Barbados is reviewing its legislation to determine whether a proposed change by Booking.com to charge commissions on government taxes and fees collected by hotels is lawful.

Tourism Minister Ian Gooding-Edghill confirmed the move in an interview with Caribbean Pulse on May 14 on the sidelines of the Caribbean Travel Marketplace in Antigua and Barbuda.

“We have to ensure that there is a balance between the commissions that are charged and what hotels can tolerate with respect to their business models,” Gooding-Edghill said.

“We have a valid tax regime in Barbados governed by law that we are examining to ensure that whatever is out there conforms to what is lawful and what is allowed in Barbados,” he added.

Barbados and Grenada were among the first destinations approached about the new commission structure, which was expected to take effect on May 15.

The issue has sparked strong regional concern, with Sanovnik Destang, president of the Caribbean Hotel and Tourism Association (CHTA), warning that the change could significantly impact hotel revenues.

Speaking on May 13 at Caribbean Travel Marketplace, Destang said Booking.com had informed hotels it would begin calculating commissions not only on room rates and some service charges, but also on government taxes such as VAT and Government Service Tax.

“So, typically, commissions are calculated on your room rate and in some countries the service charge and resort fee — so revenue, real revenue that you collect,” Destang said.

“They’re changing this now to also include VAT, GST and other government taxes, which, as you know, is not revenue to the hotel. It’s a pass-through.”

Destang said the CHTA has already met with Booking.com to oppose the move.

“We have seriously advocated against this,” he said, adding that the policy is being framed as part of a global shift but may not align with Caribbean legal and tourism structures.

He noted that Dominica already has legislation prohibiting commissions on VAT and similar taxes.

Destang warned the change could result in millions of dollars leaving the regional tourism sector annually.

“We’ve drawn a line in the sand at CHTA,” he said. “It’s not in the spirit of partnership.”

In Trinidad and Tobago, a country not as dependent on tourism as its neighbours, stakeholders have also raised concerns about the potential impact.

Reginald MacLean, president of the Tobago Hotel and Tourism Association and general manager of Blue Waters Inn, also spoke with Caribbean Pulse on the sidelines of the Caribbean Travel Marketplace, where he outlined concerns among operators.

“Both the hotel accommodation tax and the service charge are taxable for T&T. So what has to happen here is there has to be a major pushback to Booking.com to ensure that this doesn’t happen because it will be unfair to everyone concerned,” MacLean said.

He also pointed to concerns about possible double taxation affecting workers and operators.

“If I am paid part of the 10 per cent service charge as an employee of the hotel, I know that once that reaches my payslip and I cross the threshold, I have to pay income tax on that,” he said.

Meanwhile, Tourism Industry Association of Trinidad and Tobago (TIATT) president Lisa Shandilya said the issue highlights broader challenges facing small tourism operators.

“I was encouraged to see CHTA President Sanovnik Destang publicly acknowledge the growing frustrations faced by hoteliers and tourism operators across the Caribbean. The industry is now calling for more equitable partnerships with these global platforms,” she said in a statement.

Shandilya said TIATT has already raised concerns with the CHTA, particularly about the impact of high commission structures, foreign exchange constraints and operational challenges linked to Booking.com’s systems.

She noted that the lack of virtual credit card options for regional operators and reliance on traditional credit card payments have created inefficiencies and, in some cases, lost revenue due to booking uncertainties.

She also stressed the importance of stronger regional collaboration and visibility in global markets, urging Trinidad Tourism Limited to work closely with stakeholders to improve destination marketing and competitiveness.