Mango Bay Hotel Group said its two all-inclusive resorts in Barbados will absorb the planned May 1 increase in the country's VAT (value added tax) on hotel rooms.
The VAT will increase from 7.5% to 8.75%.
The 76-room Mango Bay and the 24-room Island Inn will maintain their current rates through 2012, according to Peter Odle, Mango Bay's chairman.
"We want to protect the interests of our repeat guests as well as new guests. In difficult economic times, we have to keep our customers in mind,” he said.
All-inclusive rates start at $350 per room, per night at Island Inn and $535 at Mango Bay through April 30. Starting rates drop to $300 and $425, respectively, from May 1 through Dec. 14.