Galveston drops party boat fee

Galveston Wharves trustees voted unanimously on Tuesday to stop charging party boat operators for passengers.

The board eliminated a tariff introduced in 2021 that cost operators $2 per passenger per round trip. The rule applied to vessels carrying between 10 and 125 people. Capt. Scott Hickman, a new trustee, supported the move to boost recreational access. He noted that Pier 19 is one of the few remaining spots on that side of the island for such activities.

Port Director and CEO Rodger Rees explained that the fee was designed to cover maintenance costs at Pier 19. The pier houses the party boats and the historic Mosquito Fleet of shrimp boats. Rees stated that the port spent more than $1 million on maintenance over the last five years. During that same period, the port collected $132,030 in passenger service charges. He clarified that the fee did not apply to tenants at Pier 21, such as tour boats. Those tenants must maintain their own facilities and marine infrastructure under their leases.

Operators argued the tariff singled them out while others avoided similar costs. Jill Williams, whose family owns Williams Party Boats, said two smaller competitors previously avoided the fee. One moved locations, and the other closed. Williams said her company and Galveston Party Boats were the only ones paying the charge. The fee could cost operators up to $400 per trip during the peak summer season. In response, Galveston Party Boats owner Ed Schroeder raised prices by $2 per trip to cover the cost.

Williams Party Boats took a different approach. The company raised the price of its four-hour charter by $2. It absorbed the added cost on 12-hour and 36-hour trips. Williams said customers already pay $145 per person for those longer durations. Schroeder welcomed the removal of the fee but questioned its impact on customer spending. He noted that fuel prices have risen more than the $2 savings. The board did not share data on how much revenue the port will lose by ending the charge.