A common surprise at check-out in Grenada is a bill noticeably higher than the nightly rate that was booked. Usually nothing is wrong: many Grenadian hotels quote rates before government tax and service charge, and the two together can add a substantial percentage to the room price. Others quote all-in. Comparing two properties without knowing which is which gives a misleading picture.
Below is what typically appears on a hotel or guesthouse bill in Grenada, what is compulsory and what is not, and how to compare quotes properly. Tax rates and practices can change, so the details on a specific booking should always be confirmed with the property.
VAT on accommodation
Grenada introduced Value Added Tax in 2010, replacing several older taxes including the former hotel room tax. The standard VAT rate is 15 percent, but hotel accommodation is charged at a reduced rate, which the Ministry of Finance gives as 10 percent. The tax is collected by the property and paid to the Inland Revenue Division.
In practice this means that a room advertised at US$200 per night "plus tax" will carry an extra US$20 in VAT, before any service charge. Food, drinks, spa treatments and other services in the hotel are generally charged at the standard rate, so the VAT on a restaurant bill is higher than on the room itself. Large online booking sites usually show taxes at the final step; direct quotes from small properties sometimes leave them out, so ask explicitly whether a figure is inclusive.
VAT applies whether you pay in EC dollars or US dollars, and a properly issued invoice from a registered business should show it separately. Business travellers who need to reclaim or account for tax should ask for a full VAT invoice at check-out, since a simple card receipt may not show the breakdown.
The service charge
Many hotels and restaurants in Grenada add a service charge, most often 10 percent, to bills. In hotels it may be applied to the room rate, to food and drink, or to both. It is intended to be shared among staff, although how each business distributes it varies and is not something guests can easily verify.
Whether VAT is then calculated on top of the service charge, or the two are calculated separately on the base rate, depends on how the property invoices. The difference is small but worth understanding when comparing totals. Guesthouses and small apartments frequently do not add a service charge at all and simply quote a single price, which is one reason they can look more expensive than they are when set beside a resort rate that excludes everything.
Other items that can appear on a bill
Beyond tax and service, these are the extras most often charged separately in Grenada. Not every property applies them, so ask in advance:
- Airport transfers. Some hotels include a free transfer from Maurice Bishop International Airport; most charge, often at taxi-tariff rates.
- Breakfast. Included at many guesthouses and some hotels, sold separately at others.
- Electricity. At apartments and villas on longer stays, metered electricity above an allowance is common because air conditioning is costly.
- Minibar, laundry and room service, charged at hotel prices, usually with VAT and service charge added.
- Resort or amenity fees. Less common in Grenada than in the United States, but worth asking about at larger properties.
- Card surcharges. A few small businesses add a percentage for card payments.
- Early check-in or late check-out, especially relevant with the many evening flights to North America and Europe.
- Cleaning fees, charged once per stay by many apartments and villas listed on booking platforms, which make short stays proportionally more expensive.
Tipping on top of the service charge
Where a 10 percent service charge has already been added, an extra tip is not expected, though many guests leave something for individual staff who went out of their way, such as a housekeeper over a week or a driver who waited for a delayed flight. Where no service charge is added, a tip of around 10 to 15 percent in restaurants is customary for good service.
At all-inclusive resorts, policies differ: some state that gratuities are included and discourage tipping, others leave it to guests. Taxi drivers in Grenada work to an official tariff and do not expect a large tip, though rounding up is appreciated. Tips can be given in Eastern Caribbean dollars or US dollars; small US notes are widely accepted in tourist areas, but EC dollars are more useful to staff day to day.
Paying in EC dollars or US dollars
Grenada uses the Eastern Caribbean dollar, pegged at EC$2.70 to US$1. Most hotels quote room rates in US dollars, while restaurants, taxis and shops price in EC dollars and accept US cash at a rate around EC$2.67 or EC$2.70, depending on the business. Bills may therefore show both currencies.
When paying by card, a terminal may offer to charge you in your home currency. This dynamic currency conversion usually comes with a worse exchange rate than your own bank would give, so it is generally better to choose to pay in the local currency (EC or US dollars, as invoiced) and let your card issuer convert. Some card machines show the amount in EC dollars even when the room was quoted in US dollars; the two should reconcile at roughly EC$2.70 to US$1, so check the figure before entering your PIN. Check that your card does not charge foreign transaction fees, and carry some cash for small guesthouses or rural areas where card machines are less common.
Seasons, minimum stays and per-person pricing
Room rates in Grenada follow the classic Caribbean pattern. The high season runs roughly from mid-December to mid-April, when North American and European winter visitors arrive and rates are at their highest. The Christmas and New Year period is the most expensive of all, and many properties impose minimum stays of five or seven nights. From late April to mid-December, rates at many hotels drop significantly, with the exception of the Spicemas carnival period in August, when rooms in the south-west fill with returning Grenadians and carnival visitors.
All-inclusive rates are an easy trap. Some are quoted per person per night, others per room, and the difference doubles the bill for a couple. Children's rates and the age at which a child counts as an adult also vary. Always ask for the total for your party rather than the headline figure.
Long stays work the other way. Apartments and some small hotels offer weekly and monthly rates well below the nightly price, particularly outside the high season. These are often negotiable by email, and properties used by St George's University students may have availability between semesters.
How to compare two quotes fairly
A simple routine avoids comparing an all-in price with a pre-tax one, and takes only a few emails. It is particularly useful when weighing a resort quote against an apartment or villa, where the inclusions are rarely the same:
- Ask each property for the total for your exact dates and number of guests, including VAT and service charge.
- Confirm what is included: breakfast, transfers, Wi-Fi, parking, beach chairs, electricity.
- Add the cost of what is not included, for example breakfast for two for the full stay, or taxis if the property is not walkable.
- Check the cancellation terms, since a cheaper non-refundable rate carries risk in hurricane season.
- Convert everything to one currency at EC$2.70 to US$1 and compare the true totals.
Frequently asked questions
What is the VAT rate on hotels in Grenada?
Hotel accommodation in Grenada is charged VAT at a reduced rate, given by the Ministry of Finance as 10 percent, while most other goods and services carry the standard 15 percent. Rates can change with budgets, so check the current figure with the property or the Inland Revenue Division if exactness matters.
Is the service charge compulsory in Grenada hotels?
Where a hotel or restaurant adds a service charge, it is normally part of the bill rather than optional. It is usually 10 percent and is meant to be shared among staff. Many smaller guesthouses do not add one, so check how each property prices before comparing rates.
Is a tip expected if a service charge has been added?
An additional tip is not expected when a service charge already appears on the bill. Many guests still give something to staff who provided exceptional help, such as housekeepers or drivers. Where there is no service charge, around 10 to 15 percent is a common tip for good restaurant service.
Can a Grenada hotel bill be paid in US dollars?
Yes. Most hotels quote and accept US dollars, and US cash is widely taken in tourist areas, with change often given in EC dollars. Cards are accepted at most hotels. When paying by card, choose to be charged in the local invoice currency rather than your home currency to avoid poor conversion rates.
Why are Grenada hotel prices often shown without tax?
It is a long-standing industry habit in parts of the Caribbean to quote base rates and add government tax and service charge separately. Booking sites usually reveal the full amount at checkout. When dealing directly with a property, ask for the all-inclusive total for your dates before you commit.
