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New Year for the Cruise Ship Industry

The New Year is off to a great start for cruise tourism in the territory. We are just midway through January and the U.S. Virgin Islands ports on St. Thomas and St. Croix have already hosted more than 30 cruise ships that brought more than 150,000 passengers and crew to the territory.

The outlook for the remainder of January is even brighter with more than 50 cruise ships scheduled to visit the territory, including two visits from the 3,800-passenger RCI Adventure to the Frederiksted pier, and an inaugural visit to the WICO port of the new super megaship from Royal Caribbean, the Quantum of the Seas.

The arrivals of these ships are important. Busy harbors and ports territorywide mean that direct and indirect revenue are being injected into the economy by the passengers and crew who disembark and also by the local tourism-related businesses and employees that provision inventory and other supplies from local merchants.

Given the positive outlook for the remainder of the 2015 cruise season across all of our ports, I want to take a moment to address some facets of our local cruise industry and the economic impact of a busy cruise day at our ports.

First, cruise tourism is the fastest growing segment of the global travel industry and our neighbors in Puerto Rico, the British Virgin Islands, Antigua and St. Maarten are aggressively updating and rebuilding their tourism products to increase their appeal and competitiveness on the Caribbean itinerary. Further, the opening of the Cuba borders and the sheer curiosity of Americans about Cuba can potentially increase the already high demand for Caribbean cruise itineraries, as well as shift the composition of which ports are included on the itineraries.

This matters because American tourists are a primary target market for the territory. Taking stock of these developments, WICO continues to refresh the port infrastructure of the Charlotte Amalie Harbor to ensure that we have an attractive, high quality experience that is competitive globally.

We have upgraded our pier and berthing facilities as needed throughout the years, and we will continue to promote the completion of road and other infrastructure projects in our vicinity that further enhance the on-island experience for passengers when they arrive at our shores.

Second, more ships berthing at our ports translates into more economic prosperity territorywide. The 2012-13 U.S. Virgin Islands Visitor Exit Survey reports that cruise visitors spent an average of $217 per person in on-shore expenditures and that more than 47 percent of these visitors had the intention to return to the territory on a future vacation.

So picture the economic impact of seven ships docking at our multiple piers throughout the entire territory for this coming Wednesday, with passengers disembarking at the WICO, Crown Bay and Frederiksted piers. With more than 30,000 passengers and crew at our doorsteps, the economic impact for the territory on just this one day can reach or exceed an estimated $6.5 million.

I must emphasize, however, that this level of economic activity is only possible when there are adequate retail, restaurant, recreational and transportation options available to the passengers and crew when they disembark. Therefore, as we continue to reinvest in the WICO port, we recognize the importance for the territory to also reinvest in existing small businesses and in the aspiring entrepreneurs who continue to be the backbone of our cruise tourism product.

Finally, aside from the funds expended into our economy, the rise in the number of visitors arriving on our shores each year reinforces the popularity of the U.S. Virgin Islands on cruise itineraries, and in the broader context, the quality of the U.S. Virgin Islands tourism product.

The popularity of our destination and the recurrence of days with more than five ships collectively at our territory’s multiple ports are not by chance. Rather, the success of our active ports this season has been years in the making.

Cruise itineraries are developed 18 to 24 months in advance of a ship’s arrival to our shores. The process to build these itineraries entails a rigorous review of data about our ports and our overall cruise tourism product. Hence, when newest classes of super megaships like the Quantum, Allure or Oasis – which carry approximately between 4,500 – 6,000 passengers – choose to dock at the WICO pier, it is not happenstance.

Hence, our future tourism and infrastructure development plans play as much of a role as our historical performance and reputation during the negotiations with our cruise partners. So let us continue to reinvest in our ports and continue to show the rest of the world why the U.S. Virgin Islands is the marquee destination on Caribbean cruise itineraries.

— Joseph Boschulte is the president/CEO of the West Indian Co. Ltd.

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