by Brian Major
Last updated: 10:25 AM ET, Tue June 13, 2017
Grenada is the latest Caribbean destination to formalize negotiations with home-stay provider Airbnb.
Officials in the southern Caribbean nation this past week announced the signing of a memorandum of understanding with Airbnb to "formalize and implement a cohesive partnership," said Dr. Clarice Modeste-Curwen, the country's minister of tourism.
The pact was described by Grenada Tourism Authority (GTA) officials as "part of ongoing efforts to maximize exposure of the tri-island destination of Grenada, Carriacou and Petite Martinique," calling the agreement "a streamlined framework for the collaboration between the GTA and Airbnb."
"Solidifying a strategic alliance with a global entity like Airbnb demonstrates our commitment to strengthening Grenada's tourism sector by tapping into new segments of the industry," said Modeste-Curwen.
Grenada's agreement with Airbnb follows pacts the provider has reached this past year with governments in Aruba, Curacao and Jamaica.
The Caribbean Tourism Organization (CTO) also inked an agreement with Airbnb in February to "formulate sharing economy policy principles and recommendations for Caribbean governments and other stakeholders."
Under the partnership, the organizations "share data and studies with policymakers about the positive impact of the sharing economy in the region; identify ways to make it more inclusive; broaden tourism benefits to non-traditional actors and attract new stakeholders," said CTO officials. Airbnb also provides CTO with "economic analysis of Airbnb's impact on local economies."
While some hotel industry analysts have drawn parallels between decreased Caribbean hotel occupancy and profitability in 2016 with Airbnb's growing prominence, Modeste-Curwen said growing competition with Airbnb for vacationers was not among the primary concerns for Grenada hoteliers.
[READMORE] READ MORE: Airbnb Takes The Pain Out of Checking In [/READMORE]
"We've discussed it, and while initially there was that concern, I think hoteliers have realized it is a different demographic," she said. "If what they are looking for is not provided, [travelers] will simply go somewhere else and not necessarily to a hotel.
"The major concern we have managed to allay was that [hoteliers] pay taxes and Airbnb hosts do not," Modeste-Curwen said. "We are working on that. So as long as we do that and come to some kind of agreement, hoteliers will be happy or at least not antagonistic." There are nearly 400 Airbnb listings in Grenada, said Modeste-Curwen; a typical Grenada Airbnb host earns $2,200 annually.
"We see Airbnb complementing the product on the island," said Patricia Maher, CEO of the Grenada Tourism Authority. "It's a special target audience that wants to have experiences in the local community and go out to the countryside. We already have Aibnb hosts all across the country."
In turn, Airbnb officials "emphasized the importance of working with the government of Grenada in terms of the opportunity to collect fees and taxes," said Maher. "They have promised to promote tourism to the destination. The MOU is the start of the working relationship we will establish with [Airbnb]."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
