The Barbados Hotel and Tourism Association (BHTA) has hailed new legislation requiring global booking platforms to collect and remit the ten per cent Shared Economy Levy as a “game-changer” in creating fairer competition between hotels and short-term rentals.
Chairman Javon Griffith said the Tourism Levy (Amendment) Bill 2025,
introduced in July, would close long-standing loopholes that allowed some property owners on platforms such as Airbnb, Expedia and Booking.com to avoid paying the tax.
“In terms of the shared economy, yes, it would permit the levelling of the playing field because it means that anyone who has accommodation registered on Airbnb in Barbados will not be able to get away from the new requirement. Airbnb will be collecting the taxes and remitting them to the BRA [Barbados Revenue Authority], so that ten per cent level will indeed start to level the playing field for all the accommodation providers registered on Airbnb,” he said.
Shifts responsibility
The amendment shifts responsibility for levy collection from individual hosts, who previously filed VAT-style returns every two months, to the platforms themselves, which will send payments directly to the BRA. Griffith said this would not only strengthen enforcement but also speed up Government’s revenue collection.
“I fully understand and appreciate why it is being introduced. It does allow the Government to collect money at a faster pace to be able to fulfil its financial obligations,” he added.
Some stakeholders have expressed concern that the measure could deter investment in affordable accommodation, but Griffith believed demand would remain strong. He noted that Airbnb listings in Barbados ranged from budget apartments to luxury villas commanding more than US$10 000 per week, meaning the platform catered to every price point.
“I don’t see it having any impact whatsoever on the platforms,” he said. “Airbnb continues to perform very well for the island and I think persons will continue to do their research and use their preferred booking channel to secure accommodation in Barbados.”
While Griffith welcomed the change, he cautioned that more time was needed before deciding whether further action was necessary to achieve parity between hotels and the shared economy. He suggested a three-month review period once the amendment takes effect, with results shared by the Ministry of Finance.
Start date
However, a key detail remained unclear he noted, referring to the start date for the measure. Griffith warned that some property owners might try to bypass the system altogether by advertising through informal channels such as Facebook groups, which were outside the scope of the legislation. “Any random search on Facebook will show several popular groups for travellers to Barbados where persons are actively promoting accommodation options which are not necessarily registered. The only way to nip these things in the bud is with the appropriate legislation,” he added.
The BHTA chairman further revealed that the BHTA was not consulted before the bill was tabled.
“To the best of my knowledge, there was no consultation with us. I saw the bill appear on the website of Parliament like most other persons did and I eagerly watched the debate to hear the contributions being made,” Griffith said.
The Shared Economy Levy, first introduced in 2018, was designed to bring short-term rentals into the tax net alongside the hotel sector. The 2025 amendment aims to boost compliance, simplify administration for hosts and ensure a steady revenue stream, changes the BHTA official said could reshape the competitive balance in Barbados’ tourism market. (CLM)
The post BHTA: Levy reform a game-changer appeared first on nationnews.com.
