By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian tourism industry is urging the Government to “pause” the new and increased boating fees until end-October to “save the summer season” and ensure “we get it right”.

Kerry Fountain, the Bahama Out Island Promotion Board’s executive director, told Tribune Business the industry did “not propose throwing the baby out with the bath water” when it met with government representatives last Monday to address the confused and often-hostile reaction from the international boating community to reforms that accompanied the 2025-2026 Budget.

With the tourism sector now awaiting the Government’s official response, he confirmed that it recommended halting implementation of the new and increased fees until end-October 2025 to ensure The Bahamas strikes the correct balance between revenues, regulation and incentivising increased boating-related economic activity.

Pointing out that this would also give The Bahamas sufficient time to accurately communicate the changes, and their rationale, to the boating industry, Mr Fountain told this newspaper there are also elements of the changes that are backed by the tourism sector - especially the frequent digital cruising card (FDCC) that is valid for two years, and designed to encourage frequent boating visitors to this nation.

However, the Bahamian tourism industry also recommended that the Government adjust the ‘temporary’ 12-month cruising permit to enable visiting boats to enter The Bahamas four times within that year-long period, rather than being restricted to twice within a 30-day period.

And, to facilitate and encourage spontaneous summer trips from Florida to the northern Bahamas, especially Bimini, the Berry Islands, West End and Abaco, the sector is asking that a new permit or category be created that would allow such visitors to enter this nation twice in a 90-day permit.

Describing this as “the meat and potatoes” of what the tourism industry has proposed, Mr Fountain said it also recommended to the Government that it avoid “nickel and dime-ing” visiting vessels and their occupants by requiring them to pay separately for cruising, fishing and anchorage fees and permits. To aid the ease of doing business, it suggested these be consolidated into one payment.

The Government, and particularly the Ministry of Finance, will now have to study the private sector’s recommendations to determine which - if any - it decides to take up or can be accommodated. The revenue impact on the 2025-2026 Budget from any delayed implementation of the new and increased fees will have to be especially assessed.

Still, Mr Fountain said the meeting with a government representative, who he declined to name other than to say they are a “relevant member” of the Davis administration, was “very, very positive and very, very collaborative”. He emphasised that tourism executives, including Jackson Weech, the Bahamas Hotel and Tourism Association (BHTA) president, did not seek to overturn the reforms in their entirety.

“Quite honestly, we weren’t proposing that we throw the baby out with the bath water. This is not government bashing. We really believe we have something to contribute, and we’re not just lambasting the Government,” Mr Fountain told Tribune Business. “To give some credence to, or evidence of, that, the first thing we asked for was, until we get it right, let’s measure twice and cut once.

“Until we get it right, let’s put a pause on this. We asked for a pause because the timing could not have been more ill-placed. Friday was July 4 [the US independence holiday], and it’s the peak of our boating season. This was not only less than 100 percent clear to boaters, but also within our organisations and within The Bahamas.

“We asked for a pause, and asked that that pause be extended out through the end of October to give us an opportunity to save our peak boating season. It will take us time to get it right and, once we get it right, share with the boating community and all different entities in The Bahamas including the Customs officers throughout The Bahamas.”

Mr Fountain, reiterating that the tourism and marina industry “did not propose to throw the baby out with the bath water”, said it told government officials to leave both the frequent digital cruising card (FDCC) “as it is because we thought it’s fair”. They also recommended the same for the ‘temporary’ 12-month cruising permit, albeit with some tweaks.

The Out Island Promotion Board chief said the private sector recommended that the reforms be amended to clarify, and allow, a boat that obtains a 12-month cruising permit to enter The Bahamas four times within that period on the same permit instead of being limited to twice in 30 days. That, he added, was key to enhancing The Bahamas’ value proposition and convincing boaters they are getting their money’s worth.

The revised Customs Management (Amendment) Regulations 2025 introduce a frequent digital cruising card (FDCC) for 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 permit fees are tied to the yacht or boat’s length. Those 50 feet or less will have to pay $1,500 for an FDCC, while those greater than 50 feet but less than 100 feet will have to pay $2,500, and those exceeding 100 feet, $8,000.

Meanwhile, the fees for a temporary cruising permit are also tied to the same lengths. A vessel that is 50 feet or less will have to pay $500 “for a period not exceeding 12 months”, while the fees for those greater than 50 feet and less than 100 feet, and over 100 feet, are being set at $1,000 and $3,000, respectively for the same period. They will also cover Customs and Immigration attendance costs.

“One of the last things we proposed, and this is a very important point for those destinations or marinas within two hours [of the US], like Bimini, is for people who are on vacation, feel the weather is good, want to do some fishing and come over. There’s nothing in the proposed amendments to address this type,” Mr Fountain said.

“What we’re saying is, for those boaters where the family is on vacation, and who want to go to Bimini twice this summer, give them 90 days and the option to go over two times in a 90-day period. That was the meat and potatoes of what we proposed.”

And, rather than force visiting boaters to pay different cruising permit, fishing permit and anchorage fees separately, and at different locations, the Bahamian tourism industry recommended consolidating this process into one payment and payment point.

“Again, we suggested that instead of nickel and dime-ing the boaters, saying you have to pay for this 12 permit permit, pay for that 24 month permit, instead of saying you have to pay this, pay that, incorporate that cost into the [cruising] permit,” Mr Fountain added.

Under the ‘temporary’ cruising permit, if a pleasure vessel carries more than three passengers, every additional one above the age of six - and who is a non-resident of The Bahamas - will be subject to a $30 per head tax under the Passenger Tax.

The Government, in splitting out the fishing permit fee into a separate levy, and not incorporating it with the cruise permit fee, has set this at $100 and $300 for vessels not exceeding, and exceeding, to feet respectively.

Finally, the new anchorage fees for vessels not mooring at a marina are pegged at $200 for a vessel not exceeding 50 feet; $350 for those between 50 feet and 100 feet; and $1,500 for those over 100 feet.

Meanwhile, amid the awaited government response, the boater backlash continues on online forums: “I have been averaging four to five trips a year to The Bahamas,” one posted on July 1. “I returned from The Bahamas two days ago after spending three weeks there staying at six different marinas.

“At each destination we ate in the local restaurants, rented cars, tipped well and provided locals with far more fish then we ate or brought back home with us. As I have done for the past five years, I had plans to take my boat and tender to the Abacos in August for the opening of lobster (crawfish) season.

“I have cancelled the trip and booked Key West instead solely due to the newly implemented fees. I plan on foregoing The Bahamas next summer and instead making the trip to the north-east. Am I alone or are others foregoing The Bahamas in light of the insulting increase and addition of fees?”

Another, called ‘Dreamcatcher 14’, agreed and added: “No, we are cancelling a Bimini trip and doing the Dry Tortugas/Key West instead. Those new Bahamas fees cover a lot of gas....”

‘Blackdawg’, meanwhile, hinted at the confusion and lack of clarity surrounding the fee changes: “I don’t really care much about the fees as they are small in the big picture. However, until all the details and s*** is together I’m out. I don’t trust anything about the Bahamian government.

“Next thing you know they want to hold your boat or whatever because you missed some fee or whatever that wasn’t clear in the first place. I can’t even tell you what our group spent in Exumas earlier this year alone, but it makes a few grand in fees absolutely irrelevant. Regular smaller trips in our boat aren’t exactly cheap overall; still makes the new discussed fees small chips.

“But I’m not into them trying to roll this new fee/rules out when clearly they are still figuring it out on our dime/time. It’s the nonsense, greed and terrible management by the officials that will keep us from going back any time soon. Definitely won’t be doing our regular late summer trip in our boat this month,” they added.

“Just got back from almost three weeks in Keys. Water/spearing/fishing not as good as Bahamas, of course, but not bad and basically everything else much better and if you know where to go there’s good water down there, too, and places to avoid over crowded areas. We love doing both, but until this all gets straightened out we’ll do other stuff. It’ll work out and we’ll all go back most likely. But not until they get this cleared up.”

‘Salty Gator’ added: “Went to Grand Cay [on] June 20 weekend for two nights and came back to the states. Weather was nice this past weekend and decided to use our second trip. Cloned the trip and did what I’ve done for years by printing the new cruising permit and bringing the prior one and receipt.

“Customs lady still charged me and made me pay the $150 for the second trip. She even acknowledged I should not have to pay but the ‘system’ said I had to. I agree there is going to be a lot of aggravation and expense for the folks that do two or more shorter trips.”

The Yacht Charter Fleet publication, in an online posting, warned that while the intent behind The Bahamas’ boating fee increases and associated reforms was understandable, the scale of the increases - and the way they have been implemented - risks alienating a lucrative, high-spending category of this nation’s tourism market.

And it warned that the reforms “only add fuel to a fire” first stoked in 2022 when The Bahamas imposed an all-in 14 percent tax rate on foreign yacht charter contracts via the combination of VAT and 4 percent Port Department fee.

This, it added, created the highest such tax rate in the Caribbean and reduced The Bahamas’ competitiveness versus rival jurisdictions. The publication added that, with the new boating fees and regulations imposed on top of this, locations such as the Turks & Caicos, US Virgin Islands and Puerto Rico which have zero to minimal VAT and other charter taxes are now looking increasingly attractive.

“Recent policy changes threaten to unravel the reputation of idyllic Bahamas yacht charters. A sweeping overhaul of boating regulations, paired with previous tax hikes, is reshaping the financial landscape of chartering in Bahamian waters—and not in its favour,” Yacht Charter Fleet warned.

“On July 1, 2025, The Bahamas implemented one of the most comprehensive maritime regulation updates in its history. While intended to modernise oversight and increase government revenue, the new policies are introducing a complex web of compliance, cost increases, and legal exposure for motor and sailing yacht charter operators and private yacht owners alike...

“The cost inflation resulting from mandatory AIS upgrades, expanded permits and higher passenger taxes is driving up operational costs across the board, with operators forced to absorb or pass on these new costs, which risks pricing The Bahamas out of an increasingly competitive market. Resulting in operators actively shifting superyacht charters to other Caribbean jurisdictions.”

The publication suggested that the FDCC’s impact will be blunted by the need to still comply with Customs processes, thereby “reducing its intended efficiency”. It added: “The 2025 legislation, while intended to provide structure and long-term benefits, only adds fuel to a fire that was already threatening to consume a key tourism sector.

“The combined effect of the previous VAT increases and the recently-added extra charges has created a perfect storm....By adding this new layer of cost and complexity, the latest legislation deepens the charter market crisis begun by the VAT increase. Unless addressed, many yacht charter operators may skip The Bahamas entirely, further eroding what was once a thriving hub for luxury yacht charters.

“The combined effect of the 2022 VAT hike and 2025’s regulatory overhaul is creating a challenging environment for charter operations in The Bahamas. The intent behind the changes - greater oversight, higher revenues, better-managed resources - is understandable. But the execution risks alienating the very stakeholders who contribute most to the country’s tourism economy.”