SHTA Breaks down the info behind vacation rental surge

GREAT BAY--Independent vacation rentals (IVRs) have become a dominant force in St. Maarten’s lodging market, with recent data suggesting they may now rival or even surpass traditional hotels, timeshares, and guesthouses. A new analysis conducted by the St. Maarten Hospitality and Trade Association (SHTA), in partnership with Lighthouse, estimates that IVRs generated US $319 million in annual revenue in 2024.

The report counted more than 5,100 active short-term rental units across the island listed on Airbnb, VRBO, and Booking.com, compared to the roughly 3,568 hotel, timeshare, and guesthouse rooms on the Dutch side alone. Occupancy rates averaged 35% on the Dutch side and 40% on the French side, with guests paying $389 per night in Dutch St. Maarten compared to $488 on the French side. In total, IVRs hosted around 202,000 annual occupants, producing more than 156,000 room nights per month.

These findings sparked questions about the implications for the traditional hospitality sector and the broader economy. To probe deeper, 𝘛𝘩𝘦 𝘗𝘦𝘰𝘱𝘭𝘦’𝘴 𝘛𝘳𝘪𝘣𝘶𝘯𝘦 posed a series of questions to the SHTA, who expanded on the data and its meaning.

𝐇𝐨𝐰 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞 𝐢𝐬 𝐋𝐢𝐠𝐡𝐭𝐡𝐨𝐮𝐬𝐞’𝐬 𝐝𝐚𝐭𝐚, 𝐠𝐢𝐯𝐞𝐧 𝐭𝐡𝐞 𝐝𝐢𝐬𝐩𝐞𝐫𝐬𝐞𝐝 𝐚𝐧𝐝 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐥 𝐧𝐚𝐭𝐮𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐈𝐕𝐑 𝐬𝐞𝐜𝐭𝐨𝐫?

SHTA said it is “relatively confident” in the accuracy of Lighthouse’s numbers, citing its advantages over competitor AirDNA. Unlike AirDNA, Lighthouse includes Booking.com data but excludes hotels, focusing solely on independent units. The system relies on aggregator software that scans multiple platforms and eliminates duplicates. Even so, the true size of the market could be larger, as some property owners rent directly or through travel agencies and management companies.

𝐖𝐡𝐲 𝐝𝐨 𝐨𝐜𝐜𝐮𝐩𝐚𝐧𝐜𝐲 𝐫𝐚𝐭𝐞𝐬 𝐝𝐢𝐟𝐟𝐞𝐫 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐭𝐡𝐞 𝐭𝐰𝐨 𝐬𝐢𝐝𝐞𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐢𝐬𝐥𝐚𝐧𝐝?

According to SHTA, the gap between Dutch-side (35%) and French-side (40%) occupancy is not especially significant. They noted that the earlier reported difference of 25% versus 34% was incorrect.

𝐃𝐨 𝐯𝐚𝐜𝐚𝐭𝐢𝐨𝐧 𝐫𝐞𝐧𝐭𝐚𝐥𝐬 𝐨𝐮𝐭𝐧𝐮𝐦𝐛𝐞𝐫 𝐡𝐨𝐭𝐞𝐥𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐃𝐮𝐭𝐜𝐡 𝐬𝐢𝐝𝐞?

Not in terms of keys, SHTA clarified. Lighthouse counted 2,297 IVR keys on the Dutch side, compared to an estimated 3,568 hotel keys. However, because villas and apartments often have multiple rooms, the actual lodging capacity may rival hotels. What concerns SHTA is the uneven regulatory environment: IVRs face fewer health and safety standards than hotels, which the association warns could pose risks as well as unfair competition.

𝐖𝐡𝐲 𝐢𝐬 𝐅𝐫𝐞𝐧𝐜𝐡-𝐬𝐢𝐝𝐞 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐬𝐨 𝐦𝐮𝐜𝐡 𝐡𝐢𝐠𝐡𝐞𝐫?

The French side captured 63% of IVR revenue ($202 million) compared to 37% on the Dutch side ($117 million), despite hosting a similar number of occupants. SHTA attributed this to high-end areas such as the Lowlands and Orient Bay, where villa rentals dominate and nightly rates are significantly higher. With fewer hotels on the French side, luxury rentals are a larger share of the market, attracting visitors willing to spend more.

𝐃𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐬𝐮𝐠𝐠𝐞𝐬𝐭 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐚𝐥 𝐰𝐞𝐚𝐤𝐧𝐞𝐬𝐬𝐞𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐃𝐮𝐭𝐜𝐡 𝐬𝐢𝐝𝐞?

SHTA pointed back to its revenue explanation, saying the discrepancy is mostly driven by pricing differences and market composition rather than a fundamental weakness. The Dutch side hosted 42% of occupants but only captured 37% of revenue, underscoring that guests there tend to book lower-priced accommodations.

𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 $𝟑𝟏𝟗 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐢𝐧 𝐈𝐕𝐑 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐢𝐬𝐥𝐚𝐧𝐝’𝐬 𝐭𝐨𝐮𝐫𝐢𝐬𝐦 𝐞𝐜𝐨𝐧𝐨𝐦𝐲?

SHTA noted that St. Maarten’s two economies are deeply intertwined. Tourists may stay on one side but spend on both, and the appeal of the island lies in that duality. The group did not provide hotel revenue comparisons, saying government would be better positioned to track those figures.

𝐖𝐨𝐮𝐥𝐝 𝐚 𝐣𝐨𝐢𝐧𝐭 𝐃𝐮𝐭𝐜𝐡-𝐅𝐫𝐞𝐧𝐜𝐡 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐭𝐨 𝐈𝐕𝐑𝐬 𝐡𝐞𝐥𝐩?

Yes, SHTA argued, noting that a unified strategy would ensure a level playing field and improve data reliability. With both sides relying on the same airport and infrastructure, joint monitoring is essential. “The same counts for traffic on the roads and any other means of transport,” the association said.

𝐖𝐡𝐚𝐭 𝐬𝐭𝐞𝐩𝐬 𝐚𝐫𝐞 𝐧𝐞𝐞𝐝𝐞𝐝 𝐟𝐨𝐫 𝐛𝐞𝐭𝐭𝐞𝐫 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲?

SHTA reiterated its call for government to subscribe to Lighthouse, as other destinations have done, to ensure more reliable estimates of the IVR market. More broadly, the association urged “open and transparent conversations based on factual data,” stressing that credible numbers are critical for shaping tourism policy.

The SHTA’s responses confirm what the numbers already suggest: IVRs are not only reshaping St. Maarten’s lodging market, they are altering the balance of power between traditional hotels and independent operators. With revenues in the hundreds of millions and growing, short-term rentals are no longer a side story in St. Maarten’s tourism economy. They are now central to it, raising pressing questions about regulation, equity, and long-term sustainability.

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