Minister clarifies room tax discussion, says no final decision has been taken

GREAT BAY--Minister of Tourism, Economic Affairs, Transport and Telecommunication Grisha Heyliger-Marten on Wednesday provided clarification regarding recent public discussion about the accommodation tax, also referred to as the room tax, following a front-page article published Tuesday in the media.

Speaking during the live Council of Ministers press briefing on February 11, 2026, the Minister said the reporting created understandable concern within the hotel and tourism sector, and emphasized that the information referenced was taken out of context.

The Minister explained that the material originated from a letter containing questions and answers provided to Parliament of St. Maarten as part of an ongoing policy discussion, and does not reflect a finalized decision, approved policy, or enacted law.

The Minister noted that the accommodation tax is one of the few taxes that does not affect locals, because residents are exempt even when staying in hotels. By law, she said, the tax is charged directly to the visitor.

Using an example provided during the briefing, the Minister explained that on a $100 room rate, the current 5% tax adds $5, and at 10% it would add $10.

The Minister said St. Maarten currently has the lowest accommodation tax in the Caribbean at 5%, and noted that most destinations charge significantly more. She stated that the Caribbean average is approximately 12.1%, and that even at 10%, St. Maarten would remain below the regional average.

She added that stakeholders have consistently pointed to the need for St. Maarten to invest more in tourism marketing and product development, and said that any potential adjustment would be preceded by structured stakeholder engagement, careful review, and open dialogue.

The Minister said no decision would be taken without input from the sector, a review of the data, and a clear understanding of the potential impact.

Short-term rentals and legislative amendments

During the press briefing, the Minister also addressed questions about the application of the room tax framework to short-term vacation rentals listed through platforms such as Airbnb and Vrbo.

She explained that under the current room tax levy framework, home rentals are not listed in the law in the same way as traditional accommodations, and said the Ministry is working to amend legislation so that accommodation tax requirements can be explicitly embedded for home rentals as well. She indicated that the amendment is with Legal Affairs as part of the legislative process.

The Minister also said Government is not capturing the full scope of short-term rental activity, noting that recent data received indicates more than 3,000 homes on St. Maarten are engaged in short-term rental activity, which she said is not reflected in the tax capture to the extent it should be.

In response to a question about whether foreign owners who purchase and rent out condominiums on a short-term basis are obligated to pay tax under current laws, the Minister confirmed that there is an obligation to pay applicable taxes, and reiterated the need to strengthen the legislative framework to ensure room tax application to home rentals is properly defined and enforceable.

Further information will be shared as the policy discussion and legislative work continue.

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