel tax in the US Virgin Islands is going up by a quarter next year.
The US Caribbean territory announced a hike of 25%, from the current 10% to 12.5% after US Virgin Islands Governor Kenneth Mapp agreed to a tax increase earlier this month.
The new rate takes effect from January 16 and applies to accommodations in hotels, villas, timeshares, guesthouses for all stays of less than 90 days.
Governor Mapp said the increase will go toward developing USVI sports tourism.
"We have the ability to make the Virgin Islands the center of horse racing in the Caribbean, and we will expand our paradise jam basketball tournaments by offering monetary prizes to the winning men’s and women’s teams," Mapp said.
"In addition, we are now providing monetary support to send our inter-scholastic high school teams to compete not only within the Virgin Islands, but to compete outside the Virgin Islands, in the BVI and Puerto Rico as well as host teams from those jurisdictions here."
