The Bahamas government has announced a delay in implementing a controversial increase in cruise passenger taxes. The new tax rates, originally slated to take effect in July 2023, will now commence in January 2024.

Carnival Cruise Line President Christine Duffy has been a vocal opponent of the increased tax rates for cruise passengers, saying people are tired of being forced to pay increased taxes while on holiday.

Government and Industry Reacts to Tax Delay

Through Deputy Prime Minister Chester Cooper, the Bahamas government has announced that implementing a tax rate increase for cruise ship passengers has been delayed until January 1, 2024.

According to Deputy Prime Minister Chester Cooper, the decision comes after careful consideration of concerns from the cruise industry. 

Cruise passengers departing from Freeport, Nassau, and Bimini were to see a rise in their taxes from $18 to $23, while passengers only visiting a cruise line’s private island, such as Perfect Day at CocoCay or Half Moon Cay, would face a higher tax of $25.

Cooper stated to Eyewitness News: “Nobody wants their taxes to increase. They’ve made certain representations. We’ve taken those into consideration. The Prime Minister and I have spoken, and we will speak at the Cabinet level. Suffice it to say we have already given a seven months delay in the implementation of the tax. The tax does not come into force until January 2024.”

The revised plan also includes a $5 tourism environmental tax and a $2 tourism enhancement tax on each cruise passenger. Cruise lines and their guests have had mixed reactions to the proposed tax increase. 

Christine Duffy, Carnival Cruise Line President, previously expressed her hope for a delay, stating:“There’s a lot of development happening in The Bahamas, and we’re working with the officials in The Bahamas to see if, at least, it can get pushed out.”

“Look, if I’m on a budget, this is my budget. This is what I can spend. But I mean, look at resort taxes and resort fees. I don’t want to say people have gotten used to it, but it has been piling on,” Duffy continued.

Opposition Leader Michael Pintard voiced worries about potential repercussions on local tourism, cautioning that new passenger taxes could motivate cruise ships to seek cheaper destinations. 

Tax Increase Could Land Bahamas $95 Million in One Year

Despite the delay, the government has no plans to cancel the tax increase and still aims to significantly boost its revenue from departing cruise passengers. It projects $145 million in revenue in the 2023 to 2024 budget, a sharp increase from $50 million in the current fiscal year.

Since the global pause in operations, the cruise industry has been instrumental in rebuilding the Bahamian tourism industry. Cruise ship arrivals rose to 5,390,016 in 2022 from 1,115,181 in 2021 and have been instrumental in driving economic recovery.

The Bahamas has every right to profit from the sharp increase in arrivals, which is expected to significantly increase with the port infrastructure improvements in Nassau and upcoming projects such as Royal Caribbean’s Royal Beach Club and Disney’s Lighthouse Point.

However, it’s crucial to balance the benefits against the potential backlash from the cruise industry regarding the proposed tax increases.

Worth Reading: Bahamas Launches Tax Crackdown on Private Cruise Destinations

The delayed implementation to 2024 offers cruise companies time to adjust and implement the charges, which will be added to guests’ cruise fares.

However, ongoing negotiations will be critical to maintaining The Bahamas as a premier cruise destination while ensuring a fair contribution to the local economy. 

PortMiami reopened at approximately 2:30 p.m. on Sunday, June 25, 2023, almost 12 hours after the early-morning boat collision that caused a fatality, sunken wreckage, and channel closure, thus prohibiting three large cruise ships from reentering the port at the end of their sailings.

Emergency personnel were able to successfully clear the channel and ensure the safety of the returning vessels, however, and the debarkation and subsequent embarkation of nearly 30,000 cruise passengers has begun.

PortMiami Now Reopen

Once the sunken boat wreckage was safely lifted from the Government Cut at PortMiami, the cruise port was able to successfully reopen and welcome back the three cruise ships scheduled to debark and embark passengers today: Norwegian Escape, MSC Seascape, and Carnival Celebration.

All three cruise ships had been anchored just outside the channel since the port was closed in the early morning hours, awaiting updates from port authorities and the US Coast Guard for clearance to enter the port.

The port was closed at approximately 3:40 a.m., when a 30-foot boat collided with the Fisher Island Ferry just east of Dodge Island, the location of the cruise ship terminals.

One person was killed in the accident, another was transported to a local hospital in serious condition. No other circumstances of the incident have been released and the investigation is ongoing as to the cause of the collision, who may have been at fault, and what the consequences may be.

A barge with crane equipment was brought in to salvage the sunken vessel, while divers conducted inspections to ensure the channel’s safety.

As the port has reopened, the 165,000-gross ton Norwegian Escape was the first vessel to enter the channel and dock, followed by the 169,400-gross ton MSC Seascape, and finally, the 183,500-gross ton Carnival Celebration.

By 3:45 p.m., all three vessels had entered the channel, and Norwegian Escape had already completed docking. Together, the three ships are carrying in excess of 15,000 travelers, as well as thousands of crew members.

As each ship docks, it will need not only to debark passengers as well as any crew members who may be at the end of their ship contracts, but also take on supplies for the next sailing.

Keeping Guests Informed

All three cruise lines have worked diligently to keep guests onboard the ships and those embarking for today’s departures informed throughout the day with text messages, emails, and letters handed out at the cruise terminals.

While the situation has been well beyond the cruise lines’ control, each one has sought to help keep guests comfortable as the day progressed.

Guests onboard had various announcements whenever new information was available, and crew members worked to provide food, beverages, and entertainment options.

For travelers whose cruises will now be starting hours later than anticipated, the cruise lines have provided onboard credit ($20 per person for MSC Seascape and Carnival Celebration, and $25 for Norwegian Escape) to compensate for today’s lunch costs, as well as recommendations for where to go nearby for shopping, dining, or entertainment.

Carnival Cruise Line has also provided complimentary shuttles for its guests to visit Bayside Marketplace, a nearby shopping center with a variety of food options. A Carnival staff member has also been onsite at Bayside Marketplace to keep guests informed throughout the day.

“This is not the way we expected to start your cruise, and we appreciate your patience and understanding,” one update from Carnival read. Each ship is anticipating debarkation to last 2-3 hours, with embarkation for the next sailings to begin shortly thereafter.

In the late afternoon, Norwegian Cruise Line informed incoming guests that they expected to begin check-in at 7 p.m., with embarkation starting at approximately 9 p.m. “Please do not arrive to the port prior to 6 p.m.,” the NCL notification said, in an effort to minimize traffic and crowding.

Similarly, MSC Cruises advised incoming guests that embarkation would not likely begin until 5 p.m. “We currently expect to start embarkation no earlier than 5:00 p.m.,” the MSC letter read. “We will promptly inform you as soon as we have a clear idea of when we will be ready to welcome you on board.”

Will the Next Itineraries Be Impacted?

There is no word yet on whether or not the next sailings of each vessel may be altered to account for the late start. Each ship is scheduled to begin a 7-night sailing today, with all three vessels departing on Eastern Caribbean voyages.

While each ship has a different itinerary and different ports of call, all three are scheduled to spend Monday, June 26 at sea.

This can make it easy for each ship to make up for lost time by adjusting the sailing speed to compensate, which should mean the overall itinerary is not dramatically impacted.

Each cruise line will, of course, make any schedule change decisions based on overall sailing routes, planned times in port, and cruising speeds, and those changes will be communicated to passengers when any adjusted plans are confirmed.

Cruise Hive’s thoughts are with the families of the individuals involved in this morning’s accident, and good wishes go out to all impacted passengers for smooth sailings on their slightly delayed cruises.

An early morning accident at PortMiami has closed the popular homeport to all cruise and cargo traffic, creating a major impact to multiple cruise ships that are now waiting outside the channel for clearance to enter the port for docking. As yet, there is no timeline for when the port will reopen and passengers will be permitted to debark, or how delayed the next cruises may be.

Norwegian Escape, MSC Seascape, and Carnival Celebration are all impacted by the incident and are currently on hold for debarkation and embarkation for their next sailings.

Boat Collision Closes PortMiami Channel

According to local news reports, a 30-foot boat collided with the Fisher Island Ferry in the Government Cut channel at approximately 3:40 a.m. on Sunday, June 25, 2023.

One person was transported to a local hospital in serious condition, and another person was found deceased in the water at the accident scene.

Government Cut is the manmade shipping channel between Miami Beach and Fisher Island, providing a direct route between PortMiami and Biscayne Bay.

This is the exit route from PortMiami that all cruise ships use. The crash happened just east of Dodge Island, where the cruise terminals are located.

The US Coast Guard, which is responsible for the safety and security of Government Cut, has established a temporary security zone in the area that limits all incoming and outgoing marine traffic while the incident is investigated, and to be sure debris is safely cleared and will not endanger any other vessels.

Cruise Ships Delayed

Three large cruise ships are impacted by this ongoing situation: Norwegian Escape, MSC Seascape, and Carnival Celebration.

Together, the three ships, which are among the largest in their respective fleets, are carrying as many as 15,000 passengers. When counting incoming guests boarding the ships today, there are more than 30,000 travelers impacted by these delays.

As of 10 a.m., the port remains closed, and cruise travelers are being advised to wait before heading to the terminals.

“We will continue to monitor the situation,” John Heald, Carnival Cruise Line brand ambassador, said. “Please do not proceed to the cruise terminal until you receive our final update. We apologize for the delay. Thanks for your cooperation and understanding.”

Text messages and emails will continue to be sent to incoming guests to keep them updated about the timing of today’s embarkation.

Onboard the Waiting Ships

Guests onboard the three delayed ships are being updated as much as possible, and each ship’s crew is working to provide additional activities and entertainment as available. Guests will be asked to vacate their staterooms in order for the housekeeping staff to turn over the rooms for the next cruise, but public areas will be available for waiting.

No food or beverage services are interrupted on the waiting cruise ships, and there are no safety concerns as the vessels wait for clearance to proceed into the port.

Norwegian Escape is completing a 7-night Caribbean sailing that included visits to the Dominican Republic, the Virgin Islands, and Great Stirrup Cay. The cruise departing today is an identical itinerary.

MSC Seascape is finishing a 7-night Western Caribbean cruise that visited the cruise line’s private island destination, Ocean Cay MSC Marine Reserve, as well as Ocho Rios, Jamaica; George Town, Grand Cayman; and Cozumel, Mexico. Today’s departing cruise is a 7-night Eastern Caribbean sailing that is scheduled to visit the Dominican Republic, Puerto Rico, Nassau, and Ocean Cay.

Carnival Celebration is ending an 8-night Southern Caribbean voyage that visited Aruba, Bonaire, and Curacao, and the ship’s next sailing is a 7-night Eastern Caribbean cruise to the Dominican Republic, Puerto Rico, and St. Maarten.

At this time, there is no update as to whether or not any of the waiting ships will need to adjust their itineraries to compensate for this delay. Stay tuned to Cruise Hive for further updates on this developing story.