The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Bahamian excursion operators yesterday said this nation should ban foreign yacht charters on vessels below a certain length as well as requiring this sector to pay Business Licence and work permits fees.

Adoni Lisgaris, president of the Bahamas Excursion Operators Association (BEOA), told Tribune Business it was never the group's intent to hurt charter yacht companies or operators who service the sector but imposing VAT on charter fees was necessary to “level the playing field.”

“Our issue behind it was it was an unfair playing field. So what we have been lobbying to the Government for was multi-layers of different actions that we wanted to see taken, and one of them was that they be taxed in the same fashion that Bahamian operators are taxed, which government essentially did," he added.

“These operators still don't have to pay Business Licence, they're not paying NIB (National Insurance Board contributions) because a lot of them are transient, they're not paying for work permits either. So one could argue that it's still not a level playing field, but at least they're paying more of their fair share than they were previously.”

The Association of Bahamas Marinas (ABM) has argued that the imposition of VAT on charter yacht fees has driven vessels to other Caribbean countries, something Mr Lisgaris believes will only be temporary. “If boats that used to come here don’t come back, I’m sure there are other yachts that will fill that void just because of what we have to offer in this country," he added.

“We’re talking about charters that range from $20,000 to $100,000 a day. A customer that can afford a $20,000 charter then cab presumably afford a $22,000 charter.” Mr Lisgaris said foreign yacht charters and their proponents are just “upset” that they have to now pay taxes where they never used to, but added that yacht business will come back to The Bahamas because of its proximity to the US and its wide range of islands and inlets.

“I sympathise, and our goal at the end of the day was not to jeopardise any other Bahamian business but, at the end of the day, I can't understand the rationale for somebody not wanting to pay taxes,” he added.

"These taxes are passed on and the clientele they are targeting are able to pay. If you are paying upwards of $400,000 on a vacation, you are already in a totally different tax bracket. I just don’t think $40,000 more is going to be a deal breaker.”