The Tribune

By YOURI KEMP

The deputy prime minister yesterday argued that the government had "struck a fair balance" on the increased boating and cruising permit fees revealed this week.

K Peter Turnquest said the prior fee structure had not been altered for some time, leading the government to believe what it views as an extremely lucrative market was under-taxed.

"We had extensive discussions with the Marina Association to come up with a fair scale," he added. "As you know the scale had not been changed in quite some time. Through collaborative consultations with the industry, and in consultations with charter companies, we believe we struck a fair balance for the new rate structure. So far the market appears to accept that it is reasonable.

"This is a very lucrative market we were unable to tap, and we knew we were missing tremendous revenue opportunities. So, putting in this fee structure, we can capture some of that. We are going to be launching very soon an online registration process which would help us even more. These yachts can register online before they even come to the country, and hopefully we can collect that revenue we have been missing out on."

Mr Turnquest's comments came despite the disquiet voiced by Peter Maury, the Association Of Bahamas Marinas' (ABM) president. He told Tribune Business earlier this week that the industry felt negotiations over up to near seven-fold fee increases - which were foreshadowed in last year's budget - had never been completed due to the interruption from Hurricane Dorian.

He argued that the increases are still too high, even though the government had reduced those at the top-end by 50-60 percent from the initially proposed $4,000-$5,000 per annum, and the Marina Association was seeking further reductions. Mr Maury said the industry would also prefer a half-year, rather than quarterly, fee to accompany the annual charge.

The Ministry of Tourism, though, has gone ahead and revealed the new fee schedule on its website - a development that is now being picked up by international boating and yachting media.

According to the Ministry's website, the fees for boats entering The Bahamas will be increased from the current $150 for boats up to 35 feet in length and $300 for larger vessels.

• The new fees, to take effect from January 1, 2020, are:

• Boats Up to 34 feet: $150 for three months; $300 annually;

• Boats from 35 to 100 feet: $300 for three months; $600 annually;

• Boats from 100 to 150 feet: $500 for three months; $1,000 annually

• Boats from150 to 200 feet: $800 for three months; $2,000 annually

• Boats over 200 feet: $1,000 for three months; $2,000 annually

The ministry's website added that the fees will cover a cruising permit, fishing permit, and the departure tax for up to three persons. "Each additional person above three will be charged a $20 departure tax. This fee is good for a second re-entry within a 90-day period," it said, adding that special arrangements must be made with Bahamas Customs and Immigration for staying longer than 12 months.

Marina operators spoken to by Tribune Business yesterday gave mixed views on the changes. Harry Lee, general manager for the Albany Marina, said: "I knew the fee hike was coming. It was a very quiet season since the storm. We have very few boats coming in. But we won't be really busy until mid-November."

"I don't think the fee rise will hurt the industry. It was a smart move, if anything. If I was in the government's position I would have done the same thing a long while ago."

Addressing the three-month and annual fee schedule, Mr Lee said: "There are a lot of boats that come to The Bahamas that like to stay longer. To be able to have a cruising permit for a year is a good thing."

Responding to the Association's preference for a six- month, rather than three-month, fee, he added: "It depends on the type of clients you have. Some would like to stay longer, but the type of boaters we have that come into Albany, they can pay the fees."

Raquel Dorsette, general manager of the Hurricane Hole Marina on Paradise Island, told Tribune Business: "The general consensus is that [the fees] is kind of high. But it was expected for a while. It was a badly kept secret.

"Nobody likes to pay more fees. Our business won't be affected in any way; most mariners already have their reservations planned out a year in advance. So we will see how it goes."

But Anton Mackey, general manager of the Hawks Nest Resort and Marina in Cat Island, said: "The fee rise will impact us greatly. A lot of people will not come because they have to pay all of these fees, plus they have to pay value-added tax.

"We were looking forward to this upcoming season. I have a lot of new boats that have booked for the fishing tournament in February. We have to now make them aware of the new fees. There is nothing going on in Cat Island, and if you take the boating and fishing tournaments from us then it would be less than nothing.

"A lot of people are not going to come, I fear, as a result of these fee hikes. We are booked at about 50 percent higher than normal over last year as a lot of people who used to go to Abaco are now booking in islands more towards the south, and we have been getting a lot of that transfer business earlier than normal ahead of the fishing season next year," he continued.

"February through May is when we have our fishing tournaments, and people are booking in advance for all of them because they want to make sure they have a slot in the Marina. These are new customers for us, too, but those new fees are going to impact us greatly because boaters now are not going to want to come to Cat Island but go to the Dominican Republic instead."