Jordan tourism association forms committee to work on tariff reductions

Jordan: Thursday, February 12 - 2009 @ 13:58

He voiced hope that the reduction would be equal to that of the industrial sector, to help in reflecting the reduction on the end users.

During a meeting organised by the federation and attended by Minister of Tourism Maha Khatib, representatives of tourism sector and the Jordan Hotels Association, attendees called on implementing the reduction plan within one year.

They argued that quick implementation of the decision will be reflected on users and will help in attracting more tourists to Jordan.

The government last week announced several measurements to mitigate the impact of the global downturn in the tourism sector.

Under the new measures, the government decided to lower the sales tax on hotel rooms from 14 per cent to 8 per cent starting this year. In addition, a decision will be made soon to gradually lower electricity bills for hotels, which currently pay 89 fils per kilowatt hour.

During the two-hour meeting Nazzal said that a committee will be formed to draw up a mechanism and set a time frame to implement the reduction in sales tax on hotel rooms, adding that this would help in regulating tourism and contacting tour operators outside the country to organise the process.

Tourism Minister Maha Khatib stressed that tourism sector in Jordan was one of the first in the world that submitted a plan to the government to mitigate the expected drop in tourists number.

The minister also called for doubling promotion efforts and coming up with better offers that conform with the sales tax reduction.

Khatib urged industry operators to provide good offers for domestic and regional visitors in order to attract tourists during the low season.
She also pointed out that the tax reduction which will be implemented until 2010 aims at attracting more tourists to the country.

Meanwhile, Board of Directors at Jordan Tourism Board (JTB) decided that hotels who did not pay their contributions to the JTB in the period between August 2007 and April 2008 can pay 50 % of this contribution and provide a guarantee with the remaining amount, so that they can finalise the licensing procedures.

According to the JTB bylaw, hotels contribute with 0,5 % of their revenues to the board. However this percentage was doubled during the above mentioned period before being lowered again in May 2008, which resulted in having outstanding dues on some hotels that could not pay at that time.

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Thursday, February 12- 2009 @ 13:58 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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