That St. Maarten Hospitality and Trade Association (SHTA) has serious concerns about continued plans for a tourist tax (see Wednesday newspaper) should not come as a surprise. In fact, the Dutch side’s biggest employers’ organisation says it has consistently informed members of government that stakeholders are emphatically opposed to the idea.
They cited regional research by the Caribbean Hotel and Tourism Association (CHTA) showing the detrimental effect of such taxes. It found visitors are deterred by higher taxation, no matter how small the increase.
The income-generating measure was budgeted for 10 million Netherlands Antillean guilders this year, but never implemented. With close to half-a-million stay-over arrivals that amount would translate to some NAf. 20 per person.
The latter certainly seems nothing to “write home about” but will nevertheless be perceived as an extra travel expense. With the island still recovering from subsequently Hurricane Irma and the COVID-19 crisis, that can hardly be called a positive.
However, perhaps SHTA’s best argument is the lack of existing accommodation tax collection from the fast-growing vacation rental business conducted by individual property owners, many of whom are non-residents who pay no taxes or social welfare and health coverage premiums at all.
This creates unfair competition for resorts and hotels that do carry their legally-required share of the collective burden. Their joint number of rooms having reportedly been surpassed by the so-called home-sharing market inventory only makes the issue more urgent.
Making revenue-sharing agreements with online platforms like Airbnb similar to those of other destinations should be a first step. That does not address others who operate under the radar, but it’s at least a start and can be complemented by a comprehensive approach going forward.
One has to begin somewhere and low-hanging fruit is usually a good place. The time has come to help ensure a level playing field.
