Russell: Hoteliers have to determine best approach on BPL bond fee

Bahamas Hotel and Tourism Association (BHTA) President Carlton Russell said the fee has big implications for not just hotels, but all other tourism-related businesses.

“Being in business, you’re never prepared for an extra fee,” Russell said when asked if the hotel sector is prepared for an increase in electricity bills.

“However, we need to put our heads together as an industry, all inclusive. We can not only think about hotels, you have to think about attractions as well, ground transportation, destination management companies and the implications of that tax increase on their business. We will put our heads together and figure out how we approach this.”

Minister of Public Works Desmond Bannister announced last month that the average fee for Bahamian household accounts would be roughly $20 to $30 monthly for about ten months in 2020.

However, neither the government nor BPL have specified how much hotel or business accounts – which consume considerably more electricity than consumer households – would be charged.

BPL’s rate reduction bond fee comes following a summer of frequent load shedding, during which Russell lamented the impact the subpar power generation was having on tourism in the country.

The government passed the Electricity Rate Reduction Bond Bill in the House of Assembly last month, as BPL attempts to tackle its more than $300 million legacy debt and looks to raise another $350 million for future infrastructure projects.

Paige McCartney
The Nassau Guardian
Published December 10, 2019

Caption: The headquarters of the National Insurance Board on Baillou Hill Road. FILE