September 09, 2019

Ecuador’s Ministry of Tourism regulates housing accommodation

Official Register

Tax

Internal publications

The Ministry of Tourism has issued the Regulations on Tourist Accommodation[1]. The Ministerial Agreement aims to regulate accommodation at properties as a type of tourist accommodation. The Agreement applies to the whole country except Galapagos Province, as this type of lodging is not permitted there. Its main points include:

  • It applies to (i) owners, tenants and administrators of properties used for tourism; those who sell this offering or act as intermediaries; (ii) those who reserve or use this type of tourist accommodation; and (iii) those who, through any means, promote, distribute information about and/or sell this type of accommodation.
  • Tourist accommodation is understood as the regular and paid-for service of temporary accommodation for domestic or foreign guests, at any property used for tourism other than the establishments provided for in the Regulations on Tourist Accommodation.

Tourism register and annual operating license:

  • To provide the tourist accommodation service, it is mandatory to be listed on the tourism register and have the annual operating license.
  • To be on the tourism register, you will need:
    • Title deed to the property;
    • Document issued by the condominium assembly authorizing the provision of this type of tourist accommodation service;
    • Priced inventory of fixed assets and the payment of the 1 per 1,000 tax on the value of the fixed assets.
    • Certified report of compatibility with land use, issued by the municipal or metropolitan decentralized autonomous government, or an equivalent document;
  • To obtain the annual operating permit, you will need at least:
    • Tourism Register Certificate issued by the National Tourism Authority;
    • Certificate confirming payment of the 1 per 1,000 tax on the value of the fixed assets, issued by the National Tourism Authority;
  • Tourist accommodation will be in single category properties.
  • Properties used for tourist accommodation must have an external identifying sign which will include a control and digital security mechanism such as a QR code or similar, containing general information about the tourist establishment.

Advertising and Marketing:

  • Misleading advertising of the property is prohibited.
  • The tourist accommodation service can be advertised and marketed through virtual channels, digital media, social media or other media.
  • The tourism agency or any person who acts as an intermediary for this type of accommodation will be jointly and severally liable with the host of the property.

Rights and Obligations:

  • The guests and users will have the following rights:
    • To be informed of the characteristics of the property, its area, capacity, equipment and location; price, taxes, fees, charges, methods of payment, refunds and cancellations that apply to the services;
    • Information on the policies and procedures that apply to the offered accommodation;
    • Receive the service as offered and advertised;
    • Receive the invoice for the accommodation service;
    • Report any irregularity in the services.
  • The guests and users will have the following obligations:
    • Pay the value of the services which have been received and agreed to;
    • Respect the maximum capacity of the property and the rights of the condominiums or neighbors, in compliance with existing regulations;
    • Take responsibility for any damages caused to the property or to third parties.
  • The host will have the following rights:
    • Receive the agreed payment;
    • Require guests to leave the property when they violate existing regulations and public order.
    • Report the illegal operation of tourist accommodation.
  • The host will have the following obligations:
    • Be listed on the tourism register and obtain the annual operating license;
    • Provide information about the guest or user to the authority that requests this;
    • Display the annual operating license and property ID that identifies the suitability of this type of tourist accommodation;
    • Keep the facilities, infrastructure, furniture, materials and equipment at the establishment clean and in perfect working order;
    • Give notice of the transfer of ownership or change to the information with which the property was registered;
    • Inform the appropriate authorities in the event of an incident and/or accident;
    • Provide the necessary facilities for inspections;
    • Comply with the obligations to protect the personal data of the guests and users;
    • Inform the National Tourism Authority of fees, including taxes, by December 1st every year.
  • The host is prohibited from:
    • Offering and/or providing the accommodation service subject to these regulations in a section of the property or a room, or section of a room; or in a property with communal or shared rooms;
    • Acting as an intermediary, carrying out tourism operations, tourist transport, tours, directly or through informal promoters.

Deadlines:

  • The digital system for registering the properties to be used for tourist accommodation must be developed within three months from the time the regulations come into effect.
  • Providers of this service will have three months from the publication of this Agreement to register with the National Tourism Authority.

[1] Ministerial Agreement No. 2019-039 signed on July 31, 2019. The Agreement has not been published yet in the Official Register.

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