Dear Members,
A new Government took office in November 2009 and in compliance with one of their campaign promises they reduced the turnover tax by 50% from 3% to 1.5% effective January 1st 2010 with the plan to eliminate it completely by January 1st 2011.
Because of the revenue lost from the tourism sector through the reduction of this tax, the Government announced a two-phase increase in the present occupancy taxes the first of which became effective on May 1st 2010 and as a result, the immediate new rate structures are as follows:

A. For transient guests, the daily rate increases from 18% to 19.5%;

B. For members using their timeshare week:
• The daily rate for Studios increases from $6.00 to $ 7.50
• The daily rate for One-bedroom suites increases from $6.50 to $ 8.12
• The daily rate for Two bedroom suites increases from $7.50 to $9.38

The second phase of the increase becomes effective on July 1st 2010 when there will be an additional increase in the daily timeshare tax as follows:

• The daily rate for Studios will increase from $7.50 to $ 9.50
• The daily rate for One-bedroom suites increases from $8.12 to $ 10.28
• The daily rate for Two bedroom suites increases from $9.38 to $11.85

These funds are earmarked to establish a Tourism Product Enhancement Fund to be used for beautification of the island, maintenance of public beaches and the tourism corridor and the planned development of new attractions in Aruba.

We will keep you posted of any new developments.

Andy Osbourne