SANTO DOMINGO.-On at least four occasions, the Minister of Tourism, David Collado, has announced a date or referred to the need for the Dominican Republic to regulate short-term rental services, a request that business owners linked to the tourism sector have been demanding for several years.
The latest announcement on the subject was made by the official last week, during the International Tourism Fair (Fitur) 2024, where Collado announced that an agreement will be signed in February 2024 with Airbnb, the most popular short-stay rental platform in the world, to regulate its operations in Dominican territory.
He clarified, however, that the agreement will exclude the tax component and focus on security measures and quality inspections, in order to ensure that tourists are not exploited within rented properties and that the country's brand is protected. "Just like we regulate hotels in the country," Collado explained.
A year ago, at the same Fitur event in Madrid, Spain, David Collado revealed that the government had signed a letter of intent with Airbnb to regulate the platform in the Dominican Republic. After a year without taking any action, he made the announcement again, highlighting that the agreement document has been drafted and is being reviewed by the Dominican Republic Hotel and Tourism Association (Asonahores), one of the associations that has most strongly demanded action regarding Airbnb, given the platform's growth in the country.
The brake
Collado asserted that Airbnb has not resisted its regulation. "If we invite them to sign tomorrow, they'll sign tomorrow. It's a matter of consensus with the private sector, which wants it done in conjunction with the tax authorities," he said. "We told Asonahores that if they don't respond, we'll still release it this February.".
David Llibre, president of Asonahores, expressed in April of last year the interest in regulating the platforms that facilitate the supply of properties for short-term rental accommodation to tourists and individuals in the country, such as the Airbnb model.
According to the website "Recorriendo con Salvador", the representative of Asonahores stated that two proposals have already been sent to the Ministry of Tourism and that he is aware that it is necessary to expedite their approval.
He acknowledged that progress has been made, "but it now depends on the authorities whether it is approved in 2023.".
He clarified that private accommodations represent a trendy tourist option that attracts more tourists, but it is necessary to ensure security to protect tourists who use this type of lodging.
The DGII
In July 2022, the head of the General Directorate of Internal Taxes (DGII), Luis Valdez, said that the application of the tax on digital platforms was intended to gradually collect three billion pesos, including all services provided by Amazon, Expedia, Google, Netflix, Spotify, DiDi, Uber, Airbnb.
He added that the implementation of these taxes "is not intended to burden consumers," and that for this reason the draft regulations are being discussed and agreed upon before their approval.
The agency submitted the project to public hearings in 2022, and its approval is pending by the Executive Branch.
"That (the tax aspect) will come later with the government's fiscal policy, but we already regulated it in February, because we need to have Airbnb regulated in our country for security reasons," Minister Collado stated last week.
Others
In February of last year, 2023, David Collado justified the reasons for "regulating" Airbnb services in the Dominican Republic, assuring that a preliminary agreement had been reached with the platform. "We already have a preliminary agreement with Airbnb. For the Tourism Cabinet, it is extremely important to have Airbnb rooms regulated," he stated.
Collado repeatedly stated that the objective is not "imposing" but rather regulatory, and that the Airbnb platform has expressed its interest in becoming compliant.
“Airbnb wants to regularize its operations, but it’s not a tax issue. When you rent an Airbnb apartment in the Dominican Republic, the platform is paying taxes in Miami. The platform isn’t evading taxes because it’s impossible to evade taxes in the United States. The Dominican Republic isn’t receiving the taxes it’s paying, and they want to be transparent and sign an agreement,” David Collado stated during a luncheon hosted by the Corripio Communications Group in February 2023.
Last September, Collado said that the regulation of vacation rental platforms like Airbnb in the Dominican Republic would be signed in October.
In an interview with Diario Libre, on the occasion of World Tourism Day, the minister specified that this regularization agreement will ensure that the offer corresponds to reality and that the services and safety of the tourist-user are guaranteed.
He highlighted that Airbnb's offering in the Dominican Republic amounts to 93,000 rooms in the country.
Sources: Diario Libre/Hoy/El Caribe/Recorriendo con Salvador.
