‘They are stupid!’ - Airbnbs have no effect on Sandals bottom line, says Cummings

A senior tourism sector player has parried claims of being ‘bad-minded’ against the emerging Airbnb industry in Jamaica.

Wayne Cummings, former president of the Jamaica Hotel and Tourist Association (JHTA), has scoffed at claims that his call for the imposition of a levy on short-lease home-sharing facilities is motivated by concerns of the platform’s impact on Sandals Resort International’s revenue.

“No, they are stupid! Sandals is probably the company that will be least affected by this,” he said in a telephone interview last week. “When you take a company like Sandals that invests as heavily as they do in marketing, our business is far more sure than most of the others.

“I know who I represent in terms of who I am employed to, (and) I know who I represent when I do national advocacy. People are entitled to their opinions, but that would be a flawed opinion at this time.”

Cummings argued that the tax cry was not a position held by Sandals alone but was settled consensus in the JHTA and protected small and medium-size interests with limited marketing capacity but which were compliant with Jamaica’s tax laws.

“They are being competed against in an apples and orange fight,” Cummings quipped.

JHTA boss Omar Robinson first made the call for the industry newcomers to contribute to the tax coffers at the 58th annual general meeting of the association in June last year, and would have been encouraged by Tourism Minister Edmund Bartlett’s support on that score when he spoke at that event.

About-turn

But the minister’s position represented an about-face to months earlier when quizzed by The Gleaner following reports that Airbnb operators in the British Virgin Islands would have to pay a portion of their earnings to the tax- man.

“We are not going after direct taxation to impact the hosts, who are, by and large, the small entrepreneurs of our country, who are making the inclusiveness of tourism something real,” He said at the time. “But rather, we are looking at a broader picture to see how Airbnb itself can partner with Jamaica to provide the necessary resource support for the many projects we have, particularly in destination, where assurance strategies are being developed.”

The JHTA is lamenting the fact that its 117-strong membership was required to play by the rules, while Airbnb operators were not. And even as they maintain that over-regulation might be counterproductive for the sector, the executive has insisted that registering with the Jamaica Tourist Board (JTB) and adhering to safety regulations and Jamaica’s tax laws should not be an option.

Villa levy

Cummings argued that Airbnbs should be paying a similar levy to that of villa operators, which stands at US$1 per night, which he believes would help to formalise those offering the service, while the Government could account for the number of visitors utilising the platform.

However, Finance Minister Nigel Clarke did not respond to a request for an interview, and calls to his cellular phone went unanswered.

Tourism Minister Edmund Bartlett could not be reached, but a government official, who spoke on condition of anonymity, told The Gleaner that more disruptions are inevitable.

“Airbnbs are new models, and with the level of technology that is available now, it is going to cause more disruptive models in the tourism as well as other industries,” said the source. “Jamaica and other governments will be challenged to identify ways and means on how to ensure that there is a taxation arrangement that covers everybody, but it is a mammoth task for any government, especially nearing a general election.”

A general election is constitutionally due by 2021, but political pundits believe it will be held this year.

editorial@gleanerjm.com