The Bahamas lays out plan to raise cruise passenger taxes
As cruise lines increasingly invest in private islands in the Bahamas, government officials want to increase the passenger tax, reports The Tribune.
The government’s plan entails increasing several taxes. The existing $18 tax per departing cruise passenger would increase to $23 for each cruiser departing from Freeport or Nassau. The country would charge a higher tax, $25, for passengers who visit a private island without visiting another port in the Bahamas.
The government also seeks to add a $5 tourism environmental tax and a $2 tourism enhancement tax on each passenger. All taxes but the $2 tourism enhancement tax are expected to go into effect on July 1. The tourism enhancement tax is expected to go into effect on Jan. 1, 2024.
The Florida-Caribbean Cruise Association said it was in “active discussions with country officials to better understand the changes and determine a mutually beneficial path forward,” FCCA CEO Michele Paige told Seatrade Cruise News.
The tax plan comes as cruise lines have invested heavily in private island destinations in the Bahamas. Disney Cruise Line, which sails guests to Castaway Cay, is building a new private destination, Lighthouse Point, on Eleuthera Island. It is scheduled to open in the summer of 2024.
Royal Caribbean International, which has made Perfect Day at CocoCay a centerpiece of its family-oriented Caribbean strategy, is expanding its beach capacity there in Q4 this year with the opening of the adults-only Hideaway Beach.
Royal Caribbean also plans to build the 17-acre Royal Beach Club on the western end of Paradise Island in Nassau to open in 2025.
Other lines that have private island destinations in the Bahamas include MSC Cruises, Norwegian Cruise Line, Princess Cruises and Holland America Line.
The tax increase would nearly triple the government’s revenues from departing cruisers in its 2023-2024 budget to $145 million from $50 million, The Tribune reported.
The tax discussion comes after the cruise port in Nassau completed the first phase of a $300 million construction project on a new berth along with refurbishments and repairs. The project increases daily capacity to 30,000 passengers, up from 20,000.
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