NASSAU, BAHAMAS- The Free National Movement (FNM) has sharply criticized the Davis Administration, accusing government officials of misleading the public on the health of The Bahamas’ yachting industry. Deputy Leader Shanendon Cartwright, M.P., responded to recent government claims that yacht charter activity is “increasing year by year” and expected to “stay strong,” calling the statements “fundamentally untrue.”
“Let’s be clear: that is a lie,” Cartwright said. “Since the Davis Administration increased VAT on yacht charters from four percent to ten percent, nearly half of The Bahamas’ market share has disappeared—diverted to regional competitors like Turks and Caicos and St. Maarten. What the PLP calls ‘growth’ is actually a mass exodus.”
According to the FNM, the impact of the VAT hike has gone far beyond foreign yacht owners, triggering ripple effects throughout the local economy. Cartwright said the consequences have been acutely felt by Bahamian-owned support businesses including taxi drivers, rental agencies, engineers, cleaning crews, and others who depend on maritime tourism.
“We’ve spoken to captains, charter operators, and workers across the sector,” Cartwright noted. “From Grand Bahama to Abaco to Exuma, the message is the same: business has collapsed. This ten percent tax didn’t just scare off foreign vessels—it has hurt Bahamian livelihoods.”
Cartwright further alleged that key government officials, including the Prime Minister, Deputy Prime Minister, and Minister of Transport, were fully briefed on the potential consequences of the tax increase prior to its implementation.
“They were warned. They saw the data. Yet they chose to proceed with a poorly conceived policy that has gutted a once-thriving sector,” he said.
As part of its proposed recovery plan, the FNM pledged to repeal the ten percent tax on yacht charters and engage directly with industry stakeholders to revitalize maritime tourism. Cartwright said the opposition’s strategy focuses on collaboration with travel professionals, targeted marketing, and increased investment in infrastructure—particularly in the Family Islands.
“Our approach includes strengthening airlift in key markets, expanding our reach to new regions like Europe, Latin America, and Asia, and fast-tracking airport and resort developments to enhance accessibility and visitor experience,” he said.
“This isn’t just about yachts,” Cartwright added. “It’s about vision. While the PLP offers selective statistics and short-sighted solutions, we are focused on recovery, resilience, and real results.”
