The application of two new taxes on tourists proposed by the municipal government of Puerto Vallarta will invariably have an impact on hotel occupancy and nights of stay, said the president of the Association of Businessmen of Puerto Vallarta and Bahía de Banderas (AEBBA) Fernando Castro Rubio, when commenting on the controversial proposal for analysis approved in a City Council session.
The business leader commented that it is understood that the municipality has needs and that contributions are a mechanism for governments to obtain resources, in this case “we will have to see what the mechanisms would be, since we know that a similar ecological tax is already applied in other tourist centers such as Cancun and Los Cabos.”
For now, he said that they are waiting for information on the details, for example how the resource will be collected, administered and audited.
Regarding the tax on foreigners for use of urban infrastructure, the notary public also pointed out that it is very important to measure the rate that is proposed and its consequences in case it impacts hotel rates.
“I think it could happen that foreign tourists opt for other destinations in the region, such as Nuevo Vallarta. If the impact of the tax increases the cost of their stay, they can choose to stay a few minutes from Puerto Vallarta on a lower budget.”
Another issue is to know the strategy for calculating and charging fees on lodging platforms such as Airbnb, because although there is already a scheme with the state government for the payment of the Lodging Tax, this would be a municipal contribution.
Regarding environmental law, he explained that in Cancun and Los Cabos a trust was created for the management of the resources resulting from these new taxes so that a technical committee monitors their correct application.
Fernando Castro hopes that there will be dialogue with the authorities and that it is considered that this is a metropolitan area where tourists have options to stay in two states.
The business sector expects a next meeting with the mayor and councilors to exchange points of view and clarify doubts.
Source: tribuandelabahia
