The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

FAMILY Island resort operators yesterday expressed serious concern over the potential pull back by the private aviation sector, one telling this newspaper that a major fly-in group had already cancelled, costing that community “tens of thousands of dollars” in revenue.

Molly McIntosh, assistant general manager with responsibility for sales at the Green Turtle Club, told Tribune Business: “We have a group that comes every year, and I work very hard to continue having them.

“We do what we call a lobster Halloween fly-in, and it’s sponsored by the Ministry of Tourism, but the people pay their own way. They come here and spend thousands and thousands of  dollars in the community. They rent golf carts, they rent boats they go out on trips with the dive master, with the fishing guide, they go all through the town, eat at our restaurant and give our employees work during the time that’s otherwise not that busy, which is right at the end of October.

“I was made to understand that they are going to cancel. That’s going to cost our staff. We might now be able to employ people if we don’t have them. They come in and take up every room; it’s big.”

Estimating that the Bahamas received 40,000 private aircraft flights per year, with passengers brought in spending around $1,000 per day over four-five night stays, Jim Parker, president of Caribbean Flying Adventures.com, a top pilot’s guide for planes flying in the region, earlier this week warned that the 2013-2014 Budget tax increases could have a devastating impact on Family Island hotels and associated tourism businesses.

He explained that the Government’s Budget had introduced a new $50 Customs fee payable when a plane arrived in the Bahamas and presents its forms to Customs, and also noted that private aircraft were now being charged $50 for simply taking a refuelling stop in the Bahamas.

Mr Parker said the Bahamas will “conservatively” lose $20 million in tourism revenues if it maintains the new and increased taxes on the private aviation sector, slamming the Government’s policy as “crazy”.

Mrs McIntosh told Tribune Business: “Just this one group alone is going to cost Green Turtle Cay tens of thousands of dollars. What I don’t understand is why we are doing these rebates and then raising the fees; it doesn’t make sense.

“They’re doing a great little island hop promotion where they can come and stay two nights here and two nights somewhere else, which is perfect for these private pilots.

“They get $150 off at each resort. We get back that $150 credit we give them. They love that. We might as well not do that and not increase the fees. I think we would be further ahead. It’s upsetting people; they feel like they’re not appreciated during economic times that are tough.”

Julie Farrington, one of the owners and operators of Island Property Management, a vacation rental business on Green Turtle Cay, said the private aviation sector was vital to the island’s economy.

“I think a major issue is the fact that they did not forewarn anyone,” she said.

“It’s bad business when they don’t give any forewarning. It’s just like a tough luck kind of thing. It’s very hard here because we got hit here in Abaco. They haven’t opened the airport yet.

“That’s an absolute disaster up in Marsh Harbour, trying to get in and out of that airport. I can’t believe they’re going to go up on prices when we’re trying to recover. I don’t think people mind as much when they are forewarned, but there seems to be no discussions  with businesses.”

Sarah Swainson, manager of the Exuma Beach Resort, offered a more optimistic take on the situation.

She  said: “I haven’t received any of those complaints yet. If the fees have gone up, obviously there will be some ramifications. Most of them, especially if they are return visitors, they will be back.

“Once they get Exuma in their systems they have a hard time kicking it. Overall I’m not overly concerned, but I haven’t received any complaints or had any conversations on it as yet.”

Ms Swainson estimated that 20-30 per cent of her resort’s business came from the private aviation sector.