Latin America is now Airbnb’s fastest-growing market, surpassing Japan. Photo / 123RF As Airbnb turns its attention to Latin America, the often-combative company is taking an unusual approach. It’s giving local governments what they want.
The home and apartment-rental company said it will collect and remit taxes in Mexico City, the first such arrangement in Latin America. Airbnb will provide 3 per cent of revenue generated from bookings in Mexico City to the city’s government.
Hotels there also pay a 3 per cent lodging tax to local officials. Airbnb said it intends to replicate the tax model throughout the region.
Latin America is now Airbnb’s fastest-growing market, surpassing Japan.
The company has 250,000 properties listed in the region, which encompasses Mexico, South America and parts of the Caribbean, including Cuba. Airbnb said bookings in Latin America have increased 148 per cent in the past year. The privately held company declined to disclose revenue.
Airbnb is taking a cordial tack with officials in advance of major conflicts. While it has agreed to report taxes on behalf of its hosts in New York, San Francisco and others, the company only did so after long, drawn-out battles with officials, sometimes in court.This month, Airbnb settled a lawsuit […]