The Minister of Economic Affairs, Communication, and Sustainable Development, Geoffrey Wever, has announced that the new and holistic policy to regulate the vacation rental sector in Aruba is in its final phase of completion. After years of public and political discussion, the Government is preparing to present a structural legal framework by this coming June 1st, with the primary goal of finding a healthy balance for the industry.
The growth of vacation rental platforms and formats has been a great success for many local investors and homeowners. However, this accelerated growth has brought with it the need to introduce clear rules. According to Minister Wever, this matter is a complex topic, especially because it falls under the jurisdiction of multiple ministries.
Interministerial Cooperation
In order to provide the sector with proper regulation in accordance with the law, the new policy had to be framed based on the prerogatives of five main ministries:
· Ministry of Economy: For the commercial structure and fair competition aspect.
· Ministry of Finance: For the taxation and collection aspects.
· Ministry of Tourism: To guarantee the quality of Aruba’s tourism product.
· Ministry of Public Health: To establish hygiene and safety requirements.
· Ministry of Infrastructure: To establish structural control and spatial planning (ruimtelijke ordening).
“There are laws that need to be changed, and there are laws that need to be introduced. But most importantly, all ministers must be aligned on the definitive vision of what vacation rentals should be in Aruba,” Minister Wever explained.
The minister emphasized that they have worked on a holistic policy that encapsulates all these areas, giving direction to the industry and providing clarity on the path the Government intends to take.
Despite the regulation being on the way, Minister Wever made it clear that the Government has no intention of “demonizing” the industry. On the contrary, the minister reinforced the great value that the sector holds for the local economy.
The vacation rental sector is recognized for:
· Making a significant contribution to the tax revenues of the Country of Aruba.
· The opportunity it gives Aruban citizens to build their own equity, whether by building an apartment in their yard or investing in a second home to generate an attractive income.
· The positive spin-off effects for micro-enterprises.
An Ecosystem of Micro-Businesses
The impact of this sector extends much further than just the homeowners. According to the minister, there is an entire ecosystem of small businesses that directly depend on this movement. This includes people in home maintenance, painters, small construction workers, pool cleaners, the catering sector, private chefs, and local supermarkets where tourists do their shopping.
Experts together with the ministries are finalizing the last details in order to formally present this policy on June 1st. A key point in this policy, according to Wever, is to always guarantee and safeguard the space for locals to continue participating in and actively benefiting from this industry in a structured and legal manner.