The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Prime Minister Perry Christie yesterday said the Government was losing significant revenues from Abaco’s vacation rental and second home market, with less than 25 per cent registered with the Ministry of Tourism.

Addressing the 13th annual Abaco Business Outlook conference yesterday, Mr Christie said Abaco had delivered more than $41 million in fees, taxes and Customs receipts to the Public Treasury in 2015.

“This, however, was without the requisite Business License, registration fees and VAT contributions for vacation rental sales, emanating from the 250 second homes and rental villas - representing some 780 rooms - registered with the Ministry of Tourism,” he added.

“This number represents less than 25 per cent of the total number of certificates and permits issued for second homes in Abaco with the Bahamas Investment Authority, most of which are neither registered nor licensed with the Ministry of Tourism for commercial operations.”

Mr Christie continued: “This situation should be rectified, and all properties on a nationwide basis should be licensed and, like hotels and other commercial entities, pay licenses fees and taxes to the Bahamas Treasury.

“That is something that should happen and it is not happening. Our developing communities throughout the Family Islands can benefit from increased revenues from home rentals, as many still lack services that would improve efficiencies and quality of life for citizens.”

Mr Christie said the Ministry of Tourism’s registration drive for second homes was now in “full force”.

“This issue is slowly and systematically being addressed,” he added.

Mr Christie said the increased level of economic actvity on Abaco had generated growing demand for a financial services sector on the island, as shown by the number of commercial bank branches.