Caribbean hoteliers push for Airbnb tax crackdown, reject new booking platform fees

Caribbean hoteliers have thrown down the gauntlet against Airbnb and other short-term rental operators across the region, insisting that all accommodation providers, large or small, should be subjected to the same level of taxation and regulation as traditional hotels.

At the same time, the Caribbean Hotel and Tourism Association (CHTA) is also resisting what it describes as unfair new commission practices by online booking giant Booking.com, warning that the move could cost Caribbean hotels tens of millions of US dollars annually.

Speaking during a press conference at Caribbean Travel Marketplace in Antigua, CHTA President Sanovnik Destang said regional tourism stakeholders had agreed that the time had come for “fair play” across the accommodation sector.

“We are advocating that all sectors of the accommodation industry should be under the same tax rate,” Destang said. “If the tax rate on hotels in a destination is 10 per cent, it should be the same for Airbnb. Everyone should make a fair contribution.”

The position emerged from discussions involving tourism ministers, hoteliers and industry stakeholders during the Caribbean Travel Forum held Tuesday as part of Marketplace activities.

Airbnb and similar platforms have become major competitors to hotels throughout the Caribbean, with many operators accused of functioning outside traditional tax and regulatory systems.

However, Destang stressed that the CHTA was not attempting to eliminate short-term rentals.

“It is part of the tourism ecosystem and it is not going anywhere,” he said, noting that consumer demand had already made that clear.

Instead, the association has developed what it calls a balanced framework after studying conditions in 14 Caribbean destinations. The recommendations include mandatory registration and minimum operating standards for short-term rentals, while recognising that small operators cannot reasonably be regulated like major resorts.

“We cannot expect a short-term rental with one or two rooms to operate like a large resort. That would not be realistic,” Destang said.

But even as the region grapples with Airbnb, hoteliers are now facing another battle, this time with online travel agencies.

Destang strongly criticised Booking.com over a policy that would see commissions charged on government taxes collected by hotels, including VAT and General Consumption Tax (GCT).

“That $10 is not Booking.com’s revenue. That is supposed to go to the government,” Destang argued, explaining that if Booking.com charges a 20 per cent commission on a $10 tax, hotels would effectively pay an additional $2 while still remitting the full tax amount to the government.

“It’s basically going to come on the backs of hotels,” he said, warning that the policy could create “leakage in tens of millions of dollars very easily for the Caribbean.”

Destang said even smaller hotels with limited dependence on Booking.com could lose tens of thousands of US dollars annually under the policy.

He noted that some Caribbean countries, including Dominica, have already moved to make such practices illegal through legislation preventing commissions from being charged on government taxes.

“We’ve drawn a line in the sand and said that we’re not going to accept it,” Destang declared.

The issues dominated discussions at Marketplace as Caribbean tourism leaders signalled a more aggressive approach to protecting regional tourism revenues and ensuring greater fairness across the rapidly evolving accommodation sector.

Janet.silvera@gleanerjm.com

Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.