The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

a) tax exemption on all gains or profits for seven years; b) tax exemption in respect of all gains or profits derived from the initial sale of a villa or condominium or the site for a villa or condominium that forms part of an integrated resort development (IRD), which is an approved tourism project; c) carry-over of a possible tax exemption period from any losses resulting from the operation or renting of an approved tourism project; d) tax exemption in respect of interest received on an approved loan used for an approved tourism project; and e) the granting of a licence to import vehicles required for the tourism project and to pay a significantly reduced rate (ten per cent) of Customs Duty on same. A Tourism project seeking to access benefits must be registered with the Tourism Development Corporation, for all projects in Trinidad, and with the Tobago House of Assembly, for all projects in Tobago. There is a requirement under the Act for a minimum capital investment for all projects under the Act, the size of which depends on whether or not the investor is a local (i.e. a Trinidadian or a Tobagonian) and the type of project. For example, for an international investor to qualify for the tax benefits under the Act, he must invest at least 3.1 million TT$ (Trinidad & Tobago dollar 2 ) for tourism infrastructure. For a local investor, the amount that is required to qualify, for the same project, is only 310,000 TT$. Potential international investors would be wise also to check on the ability to repatriate both profits, as well as any capital expenditure, before making any investments in Trinidad & Tobago and to receive appropriate assurances (which are usually forthcoming) that they will be allowed to do so. 3. Public Health Although the Trinidad & Tobago Constitution allows for the Government of the day to declare a State of Emergency (SOE), which would allow the imposition of a curfew, the present Government has (so far) declined to do so. Instead, it has relied on the provisions in the Public Health Ordinance , Chapter 12 No. 4 of the Laws of Trinidad & Tobago and the Regulations which that legislation allows the Minister of Health to proclaim. As a result, the Government has effectively shut down the country by proclaiming, for instance, that all restaurants and fast food places must close, allowing only certain other businesses to be opened (the reader may be pleased to learn that amongst those businesses exempted 2 For the reader’s benefit, 1 TT$ is worth very roughly 7 US$. The exchange rate fluctuates over time so readers are advised to check same before proceeding.