By BRENT DEAN ~ Guardian Staff Reporter ~ brentldean@nasguard.com:
The government owes two cruise lines $11.1 million in departure tax rebates for bringing cruise passengers to The Bahamas, Prime Minister Hubert Ingraham said in the House of Assembly yesterday.
Ingraham said $10.7 million is owed to Carnival Cruise Lines (CCL), and $389,000 to Royal Caribbean Cruise Lines (RCCL).
Since 1995, when the cruise ship overnight incentives were created,
the government has had a rebate agreement with cruise lines. Departure tax is rebated if the companies surpass certain visitor targets.
The target for individual cruise lines was initially set at 400,000 visitors in 1995. The ceiling was raised to 600,000 in 1999. It would stand at 800,000 as a result of a new law.
Ingraham said that in August 2007, the government paid $12 million to CCL and RCCL in outstanding rebate payments $9 million was paid to CCL and $3.2 million to RCCL.
The rebate agreements with the government have expired. The government has made an agreement with CCL but not with RCCL thus far, according to the prime minister.
The House passed amendments to the Cruise Ships Overnighting Incentives Act yesterday extending concessions to the sector. The bill changes the passenger tax rates for cruise ships coming to The Bahamas to an average of $11.80 per person over three tiers.
Under the new law, cruise ships would only be required to overnight in The Bahamas for 13 hours, instead of the 18 hours as was required under the old agreement.
The new law also expands the number of ports ships could visit to receive concessions. Along with the port of Nassau, cruise lines could visit, Half Moon Cay, Freeport, Rock Sound, Castaway Cay, Coco Cay and Great Stirrup Cay.
Ingraham also announced that the government is looking to develop a major cruise port near Williams Town, Grand Bahama.
"We are also, Mr. Speaker, pursuing the strategy of engaging a major strategic cruise line as a partner, with respect to the development of a new cruise port on the island of Grand Bahama near Williams Town. And we shall do all that we can to ensure that no one, no one, stands in the way of success in that regard," said Ingraham.
The agreements with the cruise ships would be extended from three to six years under the new law.
Additionally, shops and casinos on the cruise ships would be allowed to open after 7 p.m. as was the case under the old law.
Tuesday, June 30, 2009