By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Association of Bahamas Marinas (ABM) chief yesterday voiced concern that key boating reforms cannot be accessed and paid online, adding: “It’s hard to believe they could mess it up this bad.”

Peter Maury, speaking after an Internet call between Customs and the Bahamian maritime industry to discuss implementation of the Customs Management (Amendment) Regulations 2025, which are due to take effect today, told Tribune Business that neither the new frequent digital cruising card, nor the fishing permit and anchorage fees, are presently accessible or can be paid for online.

Suggesting that the reforms will likely be “a little confusing” for visiting boats and yachts, he added that besides not yet being available on Customs Click2Clear website all three of the new permits and fees have to be paid for separately through visiting one of the Department’s offices.

The ABM chief told this newspaper that the reforms, and how they are being introduced at short notice and with no industry consultation, appeared “designed to frustrate people” and drive a lucrative, high-spending market away from The Bahamas to visit other destinations. And he reiterated previous projections that this nation “will lose more boats” and economic activity as a result.

Confirming that no changes have been made to the regulations, which also introduce a ‘temporary’ annual cruising permit with effect from today, Mr Maury said: “It’s being implemented as is. It’s still going to be a little confusing I think. Some of the things that we thought are not going to be available.

“Like the frequent digital cruising card is not available on Click2Clear. The fishing permit and the anchorage fee have to be paid separately, and are not on Click2Clear yet.” Asked whether Customs had provided a date for when it would be possible to apply and pay for these permits online, Mr Maury said the agency had not provided any timelines other than pledging to update the industry when it occurred.

“It’s like the portal,” he added, referring to the long-promised online site where boaters can pay their Port Department fees. “John Pinder [central and south Abaco MP] talked about it was going to be ready in June, and here we are, July 1, and no portal. It just causes massive confusion.”

Yesterday’s meeting between Customs and the maritime sector came less than 24 hours before they are expected to implement the reforms contained in the regulations. The frequent digital cruising card (FDCC) is targeted at pleasure vessels that frequent The Bahamas, offering a permit to facilitate “unlimited visits for a period not exceeding two years”.

This is conditioned on the vessel obtaining clearance to enter from Customs, and the linking of its registration number to the FDCC. The fees range from $1,500 for a vessel below 50 feet in length, to $2,500 for boats between 50 feet and 100 feet; and $8,000 for vessels exceeding 100 feet in length.

Ryan Pinder KC, the attorney general, last week defended the reforms and fee changes as “fair” and “balanced”, adding: “So for this frequent digital cruising card, not exceeding 50 feet is $1,500. Remember, that’s for two years, unlimited entry. That’s all unlimited entry. Those exceeding 50 feet and not exceeding 100 feet, $2,500, and those exceeding 100 feet, $8,000.

“Now those exceeding 100 feet, who are frequent visitors in The Bahamas, are generally those charter boats who base themselves out of The Bahamas. They generally sit here and charter straight out of The Bahamas. The guests fly in and they get on the boat.

“So you now have unlimited visitation in The Bahamas for two years now. Remember these boats, these luxury boats charge up to $10,000 to $15,000, some $20,000 a day, to charter, and we want to charge them $8,000 for two years. Let’s be real.”

Mr Maury, though, said the maritime industry is concerned over the absence of a fee schedule for Customs and Immigration officers who clear boats into The Bahamas at their port of entry. The Bill states that the ‘temporary’ annual cruising permit fee “shall cover the costs of” attendance, travel and overtime expenses incurred by Customs and Immigration personnel.

However, the ABM chief said it was uncertain whether this covered the second or any further occasions that the same boat entered The Bahamas on its 12-month cruising permit, or if extra Customs and Immigration-related costs will be incurred.

And, while the legislation states that anchorage fees will only apply to “foreign pleasure vessels not mooring at a marina”, Mr Maury said the impression given on yesterday’s conference call was that this levy has “to be paid no matter what” - whether a boat anchors out for just a day, or even if it is docked or moored at a marina.

“This is what we have always asked for. If they just sat down with people in the industry like us, they could have had this stuff all ahead of time and roll it out,” he added. “I find it hard to believe they are putting us through this much harassment.

“The fishing permit is only good for 30 days. You’re 45 feet, come in and pay your cruising permit, and you have to pay another fee, which is $100. You have to pay for the fishing permit separately and it is only valid for 30 days. 

“The marinas want the boats to stay for longer. If you come in during November, and base your boat in a marina for the whole winter, come December your fishing permit is up and you have to get another by going to a Customs station. My whole point was, if you’re going to pay for a cruising permit for a year, why not be able to pay for a fishing permit for a year? Make it easy,” Mr Maury continued.

“They said they would look into it. Why not pay it for a year? It’s like all these inconveniences. I don’t get it. It’s designed to frustrate people. They’re going to go: ‘It’s too hard, too complicated, we’re on vacation, so we’re not going to The Bahamas’.

“There were a lot of questions. It’s hard to believe they could mess it up this bad. It’s almost like it’s intentionally difficult. I think we’ll lose more boats. We’ve already lost boats that have said it’s too expensive, they’ll go to the Caribbean and do their charter season there,” the ABM chief added. 

“Customs and the Ministry of Finance have seen it because they’ve changed the charter fee, dropping the VAT and making it easier to pay, but it’s still very high. They just don’t make it easy, especially when you can do this stuff online instead of making it so hard..... It’s confusing as it is. It’s hard to believe no one thought this out better. It’s not digital. It’s embarrassing.”

Mr Maury said Customs had informed the industry that all its officers have been trained to implement the new fees and associated reforms, but he added: “We’ve all heard that before. We’ll see.”

A key element in the Davis administration’s fiscal strategy has been to avoid imposing new and/or increased taxes and fees on Bahamian families, likely due to the potential fall-out for general election votes. Instead, the increases have fallen heavily on foreign visitors, and not just cruise passengers but, in particular, the private aviation and boating markets.

Boating industry contacts spoken to by Tribune Business said that, while not opposed to ensuring that visiting boats and yachts pay their fair share in taxes, any increases in fees/levies 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.

The Government perceives the private aviation and boating markets as having deep pockets, and the ability to pay more because users are wealthy. However, this newspaper has been told that both sectors are incredibly fickle and, if participants perceive they are being targeted for taxes because they are wealthy, they have the means and transportation to go elsewhere besides The Bahamas.

Meanwhile, the fall-out continued yesterday. An article on BoatTest.com warned boaters heading to The Bahamas to “adjust their travel budgets significantly” to account for the new fees, adding that the new structure and frequent digital cruising card (FDCC) could benefit persons who are regular visitors to this nation.

“These sweeping changes will undoubtedly impact frequent boaters. While the FDCC offers unlimited entries over two years, the substantial upfront cost might deter those who make shorter, less frequent trips. For those who visit The Bahamas multiple times a year, especially on larger vessels, the FDCC could prove to be more cost-effective in the long run despite the initial sticker shock,” it said.

“However, the increased cruising permit fees for shorter stays, the new fishing permit charge, and particularly the overnight anchoring fees will add considerably to the overall cost of a Bahamian boating vacation.”

As to the consequences, the BoatTest.com article warned of “reduced spontaneity” because “boaters may be less inclined to make quick, unplanned trips”. It added that there were also likely to be “shorter stays” because “the new anchoring fees might encourage boaters to stay in marinas more frequently or shorten their overall time in Bahamian waters to mitigate costs”.

Besides the increase in Bahamas travel costs, the article added that there may be a “potential shift in destinations”, warning: “There are concerns within the industry that these increased costs could prompt some boaters to seek alternative cruising destinations.”