MVA running after BnB’s

The Marianas Visitors Authority has linked up with the Department of Finance and the Office of the Governor to go after what it describes as illegal lodging establishments that are operating around the island without paying taxes.

Despite the continuing need for additional rooms to accommodate the increasing number of tourists, MVA brought up concerns regarding what it says are illegal bed and breakfast establishments around the island.

“We need to have more rooms. We really need to have high quality premium rooms, to actually attract high quality premium customers. Another concern that has been brought up to our attention are the bed and breakfast issue,” said MVA managing director Chris Concepcion.

He said that there are numerous bed and breakfast establishments operating as hotels on Saipan without paying the hotel occupancy tax.

“I have met with the Department of Finance and the Governor’s Office. They are putting an enforcement team to crack down on these illegal BnB operators,” said Concepcion.

“They are definitely not paying into the hotel occupancy tax, but they are functioning as hotels. These people come in for 3-5 days, sometimes a month, and they don’t pay the hotel occupancy tax. That cheats us of our funding,” he said.

Gov. Ralph DLG Torres thinks the same.

“There is a task force and we have been meeting with respective members of the MVA and we are coming out with an enforcement task force on how to address the issues that we have before us,” said Torres.

Torres did clarify that the aim of the task force was not to completely eradicate the illegal lodging establishments, as he sees these as additional rooms to serve tourists.

“They have to be taxed properly, so we’re not saying don’t do it. We’re saying that it has to be taxed. If you own a BnB [bed and breakfast] and you fall in that category, we’re not discouraging that. We’re just encouraging that you pay the proper taxes, the hotel occupancy tax. Even if it is just a bed and breakfast establishment, you still have to pay tax,” said Torres.

If you go to a certain website, and you search Saipan and put in a random date, you will see hundreds of rooms available for rent that are not hotels; they are houses and apartments. These are being converted into BnB’s, which ideally are not for long-term stays. Vacation rentals are what they are, and they don’t pay the taxes.