Resorts in the Bahamas have experienced room tax rises of 66% since 2010, with tourism likely to "pay a hefty price" for unwise tax policies, according to a senior industry figure.
The Bahamas Hotel and Tourism Association president Stuart Bowe also said the industry is finding it hard to compete in the region with business license tax for hotels also jumping a massive 250% over the same period.
Steep hikes on room, departure and business license taxes are making it difficult to attract cost-conscious vacationers to the Bahamas, he said.
He added that the average room rate in 2013 in the Bahamas was $264, compared to $114 in the Dominican Republic.
Writing in a newspaper column, Bowe said tourism generates more than $700 million in taxes annually, which is far more than any other industry.
He added price is now a key factor in vacation buying decisions, as he responded to comments suggesting the hotel industry was not paying its fair share in taxes.
Bowe highlighted a 2013 survey which found 65% of US travelers would be willing to spend under $2,000 for airfare, transfers and accommodation for a four-night vacation for two to the Bahamas.
"That means our pool of potential visitors is limited and becomes even smaller as prices increase," said the BHTA president.
