Short-term rentals are no longer a niche part of Caribbean tourism, according to the Caribbean Hotel and Tourism Association (CHTA), which says the sector has become a major force in regional travel and economic activity.

In response to the rapid growth of the industry, CHTA has released a new framework aimed at helping Caribbean governments regulate and
expand the short-term rental market while protecting communities, ensuring visitor safety and maintaining fair competition within the tourism sector.

The association said short-term rental visitor nights in one major Caribbean destination increased by 118 percent between 2019 and 2025, accounting for 39 percent of all visitor accommodation by the first quarter of
2026.

CHTA President Sanovnik Destang said the framework was designed to help destinations manage the growing popularity of vacation rentals
such as Airbnb properties without restricting the sector.

“Short-term rentals represent both economic opportunity and the need for smart regulation,” Destang said.

“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.”

According to CHTA, short-term rentals are helping expand accommodation capacity across the region while attracting travelers seeking larger spaces, kitchens, extended stays and more local experiences.

The association also warned that countries risk losing significant tax revenue without proper oversight and registration systems.

It pointed to the Dominican Republic, where the annual accommodation tax gap linked to the sector is estimated at US$170 million.

CHTA Chief Executive Officer Vanessa Ledesma said destinations that implement transparent registration and fair regulation systems stand to benefit the most.

“They’ll strengthen their brand, ensure visitor safety, and protect long-term destination viability,” she said.

The framework highlights several regional models already in use, including Turks and Caicos, where government registration requirements are
enforced through booking platforms to encourage compliance.

Saint Lucia was also highlighted for linking compliance certification to tax benefits and increased visibility on booking platforms.

According to CHTA, approximately 600 short-term rental properties have already been certified there.

Bonaire’s model was also praised for using a flat
per-visitor entry fee collected on arrival to generate tourism revenue with minimal administrative burden.

CHTA said compliance rates across the region can reach between 85 and 90 percent within 18 to 24 months when registration systems are transparent and property owners are given economic incentives to participate.

The framework includes recommendations on registration systems, tax collection models, safety standards, host support programmes, data
transparency and monitoring systems.

The association said the goal is to help Caribbean
destinations integrate short-term rentals into national tourism strategies while ensuring sustainable long-term growth.