Airbnb stakeholders wary as Government slaps GCT on industry 

Airbnb stakeholders in Jamaica are urging the Government to be cautious in its imposition of a general consumption tax (GCT) on the industry, insisting that the move should reflect the reality of the sector, which they say is largely made up of small, independent Jamaican homeowners.

“Many hosts are small, independent operators, and sudden cost increases could place real strain on their ability to remain active and compliant,” Airbnb Community Leader for Jamaica Sherie-Ann Anderson told The Gleaner.

She suggested that the Government consider a phased approach which, she said, will be key to ensuring that peoples’ livelihoods are protected, while still aligning with national goals.

The Government announced last week that it will impose GCT on short-term rentals, beginning on April 1, 2027.

Finance Minister Fayval Williams said the tax adjustments are intended to strengthen fiscal stability amid increased expenditure pressures following Hurricane Melissa, while ensuring the Government can maintain essential services.

However, the Opposition People’s National Party has accused the Government of blindsiding industry stakeholders when it approved the measure during the early hours of last Wednesday morning’s marathon sitting of Parliament.

“The Government's decision to rush this through in the dead of night shows complete disregard for the thousands of ordinary Jamaicans who depend on short-term rentals to survive. There was no warning, no consultation, just stealth. We demand an explanation,” Opposition Spokesperson on Tourism and Linkages Andrea Purkiss said in a statement last week.

She further argued that the tax will place a burden on many Jamaicans and threaten livelihoods.

Airbnb is a global online marketplace that connects travellers with people who have spaces to rent, ranging from single rooms to entire homes, apartments and villas. It allows property owners, called hosts, to monetise their properties.

The airbnb market in Jamaica is estimated to have grown from 59,500 guests in 2017 to more than 800,000 in 2024, generating over $32 billion for property owners.

Anderson stressed that the operation of Airbnb accommodations has “created real opportunities for everyday Jamaicans, from single parents to retirees”, which allowed them to participate meaningfully in the island’s tourism industry.

She pointed to 2025 data which showed that 30 per cent of last year’s 4.3 million visitors chose peer-to-peer accommodations, and noted that Jamaica was also the first country in the Caribbean to establish an organised Airbnb host community.

“This sector was built by everyday Jamaican operators. It did not happen by accident,” she said.

Meanwhile, Hugh Thompson, president of the Jamaica Home Sharing Association, said he is concerned about how the tax may affect Jamaica’s competitiveness.

“Short-term rentals have expanded accommodation capacity, especially in urban and emerging areas, and have helped distribute tourism earnings more directly into local communities. Increased costs to hosts will likely be passed on to visitors, which could make Jamaica less attractive, compared to other destinations,” he said.

Like Anderson, he is also calling for a phased approach in tax implementation “that protects small operators, while achieving the Government’s revenue objectives” and urges more consultation on the matter

“With the right framework, Jamaica can maintain a thriving home-sharing sector that continues to support livelihoods, job creation, and inclusive tourism growth,” he said.

The impending GCT on short-term rental marks a significant policy shift for the market, bringing such accommodations more directly into the tax net alongside traditional tourism operators. Large hoteliers have long complained about the lack of sufficient regulation of the local Airbnb sector.

Last summer, the Government tabled the Jamaica Tourist Board bill that would have made registration and licensing mandatory for most short-term rental operators. However, it was stalled amid outcry from some industry players.

sashana.small@gleanerjm.com