During the first quarter of 2014 the Embarkation Tax for passengers boarding yachts in Grenada will move from EC$1 to EC$20 (approximately US$7.50).
The House of Representatives on Wednesday amended the 1967 Embarkation Tax legislation that will provide for the adjustment to the tax which will directly affect Grenada’s yachting sector. In presenting the Bill to the legislators, Tourism Minister Alexandria Otway–Noel said that the measure will put Grenada’s departure tax for persons boarding yacht on par with other regional territories.
“The fees collected will go towards administrative cost and toward central government coffers,” Otway–Noel who strongly believes that the yachting sector can contribute significantly towards the development of the country.
An economic impact of the yachting sector conducted from May 2012 to April 2013 shows that the sector’s net contribution to Grenada was EC$130 million, with the area of repairs and maintenance receiving 25% of the amount.
The study was made possible through a grant award to the Marine and Yachting Association of Grenada from CARTFund which was administered by the Caribbean Development Bank. MAYAG worked as the facilitator, with consultant Dr Andre Henry and guided by the Central Statistical Office and the Grenada Board of Tourism.
A further breakdown shows that boatyard fees is 16%; provisioning 13%; dining, entertainment and accommodation 12%; fuel, water and power at 12%; marina fees 12%; charter cost 4%; onland transportation 2%; government fees 2%; communications 1% and medical services 1%. In terms of employment, the study estimates that yachting contributed towards 912 jobs during the period.
