The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

HIGHER air fares and additional fees risk undermining The Bahamas’ tourism growth by forcing visitors to weigh the cost of travelling to this nation against competing Caribbean markets, industry executives have warned.

Patrick Harrington, chief executive and managing partner of Exuma’s Peace and Plenty resort, said the country’s dependence on air and sea transportation makes the cost of access fundamental to its tourism competitiveness.

“The reality is, the country is a set of islands which means the only way people can get there is by air or by sea,” Mr Harrington said. “They can’t drive there. And we know the vast majority of the people who are coming are coming by air.”

His comments come amid proposed new and increased fees at Georgetown, Exuma, North Eleuthera and Governor’s Harbour airports from January 1, 2027, which would add $66 directly to the cost for international passengers and $33 for domestic travellers before existing Government charges are included.

Mr Harrington said air fares to the Family Islands are already high and influencing visitors’ destination choices. He pointed to American Airlines fares between Miami and Georgetown, Exuma, which he said have reached $1,700 to $2,000 round-trip for a weekend despite the flight being only about 45 minutes.

Even where lower fares are available, he said, a $500 to $600 round-trip ticket represents a significant cost before a visitor has spent a dollar in the Bahamian economy.

“If you’re talking about adding, potentially for international flyers, another $130 or $150 in fees on to an already expensive air fare, undoubtedly that’s going to cause visitors to look elsewhere or to look for places where they can drive in the United States,” Mr Harrington said.

He argued that policymakers should consider the wider economic activity generated by affordable access and travel. “The reality is, if it is made cost effective for passengers to get to The Bahamas, whatever that fee is… let’s say the fee is $60, $120, people most likely are going to spend $50 to $100 times that on their vacation, on their trip in The Bahamas,” he said.

Mr Harrington warned that if higher travel costs lower demand, hotels will have to consider discounts, promotional packages or lower room rates to remain competitive. “If it turns out that people are going to other destinations, then we would be forced to do that,” he said.

However, Mr Harrington added that Family Island hotels have less room to absorb higher travel costs through rate reductions because of their elevated operating expenses.

“Unfortunately we have very high operating costs of operating on an island, especially in the Out Islands,” he said. “So there’s only so much room where we can reduce rates before the business is no longer profitable.”

Mr Harrington said the issue is particularly important for Exuma as the island enters what he believes could be a period of increased tourism investment and growth. He welcomed the construction of the new Georgetown airport terminal, saying the project should benefit Peace and Plenty and the wider Exuma economy by creating the capacity to accommodate additional flights and passengers.

But he cautioned that infrastructure improvements will not deliver their full economic potential if the cost of reaching the destination becomes too much. “There’s more interest and more exposure of the Bahamian Out Islands,” Mr Harrington said. “So I think there are more visitors who want to come, but if they see extremely high air fares, that’s going to dampen that growth.”

Senator Arinthia Komolafe, Opposition spokesperson for energy, utilities and aviation, similarly warned that the proposed increases could compound the high cost of Family Island travel, reduce tourist arrivals and weaken the economies of the affected islands.

She said the proposed $66 international, and $33 domestic, charges would come on top of existing government taxes, levies and fees, potentially bringing the combined charges to $105 for international passengers and $70 for domestic passengers.

“The proposed increase in aviation fees will only make a challenging situation worse and potentially impact our competitiveness as a tourist destination,” Mrs Komolafe said. “More importantly, it has the potential to keep Bahamians away from their families, put Family Island travel beyond the reach of the masses, reduce tourist arrivals and adversely impact the economies of these islands.”

The Government has said it is reviewing the proposed fee structure with Island Airport Development Partners (IADP), the private operator for the three airports, and industry stakeholders. Dr Kenneth Romer, director of aviation, said the Government is seeking to balance the commercial sustainability of the airports with affordability for Bahamian travellers, private aviation operators, commercial carriers and visitors.

“Any proposed fee structure must be reasonable, transparent and consistent with the country’s wider airlift and tourism objectives,” Dr Romer said.

The issue follows warnings from Bahamian aviation operators that the new charges are likely to be passed directly to travellers through higher ticket prices. Aviation operators argued, the effect of passenger charges, airline fees, landing fees and other costs could make the Bahamas less competitive against destinations such as the Dominican Republic and Turks and Caicos.

Charlotte Green, Coalition of Independents (COI) chairman in a public appeal to JoBeth Coleby-Davis, the minister responsible for aviation, argued that the increases could put domestic air travel further out of reach for ordinary Bahamians. She pointed to families travelling for medical care, to visit relatives and for business, arguing that inter-island air transportation is an essential part of life in The Bahamas.