Bahamas Marinas Off 60%, Boat Show Feedback Points to Increased Boating Fees
By Tony Esposito
Marinas across the Bahamas are bracing for a catastrophic winter season
Fee Hikes Impact Boaters
Marinas in the Caribbean nation of the Bahamas are bracing for a “dismal winter” which could see bookings off as much as 60% or more and visitors to the Fort Lauderdale International Boat Show (FLIBS) told tourism representatives it is directly related to a 10% increase in fees for boats coming to the islands implemented earlier this year.
Association of Bahamas Marinas (ABM) president Peter Maury encountered numerous boat owners, brokers and captains at FLIBS who reported they will instead winter in the southern Caribbean or even the Florida Keys because Bahamas is just “not worth it anymore.”
Eighteen Bahamian marinas were represented at the show along with a separate stand for the Ministry of Tourism with 10 additional properties all hearing essentially the same thing: “I’m never coming to the Bahamas again because of the fees.”
“There’s too many regulations, I guess, and with all the fees people feel like they are getting ripped off.
“Everybody is saying the same thing from the operator side – bookings are down,” Maury told Tribune Business. “With revenues off by between 25 to 30% for some locations in the central Bahamas.”
Maury further reports that unlike past years, marinas are not sold out at this point “nor are we expecting a last-minute surge.”
Adding to the islands’ yachting woes, key documents such as the Frequent Digital Cruising Card (FDCC) application are still not online. The FDCC, which offers frequent boating visitors “unlimited visits for a period not exceeding two years” upon payment of an upfront fee ranging from US$1,500 to US$8,000, depending on vessel size, has gained some traction with boaters and is seen as offering value.
The introduction of revised cruising permit fees, fishing and anchorage fees for non-frequent boating visitors has generated negative market sentiment towards the Bahamas, which imposed the new regulations with virtually no advance warning and consultation with the impacted industries.
Boaters Push Back
“Our southern Bahamas marinas are reporting sales are down by 60 percent, and central Bahamas marinas have seen a loss of revenue between 25-30 percent, which means all ancillary businesses – car rental companies, gas stations – are down.
“Bookings for the upcoming holiday, and we had 18 marinas at the show… we were together for four days, and everybody from the operator side is saying the same thing: bookings are down. Some of the southern marinas, and even the Bimini marinas, say they have nothing on the books right now,” he added.
Maury said the Bahamas is facing increased competition from the Dominican Republic and marinas being developed on the Pacific coasts of central and South America and added: “We may see some of that business go away for a while.”
The government believes yachting participants are wealthy and can absorb the increase in fees. Industry insiders are not opposed to visiting vessels paying their fair share in fees and taxes but that increases “must be reasonable and proportionate in scale, with the industry properly consulted in advance and informed of changes in sufficient time so that they can adjust. Much of the backlash is over lack of notice and consultation.”
“They say these guys are super wealthy and can afford it,” he added of the new fees and permits. “And, when they go somewhere else, they forget about the Bahamians. We should be allowed to work in this industry and country. Everyone from the taxi drivers to boat workers is asking why can’t we get this industry going again?
“We have multiple businesses that are affected by this industry all saying the same thing. It doesn’t make any sense. We’re not getting the business. How do you grow the economy? Even the Bahamian agents are saying it’s becoming harder for them to work. The biggest thing is that if the boats are not here they’re not paying the marinas or using the services.”