Against a backdrop of skyrocketing consumer demand, short-term rentals (STRs) have cemented their position as a permanent, transformative pillar of the Caribbean tourism economy. New industry data projects that in one major Caribbean travel hub, the number of STR visitor nights will surge 118% between 2019 and 2025, with these properties accounting for 39% of all available visitor accommodation by the first quarter of 2026.
Rather than opposing this seismic shift in travel preferences, the Caribbean Hotel and Tourism Association (CHTA), the region’s leading tourism industry body, has proactively developed a practical, evidence-based resource to help local governments leverage this trend for responsible, inclusive economic growth. Earlier this month, CHTA launched its landmark Comprehensive STR Framework, a product of years of cross-industry research and collaborative consultation with 14 national hotel and tourism associations across the region. The framework is designed to equip destination leaders with the tools to map the evolving STR market, strengthen regulatory oversight, and weave short-term rentals into long-term national tourism strategic plans.
“Short-term rentals bring significant economic opportunity, and they demand thoughtful, intentional regulation,” noted Sanovnik Destang, President of CHTA, in a statement accompanying the framework’s release. “Our work is rooted in the reality that STRs are here to stay – and that this trend is a net positive for local small business owners, destination product diversity, and expanded choice for travelers. This framework is focused on balanced, sustainable growth, not blanket restriction.”
The framework outlines clear, tangible benefits of integrating STRs into formal tourism economies. For local property owners, short-term rentals create a low-barrier pathway to participate in the $30 billion Caribbean tourism industry, while expanding the region’s total accommodation capacity to meet growing demand. STRs also cater to underserved traveler segments that traditional hotels often serve less effectively: multi-generational families seeking full kitchens and extra space, long-stay digital nomads, and travelers prioritizing immersive, local neighborhood experiences over resort-centric stays.
Conversely, unregulated, opaque STR markets carry steep costs for regional governments and industry stakeholders alike. Without formal, transparent oversight, governments miss out on hundreds of millions in critical annual tax revenue: the Dominican Republic alone estimates its annual uncollected accommodation tax from unregistered STRs hits $170 million. Incomplete STR market data also leads airlines to underestimate overall destination capacity, resulting in under-scheduled flight routes, limited travel access, and widespread visitor dissatisfaction.
“Destinations that implement open registration systems and fair, proportional regulation will unlock the full economic potential of the STR boom,” said Vanessa Ledesma, Chief Executive Officer of CHTA. “These policies don’t just boost tax revenue – they strengthen destination brand reputation, guarantee baseline safety standards for visitors, and protect the long-term viability of Caribbean tourism as a whole.”
Unlike one-size-fits-all regulatory proposals, the CHTA framework centers three proven, contextually adapted regulatory models already delivering results across the Caribbean. In the Turks and Caicos Islands, mandatory government registration enforced directly through online booking platforms has driven near-universal compliance without resource-heavy, punitive enforcement. Saint Lucia has taken an incentive-focused approach, tying compliance certification to tax breaks and preferential algorithm placement on major booking sites, turning registration into an economic benefit for hosts; to date, nearly 600 STR properties across the island have completed the certification process. Bonaire, meanwhile, has streamlined tax collection with a low-administration flat per-visitor entry fee collected upon arrival, cutting bureaucratic costs for both hosts and government.
Data from all three models shows that when regulatory systems are transparent and aligned with host economic incentives, compliance rates reach 85% to 90% within 18 to 24 months of implementation. This track record confirms that balanced, growth-focused STR regulation is not just theoretically sound – it is achievable and already delivering results for Caribbean communities.
The CHTA framework includes actionable tools across six core areas: accessible host registration methodologies, adaptable tax collection systems, baseline visitor safety standards, targeted host support and outreach programs, cross-stakeholder data transparency protocols, and flexible ongoing monitoring mechanisms that can be adjusted as markets evolve.
Founded more than 60 years ago, CHTA remains the primary advocacy and resource organization for the Caribbean hospitality and tourism sector. The association counts 32 national hotel associations and more than 1,000 members across the region, including hotels, resorts, tourism service providers, and allied industry partners. Through ongoing advocacy, professional development, data-driven industry insights, and market intelligence, CHTA supports its members to compete and grow in the fast-changing global travel landscape.