Vacation-home Owners Initiating Change (VOICe) Bermuda: Vacation Rental Act (2023) Industry Survey

In light of the imposition of the Vacation Rental Fee Act 2023 on 1-Sept-23, VOICe (Vacation-home Owners Initiating Change) Bermuda formed to respond to a number of concerns expressed by stakeholders in the industry. This survey has been created to determine the breadth and depth of these concerns and, if necessary, be a mobilzing force to advocate for change with respect to the legislation. Your attention to this survey will help VOICe Bermuda determine next steps. To help ensure the integrity of the process, please only complete this survey once.

1.Do you currently own or manage a vacation rental?

Yes (Please note the number of vacation rentals you own or manage below.)

Number of properties I own or manage. (If you don't own or manage any properties, please leave blank.)

2.Based on the Vacation Rental Act (2023) fee schedule below, what is the average fee you'd be required to pay for these rental units? The fee schedule should be used for each of your vacation rentals based on the property's ARV. For example, if you have a one rental unit that has an ARV of $10,000 (fee = $1,500) and a second with a rental unit that has an ARV of $23,000 (fee = $2,000), the average fee per rental unit is $1,750.

(i) Nil - $11,000 ARV -> $1,500 fee
(ii) $11,001 - $22,800 ARV -> $1,500 fee
(iii) $22,801 - $33,000 ARV -> $2,000 fee
(iv) $33,001 - $44,000 ARV -> $2,000 fee
(v) $44,001 - $90,000 ARV -> $2,000 fee
(vi) $90,001 - $120,000 ARV -> $2,500 fee
(vii) $120,001 and over -> $2,500 fee

3.What is your position with respect to paying these fees?

I will be fine to pay these fees

Indifferent - I will be passing them on to my guests

These fees will be a burden on my business

4.Ignoring cleaning fees and based purely on your current nightly rate, how many nights will it take for you to recover the legislated fees? (Please a note the number of nights in the text box below or leave blank if you plan on passing the fee on to your guests.)

5.Do you have any concerns with regards to the imposition of Vacation Rental Fee Act 2023 legislation? If so, check all that apply.

The legislation is discriminatory. (That is, Bermuda hotel operators routinely list rooms on vacation rental platforms yet are not subject to this legislation. Additionally, hotel rooms fit the definition of a "vacation rental unit." According to legislation, a vacation rental unit "means any place, land-based or not, which provides sleeping accommodation for nine or fewer guests for which a charge is made." A hotel room fits this definition so long as it accommodates nine or fewer guests and should, therefore, fall under the Act.)

Significant elements of the legislation itself are unclear. (For example, there has been no justification for the imposition of these fees on vacation-home owners and their necessity is unclear; the benefit, if any, to the individuals required to pay these fees is unclear. Additionally, the intent of this and related legislation is unclear. As noted above, the definition of a "'vacation rental unit' is sufficiently broad that it encompasses activities one would expect to be excluded.)

The short and longer-term impact of the legislation is unclear, given the apparent absence of any meaningful economic impact analysis. (Given the potential adverse affect of this fee on Bermuda vacation-home owners and, by extension, the tourism industry, the impact of this fee should be clearly understood by industry stakeholders.)

The legislation does not advance sound economic policy. (I understand that while double taxation is generally frowned upon, this legislation goes a step further by taxing the same asset (my vacation rental property) three times by way of land tax, the Bermuda Tourism Authority tax and now this fee.

The fee structure outlined in the legislation is regressive. (I understand the fee structure outlined in the legislation will put a disproportionate financial burden on those rental properties that generate less income.)

There has been no consultation with me or vacation rental industry members. (I understand that consultation is not just merely having a meeting but is its own process of engaging stakeholders in a manner to shape constructive outcomes for the parties involved.)

I have no issues with legislation.

I have other issues with the legislation. (Please add them in the Comment field below)

Comments

6.If the appropriate government ministries and authorities responsible for tourism in Bermuda are not willing to engage in a constructive consultative process, would you be willing to Snooze/Pause your property from vacation rental platforms until such engagement occurred? (Note that "Snoozing" (Airbnb) and "Pausing" (VRBO) are temporary actions so your ratings and review will not be impacted.)

Yes

If "No," feel free to explain why.

8.If you snooze/pause your property, are you likely to re-list it should there be a constructive outcome to a genuine, good-faith consultative process by the appropriate government ministries and authorities?

Yes

9.If you don't re-list how likely are you to rent your property in the island's long term rental market?