The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A departure tax increase that would replace some of the 2013-2014 Budget’s new and increased aviation fees appears to be “an acceptable position” for all sides, said Tourism Minister Obie Wilchcombe, telling Tribune Business that the Government was expecting a “greater return” with respect to air arrivals.

In a recent interview with Tribune Business, Mr Wilchcombe said: “We want to make sure that the airlift numbers increase. It’s one thing to say look at the new rate, but that rate has to be predicated on your deliverables and we’re expecting a greater return.”

He added that dialogue between tourism industry players and the Government was ongoing.

In July, organisations such as the Airlines for America coalition, which represents key operators such as Jet Blue, Delta and American Airlines, warned that its members “may be forced to reconsider their service levels to the Bahamas” if the new aviation fees were not adjusted.

The higher fees and taxes included a $75 fee to be paid by commercial and private pilots when landing in and departing from the Bahamas. There was also an additional $50 fee for the processing of forms by Customs, and a $50 fee to refuel.

“The way they are suggesting is the possibility of adjusting or replacing the existing fees with an increase in the departure tax for passengers. We’re working with the airlines, the Bahamas Hotel Association. All the stakeholders have been sitting and talking. I think that’s an acceptable position by all right now, but of course you have to wait and see what happens and we’re continuing the dialogue,” said Mr Wilchcombe.

“This is the time to move. We have to be in place. We have to have the airlift and inventory in place, and if we have those in place we are likely to benefit handsomely.

“If you don’t move now you’re likely to be running behind those other countries, the competitors, who are moving with haste. This is a critical time now for us to be in the game as the economy begins to turn.

“Everything that happens in America and other parts of the world, we are affected by it, but more particularly the United States and the eastern seaboard. We have over the last 10 years depending heavily on the North American market, so if we’re going to change that scenario we have to ensure that there is a comfortability with the airlines.”