By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian tourism industry and its three main Promotion Boards have united to urge the Prime Minister to "pause" new and increased boating fees that "could not have come at a worse time".

The Bahamas Hotel and Tourism Association (BHTA), together with the Bahama Out Islands Promotion Board, the Nassau/Paradise Island Promotion Board and the Grand Bahama Island Promotion Board, in a joint letter to Philip Davis KC voiced fears over "reputational fall-out" given the "multiple reports of cancellations" received from resort and marina properties over the imminent changes.

The letter, which has been seen by Tribune Business, said it was vital that The Bahamas not "create perceived and/or realised barriers to entry for this high spending, buoyant, sea faring visitor market" especially given the ongoing headwinds and uncertainties impacting stopover tourism as a result of Donald Trump's tariff policies and various global conflicts.

However, the Davis administration has shown no signs of backing down from the amended cruising permit fees, plus the new fishing permit and anchorage fees, set out in the Customs Management (Amendment) Regulations 2025. Ryan Pinder KC, the attorney general, yesterday defended the amendments as "fair" and "balanced" in the Senate, as he urged: "Let's be real."

Mr Pinder, in his contribution to the 2025-2026 Budget debate, said the social media reaction from boaters made it appear as if the increased and revised fees were "the end of the world for some". However, he argued that the reforms were deliberately structured to reward frequent boating visitors and encourage others to visit The Bahamas more frequently, thus generating increased economic benefits.

The Attorney General also suggested that the higher fees are balanced by the now-extended temporary cruising permit, which will last for 12 months from July 1, 2025, as opposed to the existing three-month or 90-day permit. And he argued that the Government had listened to industry concerns by increasing the size of boat qualifying for the lowest-value permit from 34 feet to a maximum 50 feet.

However, the BHTA and the three Promotion Boards warned that overwhelmingly negative market reaction means The Bahamas is suffering "real time significant economic fall-out" from boaters cancelling their planned visits and electing to take their business elsewhere.

"The amendments, slated to go into effect in less than seven days, on July 1, 2025, have been met with critical concern from stakeholders including properties who, as part of their tourism offerings, have marina facilities to accommodate this segment of stopover visitors," the Bahamian tourism industry warned.

"We have received multiple reports of cancellations from properties/marinas across the archipelago immediately after the changes were published and circulated via news channels, social media and online forums that are used prolifically and specifically by the boating community."

The letter to the Prime Minister added: "These 'on the books' cancellations reflect the real time significant economic fall-out. However, they do not depict the actual financial losses of the visitors contemplating coming to The Bahamas who have since changed their minds due to the perceived consequences of varying changes.

"Negative feedback expressed via social media, and to and through industry participants, includes shock at the announcement and the extremely short 'runway' for implementation; the interpretation of prohibitively heightened fees; a truncated period for exit and re-entry for the temporary permit holders before the significantly higher fees 'reset' (from 90 to 30 days), all features which negatively impact our 'spur of the moment' sea-faring stopover visitors."

The Bahamian tourism industry also cited "the added cost of $500 for certain towed tenders, which exist for safety and access purposes; confusion regarding ancillary anchorage fees, and the construal that mariners could be subject to a 'summary conviction' in The Bahamas, which carries a substantive fine ($1,000), for not having an AIS (automatic identification system) enabled on board their vessels."

Detailing the consequences, the BHTA and three Promotion Boards said: "There is no good time to suffer visitor cancellations and reputational fall-out. However, these cancellations could not have come at a worse time for our Bahamian businesses in the tourism industry throughout the archipelago.

"We are aligned in our apprehension and concern, as our tourism industry faces uncertain times given external forces and global events that are unfolding that lie beyond our control, which are having a negative impact on our tourism industry. While our cruise Industry remains less impacted, our land-based tourism businesses throughout The Bahamas face far less predictable, precarious economic headwinds.

"It is imperative we do not deploy any measures which would create perceived and/or realised barriers to entry for this high spending, buoyant, sea faring visitor market, who contribute significantly to a vast number of tourism business owners, operators and entrepreneurs throughout the archipelago during their stay in The Bahamas."

The BHTA and Promotion Boards requested that implementation of the Customs Management (Amendment) Regulations 2025 be temporarily suspended so that the Bahamian tourism industry can gain a better understanding of the new and increased fees, and what is meant and intended by the reforms, so that they can provide the correct interpretation to the boating market and mitigate the concerns.

"We respectfully request that a pause be placed on the implementation of these recently-announced amendments," they urged Mr Davis. "We would be grateful to have an audience with you, in the immediate future, Prime Minister, alongside the Deputy Prime Minister and minister of tourism, investments and aviation, and any other apt public and private sector representatives, to discuss the aims and ramifications of the consortium of changes in order to determine the best way forward where we can achieve mutual goals without causing damage or disruption to this invaluable sector of our sea-faring stopover visitor market."

Mr Pinder, though, moved swiftly to defend the Government's position during the Senate's Budget debate. "So we've heard a lot of discussion about these regulations and the fees prescribed in them, right? You go on Facebook and it's like the end of the world for some of these cruises," he asserted.

"Yes, we've increased the fees. We've also increased the duration of the cruising permit, and we have provided a framework for frequent visitors to The Bahamas. This is a balanced approach. You might recall cruising permits in the Bahamas used to be for three months. These regulations prescribe that they're for 12 months.

"We want to cater to the frequent visitors to The Bahamas. We want them to come and come, and return and return and return. So we're now giving you 12 months on your cruising permit. Instead of three, we are introducing a frequent digital cruising card (FDCC) for pleasure vessels for a period of two years," he added.

"So you can get this digital card for two years, which allows you unlimited travel to The Bahamas. Once you have it, you can come and go for two years in The Bahamas. No questions asked, unlimited. No time prescribed, no number of trips prescribed."

And, while the lowest FDCC and temporary cruising permit fee initially applied only to vessels 34 feet and under in length, Mr Pinder said the Government has now raised the threshold to 50 feet after receiving advice from John Pinder, parliamentary secretary in the Ministry of Tourism, Investments and Aviation, who has responsibility for the boating and yachting sector.

"We heard the discussion," the Attorney General disclosed. "My colleague, John Pinder in Abaco, called me. Know what he said? He said: 'Man, listen, Attorney General, we have boats 34 feet, 40 feet that come over all the time from Florida to Abaco. And you know this 34 feet metric is a little burdensome, right?

"'You can appreciate this. You know all of the day and weekend cruisers that come to Abaco in their center console boat, right?' And so he says, that's a little bit, 34 feet, a little bit much. I said: 'No problem, no problem'. So we increased that threshold for the first year to 50 feet. Which would which would take into consideration all of those centre console cruisers that come to our islands on a frequent basis from Florida. So, the fees for that not exceeding 50 feet in length is $500 for a permit for 12 months."

Mr Pinder added: "Now, let me give you some context. It was $300 for three months, [now] an additional $500 to extend it for 12 months. That's $800 for a year. Now it's $500 for you. In fact, it's less. Those exceeding 50 feet, but not exceeding 100 feet, pay $1,000 for 12 months, and those in excess of 100 feet, $3,000 for 12 months.

"We think these fees are fair, especially given the duration of time that they now cover. We have listened to the boating community and adjusted the first-tier fees to 50 feet in-vessel. We have also implemented modest annual fees for vessels anchoring in our waters, with an exception.

"If you're at a marina or a mooring, you're exempt from paying those fees. We have crafted these to draw a balance between revenue to The Bahamas for use of our waters and the appropriate scales and size of vessels visiting The Bahamas with a mind to be equitable and fair to the repeat visitors to our country."

As for boats acquiring the FDCC card, Mr Pinder said of the fees: "So those 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."

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, 34 feet respectively. A “pleasure vessel” will be able to enter The Bahamas’ twice within 30 days on the same fishing permit - not the cruising permit, as some have interpreted it to mean.

Finally, the new anchorage fees for vessels not mooring at a marina are pegged at $200 for a vessel not exceeding 34 feet; $350 for those between 34 feet and 100 feet; and $1,500 for those over 100 feet. The boating and yachting industry consensus appears, like private aviation, to be that the FDCC will only benefit vessels which make multiple, regular annual visits to The Bahamas.