HomeInvestmentsTourism Real EstateThis is what real estate leaders think about the statements of the Minister of Tourism, David...

This is what real estate leaders think about the statements made by the Minister of Tourism, David Collado, regarding taxing Airbnb

Tony Galvez, real estate advisor at Time Homes. (External source).

Hotel owners are pressuring the minister to protect their profits. The upper middle class has had to resort to this system to survive and get ahead, given the pressure of not having well-paying jobs and having to pay exorbitant taxes on everything. Globally, the middle class—teachers, engineers, doctors, business owners, etc.—is disappearing, so only the poor and the rich will remain. It's a very difficult situation. The money that comes in through Airbnb stays in the country; it circulates. But the money the hotels receive doesn't; that goes abroad. Those who work in these hotels are mostly foreigners, meaning it doesn't even benefit Dominicans in terms of employment. On the other hand, is this the right time to burden people with more taxes? With rampant inflation due to COVID and the war in Europe? Someone who lists their apartment to earn a little money can't compete with multi-millionaire hotel owners. You can't compare apples and oranges. The type of tourist who uses Airbnb is not the same as the one who stays at all-inclusive hotels. The real estate agent who works in this sector makes a profit, but it's a tremendous amount of work. I think if it's going to be taxed, it should be in a year or more, once this crisis has passed, and it should be proportional to the sector. Not equal, because we're not communists. It's about giving people a break, both financially and mentally.

Altagracia Matos, CEO of ALTICASAS. (External source).

"As a real estate agent and as a client, I believe the Ministry of Tourism should think carefully before doing something like this, since 70 or 80% of the world uses Airbnb. I don't think it's right because many tourists, Dominicans living abroad, and even we ourselves use this platform, which has met the world's expectations and helps us all during our stays due to its ease of use, convenience, and prices. I believe no tax should be added.".

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Leonel De la Cruz, CEO, Hogarium. (External source).

"I understand that at this moment, when the country is experiencing a wave of both domestic and foreign investment, talking about a tax on this platform could somewhat limit that investment. The government is already benefiting from the inflow of foreign currency, and secondly, the economy is being boosted because the money investors receive is often reinvested or used within the country.".

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Gina Bacchi, CEO, Real Estate Network. (External source).

"I agree. I would also add that this platform does not provide security; due to bad experiences in some towers, it is prohibited, there is no guarantee or prior vetting of the client who stays there. Personally, this platform offers me nothing because the client profile I manage is allergic to investing in properties that accept Airbnb.".

Leonardo Cobis, real estate advisor at Time Homes. (External source).

"It's a fact that there's tax evasion and that hotels have been affected by this platform. That's why I agree with it; ultimately, it's the guest who will pay for it, and it will push hotels to renovate because Airbnb will always be a better alternative for people coming for surgery or temporary work. Feeling at home in a place is always an advantage. Being able to cook their own food, receive visitors without as much formality as in hotels. In conclusion, I don't think the Airbnb market will be affected.".

Anarelys De La Cruz, CEO of Anarelys Real Estate. (External source).

"I believe that taxing Airbnb rentals more heavily would make the business less attractive to investors and would also slightly reduce sales of one-bedroom units, which are mostly purchased for short-term rentals. But on the other hand, for us real estate agents, it would be somewhat of an advantage because it would surely encourage many owners to return to the traditional long-term rental model.".

Alenny Garabito, CEO, Time Homes. (External source).

"I think so. Hoteliers' investment is very high, so the proliferation of Airbnb is affecting their capital. And not to mention that they have to differentiate the properties that are for those purposes, because this situation is occurring in some residential buildings that don't want to accept this type of business.".

Isely Almánzar, KW Norte. (External source).

I understand that in other countries this has happened, where everyone is paying taxes; in fact, I myself am paying taxes with my Airbnb business, but not everyone does because it is not yet regulated, although from the point of view of the owners, nobody wants to be taxed.".

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