ST. JOHN’S, Antigua, CMC—The Antigua & Barbuda Resorts and Tourism Affiliation (ABHTA) mentioned Friday it stays wanting to collaborate with all related authorities to help a “truthful and complete” method to taxation, finally strengthening the tourism business and nationwide economic system.
In an announcement, the ABHTA was made conscious of the statements made by the Chief of Employees within the Prime Minister’s Workplace, Lionel Max Hurst, relating to the cost of the Lodging Levy and the under-reporting of inns.
“The Antigua & Barbuda Resorts and Tourism Affiliation (ABHTA) acknowledges these considerations and stays dedicated to making sure compliance amongst its members,” it mentioned.
Hurst, talking on the finish of the weekly Cupboard assembly, advised reporters that whereas Antigua and Barbuda has recorded a rise in tax revenues for the primary quarter of 2025, there are considerations over underreporting by some inns, significantly within the assortment and cost of the visitor levy.
Hurst confirmed that Customs duties and the Antigua and Barbuda Gross sales Tax (ABST) have proven measurable will increase, suggesting constructive financial exercise. Nevertheless, he famous that visitor levy receipts from the resort sector don’t replicate the reported booming tourism figures.
“The inns are full to the brim, but many are nonetheless paying the identical quantity in visitor levy as they did final yr,” Hurst mentioned, including, “That doesn’t add up, and the Inland Income Division (IRD) has taken discover.”
He defined that the IRD will use knowledge collected by way of the nation’s digital embarkation/disembarkation (ED) playing cards, the place guests point out their size of keep and lodging supplier, to calculate estimated tax liabilities for every resort.
If a property’s reported funds fall under these estimates, will probably be issued a requirement discover. Hurst mentioned that if inns fail to satisfy the estimated tax thresholds, “they are going to be challenged, and the Inland Income Division is ready to defend its place.”
He prompt that some institutions might have interaction not solely in underreporting however doubtlessly in tax evasion, telling reporters, “It’s one factor to keep away from taxes; it’s one other to evade them altogether.”
The visitor levy, calculated based mostly on visitor nights and charges, is supposed to contribute on to nationwide income from tourism-related revenue. Officers stress that the levy is important funding for infrastructure, advertising, and public providers.
“Resorts can’t boast about file numbers after which report minimal levy funds. That’s not going to be tolerated going ahead,” Hurst mentioned.
In its assertion, the ABHTA mentioned that whereas it acknowledges these considerations and stays dedicated to making sure compliance amongst its members, “nevertheless, we emphasize the need of extending this compliance effort past conventional inns to incorporate the quickly rising Villa and Guesthouse market, generally related to platforms reminiscent of Airbnb.”
The ABHTA mentioned it strongly encourages the expansion of the Villa and Guesthouse market and acknowledges it as a helpful and viable phase that expands the vary of lodging choices accessible to guests.
“This development enhances the vacation spot’s enchantment by catering to numerous traveler preferences whereas complementing the prevailing resort sector.”
The ABHTA mentioned that in final yr’s quarter, it actively engaged with key authorities stakeholders, together with Tourism, Civil Aviation, Transportation and Funding Minister Charles “Max” Fernandez, and the Inland Income Division, to spotlight the necessity for standardized taxation throughout all lodging suppliers.
It mentioned that the numerous development in customer arrivals has been accompanied by a notable shift in visitor preferences, with a 14 % decline in resort stays and an 11 % enhance in stays at Villas and Guesthouses when evaluating January–December 2024 to the identical interval in 2019.
“Because the Authorities advances its compliance efforts, the ABHTA welcomes an audit of its members however strongly advocates for the extension of this initiative throughout your complete lodging sector.”
It mentioned a standardized and enforced taxation framework would forestall income leakage and be sure that the Authorities absolutely advantages from the sector’s total development.
“We stay wanting to collaborate with all related authorities to help a good and complete method to taxation, finally strengthening the tourism business and nationwide economic system,” it added.
