The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

RISING fuel costs are squeezing margins for Bahamian watersports operators, with one tour company warning it may have little choice but to increase prices as global oil prices hover close to $100 per barrel.

Vonshaw Brown, owner of Brown's Watersports, said the latest run-up in fuel costs is making it increasingly difficult for operators who depend on gasoline-powered equipment to remain profitable, forcing his company to assess whether it will have to raise prices for customers.

"It's outrageous. There ain't no profit in it, really. We just gotta do what we gotta do," said Mr Brown. He said the company is reviewing its pricing structure but has been reluctant to pass higher operating costs on to customers because of the uncertainty surrounding fuel prices.

"We're assessing it right now. We've been talking about it because we may have to increase our prices by another $20 to $30 for the half-hour ride, and about $45 for the one-hour ride," he said.

"We don't like raising prices because sometimes gas goes up and then comes back down. You don't want to keep changing your prices every time fuel moves. But if gas stays high and your prices stay the same, in the long run you just can't make it."

Mr Brown said jet ski operators currently charge about $120 for a half-hour jet ski rental but many are considering increasing that rate by an additional $20 as higher fuel costs continue to eat into earnings.

"Right now, we charge $120 for a half-hour ride, but we're looking at putting another $20 or $25 on top of that because we're just not seeing the profit," he said.

Mr Brown said the financial burden is especially significant for operators managing multiple jet skis, where fuel expenses quickly consume revenue generated from tours.

"People don't realise that if you've got five, six or seven jet skis, you're filling up every one of them. If you make $500 on a tour and it costs about $100 to fill each bike, what are you really making? What are you taking home? How are you supposed to feed your family?" he asked.

Mr Brown argued that the issue extends beyond the tourism industry and is affecting businesses across the country that rely heavily on fuel to operate.

"The Government really needs to look into bringing gas prices down; not just for people driving every day, but for businesses too, especially businesses that use a lot of fuel. That's something they really need to look at,” he added.

His comments come as Bahamian businesses brace for another increase in local fuel prices after global oil markets surged last week.

Brent crude climbed above $100 per barrel for the first time in more than a year amid escalating geopolitical tensions in the Middle East, raising expectations that higher international prices will eventually be reflected at the pump in The Bahamas.