‘SLOW DOWN ON PASSENGER TAX’: Cruise lines push govt to postpone increase due to short notice of change

By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

CRUISE lines are pushing the Davis administration to postpone the implementation of new passenger tax increases, arguing they were not notified early enough to prepare for the rise.

The Passenger Tax (Amendment) Bill would require cruise passengers leaving by way of Nassau and Freeport to pay $23, up from $18. Those exiting by sea from a private island without visiting any other port in the country would pay $25.

The legislation says the amendments would take effect on July 1, 2023, the start of the new fiscal year. Another new fee –– a tourism enhancement levy of $2 for passengers arriving or leaving the country –– would take effect on January 1, 2024.

 The Tribune understands cruise line representatives lobbied Deputy Prime Minister and Minister of Tourism Chester Cooper to postpone the new tax increases when he met them in Florida on Friday.

 A source familiar with the matter but not authorised to speak publicly said cruise lines believe they were not given adequate time to prepare for the hike. They note that many passengers book their trips a year or two in advance, making it “unreasonable” for the tax increase to take effect so soon.

 Asked about this yesterday, Mr Cooper said: “There has been no change to the Bill that was laid.” He declined to comment further.

 Travel Weekly, a news source on the travel industry, reported on Thursday that Carnival Cruise Line President Christine Duffy wants the tax delayed.

 She reportedly said: “There’s a lot of development happening in The Bahamas, and we’re working with the officials in The Bahamas to see if at least, can it get pushed out?”

 She also said the tax increase would affect some passengers.

 “Look, if I’m on a budget, this is my budget,” she reportedly said. “This is what I can spend. But I mean, look at resort taxes and resort fees. I don’t want to say people have gotten used to it, but it has been piling on.” 

 A delay in implementing the tax increases could affect the government’s revenue projections.

 According to the budget, the government aims to nearly triple revenues earned from departing cruise passengers, projecting $145m in revenue in the 2023-2024 budget, up from $50m in the current fiscal year.

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