The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Ministry of Tourism’s top official yesterday said Bahamian vacation rental owners are not feeling the impact of the VAT that Airbnb has been collecting on the Government’s behalf since October.

Joy Jibrilu, director general of tourism, said the tax was being paid by the end user and not the property owner, and had helped to create a taxation “level playing field” to ease the concerns of hoteliers who had been concerned they were carrying an unequal burden.

“This has been a question I think that has come up with regards to not just Airbnb, but vacation rental homes generally,” Mrs Jibrilu said. “Not just in The Bahamas, but globally. The mainstream hotels, at that time their concern was that they are paying their hotel tax and VAT etc, and how can they compete on a level playing field with platforms like Airbnb.

“I think for all of us the desire is to see more Bahamians become involved in the tourism sector, to benefit economically. I use the expression, not just looking from the outside in, but being a participant and all of the benefits that accrue as a result of that.

“This provides one way that Bahamians can get into it. We have seen Bahamians be involved with Airbnb very successfully. We have seen phenomenal growth with Airbnb in The Bahamas. Bahamians generally are loving it. So that’s the first thing, you have now got a group of people, a large group of people, who are saying for the first time I am feeling an economic benefit.”

Ms Jibrilu then added: “But the second point that I would like to say is that the first MoU we signed with Airbnb was not just to regularise, but to look at how we could get whatever tax, VAT or some other form of income, that puts Airbnb rentals on a level playing field with the hotel sector in place.

“That has come to fruition, and since October of last year the legislation came into force and they have been submitting payment of taxes, which does not impact Bahamians. Bahamians always say ‘that is going to come out of the money that I’m earning’, and we always say ‘no’. That’s a cost on to their bill that they don’t even see, just as Airbnb’s cost is on the bill and they don’t see.

“So if you’re charging $100 you will still get $100 for your room. So I think that has appeased many hoteliers, and the fact that they have seen increases in their business in 2019 and not a decrease, it speaks to the fact that we need every room that we can get.”