Hotels Versus Homestays and Renting Condos

According to the Chamber of Costa Rican Hotels, homeowners and private condominiums represent unfair competition in accommodation services for tourists.

Friday, March 22, 2013

According to Flora Ayub, director of the Chamber, the cost of staying in a house or condominium is lower than in a hotel, because they do not have to pay for items such as income tax, insurance or patents.

Ayub added that the high rates offered by hotels in Costa Rica, are mainly due to increases in electricity, water and wages.

According to the official, the concern has already been exposed to the authorities of the Ministry of Finance.



More on this topic

Costa Rica: Vacation Rentals Must Pay Taxes

January 2017

The new law against tax fraud obliges anyone renting houses and flats for less than 30 days to register and pay sales and income taxes.

Services of renting houses, apartments and condominiums for periods less of than one month must pay sales and income taxes, and those who carry out such activities must register as taxpayers of the two taxes, in order to not be subject to fines.

Hotels are Losing War On Holiday Rentals

October 2016

In Costa Rica the total amount of accommodation available for rent through the web platform Airbnb is now equivalent to 18% of the hotels in the country.

The figure has been confirmed by the union of hoteliers, who say there is now a total of 11,000 homes offering accommodation for tourism through Airbnb. On top of this data there are also residences rented to tourists through other platforms such as Homeaway or VRBO.

Boom in Vacation Rentals Hurts Hotels

April 2013

Hotel owners are complaining of unfair competition from apartment owners who rent their properties for tourism at low prices.

Hoteliers in Panama believe that competition is not fair because these property owners do not pay tourist tax and work illegally.

Although there is a law that prohibits renting apartments to tourists for less than 45 days and which is punishable with a fine $50,000 for repeat offenders, apartment owners who have failed to sell their properties see in the vacation rentals a way to recover their investment.

Vacation Rentals in Panama

July 2012

Renting homes for a few days as an alternative to traditional hotel accommodation for tourists, is a growing trend all over the world and Panama is no exception.

EDITORIAL

In Panama City, the phenomenon is also being driven by the widespread availability of apartments built and purchased as an opportunity to gain profit from resale, which the current market stagnation has left unoccupied.


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