It's dangerous to use incorrect and erroneous information to overlook the benefits of Vacation Rentals for Aruba"
As an island renowned for its tourism industry, Aruba has always attracted visitors seeking sun, sand, scenery, service, and most of all, unique experiences. The usual format was buying a ticket, looking for a hotel, a car, and booking the restaurant or additional services. However, the behavior of the global traveler has changed, and Aruba is no exception. Gone are the days where traditional hotels monopolized accommodation options for visitors. The growing desire for unique experiences from visitors seeking authenticity and a chance to just live like a local has resulted in an increase in the popularity of Vacation Rentals.
Visitors can now choose from a variety of properties, such as apartments, small villas, sea-side houses, with views, in nature, in the city or in other neighborhoods of the island, each with their characteristics and charm. The rise of Vacation Rentals has also paved the way for Arubians to become entrepreneurs of their own business. With Vacation Rentals, locals can share their home, their culture, and their unique perspective with visitors. All this, without forgetting that the income generated from Vacation Rentals circulates back into the local economy, through tax payments and the homeowner's earnings, creating a back-prosperity effect in the community. However, the discussion began on Vacation Rentals as the reason for the increase in house prices. What is the truth?
Alex Cybul started with Vacation Rentals seven years ago. His experience is vast and he, like a large group of those who work in this sector, sees this discussion filled with incomplete and erroneous information.
"A friend of mine inspired me to enter the house rental business. He made it sound like something fun and easy as everyone on vacation is happy. Based on this, I found a house in Koyari that became my first vacation rental. The rest is history. After this, I started managing houses for others." Today, Vacation Aruba manages more than 180 houses and/or apartments. This growth has come in a span of 7 years. There is a much greater demand and naturally, many more houses available as well compared to before. COVID has changed many people's way of thinking.
Nowadays, many people prefer to be in more private places and avoid crowds. There are people who even look for the house they wish to spend their vacation in, and then look at where it is located. This shows how important it is for Aruba to have a variety of products to offer in order to remain competitive as a destination.
In 2022 VRPA (Vacation Rentals Professionals Aruba) with the support of AHATA and ATA sought a U.S. company specialized in Economic Study of Vacation Rentals. The company, which has worked all over the world, conducted a study on the Economic Impact of Vacation Rentals in Aruba. Their study indicated that the total impact was $478 million. I believe we have seen growth in the last two years and can assume that now it is more than a billion florins per year.
INCREASE IN HOUSE PRICES
I believe the prices of houses in Aruba have increased more than usual in recent years for various reasons, it cannot just be said that it's because of Vacation Rentals. Factors such as the prices of construction materials (after Covid, several of these have risen and have not come back down to the original prices), scarcity of land, cost of construction labor, Covid and its effects that have not returned to normality, and the general demand for a house in Aruba and the population growth. All these are influencing factors.
WHO OWNS THE VACATION RENTAL HOMES
Based on various studies that have been conducted recently, including the information from the evaluation presented by the Amsterdam Bureau that Minister Wever asked to conduct, it emerged that more than half of the Vacation Rental homeowners in Aruba are locals. This is important as it proves that most of the money stays on our island.
BENEFIT FOR WHOM?
Finally, a group of locals is managing to get a piece of the cake from the tourism lodging industry. Besides this, we see that many businesses that are away from the tourist zone have started to get more visits from our guests. We have seen that more houses are being renovated, for this a local architect is needed, the work is done by a local contractor. Also, pools are being built, more pool service companies, more gardeners and more housekeeping companies. The money that tourism pays to stay in the Vacation Homes and money they spend in local businesses circulates in our local economy. In addition to this, we see many opportunities and growth in "at home" experiences that cause more people to start a "new business". For example, many tourists ask to have Yoga Classes, Chef, or Massage at home. This creates opportunities for jobs or new businesses.
In our company, we make sure that when creating each new house in our system, we go through a checklist of things that the houses need to comply with. In this, we have the necessary information to be able to charge and pay the Tourist Tax and Environmental Tax. We need to educate everyone who rents a house on how to do this and comply with the rules. This income is important for our sector and it's important so that the industry continues to be viewed favorably. If there are clients who want to find a way to avoid this, I would prefer to terminate our working relationship. I am a co-founder and board member of VRPA, the Vacation Rental Professionals of Aruba. We are the association that represents the sector. For those interested in how to comply or what the duties are as a host or property manager, please go to our Facebook Page VRPA and send us a private message or email us at info@VRPAruba.com.
I believe concrete information from Aruba is needed to make the best possible decisions for the housing situation in Aruba. We must avoid comparing ourselves with other countries that may have different needs or issues to take into account. What can be done immediately is to create a register to build a database, ensure that everyone who registers gets a number/certification, and during the registration process, explain to all those who rent exactly what needs to be complied with and then ensure compliance.
As a person who has managed multiple Vacation Rentals for 7 long years, we have had 5 noise complaints. 5, that's all. We dealt with these immediately and made changes where necessary to mitigate repetition. We have rules for the houses and the guests must comply with them. In addition to this, nowadays there are technological options where you can control or be warned if there is more noise than allowed.
The topic of limiting Vacation Homes in Aruba is a complicated one and needs a lot of caution when considering it as it is a growing industry in Aruba and a worldwide trend. It is extremely important to find the correct balance for Vacation Rentals, doubts and/or concerns from the community. I believe that just and reasonable regulations should be implemented. That is the best way. It is extremely important to keep all stakeholders in the conversation to understand what the situation is in Aruba. Collaborative discussions, including ours, will help brainstorm and find the best decision to promote the Vacation Rental industry in a responsible way and protect the interests of the entire community.
I see a positive future for this sector in Aruba. We believe that if we adopt a strategy that brings good balance, it can benefit many people and Aruba's tourism and economy in general. For this to happen, there must be continuous dialogue, collaboration, and good host management practices. This way we can create an environment where this industry can grow healthily and continue to make significant contributions to the development of our Tourism.
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