Tourism leaders warn against surge in short-term rentals
Small hotels face 30 per cent hit in Kingston while Airbnb listings soar unchecked across region
Published:Tuesday | May 20, 2025 | 12:10 AMJanet Silvera/Gleaner Writer
WESTERN BUREAU:
Traditional hotels in Kingston and across the Caribbean are sounding the alarm over the unregulated expansion of short-term rental platforms like Airbnb, which they say are siphoning off as much as 30 per cent of business from small and medium-sized hotel operators.
According to Christopher Jarrett, area chair of the Jamaica Hotel and Tourist Association (JHTA), Kingston chapter, the impact on the capital’s small hotels has become especially acute.
“We are seeing a reduction in the number of guests, and we feel it in our monthly reports. In Kingston, the short-term rental market has expanded beyond the ‘small man’; we now have apartment buildings developed specifically for Airbnb,” Jarrett said.
He described the situation as an “unfair playing field”, where hoteliers are bound by regulations, fire, health, safety, and taxation, while Airbnb operators operate freely without oversight from agencies such as the Jamaica Tourist Board or the Tourism Product Development Company.
Nicola Madden-Greig, immediate past president of the Caribbean Hotel and Tourism Association, also echoed this concern. She emphasised that short-term rental is no longer the domain of individuals renting a spare room.
“This is no longer a ‘small man business’, these are serious investments. Yet these operators are not required to meet the same standards of security, safety, and taxation,” Madden-Greig stated. She was responding to questions posed by The Gleaner shortly after moderating the Caribbean Travel Forum at Sandals Antigua during the start of Caribbean Travel Marketplace 2025 on Monday.
The rapid growth of short-term rentals is not unique to Jamaica.
ACCELERATING TREND
James Hepple, managing director of Tourism Analytics, revealed that across the region, the trend is accelerating.
“We’ve seen the number of visitors using short-term rental accommodation jump from 20 per cent to 35 per cent over a six- to seven-year period. In places like Curaçao, it is now 50 per cent. Puerto Rico has 13,000 properties offering short-term rentals, nearly matching the number of hotel rooms,” Hepple shared during his presentation at the forum.
Hepple also noted that while some governments have worked out tax collection agreements with platforms like Airbnb, this often leaves a grey area, where the authorities do not know which properties are compliant or remitting taxes.
In Kingston, Jarrett stressed that traditional hotels cannot keep up with the low operating costs of short-term rentals.
“Our ADR (average daily rate) is still at COVID levels. The market won’t allow us to raise prices, because Airbnb units are undercutting us while avoiding statutory deductions, food safety regulations, and wage-related benefits like NIS, NHF, and pensions.”
Even staff retention has become difficult. Many hotel workers, he said, are leaving for better take-home pay at unregulated properties.
“They can work fewer hours, earn cash, and avoid the red tape. Hotels can’t compete with that.”
Hepple further reinforced this, citing workforce retention as a regional crisis post-COVID.
“Many no longer see hospitality as a viable career because of the instability they experienced during lockdowns,” he said, adding that rising electricity and food costs are compounding the issue.
JAMAICA MUST ACT
While some Caribbean countries like Bonaire and Curaçao have shifted to per-visitor tourism taxes to capture revenue from all accommodation providers, Jamaica’s current system of taxation for visitors arriving on the island is largely reliant on the Tourism Enhancement Fund, making such adjustments complex.
Still, Jarrett believes Jamaica must act.
“We’ve been calling for regulation for several years. Now it is urgent. We’re not against competition, but we want fair competition.”
He believes it’s not difficult to identify Airbnb listings, and that the Government should have a vested interest in ensuring compliance, not just for tax revenue, but also to protect Jamaica’s reputation as a safe and high-quality destination.
The Jamaican hotel industry is about to get even more competition when the mixed-use development, tagged Different Properties Jamaica Limited, which is expected to operate as a hotel and short-term rental in Kingston, opens its doors.
The condo hotel model is offering the share-valued system, where every owner can reap the reward without the day-to-day management burden, says its promotional video.