Bahamas Government Proposing Steep Cruise Passenger Fee Hikes

The Bahamas government is proposing legislation that would hike cruise passenger fees to $30 or $32 per person, up from $18 now, according to multiple sources.

The Passenger Tax Amendment Bill 2023, introduced last week in the Bahamas’ House of Assembly, would increase the present $18 tax to $23 for “every cruise passenger” departing the territory via Nassau or Freeport.

The legislation will also introduce a $5 per-person “tourism environmental levy for every cruise ship passenger arriving or leaving” The Bahamas, according to a Bahamas Tribune report.

Finally, the bill will also implement a $2 per-person “tourism enhancement levy” for every passenger arriving at or leaving The Bahamas.

“We have been advised of the fees being considered and are in active discussions with country officials to better understand the changes and determine a mutually beneficial path forward,” said Michele Paige, CEO of the Florida-Caribbean Cruise Association, in a statement to TravelPulse. FCCA represents 90 percent of global cruise capacity.

The tourism enhancement levy is scheduled to begin on Jan. 1, 2024, according to the Tribune report, while the other increases would start this July.

In a Seatrade Cruise News article, Chester Cooper, the Bahamas tourism minister linked the enhancement levy to new Tourism Development Corporation legislation intended to help create new products to support the cruise industry.

The proposed fee increases come as cruise companies pour tremendous investment capital into Bahamas cruise projects. This past week, the revitalized Nassau Cruise Port opened. Carnival Cruise Line’s new Grand Bahama destination and Disney Cruise Line’s new Lighthouse Point projects are also under development.

Carnival is also building a new pier and additional amenities at Little San Salvador, where Holland America Line’s Half Moon Cay is based. Later this year, Royal Caribbean will launch Hideaway Beach at Perfect Day at CocoCay.

The company’s planned Royal Beach Club on Paradise Island is currently undergoing an environmental impact assessment.