The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The world’s largest private pilot body is renewing warnings of “a tourism catastrophe in The Bahamas” over recently-implemented fee increases that have prompted aviators to discuss “boycotting” this nation.

Mark Baker, president of the Aircraft Owners and Pilots Association (AOPA), which represents between 300,000 to 400,000 private plane owners and pilots, in a November 22, 2024, letter to Bahamian companies that support and benefit from the general aviation industry said the group has stepped up its drive to avoid such an outcome by publishing an alternative to the hiked Customs fee structure.

Reiterating that “many pilots have already stopped flying to The Bahamas”, and others will likely not return while the present fees remain in place, he unveiled an alternative based on an annual as well as one-time entry fee that visiting aviators would pay. The “annual” option, determined by the plane’s weight, would range from $400 to $900 per year and allow an aircraft to enter and exit The Bahamas on “an unlimited basis’.

Private pilots paying the annual fee, including all “inbound” Customs charges, would also receive a waiver on the $30 per head departure tax ONLY if they were using their planes for personal or private use. They would not be entitled to such tax breaks or concessions if the aircraft was being operated for charter, hire or other commercial use.

Under AOPA’s proposal, private aircraft used for commercial purposes would only be entitled to a departure tax waiver “for up to three persons” - the pilot, co-pilot and any flight attendant. All other occupants would pay the $30 departure tax. No annual fee option exists presently, with private pilots and their passengers required to pay every time they enter and exit The Bahamas.

Meanwhile, those private pilots opting not to pay the “annual fee” would instead incur a $50 inbound Customs fee with departure taxes levied on all occupants as normal. A landing fee, ranging from between $15 and $100 and determined by the aircraft’s weight, would also be payable under AOPA’s alternative.

The $50 “inbound” fee would be the same was what was charged prior to the new fee structure implemented on July 1, 2024, while AOPA has increased the landing fees slightly compared to the $4 to $75 sliding scale that previously existed. The advantage of its newly-proposed “annual Decal” fee option is that the Government would receive one ‘chunk’ payment per plane upfront, thus making it easier to police.

Jim Coon, AOPA’s senior vice-president for government affairs and advocacy, yesterday told Tribune Business that the group’s alternative proposal aimed to strike a balance by being “fair and reasonable” to private pilots while, at the same time, enabling the Bahamian government to raise the necessary revenues it is targeting and being “much easier to enforce”.

Reiterating the Association’s disappointment at what it alleges is the Government’s failure thus far to engage with its outreach, and efforts to achieve a compromise that benefits all parties, he added that the fee hikes - which represent three-fold and six-fold increases compared to what was in place before July 1 this year - mean many private are paying more than commercial airlines such as Jet Blue, American and Delta.

“I know that many pilots are extremely upset about these new fees which they put in place,” Mr Coon told this newspaper. “When you’re paying almost as much as a 737, it needs a revisit. 

“Mark Baker and AOPA have reached out to the Prime Minister on a number of occasions, suggested a meeting, and he has offered to come down to The Bahamas in person to see if we can get this resolved m but we’ve never received a response. It’s been one-way contact.”

Calling for all parties to work together to achieve a balanced resolution, Mr Coon added: “I think pilots understand that The Bahamas is a sovereign nation and has the ability to impose fees, and pilots understand fees are necessary to make airport and aviation system upgrades, but they also need to be fair and reasonable.

“The Association has formed an alternative budget proposal that would be much easier to enforce, raises money for The Bahamas and would be fair to pilots. That’s where were trying to get to, and hopefully they [the Government] understand that. The private pilots, the buck stops with them. They can’t pass costs on to customers like the airlines do.”

Explaining that private pilots, and general aviation more widely, are effectively low cost and minimal maintenance in comparison to other parts of the industry, Mr Coon said they did not require the same level of support services as commercial airlines. “Private pilots just need a safe runway,” he added, along with a secure area to protect their planes and a seamless Customs/Immigration process.

“It’s the dramatic impact on businesses in The Bahamas that are going to be affected,” Mr Coon said of the current situation. “Pilots will go elsewhere if they feel they are not being treated properly.

“That is going to impact hotels, restaurant, employees and jobs if pilots stop coming to The Bahamas, and many have already suggested they are. We’ve been trying to work out, and at least start a dialogue, but unfortunately that’s not occurred to-date.” 

This was echoed by Mr Baker in his November 22, 2024, letter to Bahamian businesses and sector supporters, where he warned: “I write today to bring to your attention a critical issue in hopes that, together, we can help avoid a tourism catastrophe in The Bahamas........

“On July 1, much to our surprise, the Bahamian government imposed egregious Customs fees on private pilots. These pilots primarily fly small aircraft and often bring family and friends to visit the islands. They are private aircraft operators and do not fly for hire, but are now being forced to pay more in fees than a major commercial airline transporting hundreds of people.

“Today, under the new Bahamas Customs fee structure, a private pilot flying in a small airplane to The Bahamas as a tourist now pays as much if not more than a Boeing 737 operated by a major commercial airline. These fees on private aircraft are simply unfair, unreasonable and unsustainable.

“Many pilots have already stopped flying to The Bahamas and I suspect many will not return as long as this fee structure remains in place. I have heard private pilots are discussing boycotting The Bahamas until this fee issue is resolved.”

The Government, though, has frequently defended the increases in Customs fees and airport charges as consistent with international best practices and standards, which typically see the users of airport infrastructure pay towards its upkeep and maintenance. It has also argued that many of these fees and charges have not been adjusted for years, decades even, and now need to reflect the cost of providing services.

The Government likely perceives the private pilot/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. They 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.

Thus far, the Davis administration has stuck to its position that the private aviation industry and pilots must “pay their fair share of taxes”, and help finance upkeep of the airport facilities they use, while arguing that there is no justification for the “uproar” over fees that are no higher than $300.

However, multiple private aviation industry participants have frequently warned that the sector is a fickle market where plane owners, private pilots and other participants tend to react negatively if they feel they are being exploited, targeted or taken advantage of because they are perceived as rich.

And they simply have the ability to fly elsewhere to lower-cost stopover destinations such as the Dominican Republic, which offsets higher fuel prices. The industry also felt blindsided by the lack of warning over the planned fee increase, and bewildered by a structure that leaves commercial airlines paying lower charges than many of them.

Bahamian tourism concerns over the potential impact on a large segment of its customer base, especially for Family Island operators, resurfaced at last week’s Long Island Business Outlook conference. Zoe Cartwright, principal at Long Island Bahamas Boat Rentals & Tours, said: “The red tape involved for anything is astronomical, and then there’s fees.

“The landing fees for private planes... A huge percentage of our tourism are private pilots that want to fly in and get away from it all or rent a boat and get away from it all. I don’t know how the new landing fees are going to affect our business this year.

“The new landing fees for the yachts. It’s been fees upon fees upon fees. Yes, The Bahamas has beautiful sun, sand and sea, but if they find it easier and a little less expensive further south, they’ll go further south,” she warned. “Although we’ve been booming for the last few years, this will have a trickle down effect if the Government doesn’t catch it in time. There will be a slowdown all of a sudden....”

Mr Baker, in his November 22, 2024, letter pointed to the “significant” spend that private pilots and their passengers inject into the Bahamian economy, especially in the more remote Family Islands that are less visited by commercial airlines. This segment is among those delivering the greatest yields for Bahamian tourism, with average spending of $2,000-$3,000 “at the bottom of the range”.

“Unlike private flying, major airlines do not transport people to the Out Islands. Moreover, a yacht travels with its own beds, its own food and alcohol, its own crew, its own jet skis, its own fishing and diving gear, and its own entertainment,” he added.

“But every time a private aircraft touches down on your island, those luxuries are sought out by private pilots and their guests. These pilots bring valuable business to your islands and help stimulate your local economy. We hope Bahamian officials will realise this and reconsider how they are negatively impacting tourism.”

Setting out AOPA’s efforts to achieve a win-win solution that would benefit all sides, Mr Baker added: “On September 5, I requested a meeting in The Bahamas with Prime Minister Davis to discuss the new Customs fees and how they are deterring pilots from visiting the islands. Unfortunately, I have not received a response to that request.

“AOPA has also proposed a much fairer fee structure that would be advantageous to all. Again, Bahamian government officials have not responded. We remain hopeful Prime Minister Davis will revisit the AOPA fee proposal for private pilots so, together, we can continue to promote general aviation travel and preserve the long-standing relationship that AOPA and the Government of The Bahamas have cultivated for years.”

The fee increases, unveiled as part of the Customs Management (Amendment) Regulations 2024, represent a three-fold and six-fold increase, respectively, on the previous Customs fee structure for private aviation which was $50 “inbound” and zero “outbound”.

Now, with the changes, commercial jets will 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 it is unclear what this definition means and how it will be applied.