Short-term rentals are growing in popularity in the caribbean.

What once was a hotel-owned market is now ripe with short-term rental opportunities.

One Caribbean destination now pulls 39 percent of all visitor accommodation from short-term rentals as of the first quarter of 2026.

But this growth comes at a price, apparently.

Officials want to turn the caribbean short-term rental surge into tax revenue

The Caribbean Hotel and Tourism Association released a framework in April to help governments turn that surge into tax revenue instead of watching it slip through enforcement gaps.

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The Dominican Republic lost an estimated $170 million in annual accommodation taxes because STR operators stayed off the books or never paid up.

The CHTA framework grew out of consultations with 14 national hotel associations across the region, according to the Curaçao Chronicle.

Places like Turks and Caicos already enforce registration through booking platforms and hit near-universal compliance.

Meanwhile, Saint Lucia certified roughly 600 STR properties by linking registration to tax breaks and priority placement on booking sites.

Bonaire collects a flat per-visitor fee upon arrival and skips most of the administrative work.

The CHTA data shows compliance can hit 85 to 90 percent within 18 to 24 months when registration costs stay transparent and economic incentives line up for hosts.

“Short-term rentals represent both economic opportunity and the need for smart regulation,” said Sanovnik Destang, president of CHTA, per the outlet. “Our framework recognizes that STRs are here to stay—and that’s positive for local entrepreneurship, destination diversity, and visitor choice. This is balanced growth, not restriction.”

“Destinations that embrace transparent registration and fair regulation will capture the full economic benefit of this trend,” Vanessa Ledesma, CEO of CHTA added. “They’ll strengthen their brand, ensure visitor safety, and protect long-term destination viability.”