NASSAU, BAHAMAS — As the Bahamian yachting industry grapples with declining charter traffic due to increased taxes, a veteran yacht captain is proposing a solution: reinvest charter tax revenues into maritime services, benefiting both boaters and locals, and making the tax increase more palatable.
Captain David Meyer of Motor Yacht ESCAPE told Eyewitness News, “The increase in charter taxes is hurting the industry. Yacht owners and captains are being asked to pay more, but there’s no clear benefit coming from those fees.” Meyer, who spends seven months a year in The Bahamas, added that many boaters are now opting for other Caribbean destinations due to the rising costs. “People don’t mind paying taxes, but they want to see where the money is going,” he explained. “If those charter tax revenues could be reinvested into something that directly benefits the maritime community, it would make the tax increase more palatable and more widely supported.” His comments were spurred by a recent experience where he and another mariner had to rescue stranded boaters at sea—one of several incidents in recent months.
Captain Meyer suggested using the funds to establish high-speed rescue teams across major island groups, equipped with specialized boats and trained personnel familiar with local waters and navigational aids. “By investing in maritime safety infrastructure, we not only improve the experience for yacht charter guests but also contribute to the safety and well-being of everyone in The Bahamas,” he said.
Marina operators have voiced serious concerns over the yacht charter fee and its impact on the industry. Bahamian marinas now face “a fight to get back market share” that will take years, as a recent study revealed that the more-than-tripling of tax rates has cost the country 90 million dollars through a 40 percent slump in foreign yacht charters.
An industry position paper, ‘Yachting in The Bahamas’, written by Marcel Amann, the founder of Yacht Services Bahamas, and released in 2024, reiterated that recent tax hikes and regulatory changes “have dampened activity” in a sector estimated to generate half a billion dollars annually for the Bahamian economy.
The paper specifically singled out the imposition of the 10 percent VAT on foreign yacht charter fees as especially harmful to The Bahamas’ competitiveness, noting that it tripled the overall tax rate to 14 percent when added to the existing 4 percent Port Department levy. The tax burden is now much higher than that of Caribbean rivals, and the ease of doing business in The Bahamas has been made more costly, time-consuming, and bureaucratic for visiting boaters. This is due to the introduction of additional requirements, such as obtaining a VAT taxpayer identification (TIN) number.
