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Hamiton and St George’s tax waiver incentive to remain for cruise ships

Legislators agreed to extend a passenger cabin tax waiver for cruise ships docking in Hamilton and St George.

Cabin tax will continue to be collected at Dockyard where most of the cruise ships arrive, Premier and Finance Minister Paula Cox said in her introduction of the Miscellaneous Taxes Amendment Act 2012.

“In addition the Cruise Passenger Tax will continue to be collected at all three ports, Hamilton, St George’s and Dockyard,” she added.

The Premier said that the waiver is intended to entice smaller ships to come to Bermuda.

“This move has proven successful in attracting small ships such as Holland America Line’s

Veendam and other luxury and Premium brand ships calling in Bermuda on occasion.”

Ms Cox added that the waiver amounted to some $2 million in foregone revenues from 2009 to 2012 but $6.4 million was collected in Cruise Passenger Taxes for ships docking in Hamilton and St George.

“For the three year period extending from 2009 to 2011, cruise passengers and crew members on cruise ships docking in Hamilton and St George’s contributed approximately $18 million to Bermuda’s economy, including purchases made while on-Island and shore excursions booked by cruise passengers.”

She said the waiver policy had been “critical” in getting the

Norwegian Majesty to St George in 2009 and the

Veendam to Bermuda in 2010-2012.

“It is likely that had we not waived the Cabin Tax both Norwegian Cruise Line and Holland America Line would have either reduced the number of calls, or not visited Bermuda at all.

“We have also experienced an increase in the number of occasional callers, including some that overnight in Bermuda. Many of these are luxury cruise lines, and cruise line executives have provided us feedback that waiving the Cabin Tax was a factor in their decision to deploy the ships here.”

The measure passed without objection.

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Published March 09, 2012 at 8:35 am (Updated March 09, 2012 at 8:35 am)

Hamiton and St George’s tax waiver incentive to remain for cruise ships

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