After five days of trying to hammer out an agreement, cruise executives and tourism stakeholders were unable to arrive at a consensus on a proposal to impose a $20 tax on cruise ship tickets. But despite the impasse, Tourism Minister Obie Wilchcombe remains confident that there is a “happy medium” that would benefit both parties.
Just back from chairing last week’s Caribbean Tourism Organization (CTC) conference in the US Virgin Islands, Minister Wilchcombe told the Bahama Journal Tuesday that the country’s position on the issue is similar to that presented by other Caribbean leaders, who are lobbying for a “fair and reasonable” approach to creating a Regional Sustainable Tourism Development Fund.
According to the Minister, however, such an approach does not necessarily have to take the form of a tax.
“We have to arrive at some arrangement, but I’m not sure this is going to be through the imposition of a tax,” he said. “We appreciate what the cruise industry has done for The Bahamas as far as bringing in tourists and marketing and we wish to continue this good relationship.
“But we also have to consider the demands being made by the International Maritime Organization (IMO). And so the cruise ship industry is one that simply must be dealt with gingerly because you don’t want to destroy what has already being built.”
The proposal to impose a $20 cruise ship tax was launched by Caribbean Ministers of Tourism in June as one of the recommendations to create a fund to finance tourism initiatives like marketing, product development, tourism education and training, environmental and cultural development and safety and security.
ﾠ”All that is being argued is that there must be a way where we can benefit more from the great successes they are receiving by taking advantage of our assets,” Minister Wilchcombe said.
It is an opinion shared by CTO Secretary General Jean Holder.
Mr Holder recently chastised cruise lines for using Caribbean facilities and assets and making considerable profits while bearing only a small share of the burdens.
ﾠBut while the cruise ship tax presents a “palatable” proposition to regional tourism representatives, it is one cruise industry officials, led by the Florida Caribbean Cruise Association (FCAA), reject.
The opposing view is also one that has recently been echoed by a number of visitors.
According to Jerome Anderson, a resident of Maryland, any additional expense would make The Bahamas an even more costly destination to visit and could act as a deterrent to travelling to the country. Mr. Anderson pointed out, however, that if the money collected were used to help clean and otherwise improve the destination, “that would be a good thing.”
Minister Wilchcombe said, “We understand why the cruise industry opposes the regional tax. The collection process is very difficult. How are they going to ensure that the funds are going to be used those items we have identified? There are still a number of things that still has to be discussed. But in The Bahamas we feel something can be worked out just by sitting and talking, and the cruise industry has already expressed its willingness to do this.”
Minister Wilchcombe added, however, that while other options are being considered, before any tax could be implemented, it must be thoroughly discussed with Cabinet.
“The whole idea in moving forward is forging a private and public sector relationship that’s about progress and growth,” he said. “And once that’s done, I then have to convince the Minister of Finance, who imposes taxes, the Minister of Transport, who has responsibility for maritime affairs and Cabinet. So, it’s a process and we haven’t arrived there just yet.”
According to the Minister, arrangements are being made for further meetings to take place on the issue either before the end of the year or in early 2004.
By Macushla Pinder, The Bahama Journal
