Aruba recently renewed its 2016 memorandum of understanding (MOU) with Airbnb (see related story). While few details were provided, the original agreement was intended to create a framework for staying “in line” with the country’s tourism policy regarding taxes, guest accommodation standards and regulations.
Airbnb hosted 47,200 visitors on the island last year with an average stay of some six days, hosted by 940 individuals. A total of 2,300 local properties are listed and it was stated that the pact ensures “fair competition between all on-island accommodation providers.”
Airbnb closed similar deals with many other Caribbean destinations and, considering the number, having St. Maarten join the club to benefit more from what appears to be an unstoppable trend as part of the so-called “sharing economy” seems like a no-brainer. For example, it was announced a month ago that Dutch-side hotels are fully booked for the upcoming Carnival 50 celebrations, so people had been advised to turn to villa rentals, villas and Airbnb properties.
Minister of Tourism and Economic Affairs Stuart Johnson told Parliament in February that they would conduct an online assessment of accommodation booking sites such as travel website company VRBO, Airbnb, Home Away and Flip Key. Last November Member of Parliament (MP) Roland Brison had submitted a motion calling on government to sign a tax agreement with Airbnb and VRBO within 90 days, adding that there were 440 active local listings.
Already about a year earlier the same ministry was said by – then still – Prime Minister William Marlin to be discussing a draft tax collection agreement with Airbnb. The latter was referred to as “standard,” so one can’t help but wonder what is taking so long.
In May 2018 former Finance Minister Mike Ferrier said he had met with Airbnb the preceding month in Washington D.C. to discuss cooperation for the collection of taxes on government’s behalf. Almost a year has again gone by since and it is high time this matter was finalised once and for all.
