Cruise ship arrivals, and hence marine revenues for the V.I. Port Authority, may return to 2007 levels after slumping for several years in the wake of worldwide financial trouble, VIPA Executive Director Kenn Hobson told the Senate Tuesday.
In 2007, cruise passenger arrivals were as high as 1.8 million, Hobson said during budget hearings. Traffic decreased to 1.4 million in 2009 and picked up slightly in 2010 to 1.6 million, he said.
"Based on current traffic reports and itineraries, we anticipate that the cruise traffic totals for fiscal year 2011 will be about 1.6 million, with an increase to about 1.8 million passengers in fiscal year 2012," Hobson said.
The V.I. Port Authority, overseer of public seaports and both V.I. airports, does not receive annual allotments and is self-sustaining through user fees, leases to its facilities and properties and federal grants. But as a government agency, VIPA’s budget is nonetheless under the oversight of the Legislature.
VIPA’s governing board is reviewing the authority’s proposed 2012 budget, which may be subject to change until it is approved.
Its proposed budget for 2012 is $64.5 million. Of that, $20.6 million is for wages, salaries and benefits; $6.9 million for utilities; $4.2 million for professional and other services; $3.5 million for insurance; and $4.2 million for repairs and maintenance. There is also $4.1 million in debt service payments and $18.4 million for an array of capital projects at airports, marine terminals and other VIPA properties.
VIPA’s aviation division is projected to generate $28.7 million and the marine division $32.2 million, for a total of $60.9 million in revenue for 2012. The remaining $3.6 million in VIPA’s proposed budget comes from existing funds held in a restricted account and earmarked for specific capital projects for this year, said VIPA Director of Administration and Finance Judith James.
Big items in the budget include an extra $1.3 million above regular maintenance costs, with $810,000 for the Cyril E. King Airport; $500,000 for renovations to housing in Bournefield; and $336,0000 for the Austin Monsanto Marine Terminal.
VIPA has allotted $6.4 million in 2012 for improvements to the King airport. The largest St. Thomas project for the upcoming year is the expansion of the baggage-claim area and the addition of a baggage belt to King Airport. The total cost is estimated at $4.2 million with $2.5 million budgeted for the upcoming year.
A total of $3.9 million has been allotted for improvements to St. Croix’s Henry E. Rohlsen Airport, with the largest item being repaving the sole runway, costing $2.7 million this year and ultimately costing about $7.1 million, Hobson testified.
No votes were taken at the budget oversight hearing. Present at the meeting were Sens. Patrick Hill,, Nereida "Nellie" Rivera-O’Reilly and Carlton "Ital" Dowe, the committee chairman. Absent were Sens. Celestino White, Shawn-Michael Malone, Janette Millin-Young and Patrick Sprauve.
