The Verandah Resort. The Hotel Was Not Named as One of Non Compliance. Photo Credit Travelagewest.com
The Antigua & Barbuda Hotels and Tourism Association (ABHTA) has responded to the government’s recent concerns regarding tax compliance within the tourism industry, calling for a broader enforcement of tax regulations that extends beyond traditional hotel operations.
The association noted the significant growth of the villa and guesthouse market, particularly those affiliated with platforms like Airbnb.
This shift in tourist preferences has been marked by a notable 14 percent decline in hotel stays compared to 2019, while there has been an 11 percent increase in stays at villas and guesthouses from January to December 2024.
While the ABHTA welcomed the government’s move to conduct audits on its members, it also advocated for standardized taxation across all types of accommodation.
This approach is seen as a necessary step to prevent revenue leakage and ensure fair competition between traditional hotels and alternative lodging options.
“The growth of the villa and guesthouse sector reflects the changing preferences of tourists. We believe a comprehensive taxation strategy that includes all accommodation types is essential for the sustainability of our tourism industry,” stated an ABHTA representative.
Additionally, the ABHTA expressed its eagerness to work collaboratively with government authorities to devise a taxation framework that strengthens both the tourism industry and the national economy.
In contrast, the government has raised concerns about specific practices within the hotel sector, particularly the deduction of marketing expenses before settling tax obligations.
The government has mandated an immediate cessation of this practice. “One hotel, in particular, was extracting the amount it claimed to have paid to its marketing agents for promoting Antigua and Barbuda internationally. We told them to stop that. Just pay us the full amount, and we will decide how much you get,” Lionel Hurst said during Cabinet Thursday.
I get the need for tax rules, but banning the deduction of marketing expenses seems unfair. Without promoting our businesses, how are we supposed to compete with international ones? It feels like the government is focusing on traditional hotels while ignoring the huge growth of Airbnbs and guesthouses. A fair tax system for everyone across the board would be ideal, but this decision just doesn’t seem right. These hotel owners work hard to help the tourism industry grow in Antigua, and this feels like it’s pushing against them.
I totally agree. It should be fair across the board. No one should be treated differently.
I totally agree that the taxes should be across the board. once they operate as a hotel then they should pay the taxes
I am of the view that a simplified tax calculation methodology policy is what is needed in the accommodation sector.
Tier one should reflect tax assessment
that is based on the size or value of their plant. This is to be paid upfront as the basic charge.
Tier two will a performance tax based on the occupancy levels and that is paid monthly or quarterly.. That means collection after performance.
The performsnce tax will be discounted against an clearly laid out matrix that depicts extra direct marketing activities undertaken by the plant and approved by Hovt tourist Association