ST. JOHN’S, Antigua, CMC—The Antigua & Barbuda Hotels and Tourism Association (ABHTA) said Friday it remains eager to collaborate with all relevant authorities to support a “fair and comprehensive” approach to taxation, ultimately strengthening the tourism industry and national economy.
In a statement, the ABHTA was made aware of the statements made by the Chief of Staff in the Prime Minister’s Office, Lionel Max Hurst, regarding the payment of the Accommodation Levy and the under-reporting of hotels.
“The Antigua & Barbuda Hotels and Tourism Association (ABHTA) acknowledges these concerns and remains committed to ensuring compliance among its members,” it said.
Hurst, speaking at the end of the weekly Cabinet meeting, told reporters that while Antigua and Barbuda has recorded an increase in tax revenues for the first quarter of 2025, there are concerns over underreporting by some hotels, particularly in the collection and payment of the guest levy.
Hurst confirmed that Customs duties and the Antigua and Barbuda Sales Tax (ABST) have shown measurable increases, suggesting positive economic activity. However, he noted that guest levy receipts from the hotel sector do not reflect the reported booming tourism figures.
“The hotels are full to the brim, yet many are still paying the same amount in guest levy as they did last year,” Hurst said, adding, “That doesn’t add up, and the Inland Revenue Department (IRD) has taken notice.”
He explained that the IRD will use data collected through the country’s electronic embarkation/disembarkation (ED) cards, where visitors indicate their length of stay and accommodation provider, to calculate estimated tax liabilities for each hotel.
If a property’s reported payments fall below these estimates, it will be issued a demand notice. Hurst said that if hotels fail to meet the estimated tax thresholds, “they will be challenged, and the Inland Revenue Department is prepared to defend its position.”
He suggested that some establishments may engage not only in underreporting but potentially in tax evasion, telling reporters, “It’s one thing to avoid taxes; it’s another to evade them altogether.”
The guest levy, calculated based on guest nights and rates, is meant to contribute directly to national revenue from tourism-related income. Officials stress that the levy is critical funding for infrastructure, marketing, and public services.
“Hotels can’t boast about record numbers and then report minimal levy payments. That’s not going to be tolerated going forward,” Hurst said.
In its statement, the ABHTA said that while it acknowledges these concerns and remains committed to ensuring compliance among its members, “however, we emphasize the necessity of extending this compliance effort beyond traditional hotels to include the rapidly growing Villa and Guesthouse market, commonly associated with platforms such as Airbnb.”
The ABHTA said it strongly encourages the growth of the Villa and Guesthouse market and recognizes it as a valuable and viable segment that expands the range of accommodation options available to visitors.
“This growth enhances the destination’s appeal by catering to diverse traveler preferences while complementing the existing hotel sector.”
The ABHTA said that in last year’s quarter, it actively engaged with key government stakeholders, including Tourism, Civil Aviation, Transportation and Investment Minister Charles “Max” Fernandez, and the Inland Revenue Department, to highlight the need for standardized taxation across all accommodation providers.
It said that the significant growth in visitor arrivals has been accompanied by a notable shift in guest preferences, with a 14 percent decline in hotel stays and an 11 percent increase in stays at Villas and Guesthouses when comparing January–December 2024 to the same period in 2019.
“As the Government advances its compliance efforts, the ABHTA welcomes an audit of its members but strongly advocates for the extension of this initiative across the entire accommodation sector.”
It said a standardized and enforced taxation framework would prevent revenue leakage and ensure that the Government fully benefits from the sector’s overall growth.
“We remain eager to collaborate with all relevant authorities to support a fair and comprehensive approach to taxation, ultimately strengthening the tourism industry and national economy,” it added.
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