Bermuda’s Chamber Welcomes Plans to Waive Cruise Ship Cabin Tax

Plans to waive cabin taxes for cruise ships in the ports of Hamilton and St. George’s for the next three years by Government have been welcomed by Bermuda’s business community.

Chamber of Commerce president Phil Barnett said that shopkeepers, restaurant owners and managers and water sports operators were just happy to get any help they could in the current economic crisis.

But Mr. Barnett said the Ministry of Tourism and Transport’s consultation of a proposal to allow cruise ships staying one or more nights to provide full entertainment, open bars and signature shops while in port and to open casinos after 10 p.m., needed to be done fairly, with the same chances afforded to Island businesses.

“I think retailers, restaurateurs and water sports operators are truthfully just happy to get what they can get with the difficulties everybody is having with the global economy getting worse and worse every day,” he said.

Mr. Barnett said Bermuda needed to promote itself as a luxury destination to the right kind of tourist in the high-end niche market.

“In terms of relaxing cabin tax, in the short-term, if anyone is going to complain, in answer to that - it is going to encourage smaller niche ships to St. George’s and Hamilton,” he said.

The Ministry of Tourism and Transport announced yesterday that it would be surveying private sector stakeholders on a policy proposal to make the Island more attractive to potential cruise ship partners.

This follows a review of the cruise industry trends, including discussions with cruise lines, which concluded that Bermuda was losing its competitive edge in bringing cruise ships to the Island, particularly the smaller, premium ships which can dock in Hamilton and St. George’s.

The review noted that it was a challenge to attract smaller ships to Bermuda because the industry’s smaller ships that once docked in St. George’s and Hamilton have been retired or sold to developing markets in Asia and South America.

The review also revealed many competing destinations such as Aruba, US Virgin Islands and the Bahamas, already allow cruise ships to open retail shops, entertainment and casinos while in port.

Mr. Barnett admitted it was very difficult for Bermuda’s businesses to compete with the billion-dollar cruise ship industry in terms of offering entertainment, on a level playing field.

He pointed out that they had dramatically different and higher overheads and had to stick to much tougher and stringent rules compared to their competitors, who could offer bargain $399 and $499 deals, including transport, accommodation and food.