Cozumel Hotels Seek Vacation Rental Regulation

Cozumel, Mexico — Hoteliers in Cozumel are demanding that vacation rentals be required to contribute resources, creating a level playing field. The hoteliers are calling for equal fiscal conditions and greater control over this sector to protect the destination's competitiveness.

According to the industry, hotels on the island lose up to 50 percent of their occupancy during sporting events due to the prevalence of vacation rentals. This situation is further exacerbated because, while hotels pay taxes to promote the destination and attract visitors, extra-hotel offerings operate freely without paying any fees or taxes to any level of government.

Beatriz Tinajero Tarriba, president of the Hotel Association, stated that in Cozumel, as in other destinations, the sector has been affected by vacation rentals that do not carry the same tax burden that organized lodging centers are required to fulfill, creating an unbalanced situation.

Although concrete data is not available, occupancy figures for sporting events, such as the most recent IRONMAN 70.3, reveal the level of impact, which is estimated at a 50 percent loss, according to Tinajero Tarriba.

The guild is demanding a "level playing field" for all tourism service providers. Whereas the initiation of sporting events previously achieved over 90 percent occupancy in the island's hotels, the most recent edition of the triathlon this year reached only 70 percent occupancy. The missing 50 percent needed to reach and surpass the 90 percent mark, which would make a significant difference, has been absorbed by unregulated rentals.

The issue is not the existence of such rentals, but the adverse situation for hoteliers who, in addition to paying taxes, also contribute to destination promotion. In contrast, the informal offering contributes nothing and yet obtains benefits without providing guests any assurance regarding the quality of its services.

Within the hotel industry, there are calls for authorities to bring order to the issue and regularize vacation rentals with the corresponding taxes and fiscal burden, as well as the security and quality that tourists arriving on the island deserve. Above all, they demand a level playing field for the development of the overnight tourism sector.