NASSAU, BAHAMAS- A Bahamian entrepreneur seeking to restore Paradise Island’s lighthouse is calling for a radical restructuring of how cruise line revenues are regulated and distributed in The Bahamas, blasting both the current and previous administrations for what he describes as “decades of sellout politics” that have failed to serve the national interest.
Captain Toby Smith is advocating for the creation of a Cruise Revenue Board, an 11-member independent authority comprising Bahamian professionals from audit firms, banks, and investment houses which he says would be responsible for collecting and managing all cruise-related taxes and fees, ensuring revenues are transparently allocated and shielded from political interference. Smith argues this is the only way to ensure that the immense economic activity generated by cruise tourism benefits the Bahamian people directly and sustainably.
“This isn’t about politics,” Smith said. “It’s about national brain enrichment. The Bahamas deserves better. Our children deserve better.”
His call for reform comes as he escalates his legal battle over five acres of Crown Land on Paradise Island. Smith has now taken his case to the UK Privy Council after Chief Justice Sir Ian Winder ruled that the Bahamian entrepreneur did not have a valid, binding agreement to lease the land, which is split into two parcels near the Paradise Island lighthouse. That decision was subsequently upheld by the majority of the Court of Appeal. In a dissenting decision, Sir Michael Barnett concluded that there was indeed a binding agreement between Smith and the government.
Smith, who says he’s mulling a run for politics, believes his fight is emblematic of a broader national issue. “As it currently stands, The Bahamas is held hostage by the cruise lines and the Prime Minister,” he said. “I hope that can change and remove it from being the Prime Minister’s decision to give away Bahamian Crown Land, give away concessions in hidden Heads of Agreements, and bypass transparency altogether.”
He accused both the Minnis and Davis administrations of perpetuating a system in which valuable Crown Land and multimillion-dollar concessions are granted to cruise lines with minimal public input and little benefit to ordinary Bahamians. “The cruise lines are laughing all the way to the foreign bank, while Bahamians are handed frozen turkey and toilet-cleaning jobs.”
Smith argues that cruise tourism has the potential to deliver far greater returns to the public treasury if properly regulated. He says that current arrangements allow foreign cruise companies to extract vast sums with very little benefit accruing to the Bahamian taxpayer. “Why is there no transparency on what the cruise lines are really earning here?” he asked. “We’re being robbed in plain sight.”
Prime Minister Philip Davis, during his 2025/2026 Budget Communication last week, acknowledged that while cruise arrivals reached a record 9.4 million visitors in 2024—an increase of 20.3 percent over the previous year and accounting for 83.4 percent of all tourist arrivals—the sector’s direct contribution to public revenue has lagged behind its exponential growth. He noted that significant revenue is generated at private cruise destinations through premium services like cabana rentals.
“In keeping with these principles, our Budget introduces targeted compliance measures to ensure cruise-related activities contribute fairly and meaningfully to our national development,” Davis said. “Recently, the government has been meeting with the cruise lines to streamline compliance in this sector. The cruise lines have acknowledged the importance of compliance and will continue to work with the government to ensure that this happens in a sustainable manner.”
The Prime Minister said the government would ensure enforcement of customs duties, VAT on all imports to private cruise islands, immigration work permit fees for all employees, the application of the Communications and Electricity Acts to private utilities, VAT on all services offered for value on the islands, and uphold the policy reserving recreational watercraft rentals for Bahamians. He added that the economic activity taking place at private cruise destinations is expected to be the largest single driver of GDP growth over the next three to five years.
Smith, however, remains skeptical. He said that unless these reforms are insulated from political interference and enforced by an independent body, they will amount to little more than political rhetoric. He has outlined a 40-point plan of his own, including a $23 departure tax per passenger, a $100 fee on each premium onshore activity, mandatory daily customs declarations by cruise operators, and a requirement that 100 percent of all taxes collected from cruise activities be held in Bahamian accounts.
“The country cannot move forward if foreign corporations are allowed to operate in secrecy and the wealth generated in The Bahamas is not reinvested in The Bahamas,” he said. “Every dollar earned in The Bahamas should work for the Bahamian people. We must break this cycle,” said Smith.
