By ANNELIA NIXON
TRIBUNE Business Reporter
anixon@tribunemedia.net
AVIATION fees and rising travel costs could price Exuma out of the tourism market, industry executives warned yesterday, with one carrier estimating that new charges could push round-trip fares to Staniel Cay to nearly $1,000 per passenger.
Kerry Fountain, executive director of the Bahama Out Islands Promotion Board, told the Exuma Business Outlook conference that the cost of accessing the island has become a major concern, while Bahamasair and private aviation operators warned that additional charges could undermine demand, threaten regional airlift and force travellers to reconsider their vacation plans.
The warnings came as officials outlined major airport redevelopment projects across Exuma and its surrounding cays, including a $35m investment at Exuma International Airport and upgrades at Black Point, Staniel Cay and Farmers Cay airports.
Mr Fountain said the cost of travelling to the destination was undermining one of its traditional competitive advantages - its proximity to major North American markets. “Somebody told me they were trying to come here last week on American [Airlines]. It was $2,400 round trip out of Miami,” he said.
Mr Fountain said The Bahamas risks pricing itself out of the market as taxes and other charges are added to the cost of airline tickets, despite the country’s geographic proximity to the US. He cited comparisons between fares to nearby destinations such as Barbados, arguing that the additional costs imposed on air travel are making The Bahamas less competitive.
“Proximity ain’t translating into affordability, and so that’s something that we got to be concerned about,” Mr Fountain said. “We are pricing ourselves out of the market.”
He said the country recorded approximately 1.3m visitor arrivals between January and August 2026, an increase of about 5.6 per cent year-over-year, representing roughly 71,000 to 72,000 additional tourists.
Of that increase, around 58,000 went to Nassau/Paradise Island. The Out Islands accounted for about 13,500 of the additional arrivals, with Exuma contributing roughly 11,000, or 81 per cent, of that growth, Mr Fountain said.
He also pointed to planned international airline seat capacity for Georgetown between October and April 2027, which he said is expected to increase by about 23 per cent, providing an opportunity to build on the destination’s recent growth.
However, Mr Fountain cautioned that the tourism industry cannot afford to overlook the cost of reaching the islands as it celebrated stronger demand and expanded airlift.
Tracy Cooper, Bahamasair managing director, said taxes and fees already account for a significant portion of ticket prices, limiting how much of the fare airlines actually retain to cover operating expenses.
Mr Cooper said a ticket from New Providence to the Family Islands carries approximately $76 to $77 in taxes and fees, while the corresponding amount for Georgetown to Fort Lauderdale is about $96. For international routes from Nassau to destinations such as Miami, Fort Lauderdale and Orlando, the taxes embedded in a ticket amounted to approximately $171, he said.
“When you see Bahamasair is charging you about $370, we’re only getting about $199, $200 out of that ourselves,” Mr Cooper said.
He said the airline has to balance its operating costs against the need to keep fares affordable, particularly as passengers could choose competing destinations such as the Dominican Republic, Cancun and Las Vegas. Mr Cooper said Bahamasair will resume its Fort Lauderdale service on November 1, operating twice weekly on Mondays and Fridays.
He added that the airline is facing substantial cost pressures, including a 91 per cent increase in its fuel bill in May compared with the same month last year, forcing it to introduce fuel surcharges rather than absorb the increases entirely. Despite those pressures, Mr Cooper said the airline is fighting to keep fares between Exuma and Fort Lauderdale below $400 where possible.
Sarah Swainson, business development director at Makers Air, warned that additional fees could have a disproportionate impact on smaller carriers serving the Family Islands.
She said scheduled service to Staniel Cay is temporarily operating through Black Point while Staniel Cay Airport remained closed, and added that higher fares could prompt visitors to shorten their stays, travel less frequently or choose other destinations, reducing spending across the local economy.
“We need a seat at the table,” Ms Swainson said, calling for greater consultation, clearer communication and sufficient notice of new charges so carriers could plan and explain the impact to passengers.
She added that airlines understand that airport improvements require investment, but argued that the financial burden should not fall disproportionately on carriers and travellers.
“We really desire predictability, and for I guess, everybody, that is a part of the conversation to understand the cumulative result of these additional fees,” Ms Swainson said.
Carlos Schuitz, executive director for airports at Bimini Airport Development Partners and Island Airport Development Partners, said airport operators are also discussing the impact of planned fee adjustments with the Government.
He said the company has invested around $100m across its three airports, and had delayed planned terminal fee increases to better align them with the opening of new terminals next year.
Mr Schultz said the company has begun discussions with the Government about possible adjustments to its management agreement that could provide relief to airlines, although no outcome had been reached.
He added that airport operators need to ensure carriers remain successful while securing the funding required to maintain safe and reliable infrastructure.
Chester Cooper, deputy prime minister, MP for Exuma and minister of education, said the Government remains committed to modernising the island’s aviation infrastructure. “The redevelopment of Exuma International Airport remains a critical priority,” Mr Cooper said.
He added that the project is progressing towards a mid-2027 completion, and will provide Exuma with a modern gateway to support its anticipated economic growth.
Mr Cooper also highlighted ongoing improvements at Black Point, Farmers Cay and Staniel Cay airports, alongside significant works at the Black Point dock.
Mr Fountain outlined the scale of the planned airport investments, including $17.9m for Black Point Airport, $3.4m for Staniel Cay Airport, $1.9m for airside improvements at Farmers Cay and $5.3m for a new passenger terminal there.
The projects are intended to improve runway conditions, drainage, lighting and other facilities supporting regional air access.
Mr Schuitz said a concessions request for proposals (RFP) had been launched for Bimini, with Exuma next in line. The Exuma opportunity is expected to include 14 spaces for retail, food and beverage, bar and restaurant businesses, with further details due to be released prospective partners in the coming weeks.
He said Delta Air Lines had also increased service to Exuma, with daily flights planned during the summer, although its schedule beyond August and September had not yet been determined.
Mr Fountain said the challenge for the tourism industry is to ensure that investment in infrastructure and growing visitor demand translated into sustainable economic benefits for Exuma and the wider Family Islands.