St. Maarten Hospitality and Trade Association (SHTA) again confirmed its opposition to a proposed visitor entry tax (see Monday newspaper). Despite relatively modest one-time amounts of US $15 per adult and $10 per child, the Dutch side’s biggest employers’ organisation thinks it will not be without consequences in the highly competitive tourism field.
Especially under the current economic conditions, they may have a point. For example, Cuba is reportedly waiving its airport tax in an effort to get more guests.
SHTA feels the current tax system should instead be modernised and enforced through a comprehensive approach. It mentioned that “several existing tax avenues remain under-leveraged or completely uncollected.”
One of these is the short-term vacation rental sector through so-called “home-sharing” online platforms like Airbnb. These activities continue to be largely untaxed, giving those involved an unfair fiscal advantage over more traditional accommodations.
That playing field should indeed be levelled, but in the meantime the destination requires quick action to compensate for expected reduced travel from Americans due to the present uncertain business climate. One option is to focus on Canadians who are not heading south of the border this summer due to recent strained relations between the two neighbouring countries.
On the business pages of the same edition, Montreal-based Air Canada reported that US-bound bookings were down by a “low teens” percentage, part of an industry-wide drop of roughly 10%. However, the carrier’s results in Mexico and the Caribbean remained solid.
One idea is to reserve a share of the new tax proceeds for emergency marketing, which would also help enhance the island’s resilience as announced. That might soften the blow at least somewhat.
