The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

ELEUTHERA resort operators are branding new and increased airport fees “a double-edged sword” amid private aviation concerns that they represent a near-doubling for several popular aircraft types flying into Governor’s Harbour.

Ben Simmons, proprietor of the Little Island Hotels group, which features the Ocean View and The Other Side resorts on Harbour Island, plus The Farm on mainland Eleuthera and soon-to-be-fourth in The Current, told Tribune Business he was “definitely torn” by the charges due to take effect from New Year’s Day 2027 given the need to balance improved airport and airlift capacity with traveller access and affordability.

He spoke out as CST Flight Services, whose director is Bahamas flying ambassador, Rick Gardner, and which provides flight co-ordination and trip support services to the private aviation industry, warned in a September 4, 2026, website posting that the proposed fees represent 84 percent and 92 percent increases, respectively, for popular aircraft flying into Governor’s Harbour.

Noting that the proposed charges “significantly increase the cost of operating at” all three impacted airports - North Eleuthera, Governor’s Harbour and Georgetown (Exuma) - compared to existing levies for private and all aviation industry operators, CST Flight Services said: “We modelled a Pilatus PC12 (turbo prop) and a Hawker 800 (twin-engine jet) each with four passengers staying for four nights on an international arrival and departure to/from Governor’s Harbour.

“First, we estimated the costs of these two scenarios using the actual 2026 fees in place today, and then we compared the same scenarios with the new 2027 fees that Island Airport Development Partners is reportedly planning for these three airports starting January 2027.

“The costs of each scenario increased by 84 percent for the PC12 and 92 percent for the H25B (Hawker). There are also additional new, significant fees for domestic operations for those operators planning inter-island flights to/from North Eleuthera, Governor’s Harbour and Exuma International Airport.”

Tribune Business revealed last week that Island Airport Development Partners, the group that is upgrading and taking over operations/management at these three airports, is aiming to recover its combined $132m outlay on the trio’s’ new terminals, improved fire crash rescue facilities and enhanced runways plus earn a return on its investment via a 50-year contract.

This concession is structured as a design, build, finance, operate, maintain contract, and is following a tried and tested global model, also used for Lynden Pindling International Airport’s (LPIA) $409.5m transformation, where the user/traveller pays for the improved facility and services. However, many in the tourism and aviation industries are questioning whether the cost, and extent of the fees being charged, are starting to tip the balance against The Bahamas’ affordability as a destination.

CST Flight Services added that “the great unknown” was what impact the Island Airport Development Partners deal will have on the two impacted fixed base operators (FBOs) that serve private pilots and general aviation - White Crown in North Eleuthera, and Odyssey Aviation in Exuma. Tribune Business understands that, while in the past they have rented their locations from the Airport Authority, going forward these deals will be with the private sector consortium.

Likely rental rates, and lease terms, are understood to have yet to be disclosed or discussed. “The great unknown now is what impact this privatisation will have on the existing FBOs in North Eleuthera and Georgetown,” CST Flight Services wrote.

“We fully expect these fees to apply at these airports even if an operator uses the FBO terminal and ramp, so the increases will pass through to everybody using the airport. The remaining question is whether Island Airport Development Partners will increase the rents that these FBOs have to pay the airport operator, which will in turn force the FBOs to also have to increase their fees as well. This would have a doubly negative impact on operating costs at those airports.”

Island Airport Development Partners, which comprises Plenary Americas as lead developer and equity investor, as well as Phoenix Infrastructure, a US infrastructure advisory and investment firm, and Avports, an airport and fixed-base FBO operator, has already taken over management of Bimini’s airport following its $80m investment in improvements there. The fee schedule for its latest three airports mirrors what has been put in place there.

“The strategic location of these four privatised airports with higher fees: Bimini, North Eleuthera, Governor’s Harbour and Georgetown, and the fact that two of them are amongst the few options for fuel in The Bahamas, implies that general aviation operators should be prepared to either pay significantly more for airport fees or reconsider their destinations,” CST Flight Services warned.

“Additionally, those operators planning to use these airports as refuelling stops should be prepared to pay significantly more for their airport fees or choose Marsh Harbour or Stella Maris as alternative options for refuelling.”

This newspaper previously calculated that the new passenger facility and processing fees of $51 and $15 - totalling a combined $66 - when added to the existing $29 per head departure tax, $9 security fee and $1 passenger levy that are paid separately paid to the Government mean that persons leaving Exuma and Eleuthera for international destinations will directly pay $105 for the privilege to do do.

The passenger facility and processing fees paid by domestic travellers are pegged at $25.50 and $7.50 for a total $33 and, when added to what they already pay to the Government (including a $7, rather than $9, security fee, the total works out to $70. These are extra costs that will add to the burden of air fare prices already driven higher by the Middle East conflict and the resulting oil price spike.

Eleuthera resort operators, meanwhile, recognised the need to improve and expand the island’s airports to enable greater airlift and connectivity capacity, and provide a better first and last impression for visitors and Bahamians, but said this needs to be balanced with ensuring the destination remains affordable and cost competitive, and not pricing it out of the market.

“It’s a double-edged sword,” the Little Hotels Group’s Mr Simmons told Tribune Business. “My response to it is different depending on the hat I’m wearing. As a business owner, this is obviously an improvement in service. There’s probably additional value going to be given to guests so I understand there’s a requirement to increase the fees. We’re getting an upgrade, so hopefully we will get facilities and service that matches.

“I’m definitely torn. We need a better facility, but I think the reality is that there’s a limit to how much people can swallow in terms of price sensitivity. I know that for a lot of our clientele, which is the wedding market, there’s 2,000-2,500 wedding guests that come to our resorts per year. That [fee increases] is pretty hard on a decision 20-25 couples make. They are going to be sensitive to price and what they subject their guests to.

“I would definitely be concerned as to what the potential knock-on effect is the affordability position for that market,” Mr Simmons added. “There’s definitely a broader market that is less price sensitive because Harbour Island is seen as a premium destination, but there’s an element that is not ultra-premium. There’s definitely concern for a knock-on effect.

“For what it’s worth, we’ve reason as a destination to be respectful of the quality of airports, there’s got to be recognition that while we need better facilities that has not necessarily made the destination more successful. It’s the quality of the experience. Maybe 1 + 1 = 3 or maybe it does not; it puts people over the limit of what they want to pay.

“I was looking at it the other night; a comparison of what it takes to get to Costa Rica, what it takes to get to Jamaica. Some of those destinations that have high-end weddings. In some cases, we are double the price to get to those locations. It may push the limit out even more,”

Mr Simmons also voiced concerns over whether the new Island Airport Development Partners fees will take effect, and be charged, before travellers can experience the new terminals and improved arrival/departure experience, although the consortium last week told this newspaper all upgrades are scheduled to be completed by 2027.

“I don’t think it’s fair to the community to implement these fees until the facilities are completed and the upgrades can be appreciated by clients and people footing the bill,” he added. “It’s definitely a point of concern.

“Maybe there’s a chance for a higher air drop if people are able to get directly from New York to Eleuthera. In that light, maybe the math makes sense. It’s whether people are willing to pay these fees to come to the destination, particularly if this destination cannot keep the light on and water flowing in the pipes. It’s tough.”

Carlton Russell, the 22-year Atlantis executive veteran who oversaw The Cove Eleuthera’s $64m upgrade as managing director before branching out into real estate, told Tribune Business that “striking the right balance” between competitive and affordable visitor access on one hand, and commercially viable airports on the other, is key to the Government’s Family Island renaissance initiative.

“My initial view is that the proposed fee structure for North Eleuthera and Governor’s Harbour deserves very careful consideration before implementation,” Mr Russell said in reply to this newspaper’s questions. “From the Eleuthera tourism perspective, improved airport infrastructure is both necessary and welcome.

“Modern, efficient airports are essential if Eleuthera is to continue attracting additional airlift, supporting larger volumes of visitors and improving the overall arrival and departure experience. North Eleuthera, in particular, is a critical gateway not only for central Eleuthera, but also for Harbour Island and the wider northern Eleuthera tourism economy.”

However, he added: “The concern is whether the cost of financing these improvements is being placed too heavily and too quickly on the traveller and the airlines.

“Based on the proposed structure reported today, international passengers could face an additional $66 in passenger facility and processing fees, while domestic travellers would face $33 in new charges. When combined with existing government taxes and security-related fees, the total cost of departing these airports becomes significant. In addition, airlines and charter operators will face increased landing, terminal and parking fees, which, realistically, will ultimately find their way into ticket prices.

“For a destination such as Eleuthera, accessibility and affordability are inseparable. Unlike destinations that visitors can drive to, every visitor must absorb the cost of air or sea transportation before they begin spending at a hotel, restaurant, attraction or local business. We are already a relatively high-cost destination, particularly for Family Island travel, and any further increase in the cost of getting here has the potential to affect travel decisions.”

Mr Russell, urging The Bahamas and Island Airport Development Partners to examine the bigger picture, and not look at the latter’s fee schedule in isolation, said: “My principal concern would be the cumulative impact rather than any single fee. A family considering a stay in Eleuthera is already evaluating air fare, accommodation, ground transportation and the overall cost of the experience.

“If airfares increase materially because of these additional airport charges, Eleuthera could become less competitive, particularly among price sensitive leisure travellers who have numerous Caribbean alternatives.

“There is also a potential issue for private aviation and charter traffic, both of which are important to Eleuthera’s luxury tourism market. Increased passenger, landing and parking fees could discourage shorter stays, day trips and discretionary travel,” Mr Russell added.

“The experience in Bimini, which has been cited by several aviation operators in today’s reporting, should at least prompt a detailed examination of the likely demand impact before these fees are finalised.

“That said, I do not believe the answer is to oppose airport investment. On the contrary, Eleuthera needs better infrastructure to support its continued growth. The objective should be to strike the right balance between creating commercially sustainable airports and ensuring that access to the island remains competitive and affordable.”

As to the way forward, Mr Russell added: “From my perspective, I would encourage further consultation with airlines, resorts, tourism stakeholders and aviation operators, together with a proper assessment of the likely impact on visitor demand and airlift.

“It may also be worth considering a phased implementation or alternative fee structure that allows the destination to absorb the improvements without creating a sudden and significant increase in the overall cost of travel.

“In short, the airport improvements are positive and necessary. My concern is that if the cost of accessing Eleuthera rises too far, too quickly, we risk undermining the very tourism growth that the investment is intended to support.”