The territory's various business and tourism organizations have come together to develop a Virgin Islands Tourism Authority.
Members of the St. Croix and St. Thomas-St. John Chambers of Commerce, the St. Croix Hotel and Tourism Association, the St. Thomas-St. John Hotel Association and the St. Croix Accommodations Council met Thursday on St. Croix to finalize details of draft legislation that seeks to reform tourism in the territory.
The proposed V.I. Tourism Authority would be made up of individuals primarily from the private sector and some from the government, said Noel Loftus, president of the St. Croix Chamber of Commerce.
The main reason for the proposal is to separate the 8 percent hotel occupancy tax, which generates some $11 million a year, from the government general fund. Revenue from the tax is, by law, supposed to go toward marketing the territory's tourism product. But for several years the money has been used to meet the government's financial obligations.
"We will be presenting to both the governor and the Legislature a bill to create a V.I. Tourism Authority," said Loftus. "It would segregate the room tax money and have it put in a trust account."
Loftus said that while the Department of Tourism should have $11 million to advertise, only $3 million to $4 million is actually used. Without the proper marketing, the territory's tourism industry, particularly St. Croix's, will decline further, he said.
St. Croix annual occupancy rate is currently 45 percent. According to the St. Croix Accommodations Council, if the rate were increased to 75 percent, approximately 1,200 new jobs would be created.
The Virgin Islands, which ranked sixth in tourism overnight arrivals in the Caribbean in 1993, had slipped to 11th by 1997, according to the most recent World Tourism Organization statistics.
"With our economy in a downward spiral," said Loftus, "we need fresh money. The quickest way is tourism."
Loftus said several well-known tourist destinations like Puerto Rico, the Bahamas and Las Vegas have either private or public-private tourism organizations.
"This is nothing new. We're very late in doing this," he said.
