The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian marinas have warned the Prime Minister that up to 1,500 Bahamian jobs are “at risk” from the 40 percent decline in boating traffic amid signs of progress towards an acceptable compromise for both the Government and private sector over the Budget fee hikes.

Peter Maury, president of the Association of Bahamas Marinas (ABM), in a letter to Philip Davis KC’s office that has been seen by Tribune Business, called for reforms that will slash the time taken for visiting vessels to clear Customs and Immigration by up to 87.5 percent as he urged “swift corrective action” to maintain this nation’s competitiveness.

Asserting that more than 60 percent of visiting yacht captains surveyed by the ABM said they were choosing alternatives to The Bahamas because of “the complexity and length of the clearing process”, Mr Maury argued that this nation needs to cut the time required to complete this from up to eight hours down to one by “simplifying and digitising” its systems.

The Association weighed in amid ongoing negotiations between the Ministry of Finance and tourism industry over adjustments to the new and increased fees, as well as cruising permit changes, that accompanied changes to the 2025-2026 Budget and were implemented on July 1. While all sides were last night tight-lipped, and not commenting publicly, this newspaper understands progress is being made following the second of two meetings yesterday.

Well-placed sources confirmed that yesterday’s encounter was a follow-up to last Thursday’s meeting between Simon Wilson, the Ministry of Finance’s financial secretary, and multiple private sector representatives who included Jackson Weech, the Bahamas Hotel and Tourism Association’s (BHTA) president; Don Williams, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman; and Chantelle Sands, the Abaco Chamber of Commerce president.

With boating business “looking quite dismal” for the Christmas/New Year period and peak winter season, this newspaper understands that the private sector supplied a number of recommendations for changes to the two-year frequent digital cruising card (FDCC) and one-year cruising permit. There were also suggestions that the Government introduce a six-month and 30-day cruising permits to accommodate more short-stay visitors.

One contact, speaking on condition of anonymity, added that “a new fee structure” was proposed along with suggestions that the present framework be “suspended” while new levies are slowly rolled-out during the 2026 first quarter. It is unclear, though, whether the Government would accept such a strategy given the precious revenue that would be foregone by the Public Treasury.

Tribune Business understands that the back-and-forth negotiations between Mr Wilson and the same private sector representatives continued yesterday. The meeting is thought to have ended with the tourism and Chamber executives now set to present the outcome of what was discussed to their respective members as early as last night.

They will then report back to Mr Wilson and the Ministry of Finance today and see if an agreement with the Government on any fee and regulatory revisions, plus the way forward for the boating industry, can be sealed. However, even if a consensus is reached, it will likely require the approval of the Davis administration’s Cabinet which, with the Christmas holiday intervening, is unlikely to occur before next week.

“The meeting was very positive,” one source, speaking on condition of anonymity, said of yesterday’s encounter. “The Government is willing to move on what makes sense.” Another added: “There is movement but still can’t comment while negotiating.”

Tribune Business understands that the two sides are seeking to strike a balance, or find the proverbial ‘sweet spot’, where the Government generates sufficient revenue from the boating sector to help finance environmental preservation, marine resources management and ensure visitors pay their fair share in taxes. The private sector, while backing these goals, wants to ensure the level of the fees and how they are introduced does not scare boaters away.

While The Bahamas’ new two-year frequent digital cruising card (FDCC) has gained traction with boaters, others have pointed out that The Bahamas has 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. And the new anchorage fees range from $200 to $1,500 “for foreign pleasure vessels not mooring at a marina”, and are again linked to vessel size.

Mr Maury, in his letter to the Prime Minister, warned that the “economic ripple effect” from the $25m revenues lost by Bahamian marinas due to the decline in boating traffic will also slash government taxes by up to $10m from reduced VAT, Business Licence and other income sources.

“I write on behalf of the Association of Bahamas Marinas and the Bahamian-owned marinas, boat yards and marine service businesses we represent to bring to your immediate attention a critical issue that is severely impacting our industry and the broader Bahamian economy,” the ABM president told Mr Davis.

“Recent industry data and marina operator reports indicate that The Bahamas is losing approximately $25m in annual direct marina revenue due to the combination of high taxes, fees and an excessively complicated and time-consuming clearing-in process for cruising yachts and charter vessels.

“This figure does not include the additional multiplier effect on local employment, fuel sales, provisioning, repairs and other marine-related spending and supportive businesses.” Mr Maury said charter yacht calls “at major Bahamian marinas” had declined by 38 percent between 2019 and 2024, with cruising yacht arrivals falling by 42 percent over the same five-year period.

He added that cruising yachts spend an average $18,000 to $22,000 for a seven to 14-day stay at Bahamian marinas, including for the provision of dockage, power, water, fuel, repairs and provisions. And charter yachts spend an average $45,000 to $60,000 per week.

Based on the spending declines, and the 40 percent reduction in boating traffic, Mr Maury wrote: “With approximately 1,800 fewer cruising yachts and 450 fewer charter yachts visiting Bahamian marinas annually compared to 2019, the direct revenue loss to marinas alone is conservatively estimated at $24.5m to $26.3m per year and more in the local economy….

“The $25m direct marina revenue loss translates to approximately 1,200 to 1,500 direct and indirect jobs at risk in the marine sector; $8m to $10m in lost government tax revenue (VAT, Business Licenses and other levies) from reduced visitor spending; a weakened competitive position against regional neighbours, threatening The Bahamas’ status as the premier yachting destination.”

Mr Maury argued that the 10 percent VAT rate imposed on marina dockage, fuel and services “is among the highest in the Caribbean”. He added: “Competing destinations such as the British Virgin Islands, St Maarten and Antigua charge 0–5 percent VAT on similar services.

“The $300 to $2,000 annual cruising permit fee (depending on vessel length), combined with mandatory Immigration and Customs processing fees, anchorage fees and fishing permits adds significant cost.”

Asserting that price is not the only concern, Mr Maury called for a more efficient, seamless and less lengthy clearance process into The Bahamas for visiting boats and yachts.

“Average clearing-in time in The Bahamas is four to eight hours, sometimes requiring overnight stays, compared to 30–90 minutes in competing jurisdictions,” the ABM president argued.

“Over 60 percent of surveyed yacht captains report choosing alternative destinations due to the complexity and length of the clearing process. This results in lost overnight stays, fuel purchases, and provisioning revenue.”

Mr Maury urged the Government to “reverse this trend” by targeting a “maximum one-hour” clearance time by simplifying and digitising the process, as well as the payment of charter licences and fees “at a competitive rate” such as 6 percent. He also called for a “tiered cruising permit fee” with a discount for vessels which spend a minimum number of days in The Bahamas, and a “temporary VAT exemption on marina services for the next 18-24 months to stimulate recovery and regain market share”.

The ABM chief concluded: “The $25m annual revenue loss is not sustainable, and corrective action now will protect jobs, restore competitiveness and ensure that The Bahamas remains the world’s leading yachting destination.”