Should Airbnb operators in Jamaica be fined if they don’t register with the Government?

Jamaica’s government recently proposed a bill that would regulate the short term rental industry. We’ve known that this law was coming for a while.

Airbnbs are massively popular here and growing. Tourism Minister Edmund Bartlett said the sector brought in over US$100 million in 2022.  And nearly one out of every three stay-over visitors to Jamaica stayed at an Airbnb. That’s as much as 500,000 people. 

And I say Airbnb, but I’m using the term to refer to all short-term rentals, which are 30 days or less. 

So, regularising the industry became a top priority for security reasons etc. 

Among other things, the law would make it mandatory for Airbnb operators to be licensed and regulated by the Jamaica Tourist Board. And would impose a fine if they operate without being regulated.

But it sparked some controversy in Parliament last week when Leader of the Opposition, Mark Golding said that the penalties were too harsh and would destroy the industry.

In the proposed law, if an Airbnb, that has between one and 50 rooms is not licensed or registered, the operators can be fined up to J$1 million or imprisoned for up to 12 months, or both.  One million JMD is about US$6,000.

Between 51 and 100 rooms, the fine goes up to J$2 million, or about US$12,000.

Golding said these penalties are too strict. He said the law would hurt small Airbnb owners while seemingly helping big hotels.

In response, the Jamaica Home Sharing Association has said that the fines are excessive and could drive small, local hosts out of business.

The debate on the bill was suspended indefinitely, so we’ll have to wait to see how the government responds. 

And that’s the bottom line.