NASSAU, BAHAMAS — The vacation rental market was described yesterday as a potential “mega money maker” for the government if properly taxed, with one boutique resort operator suggesting that any person seeking to use their property as a vacation rental should be required to obtain a business license.
Edwin Mulford, owner of Cat Island’s Pigeon Cay Beach Club, told Eyewitness News it was “appalling” that the government has allowed the vacation rental segment to go largely untaxed for years.
Tourism, Aviation and Investments Minister Chester Cooper said yesterday that the government plans to charge Value-Added Tax (VAT) on the entire cost of a vacation rental and is currently in the process of having all vacation rental properties in the country registered.
“The goal is necessary and has been on the table for multiple years,” said Mulford.
“The dollars that have been ‘squandered’ for no reason is appalling. Any homeowner that wants to rent their house short term must apply and get a business license. All policing of unlicensed home rentals must be done island by island internally and there must be stiff penalties for noncompliance.
He added: “The licensing fee should take into account the number of bedrooms at an average rate and upsized for ultra rental properties. be based on bedrooms at an average rate and upsized for ultra rental properties. Home owners should divulge the number of bedrooms and nightly rates as they apply for a license and so we are talking about huge sums of money for the government. This structure needs to be put in place like yesterday.”
Recent data from the Central Bank revealed that the short-term vacation rental market saw total room nights sold increase nearly 50 percent this past February compared to the same period in 2021.
According to the Central Bank, in its monthly economic and financial developments report, data provided by AirDNA for February revealed positive trends within the short term vacation rental market.
The report read: “Total room nights sold increased to 98,389 compared to 50,906 in the comparative 2021 period. In particular, occupancy rates for both the entire place and hotel comparable listings rose to 55.2 percent and 50.7 percent, respectively, vis-à-vis 43.6 percent and 38.7 percent a year earlier.”
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