Jamaica hoteliers push for room tax on short-term rentals as 15% GCT nears

Traditional hotels have long argued that short-term rental operators enjoy an uneven tax advantage. Under revenue measures for the 2026–2027 financial year, those accommodations are set to pay a 15% general consumption tax from 1 April 2027. President of the Jamaica Hotel and Tourist Association Christopher Jarrett told CVM News on Tuesday that the change alone will not restore fair competition.

Jarrett said the association has sought talks with the Minister of Finance and wants room tax applied to short-term hosts as well. Collecting that levy, he argued, could ease fiscal pressure and create space to reconsider how GCT is applied while operators meet the same regulatory burdens hotels face, including Ministry of Health standards and Companies Office requirements.

He stressed that JHTA is not opposed to Airbnb or short-term rentals in principle, but wants parity on tax, safety equipment such as fire extinguishers, and guest protection. Convenience has driven more visitors toward home-style stays, yet hotels remain the safer option for brand Jamaica, he maintained.

Debate intensifies as redevelopment resumes on the former Wyndham Kingston Hotel. Industry figures question whether Kingston can absorb more hotel rooms while rentals expand. Data cited from Airbnb.com put active Kingston listings above 1,600, with average nightly rates between US$40 and US$127, compared with roughly US$170 to US$260 for business-district hotels; recent listings showed the Jamaica Pegasus near US$242 per night.

Developers on the Wyndham project have said Airbnb growth is splitting demand that once flowed to hotels. Realtors Association of Jamaica President Gabrielle Gilpin-Hudson said the hotel could still succeed because rentals are scattered rather than clustered in visitor zones. She urged stronger links between hotel and rental products as Kingston positions itself for business and leisure travel.

Street interviews in New Kingston showed mixed preferences: some travellers favoured rentals for space and cost on business trips, while others chose hotels for security and bundled services. Gilpin-Hudson added that short-term rentals are not the sole reason the Wyndham site has lagged for more than a decade, noting several major hotels have joined the corporate area since it closed.