The Tribune

By YOURI KEMP

and NEIL HARTNELL

Tribune Business Reporters

Bahamian marina operators yesterday warned that proposed boating fee hikes will "definitely put people off" despite the government cutting some levies by up to 60 percent.

Peter Maury, the Association Of Bahamas Marinas' (ABM) president, told Tribune Business that the industry felt negotiations over up to near seven-fold fee increases - which were announced in last year's budget - had never been completed due to the interruption provided by Hurricane Dorian.

He revealed that the association believed the increases to still be too high, and that it was seeking further reductions, even though the Ministry of Tourism has gone ahead and revealed the new fee schedule on its website - a development that is now being picked up by international boating and yachting media.

The new schedule contains a two-tier structure, with separate fees for a three-month and annual stay cruising Bahamian waters. Yet Mr Maury told this newspaper he and the association would prefer a six-month and annual fee schedule, not a quarterly charge.

"We never finished the negotiations with the government," Mr Maury said. "We wanted to negotiate a better rate, and we were supposed to meet. Because of the storm we never met again after we sent our initial letter to the government on their initial proposed fee rates. We wrote a letter and said the fees were too high, and can we come into something more agreeable."

He revealed that the government was initially proposing that large boats of 200 feet and over were going to be charged $5,000 for an annual permit, but this was negotiated down to the current $2,000.

Mr Maury said he never knew the government had finalised the fee structure, and no communication was given prior to the Ministry of Tourism publishing it on its website.

"Definitely I think the price hike will put people off," he added. "The bigger boats are the ones we want to keep the most, and they are the ones that are going to be hit the hardest.

"We particularly wanted the fee schedule broken down by six months to a year, and not three months to a year. The point is to keep these boats here in The Bahamas. The longer they spend here the more money they spend in The Bahamas."

According to the Ministry's website, the fees for boats entering The Bahamas will be increased from the current $150 for boats up to 35 feet in length and $300 for larger vessels.

The new fees, to take effect from January 1, 2020, are:

Boats Up to 34 feet: $150 for three months; $300 annually;

Boats from 35 to 100 feet: $300 for three months; $600 annually;

Boats from 100 to 150 feet: $500 for three months; $1,000 annually

Boats from150 to 200 feet: $800 for three months; $2,000 annually

Boats over 200 feet: $1,000 for three months; $2,000 annually

The Ministry's website added that the fees will cover a cruising permit, fishing permit, and the departure tax for up to three persons. "Each additional person above three will be charged a $20 departure tax. This fee is good for a second re-entry within a 90-day period," it said, adding that special arrangements must be made with Bahamas Customs and Immigration for staying longer than 12 months.

One marina operator, who chose to remain anonymous, said they were aware fee changes were going to be made since the 2019-2020 budget, but had heard nothing further until Tribune Business made contact and made them aware.

Another industry operator, who also chose to remain anonymous, said they were made aware of the proposed changes and that the Marina Operators Board had circulated some e-mails about it, but they have not been involved in the decisions that would ultimately determine the fee scale.

Marlon Johnson, the Ministry of Finance's acting financial secretary, yesterday told Tribune Business there had been consultation with the marina industry on the fee increases.

"We did consult with them over the development of the fee schedule, so we did get some feedback. We shared with them what our aims were and had some discussions," he said.

Neither Renward Wells, minister for transport and local government, nor minister of tourism, Dionisio D'Aguular, who was travelling, could be reached for comment up to press time.

K Peter Turnquest, deputy prime minister, told a post-Budget briefing in late July that the Government could generate between $20m-$50m in extra revenue from fully collecting all due cruising permit and yacht charter fees.

"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".