There is a prevailing notion that Bermuda  vacation rental hosting  is a lucrative business.  The fact is, for the majority it is not.  It is comprised primarily of older property owners who are attempting to defray the cost maintaining their properties on limited pension incomes.  The money earned from vacation rentals is not making them rich or supporting lavish lifestyles. 

The competition in the Bermuda vacation rental market is not with other local vacation rentals,  it is with the global vacations rental market in other places where  travelers can rent similar size units with same amenities (linens, toiletries, complimentary items) for about half the cost of a vacation rental unit in Bermuda.

This is the average break down of  the net return on a lower cost vacation rental @ 115.00/night -with no mortgage- (which the majority of vacation rentals are) based on current  visitor arrival patterns over the past three year period:

Revenue:
January  - 1 booking @ 3 nights=3 nights
February  - 0 bookings 
March - 0 bookings
April -1 booking - 7 night stay
May - 2 bookings - 1@ 3 nights 1@ 6 nights= 9 nights
June - 3 bookings @ 7 nights each= 21 nights
July -3 bookings @ 7 nights each = 21 nights
August - 3 bookings @ 7 nights each = 21 nights
September -2 bookings @ 3 nights p er booking= 6 nights
October - 0 bookings
November -1 booking @3 nights=3 nights
December- 0 bookings
TOTAL NIGHTS BOOKED = 70@ 115.00/night=$8,050.00

Expenses:
New Government licensing fee 1500.00
Bermuda Government Vacation rental tax @4.5% per night= $362.25
Bermuda Government land tax - 600.00
(TOTAL Government Tax and Fees= $2,212.25)
Vacation Rental platform service charge@ 30.00 per booking (30.00x 15 bookings)= $450.00 
Landscaping @ 100.00/month =$1,200.00
Water-$200.00
Internet- $1,200.00
Electricity - $1,200.00
Cleaning and maintenance- $800.00
Insurance - $600.00
TOTAL EXPENSES - $6,962.25

Net Return with new licensing fee- (revenue from bookings less expenses) =$1,124.75 =$93.73/month

Net profit with no licensing fee =$2624.25 =$218.69/month

NOTE: With the new fee,  The Bermuda Government is now taking over 27 percent of vacation  rental host revenue.  There is no other business or industry  paying this percentage of revenue on its gross earnings.  This added licensing fee therefore is unjust to Bermuda’s vacation rental  hosts and must be revoked immediately as it will put many vacation hosts out of business, remove critical vacation rental  units from the market  in the face of insufficient hotel beds in the  upcoming tourism season and has the potential to cost additional tax money to implement and to police.  If the Bermuda Government is seeking revenue it should consider increasing the existing vacation rental tax by .5 percent.

 Please sign  your support of the removal of the licensing fee in exchange for a more fair and equitable solution before this law is enacted.