Cruise passenger numbers in 2022 are expected to trend nine percent ahead of where they were in 2019 and with the completion of the new cruise port in 2022, fees from cruise lines to the government will increase by $4 million per year, Minister of Tourism and Aviation Dionisio D’Aguilar said yesterday during his contribution to the budget debate.
D’Aguilar explained that with the expansion and redevelopment of the cruise port – which will be able to berth three Oasis-class ships – by summer next year, cruise lines are already booking more berth space at Nassau’s cruise port for 2022 and will bring almost a half million more passengers than the record 5.4 million they brought in 2019.
He added that the fees earned by the government from the port will increase from approximately $2 million each year to about $6 million, as the government will now receive value-added tax (VAT) on the passenger facility charge paid by each visitor.
“So we are getting a new and expanded port… it won’t cost the treasury a dime,” D’Aguilar said. “The port will be exclusively available to Bahamian small and medium-sized entrepreneurs, ground transportation and excursion operators will benefit from better working conditions, the port will be managed, as it is right now, by an all-Bahamian team; the port will be funded primarily by Bahamians and cruise passengers expecting to use the port will increase.
“For example, in 2022 the total amount of passengers expected to use the port is nine percent ahead of the total amount of passengers that used the port in 2019, which was the best year ever, indicating that cruise lines are excited by the prospect of a new port.”
D’Aguilar touted the cruise ports planned for Grand Bahama by Carnival Cruise Line and Royal Caribbean International, as well as the proposed development by Disney Cruise Line at Lighthouse Point, Eleuthera, as future boons for The Bahamas’ cruise industry.
“COVID-19 has delayed their advancement over the last 15 months, but both cruise lines have indicated that they are both a go and will begin in earnest when cruising resumes and cash flows improve,” said D’Aguilar.
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