Impact of 2026/27 Budget Measures on Tourism and Manufacturing

By: Wayne Forbes /GTV Editor

February 13, 2026

Impact of 2026/27 Budget Measures on Tourism and Manufacturing

Tourism Sector

- Direct Impact: The new J$1,500 foreign travel levy is expected to generate ~J$12 billion annually, but industry stakeholders have raised concerns about potential effects on visitor numbers. The Jamaica Tourist Board (JTB) projects a modest 1-2% decline in leisure travel in the first year, though this is offset by planned upgrades to airport terminals and beach access points funded by the levy.

- Indirect Benefits: Increased spending on flood mitigation and road infrastructure will improve connectivity to popular destinations like Negril and Ocho Rios, which were disrupted by Hurricane Melissa. The JTB also notes that climate resilience investments align with global traveler demand for sustainable tourism.

- Digital Services Tax: While foreign online travel agencies will be subject to 15% GCT, local tour operators remain exempt, creating a potential competitive advantage for domestic businesses.

Manufacturing Sector

- Sweetened Beverage Tax: Large producers like Wisynco Group face higher production costs, which may lead to price increases of 5-8% for affected products. However, the 25% rebate for small manufacturers is designed to support local businesses; the Jamaica Manufacturers and Exporters Association (JMEA) estimates this will help ~120 small-scale beverage producers maintain operations. Some companies are already shifting to low-sugar formulations to avoid the tax.

- General Consumption Tax: Foreign digital service taxes will reduce costs for local manufacturers that rely on cloud computing and software, as vendors will now remit taxes directly instead of passing them on through inflated prices.

- Infrastructure Spending: Improved road networks will cut transportation costs for manufacturers by an estimated 3-4%, particularly for companies moving goods between Kingston and rural production hubs.

Would you like details on how small businesses in these sectors can access support programs related to the budget measures?