As the president/CEO of WICO, I would like to share with you the extent to which cruise tourism impacts our local economy and the vitality of the tourism industry. When living in a thriving tourist destination, it can be easy to take the steady flow of visitors for granted. Here in the USVI, we have enjoyed a certain level of comfort and economic stability for over thirty years which is currently being threatened by a rapidly changing business environment. One of the primary elements of the Virgin Islands’ tourism product is cruise arrivals. To date, we have been fortunate to retain one of the top-requested ports – Charlotte Amalie – considered a seven-day, Caribbean cruise itinerary anchor by the cruise lines. It is also a perennial favorite of cruise passengers based on exit surveys conducted by the V.I. Bureau of Economic Research. In fact, besides St. Maarten, there is no other port in the Eastern Caribbean in such high demand.
The 2011-2012 Business Research and Economic Advisors report states that cruise passenger and crew spending contributed approximately $340 million to the USVI coffers and that there were approximately 6,350 jobs in the territory linked to the cruise industry. Our goal at WICO is keep those numbers moving upward. For residents of the territory, it also means revenue for businesses to continue providing services and jobs in our community. In fact, cruise passengers want to sample our culture as well as our beaches; so there are opportunities to showcase our arts and crafts, cuisine, entertainment, marine life and "good old Virgin Islands hospitality," if we are creative. As cruise ships continue to provide similar on-board shopping experiences and activities for their guests, the onus will continue to be on the destination to capture the attention of passengers. Furthermore, though it may not always be evident, there is a ripple effect that stems from cruise arrivals year after year. When ships come to our destination, our grocery stores and pharmacies benefit from passengers and crew members who fill prescriptions and stock up on essentials like toiletries and water; our restaurants have lunch guests, which means that those owners and their employees have income to spend at the farmers’ markets, dry cleaners, movie theaters, utilities and so on. However, when the ships don’t come, the negative impact is substantial and can be felt throughout the territory. Businesses are forced to make tough choices that include reducing employee hours, closing doors early, and reducing or eliminating diversified product offerings that can create value for the entire territory. Hotels, tour operators and transportation providers also suffer both in the short term and the long run because BREA reports indicate that visiting cruise passengers subsequently return to the territory for overnight stays.
The success and preservation of our cruise product is a responsibility for all of us. As our neighbors in the British Virgin Islands, Puerto Rico, the Dominican Republic, St. Kitts and Haiti invest millions of dollars to improve their island infrastructure and enhance their product offerings to lure tourists, we here in the USVI should stretch our imaginations to explore new ways to enhance the visitor experience. In fact, St. Maarten has been successful in expanding its berthing to accommodate six, and possibly eight, of the newer, larger, mega ships while St. Thomas has not. Although WICO is making some improvements to our existing berths, the territory must look into constructing additional berthing facilities to remain competitive in the Caribbean region. Furthermore, because the Caribbean region as a cruise itinerary is in competition with Asia, Europe and the Middle East, it is crucial that the new generation of larger ships can dock in the USVI.
WICO is committed to doing our part in providing stability to our economy, prosperity to our residents and ensuring our future is bright.
Joseph B. Boschulte, president/CEO, West Indian Co. Ltd.
