The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Minister of Tourism has served notice of his intention to change tax 'rebates' for all cruise lines to a system based on passengers that "come off the boat and spend money".

Dionisio D'Aguilar said he has scheduled meetings with all the major cruise lines that call on the Bahamas at next month's Seatrade Global industry conference, reiterating that Government wants to provide tax incentives that encourage the sector to maximise benefits for Bahamians.

Seatrade Global 2018 is scheduled for March 5-8 in Fort Lauderdale, and Mr D'Aguilar said: "I have made appointments to see all of the cruise ship companies to speak with each one of them individually.

"A lot of their contracts are coming up for renewal and we want to make our relationship with them based on not the number of people they bring, but based on the number of people that come off the boat and spend money here."

Mr D'Aguilar conceded that the Bahamas would have to fulfill its side of the bargain to make this happen, which required it to upgrade Prince George Dock and the Welcome Centre, plus provide new, innovative tours and attractions for cruise passengers to experience.

"We have to work together with the cruise ships to make that happen. I think they just bring them here, get their incentive and leave," he told Tribune Business. "They often complain that the port is not a pleasant experience, there is not much for people to do, and that's why people don't spend.

"We want them to help us. This is an important destination for them. This is the largest listed cruise port outside the US. It's important for them to make this work. I'm insistent that they come here. A lot of cruise companies just want to go the the islands they have invested in but that doesn't help many of our brothers and sisters. It is important that they come here [Nassau] and we get this right."

The Minister of Tourism's comments indicate he is seeking to replicate the agreements struck in Grand Bahama, where ferry/cruise ship incentive packages were restructured so that departure tax rebates are based on the volume of passengers brought to that island.

And the rebates are greater, or 'double', for stopover passengers as opposed to 'day trippers'. "The ferry companies will get a rebate on the departure tax based on the type of passengers they bring," Mr D'Aguilar told Tribune Business recently of Grand Bahama. "A day tripper will earn them a smaller rebate than if they bring a stopover visitor.

"In the past these companies would secure marketing deals whereby the Ministry of Tourism would give them a fixed amount, and there was no relationship between performance and pay.

"We want to incentivise them to bring as many passengers as they can, and the more they bring the more they recover, as opposed to marketing support deals. We're trying to move away from these fixed marketing deals that don't reward you for performance... The past deals had no relationship with passengers brought to the island.

Mr D'Aguilar said that the Pointe development which he, Prime Minister Dr Hubert Minnis and other members of Cabinet toured yesterday would offer amenities to lure cruise passengers off the ships. "We have to fix the port which I think is horribly chaotic and provide a better experience to lull them onto Bay Street. We have to provide fun cultural events for them to participate in."