By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian marinas were yesterday said to be uncertain over how and whether new charges and provisions for seabed leases will impact the sector ahead of today’s meeting with the Port Department.

Peter Maury, the Association of Bahamas Marinas (ABM) president, told Tribune Business that the industry is unsure whether it will now have to pay seabed lease fees in addition to dock licence fees - or if the former will replace the latter - as a result of reforms to the Port Authorities Act accompanying the 2025-2026 Budget.

The Bill containing the amendments stipulates that the changes are designed “to strengthen the regulatory regime for the grant of seabed leases”, with all persons seeking “to construct an industrial, commercial or private pier, wharf, jetty, groin, mooring or abutment, or undertake any other activity on or affecting the seabed”, now having to apply to lease the seabed area that will be affected.

Supporting documents, such as financial statements, a site plan and any other licences/permits requited to operate the intended business will have to be provided to the Government, with the applicant also required to “demonstrate compliance with all applicable environmental and regulatory requirements”.

And, while the “maximum term” for any seabed lease will be 25 years, the Port Authorities (Amendment) Bill 2025 does not specify what the rates and fees will be. Instead, these are left for the responsible minister, meaning the minister of transport, to “prescribe” by Order and regulations.

Speaking ahead of today’s meeting between the Port Department and boating/marina industry, which is intended to discuss the Budget reforms impacting the sector and which are due to take effect from July 1, Mr Maury said he and the ABM had heard the Government is now planning to amalgamate the separate taxes and fees on foreign yacht charters into one combined 14 percent levy.

Presently, foreign yacht charters pay a 4 percent fee to the Port Department plus 10 percent VAT on the value of the charter. The proposed combination of these levies into one combined 14 percent fee could not be confirmed before press time last night, but Mr Maury argued that “it’s not going to move the needle” as the effective total tax rate remains unchanged.

The ABM chief said it appeared the authorities believe the move will increase boating traffic to The Bahamas, as incoming vessels will no longer have to undergo the process to register to pay VAT. However, Mr Maury said yacht brokers had already informed him that such a change “will not make any difference” to plans that do not involve The Bahamas.

As for the seabed lease and associated fees, he added: “To get a dock licence to build the marina, you have to go through this and pay a fee for the docks you build. We already pay a dock licence. Are they going to convert us to a seabed licence or do we have to pay this on top of a dock licence? I don’t know. I can almost tell you that it’s going to be on top of everything.

“We haven’t heard anything from the Port as to what the law means. For commercial operators, many of the marinas are already open. Is this something that is going to come after. For somebody asserting no new taxes, they [the Government] have figured out a lot of new stuff. I don’t know what to call it... levies and fees, but it adds up to new taxes and where we are I just don’t know what they’re doing.”

However, there is a body of opinion that believes successive administrations have chronically under-valued seabed leases granted to commercial operators and have effectively given these valuable sites away for a peppercorn rent. The Port Authorities (Amendment) Bill 2025 also includes provisions allowing the Government to “charge a seabed environmental levy fee annually” and set a separate rate.

Mario Carey, the Better Homes & Gardens Real Estate MCR Bahamas principal, who has long advocated for such a levy as well as higher seabed lease rental rates, hailed the reforms in a recent interview with Tribune Business. He added, though, that all private and public stakeholders should be involved in determining how to best use the monies generated by the environmental levy.

“Frankly, I think it’s an under-served income stream that is being ignored,” Mr Carey said of the seabed’s use for commercial purposes, “and that has been ignored and neglected. Especially when you are selling a dock slip for up to $20,000 and basically paying no rent...

“There should be a model for where that money is spent, what that model looks like. A lot of stakeholders should be involved in developing that model to preserve our environment. That ain’t no joke. It’s a serious matter. I’ve been preaching that for a while and it’s a good sign that someone is listening. That’s a big step in the right direction.”

Mr Maury, meanwhile, also voiced concern that reforms to the yacht charter section of the Boat Registration Act, which stipulate that “the charter of a vessel less than 55 feet in length shall not be negotiated or contracted for a duration less than 48 hours”, could prevent Bahamians from gaining necessary experience as well as drive more boating business from The Bahamas.

“The problem is that those are the boats on which Bahamians gain experience,” he explained. “You don’t get on to a 100 metre or 30 metre boat right away. You have to have sea time. Nobody will hire you if you don’t have sea time. The only way to learn that is on smaller catamarans that Bahamians run to the Family Islands.”