NASSAU, BAHAMAS – The Bahamas’ marina industry has suffered an estimated $130 million in direct revenue losses as a result of declining marina occupancies, according to Peter Maury, President of the Marina Operators of The Bahamas, who says the government needs to offer the industry meaningful incentives to regain its market share and get back on top.
“The $130 million is what we estimate. This is about a half-billion-dollar industry. At one point, we were 38 percent of tourism, and we have slid considerably down from there,” said Maury. “Directly from this side of the industry is what we estimate, based on occupancies. The other supported services—rental cars, restaurants, and all that—I can’t even put a number on that.”
Maury’s comments came following a town hall meeting Monday night, where industry stakeholders gathered to discuss how their businesses have been affected by the decline in charter yachts operating in The Bahamas. Bahamian marina operators have blamed the yacht charter fee hike for a sharp decline in foreign yacht traffic and revenues. An industry paper warned that tripling the tax burden to 14 percent has made The Bahamas less competitive.
Minister of Transport and Housing JoBeth Coleby-Davis, during her Budget Debate contribution on Monday, noted that effective July 1st, the full 14 percent yacht charter fee will go directly to the Port Department. This is part of a broader government effort to simplify compliance, grow the Bahamian yacht registry, increase revenue, and expand opportunities for local participation in the maritime sector.
Maury responded: “They just made it easier to pay the 14 percent. That’s an attempt to make it easier. I have been in this industry for 35 years—run Atlantis, Hurricane Hole, built this at Bay Street—and I know a lot of people in this industry.”
“Obviously, when these changes come in, I speak to the masters in the industry and say, ‘Hey, what do you think of this?’ I call the guys who are in charge of these associations and run things, and they’re like, ‘You’re not doing anything.’”
Coleby-Davis also noted that the government is considering a reduced charter fee for Bahamian-flagged vessels compared to foreign-flagged counterparts. The move is part of a strategy to incentivize the use of the Bahamian flag, grow the national yacht registry, and boost local participation in the charter industry.
Maury added:
“Before the government put in VAT and 4 percent for a combined 14 percent, the ABM recommended that the government have a 4 percent fee for Bahamian flag vessels and a 6 percent fee for non-Bahamian flag vessels.”
“They need to go back to that. We’ve lost too much business, and 14 percent is not gonna get us any movement to regain that business.”
“The government is directly responsible for the decrease of occupancy and loss of revenue and jobs in this industry. They need to bite the bullet and offer the industry an incentive to try and put us back on top.”
