The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Association of Bahamas Marinas (ABM) president says the industry has “taken a step back” through the closure of its online clearance portal with charter demand for this nation down 30 percent compared to the Caribbean.

Marques Williams told Tribune Business that it was unclear why the Ministry of Finance had required the industry to “pull back” its SeaZ Pass app, which had operated as “a one-stop shop” to allow incoming vessels and their owners/captains to register online, clear Customs and pay for/obtain cruising permits and charter fees.

Confirming that the return to manual-based processes, and having to visit the likes of Customs and the Port Department to make the necessary applications and payments, was “definitely frustrating” for visiting boats and yachts, as well as their hosts, he added that the issue was among several discussion points between the Association and the Government.

“The ease of business has become more difficult with the recent removal of the SeaZ Pass app. The ABM-supported app provided an online solution to allow foreign yachters and boaters to clear Customs and register for charters in the country,” Mr Williams said, confirming that Customs and the Ministry of Finance have now “pulled it back”.

“They took it off, made it not available to the public,” he confirmed. ‘However, the full potential of it has not yet been realised. The aspects it provided have not yet been replaced. The idea behind it was to create a single point for persons to apply for charters, get their clearance, come in and eventually provide the likes of fishing permits.

“It was to provide a one-stop shop. That was the concept, but for reasons that still remain unclear to me it was pulled and has not been replaced as yet. It’s definitely frustrating on the yachting side, definitely frustrating, as this was a step forward it seemed to them. 

“It made it simple as a one-stop shop, and now they’ve been set back to operate how they previously did it. Multiple steps in the process and physical locations they need to visit. The whole gamut. It’s kind of a step back, and has increased the level of paperwork and effort by captains, which is never good.”

The halt to SeaZ Pass, and online registrations and fee payments, comes just as the Government is seeking to generate increased revenues from the imposition of 10 percent VAT on yacht charter fees in addition to the Port Department’s existing 4 percent levy. The implication is that the Government has made it more difficult for boaters to pay, and comply, just when it wants a greater tax take from the sector.

Peter Maury, the former ABM president, under whose watch the SeaZ Pass online portal was installed, yesterday explained that the Association was given permission to launch it and collect the relevant fees that were then paid directly to the Public Treasury. He added that local payments provider, Omni Financial Services, was hired to act as the facilitator or gateway for these transactions which generated around $4m in revenue.

Confirming that it had been operational for around a year-and-a-half, Mr Maury said: “It went directly to the Treasury. We paid to make it digital. It was a convenience for our customers. They were complaining about it. Nobody could pay it because they had to physically go there. If you were in Abaco doing your charter, how do you pay your fee?

“It was an easy way to pay. Now all the boaters and captains are complaining because it’s so difficult. Once again we’re encouraging people to go in and pay in cash. It’s very confusing to us. We just want to move ahead.”

Mr Maury, meanwhile, told Tribune Business that charter inquiries for The Bahamas were down 30 percent compared to the Caribbean according to information provided by the International Yacht Brokers Association (IBYA). He last week reiterated to this newspaper that the imposition of VAT on the charter fee, in addition to the 4 percent Port Department fee, had made The Bahamas uncompetitive from a taxation perspective with vessels electing to head elsewhere.

Mr Williams, the current ABM president, confirmed to this newspaper that the Association is also talking to the Government about the increased tax burden’s impact. “Marinas that cater to charter yachts had hoped to retain the new charter business that was developed from the COVID pandemic and the hurricanes that ravaged the southern Caribbean,” he acknowledged.

“However, the difficulties of conducting charters and the recent introduction of VAT to charter fees have put a strain on the industry. The latter is a subject that is currently being discussed with the Government of The Bahamas.” Asked about the progress of these talks, he added: ‘It’s still being discussed. We don’t want to speak on that before time. We’re still in active discussions with them to find possible solutions. It’s still on the table. We’re still talking.

“All these talks are pretty much in tandem as we look at it holistically. I think the Government understands there needs to be more simpler process [SeaZ Pass] and I’m sure they have ideas on how that can work as well. We want to support that as well, but we need a solution; some kind of solution.”

Mr Williams described the Bahamian marina industry’s performance over late 2022, the Christmas/New Year period and 2023 to-date, as well as the outlook for the remainder of the year, as “not so clear cut” and “a mixed bag” where some were enjoying a good period and others - depending on location and how much they rely on charter business - not faring so well

“There are some marinas, particularly in the northern Bahamas, that are reporting a good start to the winter yachting and boating season. One of these marinas is reporting near pre-COVID levels of business,” the ABM chief disclosed.

“Unfortunately, a combination of bad weather and distance in accessing supplies have contributed to less than desired outcomes in the southern Bahamas thus far. Nonetheless, these marinas are still optimistic about January business.” Mr Williams explained that fuel availability, more so than cost now, was weighing more heavily on the performance of marinas in the south.

“It’s not clear cut,” he added. “Some marinas are saying: ‘Yeah, we’re doing great’, and other marinas are saying, ‘hey, not so’, but it’s for various reasons. What we’ve been working with the Government on is to see what changes can be made legislation wise, what changes can be made policy wise, what changes can be made marketing wise to drive business. We have to work with the Government to get it all sorted out and create a policy framework.

“There is tremendous potential. Our proximity, our physical make-up, we have to now capitalise on those things. These are literally customers that can go anywhere. We need to make sure it’s a no brainer to come to The Bahamas. That requires some work on everyone’s part. We have to be of the same accord, and make sure we get these yachts to come back or entice more persons to come,” the ABM chief said.

“The ABM is working closely and diligently with its members, the Ministry of Tourism and Aviation, and the Ministry of Transport and Local Government to the development of much-needed legislative revisions and policies for the advancement of the industry.”