By FAY SIMMONS and

NEIL HARTNELL

Tribune Business Reporters

A cruise line popular with Bahamians yesterday disclosed that US "laws and regulations" have forced it to stop selling one-way tickets for voyages out of Freeport to West Palm Beach.

A Margaritaville at Sea spokesman confirmed to Tribune Business that the intervention of US Customs and Immigration (ICE) had resulted in it halting one-way travel from Grand Bahama to Florida and vice versa - a move it admitted "may have unintended consequences for Bahamian citizens" as well as its own business model and revenue streams.

Speaking to Tribune Business, the representative acknowledged that the cruise line has offered one-way travel from Grand Bahama to the US since its inception. They affirmed that the sole reason for discontinuing one-way tickets was due to US Customs and Immigration laws and regulations, although the precise reason for the change was not detailed.

“Margaritaville at Sea has been proudly serving Bahamian cruise travellers for one-way cruise travel since its inception. We currently offer two and three-day cruise excursions, carrying passengers from the Port of Palm Beach, Florida, to and from The Bahamas”, the Margaritaville at Sea representative said.

“Regretfully, due to US Customs and immigration laws and regulations, Margaritaville at Sea may no longer offer embarkation from Grand Bahama for one-way passengers as of January 1, 2024. This was the sole basis for the decision to end one-way travel, which has curtailed a segment of our business and may have unintended consequences for Bahamian citizens.

“Margaritaville at Sea is committed to passenger safety and enjoyment, as well as legal compliance with US law and the laws of all other countries where our ships call, as well as our obligations as a cruise operator.”

The Ministry of Tourism, Investments and Aviation, in a subsequent statement, pledged that it is "actively engaged" with Margaritaville at Sea in a bid to have it reverse its ticket policy change given that it provides an essential service for Grand Bahama residents.

“We advise the public that the Ministry of Tourism, Investments and Aviation is actively engaged with Margaritaville at Sea to reverse its recent policy change that does not allow originating a trip from Freeport, Grand Bahama, to Florida," the ministry said.

“We have emphasised to Margaritaville at Sea that this is an essential service to the way of life of the residents of Grand Bahama. We will apprise the public of the outcome of these discussions.” Given that US laws and regulations are the driving force behind the cruise line's changed ticket policy, it is unclear how much pressure the Government can impose to force it alter course.

However, Tribune Business understands that the Ministry of Tourism, Investments and Aviation has provided Margaritaville at Sea that it believes would enable the cruise ship to remain compliant with US Customs and Immigration while still accommodating the needs of Bahamian passengers.

The Government is thought to be firm in its stance that Margaritaville at Sea must modify its position, and is not without leverage due to marketing-related tax concessions and other subsidies that The Bahamas provides to it. It is understood that the Government may have warned that the cruise line will lose - or even have already cut-off - these incentive payments until Bahamian interests are addressed.

The Ministry of Tourism, Investments and Aviation is now thought to be waiting on Margaritaville at Sea's response. It is unclear why US "laws and regulations" have forced a change in the cruise line's ticketing policy, but several Grand Bahama sources speaking on condition of anonymity said it relates to the fact that the vessel is licensed as a cruise ship and not a ferry operator.

"Apparently they have a cruise ship licence and not a ferry boat licence," one contact said. "A cruise ship licence says you must drop your passengers off where you picked them up at a single port of operations. I am told they have to apply for a ferry boat licence.

"Irrespective of that, they bring an awful lot of freight on this island as baggage. They are selling round-trips, Bahamians go over and shop like mad. They rent a bin, a wire cage, and return with it full of baggage. It can be anything from fridges, to freezers to air conditioning units."

The source conceded that while Margaritaville at Sea had been "operating in a very grey area" as a result, he added that all its predecessors had also been operating akin to a ferry service as opposed to a cruise line.

Another source said of the ticketing policy change: "Apparently it's a US Customs rule. US Customs and/or immigration told them they were not licensed as a ferry. Therefore, they can't just be bringing Bahamians in and out. I understand US immigration put the kibosh on them and seem to have them by the balls. It's not their fault. Their licence is not to operate as a ferry boat.

"I was told third hand that a lot of Bahamians are using the boat to go over and stay. I don't know why that is as opposed to using airlines, but the boat is cheap and airlines over $500. I think what they used to do was somehow they would go over there with a return ticket on the boat, cancel the return leg when they reached there and just disappear.

"But it is a blow to The Bahamas because the rank and file Bahamian used to go over there and shop, and bring back cages they'd fill up with all their stuff. Our Bahamian people are not happy. The other ferry, Balearia, you cannot load that up."

James Carey, the Grand Bahama Chamber of Commerce's president, said the move by Margaritaville at Sea had taken him by surprise and "there must be some legal reason" as to why the ticketing policy had changed.

Acknowledging that the service has been "quite a staple for the Bahamian consumer for shopping and vacation", he said the move would negatively impact individuals, households and small businesses that have relied on the cruise lines as a relatively inexpensive means of transportation through which to bring goods back to Grand Bahama.

"There's a sector that will say good riddance, particularly a lot of the merchants, because a lot of us choose to use it to go to Florida to do heavy shopping and bring back a lot of goods," Mr Carey said. "It also helped the smaller merchants because some of the 'Mom and Pops' were using it to bring back goods for sale as well.

"There's a cost savings to get goods yourself because 'Mom and Pops' stores are not buying in bulk. It may create some additional costs, and that will certainly have an impact but I don't think it's particularly large. Another concern is will it impact the number of day visitors coming to the island? They're on the ground, and do move around when they are here, not just staying in the harbour."

Kwasi Thompson, the east Grand Bahama MP who raised the alarm over the ticketing policy change, at the time suggested the sales halt also applied to round-trip tickets out of Grand Bahama although the Margaritaville at Sea spokesman only mentioned the one-way variety as being impacted.

The MP, who is also the Opposition's finance spokesman, said he was especially concerned by reports from travel agents that Bahamians will be "blacklisted" and unable to travel on the Margaritaville at Sea again if they buy a round-trip ticket from West Palm Beach but elect to get off in Freeport and not return to Florida.

"What we've been informed of from the travel agents is if persons from Grand Bahama or Bahamians do that they'll be blacklisted and not be able to purchase another ticket. That's my challenge with it," Mr Thompson told Tribune Business.

"I think this will absolutely have an impact because businesses used the Margaritaville at Sea to bring in items. A number of travellers would use the Margaritaville at Sea to travel and bring in items as they travel. You have the gentlemen who were at the port clearing bins and assisting people in clearing bins.

"You have a significant amount of travel agents selling these tickets to Bahamians, and if Bahamians can no longer purchase those tickets, it's a significant loss for Bahamian travel agents. It is affecting Grand Bahama absolutely in a negative way. The impact is real... tour operators and those persons who regularly travel back and forth to Florida for business," he added.

"For those people who live in Grand Bahama it's become a regular way of travel and to disrupt that is going to create a huge challenge for us. We cannot afford to lose any more business, we cannot afford to lose any more economic activity and this has an adverse effect on Bahamians. It is an important issue for Grand Bahama, and we need it to continue."