WILLEMSTAD – Curaçao's planned Tourist Entry Tax is expected to become one of the government's most important new sources of revenue, generating nearly XCG 82 million in 2027 and potentially rising to almost XCG 126 million annually by 2030.
The projections show how significant the new levy has become to the government's medium-term financial plans. Curaçao is forecasting a budget surplus of approximately XCG 66 million for 2027, while roughly XCG 82 million in Tourist Entry Tax revenue has already been incorporated into that budget.
The Financial Supervision Board (Cft) has therefore identified implementation of the tax as an important factor in achieving the projected budget result. At the same time, the Cft warns that the legislative process has not yet been completed and questions remain about the practical implementation of the system.
The government has taken some account of that uncertainty. For 2027, only 75 percent of the estimated maximum annual revenue has been included, allowing for the possibility of a phased introduction or implementation delays.
After the first year, however, revenue is expected to increase rapidly. The projections cited by the Cft put Tourist Entry Tax receipts at approximately XCG 115 million in 2028, XCG 120 million in 2029 and XCG 126 million in 2030.
Under the proposal, the tax would apply to almost all passengers arriving by air, while Curaçao residents and transit passengers would be exempt.
Earlier budget documents used an illustrative calculation based on 700,000 tourists paying $60 each. Draft legislation subsequently referred to a fixed charge of approximately $65, although different rates or exemptions could apply to certain groups, including children. The final legislation has not yet been adopted.
The introduction of the Tourist Entry Tax would also be accompanied by the abolition of the existing 7 percent accommodation tax charged on hotel and other overnight stays. That tax currently generates an estimated XCG 40 million annually.
Consequently, the government's projected XCG 82 million from the new tax in 2027 would not represent XCG 82 million entirely in additional revenue. After accounting for the approximately XCG 40 million that would disappear with the accommodation tax, the net improvement would be roughly XCG 42 million if the government's projections are achieved.
The government argues that the new system broadens Curaçao's tax base by requiring visitors to contribute toward public infrastructure and services they use while on the island.
The immediate challenge is timing. Because tens of millions of guilders have already been incorporated into the 2027 budget before the legislation and implementation system are finalized, any substantial delay could weaken the projected budget result.
The Cft therefore wants the government to clarify what alternative measures would be taken if the Tourist Entry Tax cannot be implemented on schedule.