NASSAU, BAHAMAS- A Cabinet proposal to reform charter fees for Bahamian-flagged vessels is part of a broader strategy to grow the national yacht registry, increase local participation, and boost sector revenue, according to Minister of Transport and Housing JoBeth Coleby-Davis.
“I have brought to Cabinet the matter of fee structure reform to better incentivize the use and growth of the Bahamian flag,” Coleby-Davis said during her Budget Debate contribution in the House of Assembly. “Specifically, we are exploring provisions that would allow Bahamian-flagged vessels to benefit from a reduced charter fee, compared to their foreign-flagged counterparts. This initiative would be a collaborative effort between the Port Department and the Bahamas Maritime Authority, under the ministry, and aims to grow our yacht registry, increase revenue, and expand opportunities for Bahamians to participate in the sector.”
She noted that the Port Department is projected to generate over $38 million in revenue during the upcoming fiscal year—“a clear testament to the robust efforts being made across the sector.” An allocation of $9.3 million has been set aside to support the Department’s operations, consistent with last year’s expenditure.
Among other reforms, the Coleby-Davis noted that effective July 1st, the 14 percent yacht charter fee will be fully payable to the Port Department, ending the previous revenue-sharing arrangement with the Department of Inland Revenue. “This change comes directly in response to stakeholder feedback and is part of our broader effort to make compliance easier,” she said.
Coleby-Davis also outlined amendments to the Boat Registration Act that will allow Bahamian charter retailers to solicit guests while operating in Bahamian waters. Vessels 55 feet and over may solicit for periods of two days or more, while vessels under 55 feet may solicit for less than two days.
“This change is welcomed by yacht stakeholders and supports greater enforcement and revenue generation, ensuring that Bahamians are at the forefront of industry development without compromise to the local commercial boat sector,” she said.
