WASHINGTON, DC — THE Caribbean Hotel and Tourism Association (CHTA) is renewing its opposition to Booking.com’s move to collect commissions on government-imposed taxes paid by hotel guests, as concerns over the policy continue to grow across the region.
The association, which represents 32 national hotel and tourism associations and accommodation providers throughout the Caribbean, maintains that taxes such as Value Added Tax (VAT) and Goods and Services Tax (GST), which hotels collect on behalf of governments, should not be included in the calculation of commissions owed to the online travel platform.
The issue first came to light in May 2026, prompting strong objections from stakeholders across the hospitality industry. At the heart of the concern is that Booking.com is seeking to earn commissions on money that hotels collect and remit directly to governments, rather than revenue earned from room sales.
In a statement, CHTA said it began advocating against the policy in May, with recent notifications to hotels in Jamaica and Antigua & Barbuda further intensifying its concerns.
“The policy adds to distribution costs across the Caribbean hospitality sector, placing particular pressure on independent properties operating on narrow margins,” CHTA said.
SKNVibes News had previously raised the issue with the Government of St Kitts and Nevis. Prime Minister and Minister of Finance, Dr Terrance Drew, indicated at the time that it was a matter he would be looking into.
According to CHTA, Booking.com notified accommodation partners that it would expand its commissionable base to include VAT, GST and other government-imposed taxes that hotels collect and remit in full to national governments.
The change was introduced through a unilateral update to Booking.com’s General Delivery Terms and took effect in certain destinations on May 15, 2026. Hotels in other markets have since received later implementation notices, including those in Antigua & Barbuda and Jamaica, where the new calculation is scheduled to apply to bookings beginning November 17.
Booking.com has described the change as part of a “global standardization” of its commission calculation practices. However, information gathered by CHTA raises questions about how consistently the policy is being applied across different markets.
The association said its objection is based on principle, regardless of how the policy is treated elsewhere.
CHTA first raised its concerns directly with Booking.com in May 2026 and has since engaged national hotel and tourism associations and regional stakeholders to assess the policy's implications across Caribbean jurisdictions.
Its position remains firm: government-imposed taxes collected and remitted by hotels should not form part of the revenue on which commissions are calculated.
Government taxes such as VAT and GST are statutory pass-through payments. Hotels collect these amounts on behalf of national governments and are required by law to remit them in full. They are not part of the hotel's actual earnings.
CHTA argues that calculating commissions on these payments increases distribution costs without generating any additional revenue for hotels. Independent and smaller properties, which often operate on narrow profit margins, could feel the impact particularly hard.
“Taxes remitted to governments belong to those governments and sit outside hotel revenue,” said Sanovnik Destang, President of CHTA. “Applying a commission to those funds raises the cost of distribution while hotel earnings remain unchanged. This is a matter of principle and fairness that affects accommodation providers across our region. CHTA will continue to advocate firmly for a fair and equitable resolution.”
A Question of Consistency
Booking.com’s own published General Delivery Terms point to different approaches by market. Those terms exclude government taxes from the commission calculation in the United States, with additional exclusions for Dubai and Egypt, while published U.K. terms include taxes in the commissionable base. Recognizing that legislation and contracts may vary by market, CHTA asks that Caribbean hotels receive comparable treatment and that Booking.com provide greater transparency on how the policy is applied across markets and accommodation providers.
A Unified Regional Response
Concern extends across the Caribbean and is prompting engagement by national associations and governments. Engagement is under way at the association and government level: the Jamaica Hotel & Tourist Association has raised the matter with the Jamaican government, sent a formal letter to Booking.com, and held an initial meeting with Booking.com on the matter; the Barbados Hotel & Tourism Association has issued guidance to its members; and the Turks & Caicos Hotel and Tourism Association has issued guidance and publicly opposed the change following CHTA’s outreach to members.
CHTA has challenged Booking.com's commission practices before. In 2019, following representations from the association, Booking.com agreed to exempt destination fees from commissions, although concerns regarding commissions on employee tips and gratuities remained unresolved. This history reinforces CHTA's longstanding advocacy for fair commission practices across the region
Economic Consequences for the Region
The Caribbean hospitality sector already navigates high operating costs, elevated tax burdens, and intense global competition. Including government-imposed taxes in the commissionable base increases distribution costs without generating additional hotel revenue. For some properties, particularly independent hotels operating on thin margins, this added cost may be unsustainable. CHTA is also mindful of the potential for further margin pressure and for effects on pricing and distribution channel balance.
A simple example illustrates the effect. At a 15% commission rate and a 12% government tax rate, the effective commission rises to 16.8% of pre-tax room revenue, even though the advertised percentage stays the same. On a $100 room rate, the commission moves from $15.00 to $16.80 once the $12.00 tax joins the calculation base.
CHTA’s Position and Next Steps
CHTA is asking Booking.com to: Reconsider the application of commission to government-imposed taxes such as VAT and GST, which hotels collect on behalf of governments and remit in full.
Extend to Caribbean hotels the comparable treatment reflected in its published terms for other markets
Engage constructively with Caribbean hospitality stakeholders toward a fair and equitable resolution, including greater transparency on how the policy is applied across markets and accommodation providers.
CHTA is reviewing existing legal and tax frameworks across Caribbean jurisdictions and evaluating potential legislative protections for governments to consider where appropriate. The association continues to work with national hotel and tourism associations across the region as this review advances.
“The Caribbean has been a committed and contributing partner in Booking.com’s regional growth,” said Vanessa Ledesma, CEO of CHTA. “It is because of that partnership that we are asking Booking.com to reconsider this policy and to work with Caribbean hospitality stakeholders toward a fair and equitable resolution. Hotels of every size, and the communities they support, depend on a distribution landscape built for long-term sustainability.”
