In an effort to try and revive the tourism industry, additional tax incentives have been announced.

Under a Short Life Investment Package (SLIP), new hotel investment projects are offered five years’ income tax holidays for capital investments from $250,000 to $1 million, a seven-year tax holiday for investments between $1 million to $2 million and a 13-year tax holiday for capital investment exceeding $2 million.

To further incentivise new investments in hotels, a 20-year income tax holiday will be offered for investments above $40 million.

Customs duty exemption will continue to be provided on all capital goods, including capital equipment, plant and machinery equipment, building materials, furnishing and fittings, room amenities, kitchen and dining equipment and specialised water equipment.

The announcement was also on extending the tax holiday to existing hotels.

For refurbishment and renovations above $2 million dollars, a 5-year tax holiday will be available with associated customs duty concessions.

The 25 per cent investment allowance currently available to existing hotels will be increased to 50% to assist with renovations and refurbishments.

Duty concessions will also be provided under code 245 of the Customs Tariff.

Minister for Economy, Aiyaz Sayed-Khaiyum says the tourism sector typically brings in over $2 billion in foreign exchange every year, providing thousands of jobs and income-generating opportunities, and endearing people around the world to our people and the country.

However he says with the industry at a virtual standstill, they’re left without one of the great economic engines.

Sayed-Khaiyum says the comeback must be coordinated if we are to seize our share of the global industry’s rebound.

He says the commitment of tourism workers and operators to be vaccinated is a powerful show of what cooperation can achieve.