Tropic Air (9N, San Pedro, BZ) has announced it is terminating service to three regional destinations following the Belize government's decision to hike taxes on foreign nationals in May this year.

In a statement, the Belizean carrier said it would end flights to Chetumal and Merida M. Crescencio Rejon in Mexico as well as San Pedro Sula in Honduras with effect from September 1 citing depressed demand brought on by higher fares.

“Our decision to suspend these three routes comes after an in-depth analysis of their performance over the last four months, including the very measurable effects of the May 1st increase in departure taxes," Steve Schulte, CEO of Tropic Air, said. "There is no clear path to sustainably serving these markets under current economic and regulatory conditions. It is most unfortunate for those who have come to depend on these regional links, that in the end, we were unable to sustain the growing losses."

Tropic Air’s other international destinations - Cancún (Mexico), Roatán (Honduras), and Flores Mundo Maya International (Guatemala) - will continue to see regular service despite this announcement. The carrier currently operates a fleet of sixteen aircraft - eleven Cessna (single turboprop) Grand Caravan 208Bs, two GippsAero GA8s, two Cessna (single piston) T182Ts, and one Cessna 172S.

Passenger departure tax was raised to BZD111 Belize dollars (USD55.54) as part of the Belizean government’s efforts to boost revenue inflows.

The move has, however, garnered severe criticism from local carriers and tour operators alike, both of which have warned that it risks damaging the Central American state's tourism industry.

The Belize Tourism Industry Association has since issued its own statement calling for the levy to be dropped.

“Tropic Air’s decision is sufficient evidence that tourism arrivals may be negatively impacted by the increase in the departure tax," it said. "Belize must remain competitive regionally and globally to increase tourist arrivals and to promote the growth of the tourism industry. We must recognize the fragility of our tourism industry by safeguarding its future through the development and implementation of the right policies to promote sustainability, competitiveness, and growth.”