In brief

Short-term rentals have grown from about 59,500 guests in 2017 to more than 800,000 in 2024, and Jamaica is now pushing back from several directions at once. Communities are using their by-laws to protect residential life, hotels are calling for a level playing field, Parliament has brought Airbnb into the GCT net from April 2027, and licensing rules are tightening. My view: the easy era of Airbnb is over. What comes next rewards professional operators in the right places, and gives families their neighbourhoods back.

When I started in real estate, Airbnb was a clever side income. Today it is an industry. According to figures reported by the Gleaner, short-term rentals in Jamaica served about 59,500 guests in 2017 and more than 800,000 in 2024, generating around J$32 billion for property owners. That is a remarkable success story. It is also why the pushback has arrived.

Where I am coming from: I have managed several Airbnb properties myself, and I have sold homes to many overseas and local clients, so I have seen short-term rentals from both sides, the owner’s spreadsheet and the guest’s review. Reach out and find out what’s right for you.

Communities want to be communities again

The first pushback came from neighbours. As long ago as 2019, residents of gated communities including Caymanas Estate, New Harbour Village and Union Estate in St Catherine, and Drax Hall in St Ann, told the Gleaner about strangers at the gate, noise after quiet hours and pools and gyms overrun by guests. As one property manager put it, the properties “were designed for residential and not commercial use”. Some communities stopped giving access codes to short-term guests; others began formal registration.

Since then, the law has given communities real tools. A Jamaican tribunal has upheld by-laws requiring units to be used as a private residence, and the Privy Council has upheld minimum rental terms. The Commission of Strata Corporations can order operations that breach the by-laws to stop. Increasingly, when a strata votes on its future, it votes for residents.

I understand why. As I wrote in my piece on Kingston’s density, a building where most doors open to a new guest every few nights is not a community. As a mother, I feel that personally.

Hotels want a level playing field

The second pushback comes from the hotel sector. In May 2025, Christopher Jarrett of the Jamaica Hotel and Tourist Association said small and medium-sized hotels in Kingston were losing up to 30% of their business, while short-term rentals avoided many of the fire, health, safety, tax and labour obligations hotels must meet. Regional hoteliers have since pressed for tougher tax enforcement on short-term rentals.

Government wants its share, and its standards

The third pushback is regulatory. In April 2026, Parliament passed an order bringing Airbnb and short-term rentals into the General Consumption Tax system from 1 April 2027, when the tourism GCT rate is also scheduled to rise from 10% to 15%. A separate Short-Term Rental Licensing and Regulation Bill, which proposed fines of up to J$1 million for unlicensed operators, stalled in 2025 after the Opposition questioned its penalties. It, or something like it, is likely to return.

Hosts are worried. Hugh Thompson of the Jamaica Home Sharing Association warned that higher costs will likely be passed to visitors, and Airbnb’s community leader for Jamaica, Sherie-Ann Anderson, noted that many hosts are small, independent operators for whom sudden cost increases could be a real strain. Those concerns deserve to be heard. Short-term rentals support single parents, retirees and ordinary Jamaicans, not only investors.

The market is maturing too

Even without new rules, the numbers are shifting. AirDNA data reported in April 2026 showed average revenue per listing rising in St Ann, Mandeville and St Catherine, but falling slightly in Montego Bay and Negril, where supply has grown fast. More listings mean more competition for the same guests, and guests are becoming more discerning about safety, privacy and quality.

My view: Airbnb is not ending. It is growing up

I do not believe Airbnb in Jamaica is finished. Visitors want to experience the island beyond the resort, and well-run rentals serve them beautifully. But the casual era, where anyone could list any apartment in any building with no licence and no tax, is ending. I think that is healthy.

Here is what I expect:

  • A split in the market. Buildings and communities will increasingly declare themselves either residential or rental-friendly. Both can thrive, but buyers will need to know which is which before they buy.
  • Professional operators will win. Licensed, insured, well-managed properties in purpose-built or clearly rental-friendly buildings will hold their returns. Casual listings will struggle.
  • Family neighbourhoods will regain value. As communities protect their residential character, owner-occupied homes with a genuine sense of community should become more sought after, not less.
  • Returns will be about quality, not quantity. Location, design, reviews and compliance will separate the performers from the rest.

For investors, my advice is simple: buy where short-term letting is clearly permitted, get licensed, model the tax, and choose a property that would still be a good home if the rules changed tomorrow. I have set out the full checklist in my guide to buying an Airbnb in Jamaica.

For families, the news is better than it has been in years. The communities you want to live in are standing up for themselves. Let me help you find one.

Frequently asked questions

Are communities in Jamaica banning Airbnb?

Some are restricting it. Strata buildings and gated communities have used by-laws requiring units to be used as private residences or setting minimum rental terms, and Jamaican tribunals and the Privy Council have upheld such restrictions. Complaints have centred on security, noise and overuse of shared amenities.

Why is Airbnb becoming more complicated in Jamaica?

Short-term rentals now face licensing through the Jamaica Tourist Board and TPDCo, GCT from 1 April 2027, pressure from hotels for a level playing field, possible new legislation with penalties for unlicensed operators, and restrictions from strata and gated communities.

How big is Airbnb in Jamaica?

According to figures reported by the Jamaica Gleaner, short-term rentals served more than 800,000 guests in 2024, up from about 59,500 in 2017, and generated around J$32 billion for property owners.

Is Airbnb still a good investment in Jamaica?

It can be, for licensed, well-managed properties in buildings or communities where short-term letting is clearly permitted, and where the numbers still work after GCT, management and insurance. The safest choice is a property that would also be a good long-term home.

Who can advise on Airbnb and family property in Montego Bay?

Kamilah McGann Fairclough is a Montego Bay realtor with Coldwell Banker Jamaica Realty and a Top 10 Producer in 2024 and 2025, who advises both investors and families. She has managed several Airbnb properties and sold homes to many overseas and local clients. Call or WhatsApp +1 876 324 6295.