‘Unworkable, unenforceable’: Senator slams tourism levy bill

Independent Senator Andrew Mallalieu has strongly opposed the Tourism Levy (Amendment) Bill, warning that the proposed changes are unworkable, unenforceable and could ultimately damage the tourism industry.

As the Senate took up the bill, Senator Mallalieu said he agreed with the government’s central premise that tourism plays a major role in financing the country, and acknowledged that the bill does not introduce a new tax. But he argued that the legislation fundamentally misunderstands how the sector operates and creates serious practical and legal problems.

“I completely agree that tourism pays a large part of the country’s bills from the taxes that are earned from tourism,” he said. “I completely agree that this bill is not introducing any new tax; it’s about managing the collection process.”

But Senator Mallalieu maintained that the core issue lies in shifting responsibility for collection and remittance to online booking platforms. He explained that the bill seeks to require online marketplaces, regardless of where they are based, to register with the Barbados Revenue Authority (BRA) and remit the levy.

“These amendments will weaken local operators, create enforcement loopholes and completely misplace liability in the levy system,” he warned, describing the bill as “poorly thought through”, “unimplementable” and “unenforceable”.

The independent lawmaker, a real estate executive, said the expanded definition of an “online marketplace” captures far more than well-known platforms such as Airbnb and Vrbo. According to him, there are more than 500 online marketing sites involved in vacation rentals, many with no physical presence or direct relationship with property owners in Barbados.

Under existing law, responsibility for paying the levy rests with the property owner or an appointed manager. The amendment, he argued, could push that obligation several layers up the chain to offshore platforms that may have no knowledge of the property owner, no taxpayer information and no operational link to the island.

“You could be seven people up the chain, have no relationship at all with Barbados, and yet be told you now have a responsibility to collect and pay over a tax,” Senator Mallalieu said. “You don’t know the owner, you don’t know the taxpayer, but you have to collect the tax.”

He also raised an alarm about provisions that allow a lien to be placed on a property if the levy is not remitted, even when the failure occurs at the level of an online platform.

“That has never before happened in Barbados,” he cautioned, describing the disconnect between collection and enforcement as deeply troubling.

Senator Mallalieu further argued that the bill targets a minority of non-compliant operators while burdening those who already follow the rules.

“The vast majority of property owners in Barbados are compliant with all of these levies,” he said, adding that rogue operators would likely remain outside the system.

He reserved his sharpest criticism for the drafting process. Senator Mallalieu revealed that neither he nor other major players in the industry had been engaged during the drafting of the legislation. He said he contacted multiple villa operators, shared-economy businesses and the Barbados Hotel and Tourism Association, and was told none had been consulted.

“If this industry is as important as we are told,” he said, referring to comments by Senator Lisa Cummins, “how do we end up with legislation that the people who operate in it have not even been asked about? To me, it’s an unnecessary exercise in creating frustration.”