The Vacation Rental Professionals of Aruba (VRPA) are calling on policymakers to adopt thoughtful, evidence-based legislation that supports the sustainable growth of the vacation rental sector while addressing Aruba’s affordable housing needs.
On February 13th, 2025, VRPA formally submitted a letter to the Formateur, presenting research findings, economic data, and policy recommendations. Shortly afterward, VRPA board members met with policymakers to further discuss these points. However, with limited public updates since then, uncertainty has grown—prompting VRPA to reiterate its position and help keep the community informed.
Representing vacation rental property owners and managers, VRPA has collaborated with industry experts to conduct extensive research and present detailed recommendations to the Government of Aruba. Their data highlights both the economic value of vacation rentals and the complexity of their role in Aruba’s housing landscape.
Economic impact not to be overlooked
According to the Aruba Tourism Authority’s February 2025 report, vacation rentals accounted for 41.9% of all visitor nights—demonstrating the segment’s continued strength despite a slight 0.4% decline in overall arrivals. Vacation rentals remain a vital and stabilizing force in Aruba’s tourism economy, with direct revenues projected to exceed $250 million this year. The sector’s broader economic contribution is estimated at around $600 million.
Short-term rentals benefit a wide range of local businesses—from supermarkets to tour operators—helping to foster a circular economy that keeps spending within the community. Unlike traditional hotel developments, vacation rentals decentralize economic opportunity: approximately 50% of rental properties are owned by Arubans, and many are managed by small-scale entrepreneurs. This model spreads income more widely and supports grassroots economic growth.
For many Arubans, vacation rentals are more than investments; they are a livelihood. They help families pay mortgages, support retirees, and offer younger generations a pathway to entrepreneurship. In short, vacation rentals create opportunities at both the individual and community levels, allowing more people to directly benefit from Aruba’s tourism industry.
Vacation rentals not the cause of the housing crisis
VRPA stresses that vacation rentals are being unfairly blamed as the primary cause of Aruba’s affordable housing shortage. Research from UCLA and the University of Southern California indicates that a 10% increase in Airbnb listings correlates to only a 0.76% rise in housing prices—suggesting that other factors are far more significant.
The real drivers of Aruba’s housing crisis include a limited supply of new housing, high construction costs, import duties, bureaucratic red tape, and a lack of long-term planning.
“In Aruba, the challenge is not short-term rentals—it’s the lack of affordable housing development and outdated zoning restrictions,” said Alex Cybul, Board Member of VRPA.
A roadmap for smart regulation
VRPA supports fair taxation and regulation and has proposed several measures, including:
- Full enforcement of room tax collection, which could generate over $40 million annually.
- Allocating a portion of tourism-related taxes to fund affordable housing initiatives.
- Streamlining government processes for land leases and construction permits.
- Lifting outdated restrictions on condominium developments in designated tourist zones like Palm Beach and Eagle Beach.
- Implementing zoning strategies and pricing policies to manage tourism demand while preserving community character.
The association also advocates for efficient, low-bureaucracy regulation through digital platforms for registration and compliance, and for ensuring transparency in tax calculations.
VRPA envisions an Aruba where opportunity is shared—where tourism growth benefits locals first, and housing solutions are designed with fairness, sustainability, and long-term community well-being in mind.
Seeking collaboration, not confrontation
VRPA emphasizes its willingness to work with the government to develop responsible and effective legislation.
“We are not against regulation. We are for smart regulation—policies that protect residents, respect property rights, and allow the vacation rental sector to continue contributing directly to the economy of our island,” said Cybul.
About VRPA
Vacation Rental Professionals of Aruba (VRPA) is a non-governmental association representing property owners and operators in Aruba’s vacation rental sector. The organization advocates for fair regulation, tax compliance, and the responsible development of the industry to ensure that benefits are shared throughout the Aruban community.
