Response from the Antigua & Barbuda Hotels and Tourism Association (ABHTA) on Accommodation Levy Compliance

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Response from the Antigua & Barbuda Hotels and Tourism Association (ABHTA) on Accommodation Levy Compliance

Antigua & Barbuda, April 4, 2025: During the weekly Cabinet Press Briefing, Chief of Staff Lionel Max Hurst highlighted a presentation made by representatives of the Ministry of Finance 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.

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 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.

In the last quarter of 2024, the ABHTA actively engaged with key government stakeholders—including the Honourable Charles “Max” Fernandez, Minister of Tourism, Civil Aviation, Transportation, & Investment and the Inland Revenue Department—to highlight the need for standardized taxation across all accommodation providers.

The significant growth in visitor arrivals has been accompanied by a notable shift in guest preferences, with a 14% decline in hotel stays and an 11% increase in stays at Villas and Guesthouses when comparing January–December 2024 (the island’s strongest tourism year) to the same period in 2019 (the second strongest year for stayover arrivals).

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.

A standardized and enforced taxation framework will prevent revenue leakage, ensuring 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.

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14 COMMENTS

  1. I have said it before and I will say it again..Inland Revenue is corrupt and lazy..They go after the easy targets and this is unfair to the hotels. If I were a hotel I would re-register as an Air B&B. That is the point they are making. Level the playing field. There are Air B&Bs in English Harbour charging more than Jumby Bay. They advertise on social media. There is a hotel in English Harbour that has paid no taxes, no Social Security, no Medical Benefits, no head tax, no nothing for over 15 years and no one touches them. We are not serious.

  2. Airbnb is a totally different topic. Under reporting of revenues and accommodation figures has sadly been common practice in the industry for years. Stop trying to shift the topic,,, pay the government what they s rightfully owed. You guys get enough concessions as it is .

  3. i have on more then one occasion accused the compliance officers and the auditors at the Inland Revenue Department of corruption. One of my friend with a small accounting firm lost quiet a few of his customer to them because they offered to do their accounts for them at a cheaper rate and also ensure it got audited by them and provide them with a certificate of good stamding. And a personal doctor friend of mine went through the same thing. He was assesed for $80,000.00 and when the IRD auditor took the job to present his filing and do his accounts, he ended up having to pay only $30.000,00. When it comes to the foreign owned busineses they will always use one of the IRD staff that are moonlighting to do their filing and setup their accounts. They will not hired any of the establish accounting firms to do that. And what I have also notice is that some staff of the accounting firms that have connections in IRD are doing the same working together with the corrupt IRD auditor.
    Government should therefore first address the corruption from within before they can address what is hapening at the Hotels. Becasue I do not believe the staff at the hotels would falsify the records for their boss if nothing is in it for them.

  4. @Less We Forget,
    While this behavior is despicable on the part of IRD personnel. It is so widespread and ingrained its part of the culture of IRD.
    IRD does the dirty work for and of the politicians. That’s why they they carrying on with their illegal practices with impuniy.
    IRD is the heart of financial corruption in Government. The political class benefits so it’s unlikely to change.

    Even Haiti has Inspector Generals.

  5. The behavior described is despicable on the part of IRD personnel.
    I have also heard of this widespread and ingrained practice. its part of the culture of IRD.

    IRD does the dirty work for, and of the politicians. That’s why they are able carrying on with these illegal practices with impuniy.

    IRD is the heart of financial corruption in Government. The political class benefits so it’s unlikely to change.
    Even Haiti has Inspector Generals.

  6. Enforcement is relatively easy.
    Now that the arrivals and departure form that the government has been working on for so long is digitized. Enforcement is relatively simple.

    The Governing claims that AI is being taught at UWI Five Islands. That’s a simple class project, to capture all the beefed data when each visitor arrives and departs.
    The Data will show where they intend to stay, and stayed.

    Data published for reservation will show the rates overnight for each accomadation rate per night.

    Each of those data points immediately tells IRD what taxes are due, as a result of each visitor and departure date.

    Excepting for returning Antiguans and Barbudans. The Government and IRD can have the information real time.

    The response here is disgusting. Here is the largest trade group brushing over the illegal activity is (ABHTA) members.

    What is it going to stop this illegal and unethical practice of underreporting among it’s members.
    The enhance enforced compliance efforts should be applied (ABHTA) first, and later applied on a sector by sector basis based on number of units.

  7. @Casual Observer April 4, 2025 At 5:43 pm
    When I make an accusation towards the IRD Auditors and Compliance officers I gave examples of how it happens. I even gave the example of my doctor friends. The only thing I didn’t do was to reveal names. But you like all those others make accusations of politician and cannot provide one example of one case that you personally know off. I guess that is how you guys want to do things in this country. Make baseless claims. Tell me how does a politician benefit from someone not paying their right taxes. In the end the burden of finding monies to pay government salaries and other services falls on them. That is why we voted out the UPP in 2014 they ran the country into bankruoptcy. Couldn’t pay bills. Anyway you do as you like.

  8. @CountryMan Abroad April 4, 2025 At 6:44 pm
    It is not that simple as you make it sound, but it gives government some control to audit the various hotel books and cross reference them with the arrival data. Lots depends of whether or not the tourist provided the correct information. I’ve been to the USA and said I’ll be staying at Hilton Hotel and went to stay somewhere else. There is no one to check me on that. it was just an address for me to put on my arrival form in the system. Same why someone could say they are staying at Sandals, but then take a taxi to Antigua Village. Those system are not hundred percent bullet proof.

  9. In ALL systems of control the human factor is the most weakest factor. That is why the more we automate things the better. The less human interaction the better. But then they say if human made it, human can break it. That is why the only other factor is the TRUST factor. And I have lived my entire life fighting against this Trust Factor. Sometime you cannot believe that the person you trusted the most is the one that betray your trust. When they starting to put cameras in stores, in the beginning it was to catch customers stealing. But what the cameras soon make us discover, was that the staff were the biggest culprits. Especially cashiers. They are so innovative how they go about stealing it’s not funny. I have put many systems of control in place during my professional life. Actually companies still call on me to assist them. Hadeed was warned about their week controls, but Francis didn’t want to listen. They found out the hard way. IRD is warned. I hope Mr. Warner and Mr. Jarvis take these warning seriouis and start doing there due dilligence on their staff members that are moonlighting. It is not a big group. It’s a small group of people. So they know who they are.

  10. This defense is trying to divert your members responsibility of paying what is due to the government. The Airbnb is a completely different issue. Your members have been given tax breaks for donkey years and every time these tax insensitive are up they change hands and use their friends and associates to get more tax breaks. The government gives your members these incentives so that the citizens of Antigua can benefit by providing them with proper paying Jobs. All your members do is send away the money. Count on your hands how many Antiguans have ever been general managers in your hotels. How many of your members are involved in any meaningful social programs.
    PM Gaston Brown don’t let them try and cover their tracks , trying to say Airbnb. Antiguans do need some breaks as well, so I don’t even care if the locals get off with some Airbnb breaks. Your members use the service charge for maintenance. Your members have been under reporting for decades. That is the main reason why your members prevent Antiguans working in top position, especially accounting.
    The Spanish employers imported to work in the two- one at five islands and one at Halcyon has that under reporting job covered . Their next door neighbor and all inclusive leaders does likewise.
    Antigua getting a break in his country is no business of yours.

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