Regional Hoteliers Push Back Against Move to Charge Commissions on Taxes

• A recent move by Dutch travel company Booking.com has raised concerns within the regional tourism sector and could eventually prompt governments to consider legislative action to protect industry revenues.
• Hoteliers and tourism stakeholders across the Caribbean are pushing back against a policy change communicated by the company. The move would see Booking.com charging commissions not only on room rates and related fees, but also on Value Added Tax (VAT) and other government-imposed taxes.
• Outgoing President of the Caribbean Hotel and Tourism Association (CHTA), Sanovnik Destang, said the organisation was alerted by hotel associations in Barbados and Grenada after they received correspondence from the company. According to Destang, the policy was set to take effect beginning May 15, 2026.
• Traditionally, hotel commissions are charged only on actual hotel revenues such as room rates and certain service fees; however, Booking.com is now seeking to apply commissions on government-imposed taxes like VAT and Goods and Services Tax (GST), which hotels collect on behalf of governments and do not retain as revenue.
• The issue quickly became a major point of discussion on the sidelines of the 44th Caribbean Hotel and Tourism Association Meeting in Antigua and Barbuda, with stakeholders voicing strong opposition to the proposed changes. Destang said representatives of the CHTA met directly with Booking.com officials during the conference and “seriously advocated against this.”
• “They've indicated that it's part of a global push. It's something that exists globally. But our argument is that what exists globally may not necessarily exist in the Caribbean,” he added. “Because regardless of legality, from a commercial standpoint, it's not practical. It's not fair to expect hotels to pay commissions of 15 percent, whatever percent — or 18 percent in some cases — on VAT, GST, and other taxes that hotels do not retain in the first place. So we've drawn a line in the sand at CHTA.”
• The proposed policy could reduce hotel profitability across tourism-dependent Caribbean economies, as operators would pay commissions on government-imposed taxes, potentially pressuring room rates and sector competitiveness. The move could also prompt Caribbean governments and tourism stakeholders to pursue regulatory action or alternative booking strategies to protect tourism revenues and reduce dependence on large international online travel agencies.

(Sources: SKN Vibes & NCBCM Research)