ONBOARD THE CARNIVAL VENEZIA -- As a tax hike looms for cruise lines calling in the Bahamas, Carnival Cruise Line president Christine Duffy said she wants to see the tax delayed.
"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, can it get pushed out?" she said in an interview on Thursday while sailing on the Carnival Venezia's first voyage out of New York.
The Bahamas seeks to increase the tax on Freeport and Nassau cruise passengers from $18 to $23. Passengers departing from a cruise line's private island without visiting another port in the Bahamas will face a slightly higher tax at $25.
The government also seeks to charge a $5 tourism environmental tax and a $2 tourism enhancement tax on each cruise passenger. The tourism enhancement tax is expected to go into effect on Jan. 1, 2024. All other taxes are expected to go into effect on July 1, 2023.
Duffy was reticent to talk about the tax proposal, but said, "It is what it is."
Asked what impact the tax increase would have on Carnival, Duffy said the higher costs will affect passengers who are planning their vacations on a budget.
"Look, if I'm on a budget, this is my budget. This is what I can spend," she said. "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."
The higher tax comes after the Nassau cruise port completed the first phase of a $300 million construction project, adding a new berth and completing other improvements and repairs. The port says that its daily capacity has increased from 20,000 to 30,000 passengers.
Meanwhile, cruise lines have continued to develop private islands in the Bahamas. Carnival Corp. is building a pier at Half Moon Cay, which has long been accessed via tender boat, and an exclusive destination at Grand Bahama.