Prime Minister Dr. Ralph Gonsalves has signaled that the government may review taxation policies for Airbnb operators in St. Vincent and the Grenadines. Speaking on WE FM’s Sunday program with host Cecil Ryan, Dr. Gonsalves states.
“Persons with private homes have turned them into Airbnbs, particularly some in the diaspora,” the Prime Minister stated. “However, while hotels and other businesses pay taxes persons operating Airbnbs do not. That is a leakage we may have to look into.”
Dr. Gonsalves made these remarks while providing an update on the economic impact of the Argyle International Airport (AIA) since its opening in 2017. He highlighted that direct investment since AIA became operational has reached approximately $1.3 billion.
“Sandals alone represents an investment of over $600 million,” he noted. “We have seen the construction of Mya Suites, Holiday Inn, and various apartments and guesthouses. Established hotels such as Beachcombers and Hotel Alexandrina have also undergone upgrades.”
The Prime Minister emphasized that AIA has contributed to increased investments in the tourism sector, with more individuals converting private homes into short-term rental properties. However, he maintained that ensuring fair taxation across the accommodation sector is necessary.
His remarks suggest that the government may introduce measures to ensure that Airbnb operators contribute their fair share, similar to the existing obligations for hotels and other tourism-based businesses.