Hotels and Tourism Association responds to Cabinet claims about under-reporting of income

The content originally appeared on: Antigua News Room

The ABHTA welcomes audit by the Inland Revenue Department but calls for fair collection of ABST by all accommodation providers

 In response to the Cabinet minutes of July 17, 2024, the Antigua & Barbuda Hotels and Tourism Association (ABHTA) and its members express their support for any audit of financials.

The ABHTA recognizes that such audits can bolster government revenue collection, which, when reinvested into the economy, enhances infrastructure and other developments.

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This reinvestment ultimately benefits the tourism sector, reinforcing Antigua and Barbuda’s status as a premier destination in the Caribbean.

However, the ABHTA stresses the need for a level playing field in ensuring all accommodation providers in Antigua and Barbuda are compliant, registered, and contributing their fair share of ABST taxes to the Inland Revenue Department.

An analysis of the destination’s performance for the periods of January to May in both 2024 and 2023 reveals that approximately 50% of all arriving guests were accommodated in established or traditional hotels.

In contrast, around 32% stayed in accommodations categorized as guest houses or villas, a sub-set of providers often referred to as Airbnb. 

2024/2023 Jan – May

Accommodation by Place of Stay

Source: Tourism Stats represented by the Ministry of Tourism, Civil Aviation, Transportation, and Investment

The ABHTA acknowledges the importance of this diverse range of accommodations and supports the growth and development of this sub-sector. However, it insists that this growth must occur in a fair and balanced manner, with all providers contributing to the tax system.

Craig Marshall, Chairman of the ABHTA, stated, “We encourage the Government to analyze the hotel sector to ensure compliance across the board, and we fully support our members in this exercise. However, we need to urgently come together as a sector to discuss the regulation of all accommodation providers.

This is crucial not only for revenue compliance but also for marketing the destination. The marketing efforts for Antigua and Barbuda should include gaining insights and visibility into all accommodation providers, showcasing the diversity of what we offer.”

The ABHTA looks forward to the upcoming discussions on analyzing the categories of accommodation providers in the destination.

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The ABHTA collectively represents the hospitality industry by educating, advocating and promoting to increase visitation and the economic benefits for Antigua and Barbuda.

The primary focus is on the needs and best interests of the members of the Association.

The membership of the Antigua & Barbuda Hotels & Tourism Association is open to all hotels, restaurants, airlines, and companies directly or indirectly involved in the tourism sector of Antigua and Barbuda.

Joining the Association is a way of showing your support of the island’s tourism product and helping us to further develop our tourism industry.

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