WILLEMSTAD - Various hospitality business owners, the Curaçao Hospitality & Tourism Association (CHATA) and the Downtown Management Organization (DMO) have expressed concerns about the future of the hospitality industry in Curaçao. The government has a budget deficit of 127 million guilders, and this must be solved. That is what Curaçao Financial Supervision (CFT) requires. That is why excise duties are being increased.

“In practice, the price increase can be explained very well with a beer. An Amstel Bright now costs 7 guilders for me. If the excise tax increase continues, the price will be between 10 and 12 guilders. That has a major impact on the hospitality industry," says Thijs de Bruin, owner of Eetcafé De Buren. "The guest will not accept such a large price increase."

Suppose the hotel and catering business owners charge the increase one-on-one to the customer, this will mean that purchasing power is reduced. “I have no doubt that people will drink a beer less in number and less often, you can only spend your money once, so choices have to be made. The government has made a calculation whereby the current beer turnover is multiplied by the increase, but that is not how it works! If people go out less often and drink less when they go out, there will also be less money and therefore less excise duties. That makes sense," says De Bruin.

The Budgetary Audit Committee has proposed several measures with which the government can close the gap with 121 million guilders from 1 July. For example, the excise duties on alcohol and tobacco are going up and the government wants to increase the sales tax to 9 percent.

Curaçao is no longer attractive for the tourist

It is feared that these measures will also affect the tourism sector. Miles Mercera, CEO of CHATA, states that. “If the sales tax is increased, then our room tax also goes up, which has a direct impact on the room rate. Curaçao then becomes too expensive as a destination for what we now offer in terms of product. That means that it becomes unrealistically expensive for both the locals and the tourist," says Mercera.

All parties involved therefore appeal to the government to revise the measures again and indicate that they want to talk to the government.