The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE GOVERNMENT could generate between $20m-$50m in extra revenue from fully collecting all due cruising permit and yacht charter fees, the deputy prime minister said yesterday.

K Peter Turnquest, speaking at a post-budget press conference, conceded it was difficult to determine how much additional income the government will realise as it has not been able to capture the necessary data on the boating market.

“It’s hard to say because we have, quite frankly, been missing that segment. What we think, and what industry tells us, is a significant amount of revenue. We know that there are vessels in The Bahamas cruising throughout,” Mr Turnquest said.

“We know that there are facilitators in the US selling charters. Some of those charters are here and not declaring that they are actually doing charters from The Bahamas. There are others coming over from the US. Particularly in Bimini, this is a problem. They come over for a day fishing and whatever, and don’t declare they are on a charter.

“We are missing all that revenue. The estimates could be anywhere from $20m-$50m. What we have built is a system to track marine traffic, and is going to be able to tell us who has - and has not - paid. It is going to make it easier and more efficient for people to register. Hopefully that will drive natural compliance, and derive the kind of revenue we are seeking.

Mr Turnquest, in unveiling the 2019-2020 budget, confirmed that “government will increase cruising permit fees from $150 on boats up to 34 feet, and $300 on boats 35 feet and over, to a set of rates based on size and length of stay ranging from $150 per three months to $4,000 per year. These rates will become effective January 1, 2020, so as to allow a transition period for the boating industry”.

Marlon Johnson, the Ministry of Finance’s financial secretary, said the government “feels comfortable” that the boating industry can absorb increased cruising permit rates despite marina industry concerns.

He added that the government had conducted benchmarking studies on similar fees in rival Caribbean jurisdictions before unveiling the new structure in yesterday’s 2019-2020 budget.

“We feel comfortable the market can absorb it,” Mr Johnson said. “We anticipate push back from some of the players in the market, but we feel with rates elsewhere in the region the market can absorb the increase.”

The Association of Bahamas Marinas (ABM) said that while it supports the government’s need to increase revenue, it remains “deeply concerned” that proposed fee increases on the boating sector are being announced in an environment where there has been no improvement in important aspects of the industry’s infrastructure.

The government also plans to introduce a single window for the online processing of marine traffic and fees such as cruising permits and yacht charter fees.