Finance Minister Marinka Gumbs recently announced (see Tuesday newspaper) that a dedicated team will be established to focus on collecting Airbnb taxes. She did so in response to objections voiced by St. Maarten Hospitality and Trade Association (SHTA) against a planned tourist tax, while the growing private short-term vacation rental sector goes largely untaxed.
She explained that a 5% lodging tax will be applied to such activities, starting with larger villas. However, this alone cannot produce enough revenues to support the country, hence the tourist tax.
To what extent this reassures resorts and other more traditional accommodations remains to be seen. Keep in mind that they pay not just room tax, but also all other taxes and social premiums. In addition, efforts to tax so-called “home-sharing” have been mentioned for years, but so far seemingly with limited results.
According to the minister, they are awaiting comments on the proposed tourist tax from the Social Economic Council SER. The tripartite body was recently reactivated with the necessary appointment of a new board.
She said an advice should come before the end of the year. That is important if the legislation is to be introduced any time soon.
It was originally included in the 2024 budget at 9 million Netherlands Antillean guilders based on implementation for the second half of the year. With about half-a-million stay-over guests annually, the amount per traveller would have been relatively low.
“We cannot continue to place the financial burden solely on the people of St. Maarten,” argued the minister, despite SHTA’s concerns that the new tax could deter visitors from choosing the destination. Nevertheless, the fact that tourism provides for the livelihood – whether directly or indirectly – of practically the entire population is not to be overlooked.
