ABHTA Calls for Fair Taxation Across Accommodation Sector Amidst Non-Compliance

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.