GREAT BAY--Government is targeting October 1, 2026, to submit the long-awaited Visitor’s Tax legislation to the Council of Advice, but the Ministry of Finance cannot yet say when the collection system will become operational or when government will receive its first revenue from the measure.
The update was provided to Parliament in responses to questions submitted during consideration of Budget 2026, with Members of Parliament pressing government for firm deadlines after the proposed tourist levy has repeatedly appeared in financial planning without producing actual revenue.
According to Finance, the legislative draft is now in its final stages and is being prepared for submission to the Council of Advice. The Ministry identified October 1 as its current estimated target for that submission, after which the legislation would continue through the required process with the intention of reaching Parliament as soon as possible.
The Visitor’s Tax is currently budgeted at zero for 2025, 2026 and 2027, despite an earlier version of the proposal having been estimated to generate approximately Cg 18 million annually.
Government explained that additional research and amendments became necessary following advice from the Social Economic Council, SER, and Legal Affairs. Limited capacity within the Department of Fiscal Affairs also contributed to the process, prompting government to engage a legislative lawyer through TWO funding to assist with finalization of the draft.
The work is being carried out in collaboration with the acting head of Fiscal Affairs, who also serves as Secretary-General of the Ministry of Finance.
A separate issue concerns how the Visitor’s Tax would actually be collected. The Ministry of Finance is in discussions with the Ministries of Justice and Tourism, Economic Affairs, Transport and Telecommunication, TEATT, to determine whether the existing Digital Embarkation/Disembarkation platform can be adapted to administer and collect the proposed tax.
Government intends to first establish whether the current platform can accommodate the necessary functions. Once the technical requirements are known, government plans to determine the complete implementation and recurring costs before making a commitment.
Because that assessment is still underway, Finance said it cannot provide a specific date for when the collection system will become operational.
Budget information also identifies a Cg 1.216 million capital allocation for a Tourist Tax IT system, which is being pursued alongside the legislative process.
Government explained that it cannot recognize Visitor’s Tax revenue in the budget until the necessary legislation has completed the required legal process.
This is also why the tax remains excluded from government's 2027 revenue outlook. The budget projections for that year do not include new income-increasing measures, including revenue from the proposed Visitor’s Tax.
The Ministry nevertheless described the legislation as a priority of the Minister of Finance for 2026. The continued zero allocation drew questions from Parliament, particularly given an earlier estimate that the measure could produce approximately Cg 18 million annually and the country's continued dependence on tourism as its principal economic sector.
The Minister of Finance Hon. Marinka Gumbs indicated that she supports the principle that those who benefit from St. Maarten's economy should make a fair contribution toward the country's financial sustainability and development.
The Minister pointed to visitor-related levies elsewhere in the region and within the Kingdom as evidence that requiring visitors to contribute toward maintaining the destination is not unusual.
She said government will continue advancing measures considered to be in St. Maarten's interest while taking concerns raised by businesses and other stakeholders into account. Any new tax requiring legislation would ultimately remain subject to consideration and approval by Parliament.
The same principle, according to the Minister, applies when considering the contribution of foreign investors and non-resident property owners. Government's objective is not to disproportionately burden one group, but to ensure that those benefiting from St. Maarten contribute fairly toward its development and sustainability.
Parliament also questioned why both the Tourist Tax and Airbnb room tax are reflected at zero in the budget while tourism continues to dominate economic activity.
Government acknowledged that the zero amounts warrant explanation, particularly against continued growth in visitor numbers. According to the information provided to Parliament, air passenger arrivals increased 23 percent during the first quarter of 2026 compared to the same period in 2025, while cruise arrivals increased 18 percent.
Government stressed, however, that tourism already contributes to public revenue through a range of taxes and fees generated by businesses, employment and visitor spending.
Regarding Airbnb and other short-term rental platforms, government said it recognizes the growing importance of that segment and wants to ensure a level playing field between traditional hotels and alternative accommodation providers.
The focus will include identifying taxable activity, improving compliance, collecting revenues efficiently, preventing leakage and ensuring fairness across the accommodation sector.
Finance said it is prepared to provide Parliament with further details concerning the zero-budgeted tourism tax lines, including their legal basis, accounting treatment, historical collections, compliance rates and measures being taken to strengthen collection.
For the Visitor’s Tax itself, however, the immediate milestone is now October 1, when government aims to have the draft legislation before the Council of Advice. A date for implementation and the first actual collection of revenue remains undetermined.
