Meanwhile, as Aruba approaches the crucial date of June 1st for the announcement of the new policy on vacation rentals, sector representatives are advocating for the use of modern technology and real data to structure the law. Based on extensive research into successful international models and concrete data from the local market, the sector is calling for smart regulation that facilitates compliance, controls foreign investment in residential neighborhoods, and protects local residents.
One of the biggest points in this national debate is how the Government plans to control and balance a sector that has grown structurally in recent years. For the operators who possess the expertise and experience, the answer does not lie in complicated bureaucracy, but rather in digital innovation.
The Breckenridge Example: Technology for 90% Compliance
Based on extensive research of legal models around the world, sector representatives emphasize that Aruba can learn a lot from tourism-driven cities in the US that share similar characteristics and size to our island. A concrete example is Breckenridge, Colorado—a destination that, just like Aruba, is 100% dependent on tourism.
Breckenridge has a market of around 4,000 vacation rentals (a figure very similar to Aruba’s reality). However, the way they manage this is an example of efficiency:
Digital Centralization: They use advanced software that tracks how to register properties and connects this data with various platforms (like Airbnb or Booking.com) to keep all legal information in a single place.
Minimal and Efficient Staff: With the use of this technology, the department in charge requires only three or four employees to collect data and funds.
High Compliance: The city boasts a compliance rate of over 90%.
“Right now, we don’t know what the compliance rate is in Aruba. I feel it has grown because more and more people, due to everything being discussed on the streets, are afraid of not being compliant and are starting to register and pay their fair share. But we know it is nowhere near 90%.”
— A sector expert, warning that the regulation will also have to deal with a backlog of many people who rented anonymously in the past.
Furthermore, the sector emphasizes that regulation should not solely focus on the tax aspect, but should also stipulate quality controls to guarantee that properties meet a high standard. This ensures tourists feel comfortable and welcome, thereby protecting the destination’s reputation.
Half of the Owners Are Local: Breaking Speculation with Real Data
One of the biggest myths circulating on the streets is that the vacation rental industry is exclusively in the hands of foreign investors. However, structural data from the industry itself shows a much more balanced picture.
The property management company “Vacation Rental Aruba,” one of the leaders in the sector managing a portfolio of around 400 homes, shared key data that provides a realistic view of the market:
Property Type & Location
Reality of the Owners
Includes properties in large projects like Gold Coast, Oceanía, Palma Aruba, and Tierra del Sol (areas structurally designated for sale to the international public).
More than half (50%+) of all the owners managed by the company are local (Aruban).
This data confirms that the speculation claiming owners are predominantly foreign does not align with the reality that operators see day in, day out. Additionally, it was clarified that many locals who own an apartment in their backyard do not use property management companies to avoid paying commissions; they handle the cleaning, maintenance, and service themselves. This means the number of locals living directly off this industry is structurally much higher for the island.
Fair Control to Protect Residential Neighborhoods
While the sector defends local participation, experts agree that there must be selective control regarding outside investments. The goal should be to find a balance that does not harm locals already established in the industry, while putting the brakes on over-saturation.
“There must be a control so that foreigners do not buy in areas that have been designated as residential zones for locals. That is for sure.”
— Alex Cybul, Vacation Rentals owner
The sector requests that the policy presented by the Government not be designed from an office alone, but rather be guided by the experience, international research, and real market data that operators have to offer—thus guaranteeing a law that is truly fair and structural for Aruba.