Could Higher Aviation Fees Hurt the Bahamas’ Tourism Sector?

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NASSAU , BAHAMAS – A proposed new aviation fee is raising concerns about just how much more it could cost to fly to The Bahamas, and now, some of the country’s largest resort operators are weighing in on what that could mean for tourism.

The concern centers around an arrangement between the government and the Bahamas Aviation, Climate and Severe Weather Network, or BACSWN.

Under the arrangement, a flat fee of $775 would be levied on every flight using Bahamian airspace.

And while it remains to be seen what that could mean for airfares, Atlantis President Audrey Oswell says her concern is any additional cost that could make travel more expensive for guests.

Audrey Oswell – President, Atlantis Paradise Island
“Our travelers certainly are sensitive to, um, price increases in air. So yes, there’s always concern about anything that would cause an increase in travel for our guests. We watch it, monitor it closely. We have not seen any impact so far.”

Right now, overflight fees are based on the weight of an aircraft and the distance it travels through Bahamian airspace.

According to the Civil Aviation Authority, those fees range from $8.50 to just over $51 per 100 nautical miles.

Oswell says if higher travel costs do begin to affect bookings, the industry has ways to respond.

Audrey Oswell – President, Atlantis Paradise Island
“Sometimes it’s promotional, sometimes it’s airline subsidies. There’s a lot of different ways to look at it. And, um, you know, when it comes to airlines and things that address the entire island and the entire hospitality industry here, we work together through, um, the Nassau Paradise Island Promotions Board and jointly determine what the outcome and what the resolution, uh, will be to address any issues like that.”

And over at the Baha Mar resort, Senior Vice President Robert Sands is taking a more cautious view.

He says it’s simply too early to determine whether the fees will hurt tourism, but says finding a balance between the cost to airlines and the need to fund aviation infrastructure will be key.

Robert Sands – Senior VP, Baha Mar Resort
“Most of the fees that you see in the aviation sector are what we call user fees. Aviation infrastructure redevelopment improvements is a very costly, uh, element, but it’s so necessary for the growth and economic well-being of our country.”

Sands says discussions surrounding overflight fees are not new, with dialogue taking place for more than a decade.

And while the amount charged may still be up for debate, he believes some form of fee is unavoidable as the country continues investing in its airports.

Robert Sands – Senior VP, Baha Mar Resort
“Upgrading of, uh, terminals, upgrading of, uh, aprons, upgrading of runways, et cetera, that are so necessary for the sustainability of our tourism industry. And The Bahamas in particular, and many hotels in The Bahamas support this type of aviation infrastructural, uh, development and support.”