Local hoteliers in San Miguel de Allende have formally petitioned municipal authorities to collect lodging taxes on Airbnb and other informal accommodations, arguing that unregulated rentals undercut traditional businesses and drain public coffers.
San Miguel de Allende — Leading representatives of the city’s hotel sector have delivered a formal petition to the municipal government, urging officials to impose and rigorously enforce lodging-tax collection on Airbnb listings and other unregulated short-term rentals. The move comes after months of complaints from hoteliers who contend that the rapid proliferation of informal accommodations has siphoned off guests, reduced tax revenues and created an uneven playing field in one of Mexico’s most popular tourist destinations.
In a letter submitted last week, the Asociación de Hoteles y Moteles de San Miguel de Allende laid out its case, arguing that the municipality currently loses millions of pesos each year due to uncollected lodging taxes on peer-to-peer rental platforms. “We are not against the sharing economy,” said María González, president of the association. “However, when thousands of properties operate without adhering to the same tax and regulatory standards as our businesses, it undermines our investments and hurts municipal revenues that fund public services.”
Hoteliers estimate that informal rentals now account for up to 30 percent of all overnight stays in San Miguel de Allende, a UNESCO World Heritage site renowned for its colonial architecture, vibrant arts scene and annual influx of international visitors. Unlike registered hotels and inns, many Airbnb hosts do not register their properties with the state tourism authority or remit the 3 percent lodging tax mandated under local law.
“The impact is very real,” explained José Luis Ramírez, manager of a downtown boutique hotel. “When a potential guest compares prices, a non-regulated Airbnb room can be 20 to 30 percent cheaper because the host is pocketing the lodging tax. Small and mid-size hotels simply cannot compete on that basis.”
The hotel association’s petition requests that municipal tax authorities:
- Identify and register all short-term rental properties operating in the city.
- Require hosts and platforms to remit the 3 percent municipal lodging tax on every booking.
- Impose fines on operators who fail to comply within a 90-day grace period.
According to the group’s own analysis, enforcing these measures could generate an additional 25 million pesos annually—funds that hoteliers say could support critical city services such as street maintenance, public safety initiatives and cultural programs that drive tourism.
City councilor Ana Sofía Martínez, who oversees the finance commission, confirmed receipt of the petition and assured members that the issue would be taken up at the next plenary session. “We recognize the importance of a level playing field for all accommodation providers,” Martínez said. “The challenge lies in implementing a system that is both effective and respectful of private property rights.”
Airbnb México, in response, issued a statement emphasizing that the company has long cooperated with authorities in other Mexican cities to facilitate tax collection. “We already collect and remit hotel taxes on behalf of our hosts in destinations such as Mexico City and Quintana Roo,” the statement reads. “We are open to discussing similar arrangements in San Miguel de Allende to ensure compliance with local regulations.”
However, local hoteliers remain skeptical that a voluntary approach will suffice. “We’ve heard these promises before in other markets,” said González. “Without a binding agreement enforced by municipal ordinance, hosts can simply opt out or list their properties on other platforms that have no tax-collection mechanisms.”
The state tourism secretariat has also weighed in, noting that Mexico’s 2019 federal tax reform granted municipalities the authority to devise and collect lodging taxes, but left implementation details to local governments. “San Miguel de Allende has an opportunity to lead by example,” said a spokesperson for the secretariat. “A clear regulatory framework that brings all accommodation providers into compliance will benefit everyone—hotels, hosts and the city’s taxpayers.”
Some council members have floated the idea of creating a public registry of licensed short-term rentals, similar to models in Barcelona and Amsterdam. Such registries typically assign a unique identification number to each property, which must be displayed on all listings. Violation of this requirement can result in steep fines or even delisting of the property from major booking platforms.
San Miguel de Allende’s popularity has surged in recent years, with international arrivals rising by more than 20 percent between 2018 and 2024. The influx has fueled a construction boom, as historic homes are converted into rental units to meet growing demand. While this has generated economic opportunities for property owners, it has also raised concerns about overdevelopment and the erosion of the city’s architectural heritage.
“Tourism is our lifeblood, but it must be managed responsibly,” said urban planner Diego Herrera. “We must ensure that revenue generated by visitors is reinvested in preserving the historic center and upgrading infrastructure. Collecting lodging taxes uniformly is a key piece of that puzzle.”
The city council is expected to debate the hoteliers’ petition during its regular meeting on May 20. Hoteliers plan to attend en masse to voice their support, while informal rental hosts and platform representatives have indicated they will request a chance to present counterarguments.
For a city that has built its brand on authenticity and community, the outcome of this debate could set a precedent for how San Miguel de Allende balances economic growth with social equity—and how it shares the benefits of tourism among all stakeholders.