business@tribunemedia.net
MONDAY, JANUARY 23, 2023
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Entrepreneur hopes cruise giant’s PI ‘invasion’ ending By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN entrepreneur has voiced renewed optimism that Royal Caribbean may be halting its “invasion” of his leased Crown Land after it purportedly submitted a revised proposal for its $110m Paradise Island project. Toby Smith, the principal behind the $3m Paradise Island Lighthouse & Beach Club project, told Tribune Business it would represent “a win” not only for himself but “all Bahamians” if the cruise giant retreated from his development’s boundaries and scaled down its plans. Multiple sources, speaking on condition of anonymity, also told this newspaper they understood Royal Caribbean had supplied the Davis administration with a revised project proposal that reduced the seven acres of Crown Land it had secured from its Minnis predecessor via an effective 150-year lease. However, the Government neither confirmed nor denied that Royal Caribbean had submitted such revisions although it said talks over the latter’s Royal Beach Club destination were continuing. Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, told this newspaper in a statement:
ROYAL beach club water taxi route.
• Says Royal Caribbean ‘scaling back’ Crown Land • Move would be ‘win for me and all Bahamians’ • Gov’t talking to cruise line; no word on reduction
Marinas: Online portal closure is ‘step back’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Association of Bahamas Marinas (ABM) president says the industry has “taken a step back” through the closure of its online clearance portal with charter demand for this nation down 30 percent compared to the Caribbean. Marques Williams told Tribune Business that it was unclear why the Ministry of Finance had required the industry to “pull back” its SeaZ Pass app, which had operated as “a one-stop shop” to allow incoming vessels and their owners/ captains to register online, clear Customs and pay for/ obtain cruising permits and charter fees. Confirming that the return to manual-based processes, and having to visit the likes of Customs and the Port Department to make the necessary applications and payments, was “definitely frustrating” for visiting boats and yachts, as well as their hosts, he added that the issue was among several discussion points between the Association and the Government. “The ease of business has become more difficult with the recent removal of the SeaZ Pass app. The ABMsupported app provided an online solution to allow foreign yachters and boaters to clear Customs and register
for charters in the country,” Mr Williams said, confirming that Customs and the Ministry of Finance have now “pulled it back”. “They took it off, made it not available to the public,” he confirmed. ‘However, the full potential of it has not yet been realised. The aspects it provided have not yet been replaced. The idea behind it was to create a single point for persons to apply for charters, get their clearance, come in and eventually provide the likes of fishing permits. “It was to provide a onestop shop. That was the concept, but for reasons that still remain unclear to me it was pulled and has not been replaced as yet. It’s definitely frustrating on the yachting side, definitely frustrating, as this was a step forward it seemed to them. “It made it simple as a one-stop shop, and now they’ve been set back to operate how they previously did it. Multiple steps in the process and physical locations they need to visit. The whole gamut. It’s kind of a step back, and has increased the level of paperwork and effort by captains, which is never good.” The halt to SeaZ Pass, and online registrations and fee payments, comes just as the Government is seeking
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“Government is in ongoing dialogue with Royal Caribbean in relation to its proposed development on Paradise Island. “This does not include any discussion in relation to land that is in dispute. The matter with Toby Smith remains before the court and we are not at liberty to speak to it.” That refers to the Supreme Court action Mr Smith launched
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Insurer warnings over 15-20% premium hike By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN households and businesses were yesterday warned insurance premiums could increase “across the board” by 15-20 percent this year as underwriters pull back from covering waterfront and Family Island risks. Brokers spoken to by Tribune Business confirmed that The Bahamas faces “a hard market” for hurricane insurance and other property and casualty-related coverage as global reinsurers adjust to the multi-billion dollar losses inflicted by Hurricane Dorian and similar storms throughout Florida and the Caribbean in recent years. The increases, which the Bahamian insurance industry has little control over, will add another element to the cost of living crisis sparked by multiple price rises across virtually all economic sectors. And they will make it increasingly difficult for homeowners and businesses to afford to fully insure their properties - likely among their most valuable assets - despite the
growing threat posed by more frequent and severe storms. The Bahamas Insurance Association (BIA), in a statement confirming the premium increases that were forecast by multiple Tribune Business reports last year, said local underwriters such as Bahamas First, RoyalStar Assurance and Security & General have “seen a dramatic increase in their reinsurance costs of 20 percent to 30 percent for 2023”. It explained that this cost increase will have to at least partially be passed on to Bahamian homeowners and businesses via higher insurance premiums for 2023, and warned that “some persons may find that they may have difficulty obtaining catastrophe insurance protection due to the shortage in capacity”. The BIA asserted that the local industry has no control over reinsurance prices that local property and casualty underwriters must pay. These increases have been driven by the greater risk associated with insuring Caribbean
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