The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas’ loss is threatening to become a $100m gain for the US Virgin Islands (USVI), the Association of Bahamas Marinas (ABM) president asserted yesterday, as the latest boat tracking data shows “a 40 percent decline in vessels” visiting this nation.

Peter Maury told Tribune Business that information obtained from boating industry reports, coupled with disclosures by the Virgin Islands Professional Charter Association (VIPCA) and other groups, suggest a Caribbean rival is set to create 2,000-plus jobs and enjoy 15-25 percent yachting sector growth due - to a large extent - to owners and operators shunning The Bahamas over new and increased fees and regulations.

Noting that this shift to other Caribbean territories “builds on a 40 percent drop” in foreign yacht charters in The Bahamas, following the implementation of an effective 14 percent tax rate, he argued that “early data shows US Virgin Islands charters gaining 15–2 percent in bookings for the 2025-2026 winter season” as vessels divert away from this nation.

“US Virgin Islands’ charter bookings are up 15–20 percent year-over-year for the 2026 first and second quarter, per YachtCharterFleet and CharterWorld data, as operators reroute from The Bahamas,” Mr Maury wrote in a paper shared with Tribune Business.

“Catamaran charters, popular for island-hopping, have seen a 15 percent year-over-year rise in the Caribbean overall, with US Virgin Islands capturing around 30 percent of Bahamas’ lost share due to berth availability and lower costs. Each diverted yacht generates $100,000–$300,000 in local spend - provisioning, fuel, excursions - potentially adding $50m to $80m to US Virgin Islands’ $500m to $600m annual yacht sector.”

The ABM president reiterated that a significant share of The Bahamas’ boating market has, or is in, the process of diverting away from this nation over the new and increased boating fees - anchorage fees and a separate fishing permit fee - that were introduced with the 2025-2026 Budget, plus the greater uncertainty and ‘red tape’ involved in obtaining these permits and clearing into the country.

Other complaints centred on how the fees and regulatory changes were implemented, and the lack of warning and consultation with the boating industry. While there were no objections to paying fees, and ensuring the Government gets its fair share, many boaters are now arguing that The Bahamas is too expensive and not worth the visit.

“Here is an up-to-the minute real time situation in The Bahamas,” Mr Maury said in a Facebook posting earlier this week on the fall-out. “AIS (automatic identification system) is tracking a 40 percent decline in vessels visiting The Bahamas and a 26 percent increase in vessels visiting the Caribbean.

“This means all the jobs in hospitality such as taxis, restaurants, hotels, bars, grocery stores, fuel docks, boat washers, marinas and many other Bahamians will have a bleak Christmas…. Roads and airports don’t matter when tourists are boycotting the country. People need jobs and money. Ain’t no one eating asphalt for Christmas dinner.” And it is not just Mr Maury who is suffering.

Among the 221 replies to the ABM chief’s posting was Ian Rademaker, principal of East Bay Street-based Harbourside Marine, who revealed that business volumes have plunged by more than 40 percent with 2025 marking the first decline he has suffered in 25 years.

“I own Harbourside Marine in Nassau,” he wrote. “We are the largest marine store in the country. We have seen a huge decrease in cruisers this year and it has severely affected my business. The difference is night and day, and it's more than 40 percent down.

“I employ 55 Bahamians who rely on the cruisers for their living. Without them, we will have no choice but to downsize. We have had growth for the last 25 years until this year. We are going backwards now.”

Other posters were just as blunt. Alex Wassitsch wrote: “As a hospitality worker who is on the ground I will tell you right now that this government has taken food off my table. Their maritime policies have negatively impacted my earnings in a major way.

“Where we used to see three to five super yacht groups a week we are now seeing three to five super yacht groups a year. These people spend and tip very well and are sorely missed. The Government of The Bahamas has caused harm to every Bahamian that works with our maritime industry.”

John Loos, describing himself as a Bahamas property owner, said: “Bahamas was convenient as well as beautiful and welcoming. It currently does not feel that same way to many in US. As a land owner and a property tax payer in The Bahamas for 25-plus years, I have not been there since the new fees for one reason or another. It just doesn’t feel the same - not as welcoming or a valued friend.

“Normally our family spent 90 percent of our vacation time going to our properties in The Bahamas. Instead we have been to Europe several times for probably less than it cost to go to The Bahamas these days. The Bahamas aren’t just competing with the Caribbean. With such high costs, in reality The Bahamas competes with as far as Europe. People started focusing on these costs and what they really were.

“Husbands that convinced their wives to go on fishing trips are now going to new spots, make new connections and friendships. The Bahamas will always have a special place in my heart, but currently among many regulars it doesn’t feel the automatic go to it once was. I hope the Government can get that charm back and make Floridians feel more appreciated and welcomed again,” he added.

“It is a slippery slope they are on, and without drastic policy change I only see it getting worse, sadly. Buying a new boat and the thought is to ship across the pond and explore new areas. Five years ago never would have thought that.”

Others noted that The Bahamas had gone from charging $600 for a cruising permit, which included a fishing permit and no anchorage fee, to a $1,000 cruising permit fee, $350 anchorage fee and $300 per month fishing permit fee. The ‘temporary’ 12-month cruising permit fee for a vessel below 50 feet in length has risen from $300 to $500, a two-thirds or 66.67 percent rise, with those between 50 feet and 100 feet seeing an increase of similar magnitude from $600 to $1,000. Anchorage fees range from $200 to $1,500 “for foreign pleasure vessels not mooring at a marina”, and are again linked to vessel size.

The two-year frequent digital cruising card (FDCC) has gained traction with boaters. Mr Maury, in his analysis of the US Virgin Islands’ enhanced boating prospects, wrote that marinas in St Thomas and St John are reporting a 20-25 percent increase in inquiries. “The Bahamas’ winter charter share dropped from 36 percent to 28 percent in 2024–2025; US Virgin Islands’ rose to around 12-15 percent, per IYC’s mid-year report,” he added.

“Each charter yacht supports five to ten local roles - crews, brokers, guides. With 1,500–2,000 vessels annually eyeing US Virgin Islands, up from 1,200 pre- 2025, this could add 1,500–2,500 jobs, concentrated in St Thomas’ Crown Bay Marina and St. John’s Coral Bay. The Virgin Islands Professional Charter Yacht Association (VIPCA) notes a 10–15 percent uptick in crew hires for 2026.”

The ABM president added that the US Virgin Islands had passed the Marine Charter Business Revitalisation Act to provide ten-year tax relief for operators, in direct contrast to The Bahamas’ fee “hikes”, and said this “positions US Virgin Islands as a ‘winner’ in the Caribbean yacht rerouting, with projected 15–25 percent sector growth in 2026, adding $100m-plus economically and 2,000-plus jobs”.

Speaking subsequently to Tribune Business, the ABM president said: “Every marina and support business is calling me and asking me what we are going to do? I said that I don’t make the laws. We’ve talked to the ship yards, the boat yards, the marinas, the hotels… people have genuine concerns. Just like we said would happen has happened.

“It’s not looking good at all. Some of the major marinas, and I don’t want to name any names as everybody likes to protect their business, are not even sold out. Harbour Island is empty. Harbour Island is normally full for Thanksgiving. They’re empty and it’s not just the marinas. It’s the store owners. They’re not coming into the shop, the deli, the liquor store. They’re not going to buy ice and they’re not going to the fuel dock.”

Speaking to his own Bay Street Marina, Mr Maury said: “I have boats staying with me but I’ve discounted the rates; the storage rates. I’m negotiating with a 100-foot yacht, saying bring the boat over and just sit in the slip, and we’ll discount the dockage; just buy water and use the facilities. They’re like: ‘It’s not worth it. We’ll go get a slip in the [Florida] cays, and pay less for fuel and groceries’. I’m like I can’t compete with that.

“We’ve done it to ourselves. Everybody can say what they want about a recession. I’ve heard every excuse in the world, but why are we seeing a 25 percent increase in the Caribbean if that’s the case.” Some commentators, though, did voice scepticism in their replies to Mr Maury’s post.

Donald Campbell wrote: “So the logic is that an owner of a million or so dollar yacht will bypass us and pay more in fuel, time etc to go further south than spend a few dollars more in the beautiful Bahamas?

“OK, let’s agree that is true. So, to get your way or word out you denigrate our government and country to the internationals instead of influencing or negotiating with government? On the flip side, the US increased visa fees: Did more or less people seek visas? Sorry, poor messaging.! Try another narrative because you just ain’t making sense at this time.”

Others suggested relying on AIS data may give a false impression as not all vessels may have switched their transponder on. K Christian Rolle wrote: “Most of the dots in The Bahamas are by Nassau. It's expected. Those other islands in the eastern Caribbean are individual countries mostly.

“Nassau may still have more vessels there but they look like a few single dots perhaps due to how small it is. Look at Florida. You mean to to tell me Florida has less vessels than the Caribbean? Zoom in on Florida.”