Finance Minister Michael Ferrier announced plans to work with Airbnb in collecting taxes from people renting out their private accommodations via the website. This approach might be considered controversial by some, because the so-called “shared economy” company’s activities have a negative impact on hotel occupancies all over the world.
However, the trend is not one that can easily be reversed. Simply prohibiting the practice locally probably won’t stop it and would create a huge enforcement issue for the country with very limited resources.
Government taxing the persons on the island involved would be difficult at best. Not only is it hard to exercise effective control, but some of the property owners are not full-time residents.
An earlier attempt by former Finance Minister Hiro Shigemoto to introduce a so-called condo tax on income from the rental of vacation homes also by foreigners turned into a nightmare. The owners were slapped with assessments going back up to five years, often without a clear indication whether they had earned any money or how much.
One must also consider that several major resorts remain closed, while in some cases there is no word whether or when they intend to reopen. St. Maarten depends almost completely on revenues produced by visitors and needs to continue bringing them in to keep its dominant hospitality industry going.
Perhaps this could even be taken a step further by thinking outside the box. Why shouldn’t there be well-organised and regulated camping on the Dutch side?
For years islanders have tended to frown on the idea of so-called “backpack tourists” who supposedly contribute too little and bring down the product. The reality is that many people especially in Europe prefer to vacation that way and not only because it’s cheaper.
Crews of visiting yachts were also referred to in a less than flattering manner as “boaties” in the past, yet they have since contributed enormously to the destination’s economic growth.
Moreover, one wouldn’t be talking about thousands but rather hundreds or fewer campers to at least offer an alternative in a different price range. If you can’t beat them, join them.
