Airbnb Will Collect 4.5 Percent Visitor Fee

October 11, 2018 | 25 Comments

Airbnb will collect the new 4.5 percent visitor fee on vacation rentals from guests staying at Bermuda Airbnb listings, and Bermuda will be featured on Airbnb’s new Experiences platform.

The Vacation Rental Act 2018, which came into effect earlier this year, requires vacation rental owner to register their property and pay a 4.5% vacation rental fee.

“Airbnb will collect the new 4.5 percent visitor fee on vacation rentals from guests staying at Bermuda Airbnb listings, offering a frictionless transaction for guests and hosts,” the BTA said, adding that “starting November 1, 2018, Vacation Rental Owners not listed on Airbnb will need to remit their guest fee collections monthly to the BTA.”

Minister’s Comments

The new arrangement was announced at a press conference yesterday by Minister of Economic Development and Tourism Jamahl Simmons, BTA CEO Kevin Dallas and Carlos Munoz from Airbnb.

Minister Simmons said, “This Government is committed to the growth and expansion of Bermudian Entrepreneurship and Bermudian participation in the industry that we practically invented, definitely mastered and set the standard for tourism that the world has often imitated but never truly duplicated.

Tourism Minister Airbnb BTA press conference Bermuda Oct 2018

“The growth of vacation rentals provides an exciting opportunity for Bermudians to go “Back to the Future,” bringing back the Bermudian warmth, the Bermudian friendliness and the Bermudian hospitality that has lured tourists to our shores time and time again.

“It is an opportunity to “do for self” and at the same time, gives our visitors a wider choice in where they can stay and what they can do. The success of vacation rentals represents the success of Bermuda.

“Today, I am pleased to have with me the CEO of the Bermuda Tourism Authority, Mr. Kevin Dallas and from AirBNB Mr. Carlos Munoz for an announcement that represents the next step in broadening opportunities for Bermudians not just in the vacation rentals space – but for those who are providing local uniquely Bermudian experiences to our visitors.”

BTA’s Comments

A BTA spokesperson said, “Airbnb and the Bermuda Tourism Authority [BTA] have partnered to streamline and enhance the on-island vacation experience. This fall, the BTA will begin marketing the destination across Airbnb’s channels, reaching a vast audience of potential visitors who favour vacation rentals.

“As part of the island’s Vacation Rentals Act 2018, Airbnb will collect the new 4.5 percent visitor fee on vacation rentals from guests staying at Bermuda Airbnb listings, offering a frictionless transaction for guests and hosts. The new partnership is part of BTA’s ongoing efforts to support Bermuda’s entrepreneurs and grow the island’s tourism industry in impactful ways.

“Additionally, beginning in 2019, Bermuda will be featured on Airbnb’s new Experiences platform. Bermuda will be the fourth Experiences destination in the Atlantic/Caribbean region, following successful rollouts in Cuba, PR and Jamaica.

“Experiences are hosted by passionate locals who love sharing their community and expertise with guests by planning and leading experiences. Each Experience is featured on the Airbnb website and marketed to millions of Airbnb customers through the brand’s website, social media and email channels.”

“Hosting an Airbnb Experience is an opportunity for a Bermuda host to highlight his or her insider knowledge of the island and reach a worldwide audience of highly engaged travellers,” said Kevin Dallas, chief executive of the BTA.

“Airbnb customers align perfectly with several of Bermuda’s target segments, including active families and experience enthusiasts.”

“We are very excited about the launch of Airbnb Experiences in Bermuda,” said Carlos Munoz, who manages public policy and communications for Airbnb in the Caribbean and Central America.

“The rollout of Experiences on the island is only possible because of the productive partnership with the BTA and we look forward to offering guests the heartfelt hospitality of our Bermudian hosts.”

“More details of the BTA / Airbnb partnership will be revealed at the Bermuda Tourism Summit, taking place October 24, 2018, at the Hamilton Princess & Beach Club.

“Starting November 1, 2018, Vacation Rental Owners not listed on Airbnb will need to remit their guest fee collections monthly to the BTA.”

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Comments (25)

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  1. redrose says:

    Big deal, i mean so what?! All this means is that I don’t have to collect the tax, it still means that the cost of my Airbnb rental goes up. And think about this … not only does the rent I charge go up, it now costs more (thanks to the sugar tax) to stock up the fridge for my visitors and when I use the money I have earned from my rental to pay my schools fees I now have to pay a dividend tax.
    Thanks PLP. Really appreciate your efforts to help me make a living and educate my kids.

    • redrose says:

      Of course, I could also just cut my profit margin and absorb the tax in my price?

      • Jt says:

        Rental properties will be taxed next and tenants will pay the extra there as well.

        • Triangle Drifter says:

          Rental property is taxed now. It is called land tax. Landlords can charge the tenant separately for the land tax but most lump it into the rent & keep it simple. Any further taxes & they will do the same.

          • Jt says:

            I agree but you and I both know another tax is coming. And 100% correct – the tenant will be on the hook.

    • frank says:

      government needs to collect their own money
      there was no time frame for Airbnb to turn over the collected money
      so they have a chance to make money of our money just like the banks do every dam day

    • frank says:

      the government needs to collect their own money

    • frank says:

      government needs to collect their own money

  2. swing voter says:

    the more I win….the more I $*#&! loose. two steps forward, four steps back….squeezing blood out of a &#*^$ rock!

  3. hmmm says:

    or contact the person once they request and do a side deal to cut out the middle man (Gov’t and AirBNB). Has its pro’s and cons

  4. Robert N Marley says:

    “Cost of living get so high, rich and poor they start to cry”

    All these new taxes are necessary because the spend and tax / friends and family train is back in town.

  5. eve says:

    Remember when BTA was spouting off how good Airbnb was going to be for the rental market both the renter and owner? Common sense tells us that the only winners are BTA and Airbnb and the rest of us are paying for it. Is Airbnb paying BTA interest on 4.5% gift they get? More money for BTA to party with!

  6. Chris says:

    So… cant we rally and get this and the sugar tax ended?

  7. Jus' Wonderin' says:

    Lmaooooo def not gonna register my place now…why should I have to pay 4.5% more. Taxes/rents/everything gone up under the PLP. TRULY A TERRIBLE GOVERNMENT! Where’s the breaks for the small man?

    • Paul says:

      There are no brakes for the smll man…. and what is very concerning is there are hardly any rentals for locals, so thanks Gov for catering to guests rather than locals.

  8. smile says:

    Check who surfaced, must be a camera around..

  9. Four.five will be added on tuit…

    A fine is a tax for doing wrong.A tax is a fine for doing well… You benefit from business…you tax at the front end prices yourselves out of business .

    Latin describes process so we’ll…
    “Poly” ;- many.
    “Tics”;- blood thirsty parasites.

    Why don’t you ever see a thief stealing from a politicians house?
    Professional courtesy.

  10. Gustav says:

    yeah , lets make it more expensive for the tourists
    we don’t need them , same as the IB
    kick them all off island

    my friend Onion Juice will love this comment

  11. Chris says:

    Here’s one visitor who will think twice in future

  12. Slipnut says:

    Hang on to your Boots kids this is income Tax!

  13. eve says:

    Reading more details of this agreement, BTA will increase their marketing with Airbnb. So Airbnb gets $$$$$$ benefi of using 4.5% of rental fee for unknown period of time and BTA will spend more money with Airbnb in marketing; how ridiculous is that. This agreement should be investigated!

  14. Yes but…we have next to no public service transportation to these bed and breakfast accommodation…isn’t that apparent and necessary stipulatory ?
    Having said this…what budgetary savings is being retracted and reallocated to offset expenditure?
    I hope that these bus runs that are cancelled are saving reflective of expenditure and a positive cash flow elswhere.
    As a concerned tax payer these questions do concern me.

  15. Mumbojumbo says:

    It’s bad enough the world thinks we all want lactating women to provide milk on our corn flakes …but they cannot catch a bus to the breakfast bowl…they have to catch a cab …

  16. Who cares says:

    Oh shut up troll. That’s yesterday’s crap! Grow up!

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