Minister of Tourism, Investments and Aviation Chester Cooper contended yesterday that the Tourism Development Corporation (TDC) legislation that was scheduled for debate on Monday, but was postponed at the request of vacation rental owners who asked to be consulted on the bill, is not controversial and encourages the growth of the industry through incentives.

Vacation rental hosts requested debate on the Tourism Development Corporation of The Bahamas Bill, 2023 be suspended, as the bill is intended to regulate tourism-related enterprises, but it lacks industry support.

Cooper said the government will allow the time for that industry consultation before bringing the bill back to Parliament.

"Let me just say that the Tourism Development Corporation bill is designed to promote, support, and assist in advancing ownership by Bahamians," said Cooper.

"When we are requested to have further conversations, by anyone impacted by a piece of legislation, we have those conversations.

"This letter comes from a young man who has represented that he is the president of the Bahamas Vacation Rentals Association. I can confirm that he did have a meeting with the TDC. He indicated to us that he wanted to make some further contributions, and that he didn't have the time to do so. He asked for more time, and therefore we granted that time.

"It's a non-issue. We are open to consultation. We support the private homeowners renting their homes through Airbnb or VRBO, or whichever platform they choose to use. This is our fastest way of increasing our room inventory. So we're encouraging it."

Interim President of the Bahamas Vacation Rentals Association Theofanis Cochinamogulos requested the bill be suspended, warning that the bill's passage would risk hundreds of vacation rentals being pulled off the market.

"Unfortunately, the bill, scheduled for debate on Monday, March 20th, 2023 lacks the support of hundreds of vacation rental hosts, as there was no consultation with us," he said in his letter to House Speaker Patricia Deveaux.

"We crave your indulgence, and that of the leader of government business, along with the leader of opposition business, and ask that you suspend debate until the recommendations of our membership can be considered. There are sections in this bill that will result in rooms being pulled off the market at a time when there is a shortage of rooms for tourists visiting our country."

The Tourism Development Corporation of The Bahamas Bill, 2023, among other things, codifies the Tourism Development Corporation to be the primary entity concerned with resilient and sustainable tourism development in The Bahamas.

It seeks to provide for a register of tourism-related enterprises, including vacation rental accommodations, with the corporation.

The corporation alone would grant its seal of approval to registered tourism-related enterprises and, "where it is satisfied that the owner is a fit and proper person and the enterprise meets the guidelines imposed by the corporation, for the display and withdrawal of the seal of approval and for the right for persons aggrieved by the decision of the corporation to appeal."

Cooper insisted that the government wants to support Bahamians investing in more vacation rentals, as it is a faster way than building hotels to create more room inventory in The Bahamas for visitors.

He said he is satisfied that when all is said and done, vacation rental owners will be pleased with the added "support and more incentives" the bill provides.

"We have some exciting projects in the pipeline. We believe that tourism linkages will come through innovation and incubation," said Cooper.

"And we're going to have the discussion with this gentleman, and anyone else who wishes to have a discussion in relation to this bill, before it comes back to Parliament."

The Department of Inland Revenue (DIR), in an effort to regulate the industry, announced recently that beginning March 1, short-term vacation property owners must register with the department by the end of April.

Minister of Economic Affairs Michael Halkitis has said that while it is expected those registered properties will pay value-added tax in the future, it will be consistent with the current value-added tax (VAT) threshold of $100,000 revenue annually.

The opposition has decried this move by the government, saying it is unacceptable the requirement would be announced arbitrarily without legislation to support the registration of vacation rental properties, and is an added layer of bureaucracy for Bahamian entrepreneurs.

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