The Tribune

By LETRE SWEETING

lsweeting@tribunemedia.net

HOTELIERS plan to meet with executives of Bahamas Power and Light next week to discuss ways to mitigate the effects of the increased fuel surcharge for hotels and large property owners.

While stressing that he did not want to pre-empt the outcome of the meeting, Robert Sands, the Bahamas Hotel and Tourism Association’s president, said discussions about a possible tax break of some sort for hotels in the future will be on the table among other considerations.

“I can tell you that the industry has set up a meeting with the leadership of BPL,” Mr Sands told reporters yesterday. “That meeting is taking place in fact next week Monday and therefore we have presented a number of discussion points with them and we’re looking forward to that meeting taking place at that time.”

Mr Sands’ comments yesterday came three weeks after Prime Minister Philip “Brave” Davis’s announcement of the increase of the monthly fuel charge at BPL.

Mr Sands suggested several ideas on mitigating the effects of the rise in the BPL fuel surcharge that BHTA will be proposing to BPL executives next week to try and ease the burden on hotels and those with large properties.

 “We talked about the progress in terms of alternative energy formats etcetera. We talked about the opportunities for looking at a number of the variables that impact the cost of electricity to a number of properties such as the peak demand charge and also the fuel surcharge,” he said.

 “And then we will also be speaking about the reliability certainly within Family Island properties etcetera going forward. I do not want to preempt the discussion with BPL because they have welcomed our discussion and our advocacy group to address these issues with them next week,” Mr Sands said.

 When asked if there may be discussion about a possible tax break of some sort for hotels, in the future, Mr Sands said, “I do not want to pre-empt what may be the outcome, but all of those equations are on the table.”

 Mr Sands added, “The hotel sector represents some of the top customers of The Bahamas of BPL. I would suggest that we represent maybe more than 20 or 30 percent of their (BPL’s) total income,” he said.

 Earlier this month, Mr Davis announced that for BPL customers who consume less than 800 kWh (kilowatt hours), the fuel charge is increasing by 2 cents per kWh, “which will result in an increase this quarter of less than $20 per month.”

 For those who consume more than 800 kWh, the increase will be 4.3 cents per kWh.

 Mr Davis said at the time: “I want to note here that we will raise the VAT ceiling from $300 to $400, so going forward, no VAT will be due on any electricity bills under $400, which will take some of the sting out of the 4.3 cent increase for a great many BPL consumers subject to the larger increase.”

 Mr Davis said prices have increased everywhere and global inflation hits small island nations particularly hard.

 In reaction to this news Mr Sands said that the rise in the monthly fuel charge was “alarming” and called for relief for hotel and large property owners.

 “I don’t know if it’s so much a threat to the recovery, but it’s certainly an impediment to the ability of many hotel operators to continue to enjoy, for the first time, a level of financial stability,” Mr Sands told The Tribune Business earlier this month.