The Territorial Council of St. Martin decided that all furnished accommodations for tourists must be declared to the Collectivité (see Tuesday paper). This basically means that persons renting out rooms, studios, apartments, houses and villas to visitors must register these.
Although the story did not say it, one can assume the intention is to somehow tax the related income. The ever-increasing impact of Airbnb and similar “sharing economy” services no doubt plays a role.
Many destinations all over the world are coping with this issue and finding ways for government to benefit at least somewhat, as it does with traditional players in the hospitality industry. The latter also makes it necessary to try to ensure a level playing field.
On the Dutch side there has been much talk about negotiating a revenue collection deal with international companies involved in this activity, but so far little tangible action. That’s a pity, because the national treasury is losing lots of money as a result.
What’s more, past efforts to introduce a condo tax in St. Maarten for non-residents renting out their vacation homes backfired, so going through Airbnb and others may be the only feasible way to charge at least those making use of them. This matter should not be delayed much longer while the related business continues to grow, without the country getting its fair share.
