NASSAU, BAHAMAS- Bahamian yacht brokers say that they are being left with "nothing but crumbs" due to what they describe as "discriminatory" government regulations.
The Bahamas Yacht Brokers Association (BYBA) in a statement noted that The Bahamas Boat Registration Act (Yacht Rule), explicitly states that foreign-owned yachts, which comprise the majority of yachts operating in The Bahamas including every single charter vessel above 50 feet in length, must be rented from a broker outside the country. The Yacht Rule was passed in 1992 and according to the BYBA, successive governments from both parties have failed to rectify it. Under the regulation, local brokers cannot book charters above 50 feet independently, they can, however, partner with international brokerages, cutting significantly into their profits.
"This means Bahamian brokers are left with nothing but the crumbs, while foreign agents are flourishing off of business taking place in our own waters. This rule blatantly contradicts a number of Bahamas Investment Authority policies designed to put Bahamians first and also contravenes the Business License Act," the BYBA said in a statement.
The BYBA recently noted that the government's new VAT policy is making the jurisdiction uncompetitive and driving vessels to nearby rivals in The Caribbean, thereby taking food out of the mouths of local service providers.
"Over the last few years, yachting has exceeded previous pre-Covid growth predictions to become an $85-billion-dollar industry globally. Bahamian brokers would be thriving off this sector, as this is a very in-demand destination, were it not for these discriminatory rules. It really is baffling why the government would seek to undermine Bahamian professionals," the BYBA noted.
The association further noted that the government has the potential to achieve dual objectives, namely generating more opportunities for Bahamians in a rapidly expanding industry and increasing the country's gross domestic product. Additionally, it noted that the influx of funds from foreign yachts could strengthen the local currency against global economic downturns.
"Due to the discriminatory regulations that the government has put in place, it is better for Bahamians to operate outside the jurisdiction than within it. The BYBA therefore further calls upon the government to address the legislation for brokers and agents that wish to operate in our own country, so that we may be competitive without having to leave our homes and work abroad. Too many of our brightest and youngest are choosing not to come home to The Bahamas because of our restrictive policies imposed on Bahamians. Let us not let this industry be another reason our future professionals and leaders never to come back to our shores," the BYBA noted.
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