NEWS: Disney’s Castaway Cay To Be Impacted by New Tax Law in Bahamas

Have you ever set sail on Disney Cruise Line?

Disney Wish at Castaway Cay

Maybe you’ve taken a vacation on board the Disney Wish, or maybe your first cruise will be on Disney’s NEWEST ship, the Treasure, which will take its maiden voyage later this year. Well, we have something to warn you about: a new Bahamas tax law could make your next cruise a bit more expensive.

Currently, if you visit the Bahamas on a cruise, you pay a 10% Value Added Tax (VAT) on most of your purchases. However, private islands owned by cruise ships were exempt from requiring that. Well, that’s changing. According to The Tribune, a local Bahamas news outlet, a new Bahamas law will require a VAT tax for purchases from private islands, too.

Mount Rustmore at Castaway Cay

So that means the next time you visit Disney’s private island, Castaway Cay, things will cost Disney a bit more than before, thanks to this additional 10% VAT tax. This would also affect Lighthouse Cay at Lighthouse Point, Disney Cruise Line’s new destination in the Bahamas.

Mickey and Goofy at Castaway Cay

Simon Wilson, who is the Ministry of Finance’s financial secretary in the country, said, “When we implemented VAT originally, we were under the impression given to us by the cruise lines that any commercial activity on the private islands was an extension of the package purchased [by passengers] on ship – they were indistinguishable. That’s not the case. It’s a different commercial experience.”

Adult-only beach at Castaway Cay

Cruise lines will be required to register for VAT if they own a private island or reach at least $100,000 in annual taxable sales. That means they’ll have to pay the VAT tax on a cruise line’s private island for things like souvenirs, food and beverages, recreational activities, equipment rentals, spa services, and more. Even things like cabana rentals and shore excursions would have to add this tax.

Castaway Cay

Cruise lines might absorb these costs without passing them on to the passenger, at least initially, though we’ll have to keep an eye on prices to see if a price hike eventually arrives. The new tax will increase cruise lines’ operating costs, which could mean that costs will eventually affect customer pricing. Like it or not, your next cruise could potentially cost more.

Stay tuned to DFB for more.