Washington, D.C. – November 3, 2026: The Caribbean Hotel and Tourism Association (CHTA), a regional umbrella body representing 32 national hotel and tourism associations and thousands of accommodation operators across the Caribbean, has escalated its long-running campaign against a unilateral policy update from global online travel giant Booking.com that allows the platform to charge commissions on statutory government taxes collected by hotels on behalf of national authorities.
The dispute first surfaced in May 2026, when Booking.com rolled out a revision to its General Delivery Terms that expanded its commissionable revenue base to include Value Added Tax (VAT), Goods and Services Tax (GST), and other mandatory pass-through levies that hotels are legally required to collect from guests and remit in full to regional governments. The initial policy took effect in select destinations on May 15, 2026, with recent notifications sent to properties in Jamaica and Antigua & Barbuda scheduling the new calculation to go live for all new bookings starting November 17, 2026.
Booking.com has publicly framed the adjustment as part of a global standardization initiative to align commission calculation protocols across all its operating markets. However, CHTA’s ongoing review of the platform’s published terms has revealed stark inconsistencies in how the policy is applied around the world: government taxes are explicitly excluded from commission calculations for operators in the United States, Dubai, and Egypt, while the same levies are counted toward the commissionable base for partners in the United Kingdom. This uneven application has reinforced CHTA’s position that Caribbean hospitality providers deserve the same favorable treatment extended to counterparts in other major global markets.
At the core of CHTA’s objection is the foundational principle that statutory tax collections are not hotel revenue at all: these funds are held in trust by properties for national treasuries, with zero portion retained to cover operational costs or profit. Calculating platform commissions on these pass-through sums, the association argues, artificially inflates distribution costs for accommodation operators without generating a single dollar of additional room revenue. The burden falls disproportionately on small, independent hotels that already operate on razor-thin profit margins amid the Caribbean hospitality sector’s existing headwinds, which include elevated utility costs, high statutory tax burdens, and cutthroat competition from global tourism destinations.
A concrete financial example shared by CHTA underscores the tangible impact of the policy: for a hotel subject to a 15% Booking.com commission rate and a 12% mandatory government room tax, the effective commission paid on pre-tax room revenue jumps from 15% to 16.8% under the new rules. For a $100 pre-tax hotel stay, that translates to an $1.80 uncompensated cost increase for the property, with no corresponding lift in earnings to offset the expense.
Regional stakeholders have already mobilized a coordinated response to the policy. The Jamaica Hotel & Tourist Association has formally raised the issue with the Jamaican central government, submitted an official protest letter to Booking.com leadership, and held initial exploratory talks with the platform’s regional representatives. The Barbados Hotel & Tourism Association and Turks & Caicos Hotel and Tourism Association have both issued targeted guidance to their member properties, with the latter issuing a public formal statement opposing the commission adjustment. Even national government leaders have signaled intent to review the matter, including St. Kitts and Nevis Prime Minister and Finance Minister Dr. Terrance Drew, who previously confirmed he would launch a formal review of the policy’s local implications.
This is not the first time CHTA has pushed back against unfair commission practices from major online travel platforms. Back in 2019, sustained advocacy from the association secured a formal exemption for destination fees from Booking.com’s commission calculation structure, though separate lingering disputes over commissions charged on employee gratuities remain unresolved.
As part of its current campaign, CHTA has laid out three formal demands for Booking.com leadership: first, to fully reverse its policy of charging commissions on government-imposed pass-through taxes; second, to extend the same tax exemption treatment offered to U.S., Dubai, and Egyptian hospitality partners to all Caribbean accommodation providers; and third, to enter transparent, constructive negotiations with regional stakeholders to develop a fair, mutually acceptable commission framework for the Caribbean market. The association is also conducting a cross-jurisdictional review of existing regional legal and tax frameworks to identify potential legislative safeguards that national governments could implement to protect local hospitality operators from exploitative platform fee structures.
“For decades, Caribbean hospitality operators have been dedicated, growth-driving partners that helped Booking.com build its profitable regional footprint,” stated CHTA CEO Vanessa Ledesma. “This policy breaks the fundamental spirit of that partnership. These tax dollars do not belong to hotels, they belong to Caribbean governments that fund public services for local communities. Charging commissions on these funds adds uncompensated cost pressures that threaten the sustainability of small independent properties, and by extension, the livelihoods of the thousands of local tourism workers who rely on them.”
Echoing that position, CHTA President Sanovnik Destang added, “This is not a niche complaint – it is a matter of basic fairness. We will not stop advocating until we secure an equitable resolution that protects the long-term health of the Caribbean’s most vital economic sector.”
CHTA renews opposition to Booking.com commissions on government taxes
