The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

Foreign Affairs Minister Fred Mitchell said the Davis administration is “deeply concerned” about the knock-on effects of the marina tax on the tourism sector, but cautioned that the issue is not as “simple as it appears”.

Mr Mitchell addressed the matter in an audio statement on Wednesday, following comments made by Opposition Leader Michael Pintard during a side interview with reporters at the Boxing Day Junkanoo Parade.

Last week, Deputy Prime Minister Chester Cooper announced a review of the “competitiveness” of recent boating fee hikes and accompanying regulations. The move came after mounting complaints from members of the boating community and the cancellation of the Bahamas Charter Yacht Show.

“The marina tax issue is not as simple as it appears,” Mr Mitchell said. “The deputy prime minister said the matter is being reviewed, and I can tell you all of us in the government are concerned — I would say deeply concerned — about the knock-on effects that this has on the tourism sector.”

Mr Mitchell said he has heard directly from contacts in West End and Harbour Island that marinas are empty and business activity has been affected. However, he stressed that fiscal responsibility and environmental considerations must also be taken into account.

“However, I’m also acutely aware of the adverse impacts that tourism has on our environment and the need to collect the appropriate economic rent that reflects the impact and use of these resources,” he said. “The question is what is the happy medium? So let’s not jump too quickly to conclusions to condemn the tax, but we ought to try genuinely and reasonably to solve this issue.”

The deputy prime minister’s promise of a review was broadly welcomed by Bahamian maritime and tourism industry stakeholders.

The Association of Bahamas Marinas described the announcement as an encouraging sign, saying it presents an opportunity to rebuild and strengthen the sector.

“We look forward to working collaboratively with the Government to develop a process that is both economically viable and operationally efficient, while supporting sustainable growth and long-term success for the sector,” the association said.