Aruba rooms tax was recently increased by 3%

[MajorMantle]

I noticed the rooms tax increase posted this month on TripAdvisor:

"Please note that as of January 1st, 2023 the government of Aruba has increased the Tourist Tax rate levied on room nights with 3%. This used to be set at 9.5% per night and has been adjusted to 12.5% per night."

All of the posts mention hotel rooms. I was wondering if this tax increase also affects timeshare units.

[schexc]

I know that our management company is not at 12.5%. Not a timeshare though.

[Aruba4ever]

Just over 30 percent in a room tax increase....3 percent on its own does not sound awful BUT over 30 percent increase is not friendly, lol.

[Aruba4ever]

So I was just playing with dates to see what percentage in total you pay "extra" after a room charge in a typical hotel. The total of "extras" was just shy of 30 percent!!!! 30 percent extra is an absolute joke but as long as people pay it...it will continue and go higher.

[cpjones]

Still seeking the deeper wallet crowd....

[Aruba4ever]

Or squeeze every last dime out of their most loyal? Are the deeper wallet crowd staying at the Embassy suites, Holiday Inn or any other of the many locations I could mention but won't?

Its simple economics and I think the "decision makers" skipped too many business classes. Build to many spots and charge high prices you drive a lot of people away...you fill the new spots at higher prices so the plan is working....until the older places can't fill their rooms so what do they do to help their business? They of course will need to lower their prices to drive demand and now you get the "customers" they were trying to avoid to start, lol. Pretty hard to reverse what you have and keep the island humming along IMHO.

Still seeking the deeper wallet crowd....

[schexc]

I'm amazed how many people I run into, that tell me how expensive it is to go to Aruba. I need to hang with the rich and famous

[Colette M]

Or squeeze every last dime out of their most loyal? Are the deeper wallet crowd staying at the Embassy suites, Holiday Inn or any other of the many locations I could mention but won't?
simple economics and I think the "decision makers" skipped too many business classes. Build to many spots and charge high prices you drive a lot of people away...you fill the new spots at higher prices so the plan is working....until the older places can't fill their rooms so what do they do to help their business? They of course will need to lower their prices to drive demand and now you get the "customers" they were trying to avoid to start, lol. Pretty hard to reverse what you have and keep the island humming along IMHO.

Totally agree and it’s a turn off. 30% is INSANE and they will charge it at hotels and timeshares. Aruba is beginning to price themselves out and we, their loyal return guests, will not be able to afford it anymore! In September I stayed at the Marriott - 5 nights on points (the old points system that was affordable/not anymore) and 5 nights at a senior rate off season. The taxes on those 5 nights was incredible. As much as the Bucuti is extremely expensive their rate at least includes all taxes. This is disappointing.

[Arawak]

Should be noted that part of this money goes to the TPEF or Tourism Product Enhancement Fund. This fund reinvests this money back into the local and tourism community. Some notable projects; the Malmok boardwalk, Stimami Sterilisami(dog neutering program), archeological museum renovation, Hooiberg steps renovation and several more "enhancement" projects. The fund focuses on investment, awareness, heritage, environment, safety and attractions. I happen to have heard an interview with a board member yesterday explaining this.

Besides that, when you have the misfortune to have a government that doubles your debt to GDP and shortly after a new government is elected a pandemic happens crippling your economy, leading to having to loan an extra 915 million Florin just to keep your head above water, it is logical, no matter what industry you're in that taxes are going to be increased in the short term to help cover these heavy hits. To be clear, no other economy in the world took a hit harder than Aruba's economy took due to the pandemic. We are lucky to be the 2nd fastest recovering economy, but those significant hits don't go away, not even after a few years of growth that may follow looking forward. Its unfortunate, but there are many reforms on the way to make Aruba more resilient in the future and after those are all implemented with the help of local, kingdom and international experts, we'll hopefully look back and say why we didn't implement them sooner.

For now, yes, everyone is paying more, both locals and tourists. And lets be honest, the ones taking the brunt of these reforms are the locals themselves until everything gets reorganized. The so called "transition period". This specifically has nothing to do with attracting another "type" of tourist. Its simple short term financial needs caused by the double whammy mentioned above.

[Aruba4ever]

Many great improvements but not when you consider the overall cost IMHO> So sorry for all the locals, many of which I call close friends. That said the increases are nuts. The fact they are collecting almost 30 percent tax per visitor on the housing is crazy when you consider they tax up to almost 50 percent on income on homeowners. They need to clean up their "leakage/gross overpayments" in certain areas. I don't claim to know the areas but with the taxes they collect from visitors and locals they should be able to figure it out without gouging all. I hate taxes home and abroad. I realize they are needed but some cross the lines IMO.

Should be noted that part of this money goes to the TPEF or Tourism Product Enhancement Fund. This fund reinvests this money back into the local and tourism community. Some notable projects; the Malmok boardwalk, Stimami Sterilisami(dog neutering program), archeological museum renovation, Hooiberg steps renovation and several more "enhancement" projects. The fund focuses on investment, awareness, heritage, environment, safety and attractions. I happen to have heard an interview with a board member yesterday explaining this.

Besides that, when you have the misfortune to have a government that doubles your debt to GDP and shortly after a new government is elected a pandemic happens crippling your economy, leading to having to loan an extra 915 million Florin just to keep your head above water, it is logical, no matter what industry you're in that taxes are going to be increased in the short term to help cover these heavy hits. To be clear, no other economy in the world took a hit harder than Aruba's economy took due to the pandemic. We are lucky to be the 2nd fastest recovering economy, but those significant hits don't go away, not even after a few years of growth that may follow looking forward. Its unfortunate, but there are many reforms on the way to make Aruba more resilient in the future and after those are all implemented with the help of local, kingdom and international experts, we'll hopefully look back and say why we didn't implement them sooner.

For now, yes, everyone is paying more, both locals and tourists. And lets be honest, the ones taking the brunt of these reforms are the locals themselves until everything gets reorganized. The so called "transition period". This specifically has nothing to do with attracting another "type" of tourist. Its simple short term financial needs caused by the double whammy mentioned above.