Airbnb, the vacation home rental giant, could "trigger" much needed economic growth in The Bahamas, reeling in new business for banks and providing more jobs in the construction sector.
Chairman of Mario Carey Realty (MCR) Bahamas Group Mario Carey said in a press statement yesterday that The Bahamas has "barely scratched" the surface of benefits that Airbnb has to offer the country.
"Airbnb is revolutionizing the travel market enabling visitors to live in a home or apartment where they can experience local life," he said.
"Airbnb's popularity among families is especially strong. They may be able to enjoy a pool, a back yard where children can play, a patio for friends to come over for a barbeque," said Carey,
"While it is a great business for the homeowner and a great experience for the visitor, short-term home rentals like listings on Airbnb should also be viewed as a trigger for economic growth."
Earlier this month, The Bahamas signed a memorandum of understanding with Airbnb that will see Bahamians who rent their homes and rooms on the site, paying some of tax on their accommodations.
Minister of Tourism Dionisio D'Aguilar explained that government has yet to decide what the tax structure will be for the largely unregulated sector, but said value-added tax will likely not be applicable for Airbnb providers, given that most individuals who use their homes as a vacation home rental do not meet the minimum threshold of $100,000 required to pay the 7.5 percent tax.
Carey pointed out that Airbnb rentals should be granted certain incentives on the basis that the property "acts as a hotel".
"If Airbnb's get real property tax exemption, it would encourage more people to use part of their homes or invest in improvements and the more interest there is in this sector of the economy, the more we grow the number of Bahamians who are owners and entrepreneurs," said Carey.
"Banks and government should fully embrace the concept and at some point, I believe that hotels will start to make design changes to compete with vacation home rentals.
"Hotels offer advantages that Airbnb's do not, including restaurants, entertainment, shopping, spas and other resort amenities.
"If they were to expand to include larger privacy areas, individual play areas, kitchenettes, I believe you would see a whole new industry emerge."
Carey continued that Airbnb market is also a "shot in the arm" for construction, banking and Bahamian investment.
"Banks should be able to rely on Airbnb revenue which can be verified so they can lend to a homeowner who wants to expand or improve their property or build a second home to take advantage of the market," he said.
"That means new business for banks or other lenders.
"Meantime, the homeowner is engaging a contractor so that adds jobs to the economy. And that homeowner is growing their income stream."
The Bahamas has 1,900 active listing on Airbnb and guest arrivals to the properties have grown by 95 percent in the last 12 months, according to recent statistics from the tourism minister.

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