Few economies in the Caribbean are as deeply dependent on tourism as Sint Maarten. Whether your livelihood comes from hotels, transportation, retail, or professional services like accounting or cleaning, the tourism sector plays a vital role. Even if your business primarily serves local residents, chances are those residents rely heavily on tourism for their income.
Everyone operating a business in Sint Maarten is familiar with the seasonal nature of tourism. When visitor numbers drop, so does economic activity—resulting in fewer jobs and lower earnings for both employers and employees. While the high season offers a temporary boost, the off-season exposes the underlying vulnerability of our economy, with empty accommodations and reduced cruise traffic. Despite recent improvements, overall visitor arrivals—both stayover and cruise—remain well below pre-Irma levels.
To address ongoing budget deficits and rising debt, the government has proposed a new tax targeting stayover visitors to Dutch Sint Maarten. The stated goal is to generate revenue for essential public services. However, the SHTA firmly opposes introducing an additional tourist tax—particularly when several existing tax avenues remain underleveraged or completely uncollected.
Following Hurricane Irma and the pandemic, initiatives such as the Trust Fund and COHO were launched to support recovery and reform. While some progress has been made in reconstruction, meaningful economic reform has been slow to materialize. Introducing a new tax in the absence of robust tax enforcement and collection is not only inefficient—it’s also premature.
Although the proposed fees—$15 for adults and $10 for minors—may seem small, they are not without consequence. In today’s highly competitive tourism market, even minor cost increases can impact travel decisions. Visitors already burdened by high airfare and accommodation prices may see this as an unnecessary surcharge. Longtime and repeat visitors could view it as punitive, prompting them to reconsider their destination.
Economically, redirecting $15 from a visitor’s discretionary spending to a government tax weakens local circulation. If that same amount were spent at a beach bar, it would support a chain of economic activity: wages for staff, purchases from suppliers, fees for accountants, and taxes for government. It fuels multiple sectors. A direct tax, on the other hand, removes that capital from the local economy, limiting broader economic impact.
Instead of imposing new taxes on our core industry, the priority should be to modernize and enforce existing tax systems through a comprehensive approach. Only then can we create a revenue model that is equitable, effective, and sustainable—one that supports rather than undermines our economic engine.
The SHTA stands ready to support efforts that improve our economy—not harm it.