Tourism Sector, Booking.com on Collision Course

The decision by Booking.com to apply commissions to government-imposed accommodation taxes and statutory fees collected by hotels has angered local and regional tourism players.

TCHTA President James McAnally

TCHTA Marketing Chair Karen Whitt

As a result, the Turks and Caicos Hotel and Tourism Association (TCHTA) has joined its regional tourism counterparts in urging the online booking agency to reconsider such policy.

The Association says the proposed measure has sparked significant concern among accommodation providers throughout the Caribbean, including in the Turks and Caicos Islands, where hotels are responsible for collecting and remitting tourism-related taxes to government authorities.

TCHTA President James McAnally described the move as both unfair and economically unreasonable.

“Hotels do not keep government taxes as revenue,” McAnally said. “These funds are collected solely because properties are legally obligated to do so and are then remitted directly to government. Charging commission on those amounts creates an unnecessary financial burden on money that never belongs to the hotel.”

The issue has also drawn the attention of the Caribbean Hotel and Tourism Association (CHTA), which has raised objections at the regional level. According to the TCHTA, the matter must be considered within the broader context of Caribbean tourism economies, where the hospitality sector plays a major role in supporting employment, public revenue and local communities.

For the Turks and Caicos Islands, widely recognized as one of the Caribbean’s premier luxury destinations, the Association says the concern extends beyond one booking platform or a single fee structure. It highlights the need for a fair business environment for hotels, resorts, villas and other accommodation providers that sustain the country’s tourism industry.

“Tourism is not only measured by visitor arrivals and occupancy levels,” McAnally added. “Properties must be able to maintain high standards, invest in their staff and continue contributing to the economy and wider community. Any policy that increases operating costs by imposing commission on non-revenue items deserves careful review and a united response.”

The TCHTA also warned that smaller operators, including boutique hotels and independent properties, could be disproportionately affected by changes to commission structures, particularly as operating costs continue to rise and online booking platforms remain critical to the industry.

TCHTA Marketing Chair Karen Whitt said the policy could also impact destination competitiveness, especially for small island economies already facing high operating expenses.

“Turks and Caicos has established itself as a leading high-value destination, but maintaining that reputation requires ongoing investment,” Whitt said. “Our properties are expected to meet the standards of luxury travellers while also supporting destination marketing efforts. Adding commission charges to government taxes places additional strain on the very resources that make those investments possible.”

Whitt also stressed that international booking platforms must recognize the unique realities of Caribbean destinations.

“A global policy does not necessarily translate fairly across every market,” she said. “The Caribbean is made up largely of small, tourism-dependent economies. Decisions that may appear administrative at the platform level can have much deeper consequences in destinations where tourism is central to national life.”

While emphasizing the importance of maintaining strong partnerships with global travel platforms, the TCHTA said such relationships must remain grounded in fair and commercially reasonable practices, including a clear distinction between hotel revenue and taxes collected on behalf of governments.

The Association said it supports the CHTA’s regional advocacy efforts and encourages continued dialogue among online travel agencies, hotel associations and government stakeholders.

“This is not about opposing partnership,” McAnally said. “It is about ensuring those partnerships remain equitable. Hotels should not be required to pay commission on funds they are simply collecting and passing on. The TCHTA will continue working alongside regional partners to protect the interests of our members, the tourism industry and the wider economy.”