Tourism Tax Overhaul: From Lodging Levy to Entry Fee

The government of Curaçao is preparing to overhaul how it collects tourism-related revenue by replacing the current 7% lodging tax with a fixed entry fee for all visitors. This shift, proposed by the most recent cabinet, reflects growing frustration with the inefficiencies and inconsistencies of the existing model. While the lodging tax is intended to be collected from all overnight guests (whether staying in hotels, resorts, or private vacation rentals), compliance has long been a problem, particularly among private hosts who frequently underreport or fail to remit altogether. This non-compliance leaves significant revenue untapped and places an uneven burden on those that do comply.

The proposed entry fee, expected to come into effect by 2026, would standardize the process. Every visitor arriving on the island would pay a flat fee at the point of entry, whether through the airport or cruise terminal. It is clear though that neither length of stay nor price of accommodations would be a factor, Although the exact amount is still under consideration, estimates suggest that a charge of approximately 24 XCG (~$13.50 USD/visitor) would be required to match the government’s 2022 lodging tax revenue of 16.9mm XCG (~$9.5mm USD). The government could certainly elect a higher amount and perhaps should! By centralizing tax collection at the border rather than relying on a patchwork of individual property managers and platforms, the government hopes to capture its intended share of tourism revenue and stabilize funding streams for critical public services. For property investors, this change could offer a more level playing field, eliminating the competitive disadvantage faced by those who currently operate within the rules while others don’t. By removing the responsibility of tax collection from individual property owners, the government also reduces administrative friction and potential compliance risks.

Beyond administrative benefits, the shift also reflects a broader economic strategy. Revenue from the entry fee will be earmarked for much needed infrastructure improvements, public hygiene initiatives and tourism sector development including a proposed guarantee fund to support local entrepreneurs. These investments are likely to enhance the overall visitor experience, which in turn supports higher nightly rates, longer stays and repeat bookings, all key drivers of return on investment for vacation rental owners. Better roads, cleaner beaches and upgraded public amenities make properties more attractive, while a more stable tax structure signals governmental reliability which matters most to long-term investors evaluating risk.

This model isn’t unique to Curaçao. Bonaire charges a $75 USD entry fee, the Bahamas charges ~$30 and numerous other islands charge a combination of entry, departure and occupancy taxes.  Other destinations globally facing similar challenges have adopted or are planning comparable strategies. Venice, for instance, has implemented an entry fee of €5 for day-trippers to better manage over-tourism and fund preservation efforts. Edinburgh has approved a 5% accommodation levy and Bali now charges a fixed entry fee of ~$10 to support sustainability goals. While each destination varies in structure and motivation, the common thread is the recognition that tourism should directly fund the systems that sustain it and that centralizing the tax burden can increase both fairness and efficiency.

At the end of the day, execution matters the most. Setting the right fee level, communicating it clearly to travelers and managing any exemptions will be critical to ensuring a smooth transition. For prospective property owners and investors, the move away from a variable lodging tax toward a streamlined, static entry fee is a net positive. It reduces exposure to noncompliant competitors, simplifies financial forecasting and reporting and supports destination-wide improvements that lift the value of well-managed properties.

As Curaçao continues to grow as a global destination, these kinds of reforms suggest a maturing regulatory and economic framework that favors transparency, long-term investment and sustainable development. For those considering property ownership on the island, this shift shouldn’t be seen as a sign of disruption, but of opportunity.