The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The world’s largest private pilot body has warned the Prime Minister “there is no question The Bahamas will lose its competitive advantage” unless it tackles “egregious fees” and other obstacles to general aviation.

Mark Baker, president and chief executive of the Aircraft Owners and Pilots Association (AOPA), which represents between 300,000 and 400,00 plane owners and pilots, told Philip Davis KC in a July 17, 2024, letter that the combination of increased Customs and airport fees, together with the prospect of a more complex entry process, threatens to undermine this key tourism industry segment.

AOPA, whose 2022 intervention helped to halt the imposition of Customs’ Click2Clear border control system on general aviation, issued its warning as the backlash against the newly-introduced higher Customs fees and Bimini airport fees gained escalating momentum on private pilot social media forums with even Bahamas flying ambassadors voicing reservations.

The general consensus among pilots posting in the Bahamas Flying Forum page on Facebook is that the fee hikes have made Key West a far more attractive destination, while challenging why from July 1, 2024, they now have to pay more in “inbound” and “outbound” fees to Customs than a Boeing commercial jet airliner. The mix of higher Customs and new airport fees has been branded “the perfect storm”.

Charlie Beliveau wrote: “We went to Staniel Cay last two years. Probably pumped $5,000 each year into the local economy. The new fees are a small part of that, but I don’t think I should be punished for visiting. An A36 doesn’t cost The Bahamas any more than a 172 in services. Especially when four seats are empty. I’ll go place where we are welcomed. Signature at Key West just became reasonable.”

In one thread, a pilot brands one aircraft model having “to pay double” in Customs fees what another has to, even with two extra empty seats, as “what a BS”. They added: “I know $300 is not a crazy amount but a weekend trip makes less sense. I’m sure that there are still other fees and roadblocks. Looks like The Bahamas want to turn into Haiti. They are on good way.”

After being informed that departure taxes and other fees will also be levied, the same pilot, Marcin Drygala, replies: “So now my trip just for fees is $450 before parking and fuel. They should realise that we pilots will just give it up for now. I think that pushed the short flying over the edge. I’m sorry for guys that owned properties in there and fly for weekend couple of times a month. That’s gonna hurt.”

Pat O’Brien replied: “Over $200 in Customs fees only for a weekend visit for two people in a four-place plane will certainly impact the number of visits. To bad, because the people of The Bahamas need more, not fewer, visitors.” 

And Greg Piehl added: “I certainly hope that AOPA and others will help reduce or rescind these new fees. As a new Flying Ambassador, it’s gonna be tough to bring visitors for long weekends. I’m doing my part by promoting, but we need help from The Bahamas’ Ministry of Tourism, too.”

Other pilots were more blunt. “Now.... boycotting The Bahamas,” Mark LaFlemme wrote. Another asserted: “We did about ten Dorian help flights. No more Bahamas flights. For now, ramp fees at Key West begin to look reasonable.” Some even sought to contact the Prime Minister personally.

“I fly a Grumman Tiger four-seat aircraft. Last year I flew to Georgetown, Exuma, for a week-long vacation at Sandy Bum. My new wife and I had planned a honeymoon trip to The Bahamas in October 2024. However, the imposition of the new $150 arrival and departure fees is excessive,” Robert Reed wrote in a letter to Mr Davis.

“I can spend that $150 as a Bahamian tourist or I can spend it in Florida. I will not be spending it on fees. I request you rescind the excessive fees if you want American general aviation tourists supporting the local economy.”

AOPA’s top executive summed up pilot sentiments in his letter to the Prime Minister. While acknowledging that the imposition of some new fees will be necessary to finance planned upgrades to Family Island airports, Mr Baker argued that those levied on private plane owners and pilots should be “twice as much” as those faced by commercial airlines who will be the main beneficiaries of any improvements.

“I write today to urge you to intervene and rescind the imposition of new and egregious fees being imposed by the Bahamian government on private pilots flying to and from The Bahamas,” he wrote to Mr Davis. “We believe recent actions by Bahamian authorities with respect to these fees will have a negative impact on a sector of the tourism industry that has contributed heavily to the economy of The Bahamas.

“We remain hopeful that the appreciation for the value of general aviation tourism is not in question. General aviation tourism doesn’t need massive airport improvements similar to those that the airlines request or require. While we understand some fees are necessary, we also believe private pilots shouldn’t have fees imposed on them that are twice as much as those imposed on commercial aircraft.”

Asserting that tourists arriving by private plane spend “more than double those arriving by private boats and cruise ships”, Mr Baker also voiced concern that “Customs’ Click2Clear programme that was put on hold a few years ago remains confusing and cumbersome, and will needlessly complicate the process for travelling to your country if implemented in its current form”.

He told Mr Davis: “With these new aviation fees, along with a complicated entry and departure Customs process and the impending privatisation of airports, there is no question that The Bahamas will lose its competitive advantage as a key destination for private pilots flying to the Caribbean.....

“The Aircraft Owners and Pilots Association (AOPA), representing hundreds of thousands of private pilots, has for many years promoted The Bahamas as a destination and has worked closely and effectively with your tourism department led by Greg Rolle. AOPA also stepped up recently and supported travel to The Bahamas when the US government issued a travel advisory.

“I look forward to working with you to resolve these matters, and to help ensure our relationship with The Bahamas and mutual support for general aviation remains strong and robust.” The private pilot backlash comes amid complaints that the sector was blindsided, and never consulted over, the extent and timing of the Customs fee increases which took effect when the new fiscal year began on July 1.

The Customs Management (Amendment) Regulations 2024 changed the aircraft inbound and outbound fee structure such that it appears a private plane with more than four seats now pays three times’ what a regularly scheduled commercial jet does.

Under the new fee structure, commercial jets have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150.

That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but cargo flights will see a $150 fee levied on both “inbound” and “outbound” trips involving The Bahamas.

For private planes and private aviation, the fee increases represent a three-fold and six-fold increase, respectively, on the previous Customs fee structure which was $50 “inbound” and zero “outbound”. Meanwhile, the Customs fee increases have coincided with the new and higher charges levied by Bimini’s new private airport operator, which also took effect on July 1.

These have imposed a range of landing and parking fees on private aviation operators, as well as commercial airlines, along with new passenger facility and processing fees. These are being viewed as setting a precedent, and a foretaste of further fees to come at other Family Island airports when the Government outsources their redevelopment to other private operators and investors.

Bimini Airport Development Partners (BAPF), in an updated May 3, 2024, notice to commercial, charter and private aviation customers, served warning of its intent to impose a passenger facility fee on travellers from July 1, 2024, this year. These fees were set at $20 for domestic travellers, and doubled to $40 for international passengers.

Meanwhile, the passenger processing fee was pegged at $5 for domestic, and $10 for international, travellers with both categories also having to pay a $1 “passenger levy”. In total, these additional fees come to $26 for domestic passengers and $51 for their international counterparts, and are on top of the $29 per head departure tax.

The BADP fee schedule then reveals that the passenger facility fee is being increased to $25 for domestic travellers, and $45 for international passengers, with effect from January 1, 2025. And the passenger processing fee will rise to $6 for domestic, and $12 for international, travellers with effect from that same date. Thus persons leaving Bimini to travel outside The Bahamas will have to pay an extra $58.

Kerry Fountain, the Bahama Out Island Promotions Board executive director, yesterday expressed hope that AOPA’s intervention may cause a rethink on the scale of the fee increases facing private aviation. “I just hope it’s not too late to pull on to the side of the road, recalibrate and get it right,” he told Tribune Business.

Mr Fountain previously told Tribune Business that private planes brought 323,000 air arrivals, or one out of every six higher-spending stopover visitors, to this nation in 2023. Some 95,000 of that number came from Florida alone and, giving an insight into what is at stake, he added that the total was more than combined visitor numbers from Canada, Europe and Latin America.

Private aviation visitors also tend to visit the Family Islands less frequented by commercial jets and their passengers, thus helping to spread tourism’s impact across The Bahamas through spending on resorts, transportation, restaurants, tour operators and other sector players.

The Customs fee increases associated with aircraft declarations tie-in with the Government’s Budget position that certain fees were to be increased to cover the costs associated with providing public services. They also align with the Davis administration’s policy, unveiled in the prior 2023-2024 Budget, of seeking to increase fees on foreign visitors to The Bahamas while minimising those on Bahamians.

The Government likely perceives the general aviation industry as having deep pockets, viewing private plane ownership and use as a sign of wealth, and able to easily absorb the fee increases laid out in the Customs Management (Amendment) Regulations 2024. These also include a $2,500 fee that will be levied if an aircraft declaration is submitted less than one hour before the plane arrives in The Bahamas.

Bimini’s private airport consortium has also defended its fees schedule, arguing that both private and commercial aviation as as well as their passengers have been under-charged for its use and services for many years, which is why the facility has deteriorated. The new fees are thus required to finance the airport’s $80 redevelopment.

But the concern, as highlighted by the postings in the pilot social media forums, is that general aviation is a “fickle” sector where principle matters more than cost. While being able to afford the new fees is not an issue, if pilots and their clients believe they are being exploited or taken advantage of they will seek out new destinations because, as plane owners, they simply can.

There is also the feeling that the Government is focusing solely on reviving Family Island airports, and is not looking at the bigger picture beyond the airport fence and the spending impact private pilots, plane owners and their guests have in the communities they visit.

Rick Gardner, a Bahamas Flying Ambassador and director of CST Flight Services, in an e-mail to other pilots wrote: “As I am sure that you are all aware, there are a number of issues facing general aviation tourism to The Bahamas that have presented themselves over the last several months.

“These issues include the privatisation of airports and their new fee structures, as well as the introduction of increased fees by Bahamas Customs. Many of us have heard stories of pilots being caught by surprise by the new fees and the negative perception that this is causing. Also, Click2Clear is raising its ugly head again which would just make for the ‘perfect storm’ to drive away general aviation pilots.

“Unfortunately, those with the most to lose are those hard-working Bahamian families that depend on tourism. As we well know, general aviation tourism is an important market for The Bahamas and, given our flexibility, we can take tourism dollars to places in the archipelago that airline passengers can seldom get to,” he added.

“However, with increased fees and complexity, it will make it progressively harder as Bahamas Flying Ambassadors to look our fellow pilots in the eye and convince them to come..... I fear that all of us who have put our credibility on the line and gone out of our way to promote The Bahamas to pilots will start to catch some blowback.”