By BRENT DEAN ~ Guardian Staff Reporter ~ brentldean@nasgard.com:
About 40 people are currently working at Castaway Cay, Abaco on the $30 million expansion of the Disney cruise port facility on that island, according to Prime Minister Hubert Ingraham.
"They are right now expanding the facility at Gorda Cay (Castaway Cay) at a cost of some $30 million. A number of Bahamian firms are involved in the work they are doing. And we (the government) have agreed that they would have concessions in terms of customs duty for the work they are doing," said Ingraham in the House of Assembly on Monday afternoon.
Castaway Cay is Disney's private island destination for its cruise ships. Other cruise lines own private islands in The Bahamas that are used for a similar purpose. Half Moon Cay is owned by Holland America Line, a subsidiary of Carnival.
Disney is building two new mega cruise ships. The Disney Dream is scheduled for delivery in 2011 and the Disney Fantasy in 2012. The company says the expansion will more than double the passenger capacity for the Disney Cruise Line.
Each 128,000 ton ship will have 1,250 staterooms.
Ingraham also said that Disney has pledged to make 50 calls to Nassau or Grand Bahama with one of the new ships for the first two years the ships sail.
The House passed amendments to the Cruise Ships Overnighting Incentives Act on Monday extending concessions to the sector.
Since 1995, when the cruise ship overnight incentives were created, the government has had a rebate agreement with several cruise lines. Departure tax is rebated if the companies surpass certain visitor targets.
The target for individual cruise lines was initially set at 400,000 visitors in 1995. The ceiling was raised to 600,000 in 1999. It would stand at 800,000 as a result of the new law. Rebates are paid when cruise lines surpass the targets.
The bill also changes the passenger tax rates for cruise ships coming to The Bahamas to an average of $11.80 per person over three tiers. Under the new law, cruise ships would only be required to overnight in The Bahamas for 13 hours, instead of the 18 hours as was required under the old agreement.
The new law also expands the number of ports ships could visit to receive concessions. Along with the port of Nassau, cruise lines could visit Half Moon Cay, Freeport, Rock Sound, Castaway Cay, Coco Cay and Great Stirrup Cay.
Ingraham also announced that the government is looking to develop a major cruise port near Williams Town, Grand Bahama.
The agreements with the cruise ships would be extended from three to six years under the new law.
Wednesday, July 1, 2009