Like most taxes, politicians often use flawed statistics when trying to justify how much additional revenue will be generated by a new tax. Made up Example:
10,000 boats visiting in 1 quarter. Previously charged $300 usd for a visit. 10,000 x $300 = $3 million in revenue for that quarter! Easy right?
Here's where it goes wonky. The supporters claim that if the charge is raised to $1,000/visit, the revenue magically generated will increase to $10 million! A $7 million increase, right? That's good, right?
Here's the reality: By raising the fee from $300 to $1,000, "many", possibly, or perhaps even probably, a SIGNIFICANT number of those 10,000 cruisers will chose not to pay the 333% increase ($300 to $10,000).
With me so far?
Okay, here's where it goes even more sideways, and demonstrates why raising fees often actually REDUCES government revenue.
Our fictional cruising couple cruises to the Bahamas on their 40' pleasure boat.
- Our intrepid cruisers arrive at the customs check-in, stay on the dock (marina fee paid), clear in (cruising permit purchased), go out to eat, buy groceries, fuel, water, clothing,
- They move on to another town, this time they anchor out, and pay an anchorage fee, and a dinghy dock fee, dine out multiple times, drink Sundowners at the local bars, visit with other cruisers,
- They move to another town, stay in another marina, dine out multiple times, buy groceries, fuel, water, clothing, etc
- They run into some mechanical issues, hire a mechanic to fix the issues, pay wages, buy parts from the States, pay import duties on this parts, repair their boat, and then move on to the next island.
rinse and repeat, you get the picture.
So, LOTS of $$ get paid into the local economies, to the fuel docks, marinas, restaurants, grocery stores, tour guides, etc, and I mean LOTS of $$$$, WAY more than the cruising permit paid to stay for say three months.
Now moving along, let's assume that 33% of those cruisers decide that with the 333% increase in cruising permit (actually more than that, as the fishing licenses that used to be included in the $300 cruising permit NOW has to be purchased separately at an ANOTHER ADDITIONAL COST!
Boat length under 34' is $100.00 additional if you want to fish
34' and up is now $300.00 additional if you want to fish
If you go by the poll on Face Book where people are discussing the increased Cruising Permit Fees, of 1,740 people responding, NINETY % said they will with no longer go to the Bahamas with the increased fees!
Only 10% said they will pay the fee and still go to the Bahamas.
I guess that's ONE way to reduce congestion in anchorages!
Seriously, many long stay cruisers may still go, but I foresee a SIGNIFICANT downturn in cruisers that visit short term, and a SIGNIFICANT number of marginal businesses/restaurants, etc that will go in many of the smaller destinations if they keep this 333+% fee increase in place. . . .
If these fees are still in effect in November, we will cancel our November - March trip to the Bahamas, and will go elsewhere.
I feel really sorry for the business owners in the Bahamas
Note: The Bahamas Immigration Department's annual statistics page shows that in the first quarter of 2023, there were
13,436 permits approved. However, this is for all permits, not specifically cruising permits, and it is only for the first three months of the year. They didn't break it down specifically into cruising permits.
