By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Association of Bahamas Marinas (ABM) president yesterday said the Government's planned crackdown on soliciting charters locally will "put Bahamians in the same boat as everyone else". 

Peter Maury told Tribune Business that the industry has been "pushing" for reforms, unveiled in legislation accompanying the 2025-2026 Budget, that prevent foreign companies or individuals from negotiating yacht and boat charters once the vessel is in The Bahamas.

Proposed changes to the Boat Registration Act will now reserve this exclusively for Bahamian individuals and companies, with the ABM chief asserting that this amendment will also ensure the Public Treasury gains its fair share in tax revenue by blocking charter transactions handled overseas and where the funds never touch this nation.

"Right now you have foreign companies booking charters through some of the hotels and they are outside The Bahamas," Mr Maury explained to this newspaper. "We've said this since 2014. In order to get Bahamians involved in this; it's an $85bn industry, and when the boats sit here in The Bahamas they can get charters from wherever.

"An American can book a charter for Russians on a French boat. But the problem is there are companies that operate here in The Bahamas from outside The Bahamas, not paying for a Business Licence and other taxes, and they book charters through a hotel.

"If somebody approaches me in my marina, and says they want to do a charter, the money stays in The Bahamas and the Bahamian broker gets to solicit the charter. But, at the moment, it can be solicited outside the country. The person outside the country sends in a concierge, gets a commission, brokers the charter and there is no record of it."

The Boat Registration (Amendment) Bill, tabled in the House of Assembly on Wednesday, aims to halt this practice through the insertion of the new section '4A'. Entitled 'Restrictions for charter originating within The Bahamas', it states: "No person shall negotiate, or permit the negotiation, of a charter-party.... for a charter within The Bahamas that originates when the vessel is located in The Bahamas unless the charter is negotiated and contracted by a citizen of The Bahamas."

If a corporate entity is involved, then the reforms stipulate that it must have a valid Business Licence and be approved by the Port Authority. Further restrictions mandate that the charter of a vessel less than 55 feet in length cannot be less than 48 hours, while the person involved in broking the contract must collect and remit all due taxes to the Government. 

Breaches will result in a fine of between $5,000 to $25,000 on conviction. Mr Maury, meanwhile, told Tribune Business that the ABM had created the Bahamas Yacht Brokers and Agents Association specifically to get more Bahamians involved in the brokering and chartering business.

"What we're saying as Bahamians is that we would promote Bahamian companies operating in The Bahamas within the guidelines they have to be a Bahamian company, be a VAT registrant, be insured and properly licensed and insured boats. We've been pushing for this. I see no problem with that," the ABM president revealed of the charter restriction.

"This is our effort to try to prove to the Government that this is a vibrant industry and it's prudent for Bahamians to be involved; no just as brokers, but as agents. These are companies with Business Licences and persons employed. It's putting Bahamians in the same boat that everyone else is allowed to do.

"It's expanding the industry instead of killing it. We're a destination. Let's have offerings to keep business in the country instead of outside the country." Mr Maury, though, was less impressed by the Budget plans to make it easier for regular private boat visitors to enter this nation.

"The Bahamas has long been a haven for private yachts and aircrafts. But our administrative systems have not kept pace with this reality. That changes now," the Prime Minister said on Wednesday. "We will introduce the Frequent Visitors Digital Card to make entry smoother, and compliance simpler, for private vessels and aircraft that visit our shores regularly.

"For private boats, each vessel will be required to have its own card, linked directly to its registration number. This card will be valid for two years and is intended exclusively for cruising, not for fishing or anchoring."

Mr Maury, though, argued that this was merely replacing a similar scheme that was facilitated by the marina industry's former SeaZPass portal that was ordered to close by the Government in fall 2022. He argued that the Davis administration is repackaging an initiative, and seeking to take credit for it, despite being responsible for shutting down a previous version.

"It's unreal. We already had this," the ABM chief argued. "You could enter your details on our portal and, if you entered so many times in a couple of months, you would gain free entry. They took that down, closed it for four years, and repackaged it and sent it back out. It's embarrassing. I had to report it to the yachts and marinas, and they said: 'We already did it'."

Elsewhere, in further maritime legislative reforms, the Government is seeking to crack down on foreign ownership, and the practice of Bahamians 'fronting' for expatriates, in a tour and excursion industry supposedly reserved exclusively for 100 percent local ownership.

The Commercial Watercraft (Amendment) Bill 2025 is seeking to insert a new section '21A', which aims to combat "foreign ownership concealment arrangements".

It stipulates: "No person shall, whether by trust, nominee, contract or any other arrangement, engage in or facilitate any foreign ownership concealment arrangement that has the purpose or effect of permitting a foreign person or entity to beneficially own, control or operate a commercial recreational craft in contravention of this Act or any regulations made under this Act.

"Any such arrangement shall be deemed void for the purposes of this Act, and each person involved shall be liable to a fine not exceeding $20,000 or imprisonment for a term not exceeding 12 months, or both.”

Andoni Lisgaris, the Bahamas Excursion Operators Association’s (BEOA) president, in a messaged reply to Tribune Business inquiries argued that "the Government just simply needs to enforce its own laws".

He added: "We have the laws in place to protect Bahamian businesses and help them thrive but, unfortunately, we get very little support from our own government. Nothing will ever be resolved unless the law is enforced.

"It was stated in the Budget communication yesterday that 'jet ski and motorboat operators will now face fines and fixed penalties for violations of the laws and regulations governing their operations. To strengthen enforcement, we will create a Maritime Revenue Unit within the Ministry of Finance.

'In addition, members of the Royal Bahamas Police Force, the Royal Bahamas Defence Force, Port officers and other designated authorities will be empowered to issue notices, impound non-compliant vessels and, where necessary, dispose of such vessels at the owner’s expense.'

Mr Lisgaris added: "Again, these are laws that we already had in place but hardly get enforced. They just need to increase enforcement efforts.

"In a nutshell, in order to be a compliant commercial vessel operator, you must be fully licensed - which also includes being STCW certified - and the vessel be inspected for seaworthiness and to ensure it is fully equipped with life saving equipment; clear of any criminal history; obtain a health certificate; be fully insured, which includes liability coverage along with a valid Business Licence.

Pointing out that the latter "has its own list of requirements, including being up to date with your NIB contributions and so on", he said: "If they check vessels for valid licences and registration we will be miles ahead in a positive way. I am, however, hopeful that they will follow through with this promise this time."