By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An Abaco resort proprietor says the boating fee reforms fall-out is "causing me a great deal of stress" with a US maritime body yesterday warning The Bahamas could lose its "boater-friendly" reputation.

Molly McIntosh, the Bluff House Beach Resort and Marina's proprietor, told Tribune Business that she has already been contacted by long-standing repeat visitors warning they will not return due to concerns over new and increased boating fees plus the uncertainty surrounding what other reforms accompanying the 2025-2026 Budget mean and their impact.

While agreeing that the Government needs to collect its fair share in fees and taxes from a sector that commercially exploits The Bahamas' waters, she also joined those arguing that the tourism industry and its boater clients should have been "given a little more time on the roll-out" to understand the reforms, the intent behind them and what is required so as to avoid the mass confusion that now exists.

Ms McIntosh, voicing optimism that Bluff House will enjoy a "banner year" in 2025, with May and June having surpassed the previous 2019 high, nevertheless told this newspaper that it "scares the hell out of me" that every high seems to be swiftly followed by a low. She urged The Bahamas to focus on growing boating visitor numbers, arguing that the upfront fees pale against the VAT generated by such tourists.

She spoke out after the US-based National Marine Manufacturers Association (NMMA) weighed in on The Bahamas boating fee controversy in a letter sent to Prime Minister Philip Davis KC yesterday. It warned that "sudden regulatory shifts" threaten to "damage confidence" in this nation if unveiled and implemented without proper industry consultation.

Echoing the Bahamas Hotel and Tourism Association (BHTA), and the industry's three Promotion Boards, Frank Hugelmeyer, the NMMA's president and chief executive, said: "We are especially concerned that these changes were introduced without stakeholder input from the marine industry, tourism operators and the international boating community.

"Sudden regulatory shifts risk undermining long-standing partnerships and could damage confidence in The Bahamas as a boater-friendly and welcoming destination. Guides, anglers and boaters will seek alternatives amidst uncertainty. 

"We urge your government to reconsider these immediate changes and initiate a formal consultation process with industry stakeholders to support your country's policy goals while preserving its status as a premier destination for exploration that recreational boaters and anglers enjoy."

The NMMA's letter appears to have been prompted by fears that its own "thousands" of marine manufacturer and business members will be negatively impacted by a reduction in boating visitors to The Bahamas, including the day-trips and overnight visitors from Florida. However, Mr Hugelmeyer's letter also gives an insight into the confusion and uncertainty in the boating sector as it relates to The Bahamas.

For the NMMA appears not to have been aware that The Bahamas, via a late amendment, has expanded the number of small vessels - the likes of centre consoles and Boston Whalers - that can access this nation for 12 months at the lowest-cost temporary cruising permit. This was done through increasing the length of qualifying vessels from 34 feet to 50 feet.

Ryan Pinder KC, the attorney general, confirmed this change in the Senate on Wednesday. And the NMMA letter also appears to confuse the duration of a temporary cruising permit, which Mr Pinder said was valid for 12 months at all price points, with that for a fishing permit. It is the latter that permits a vessel two times within 30 days - not the cruising permit.

However, Mr Hugelmeyer wrote: "The significant changes in fees, including increasing the cruising permit for boats under 35 feet from $150 to $500, and for those over 35 feet from $300 to $1,000, alongside a reduction in permit duration... and the addition of per-person surcharges and separate fishing permit costs, will have an immediate and adverse impact on boating tourism to The Bahamas, including cancelled trips.

"These abrupt changes to access Bahamian waters will significantly reduce visitation to marinas, restaurants, shops and other small businesses that depend on this vital stream of tourism. In addition, these shifts will have an adverse impact on Florida businesses as well based on trip origination points."

The Government also adjusted the requirement for vessels in Bahamian waters to have installed, fully functioning and switched on automatic identification systems (AIS) to exempt boats below 55 feet. Mr Hugelemeyer and the NMMA, though, said this should be aligned to US Coast Guard rules and regulations which mandate an AIS for vessels 65 feet and other. An implementation period is also needed.

Ms McIntosh, meanwhile, said she is "going to reserve total judgment" on the new and increased fees set out in the Customs Management (Amendment) Regulations 2025 but is already fielding threatened cancellations and inquiries from other boaters presently docked at the Bluff House's marina.

"Obviously it's causing me a great deal of stress," she told Tribune Business. "What I'm seeing is that a lot of people are very angry, but people do like to get up in arms about stuff.... From what I see it's going to hurt a lot of our boats. In Bimini, they can come back and forth, back and forth, it's a good deal.

"People on our dock right now are talking about it. I also have a lot of Canadians who come down for winter who are saying it doesn't look like they are coming back because of all the changes. They come in January, February, March, usually in the break before Easter which is when we start to get busy.

"It's good business for the island. They rent golf carts. They're not the biggest spenders but they do keep the economy rolling and people employed. It's going to hurt. I don't know how badly. If the Government could have given us a little more time to roll this out, or wait until later to enforce it," Ms McIntosh said.

"We have to charge fees. The Government needs money. I would prefer some of the money comes back to the Out Islands. I don't see much of that. We have a lot of infrastructure needs to be fixed here, and if we felt the money was being used for that purpose that's easier for me when I'm trying to defend The Bahamas."

Ms McIntosh reiterated that her repeat Canadian visitors had warned in writing that "they may not come for the winter season", but she will still encourage them to do so. "Some of the people on my dock are upset with the regulations," she said. "It's causing me a lot of stress. Many boaters are not happy and it gives us a bad press.

"We're getting ready to go to the Fort Lauderdale Boat Show. Can you imagine what fun that will be? We've got to change something. It's getting it right, doing it in the right way that's collaborative with people rather than say this is what's coming....

"If the boats don't come in the amount of VAT we're going to lose will far surpass any increase we get in these fees. That's the one thing I worry about. I encourage the boaters to come, and we get a lot more money out of them for the Government. They keep coming and the Government gets the VAT money."

Ms McIntosh expressed hope that the boating fee fall-out will not undermine what is shaping up to be the Bluff House's best-ever year. "I'm so busy over here with every slip, every room, every villa, every restaurant taken," she said. "I'm trying to keep up with the orders, keep food and drink in the restaurant. It's taking up so much of my time.

"I'm just hoping this is our best season ever. For Bluff House, 2019 was our banner year. We did better this May and June than we did in May and June 2019. It just scares me that every time we have a banner year it goes to hell in a hand basket, and we don't want that."