For the past several months, I have communicated with the public about the active role that the West Indian Co. Ltd. and the cruise industry play in advancing the Virgin Islands’ economic engine. Revenue from cruise tourism contributes millions of tax dollars to the economic base of the entire territory. Having just returned from the Florida-Caribbean Cruise Association conference in St. Maarten, I am reminded of the need for established ports like ours to continuously reinvest and refresh the existing infrastructure to avoid becoming obsolete.
I am also reminded of the need for the timely reinvention of product and service offerings that safeguard the high demand of the U.S. Virgin Islands on Caribbean cruise itineraries.
A clear message was delivered by the FCCA cruise executives and echoed by port operators and service providers across the Caribbean. Cruise lines deploy ships to destinations that perform the best in terms of the satisfaction and safety of their passengers and crew. This message underscores the need for all stakeholders in the territory to be aware of the global trends and best practices in the cruise industry.
The Caribbean region in particular has lagged behind Europe and Asia Pacific regions in reinvestments to port infrastructure. With these messages in mind, I would like to highlight a number of steps that WICO has taken over the years to efficiently manage the development and growth of our port. I would also like to share some examples of development activities occurring at neighboring ports across the Caribbean.
Throughout our 100-year history, WICO has been at the forefront of the Virgin Islands economy, serving first as the primary port agent for commercial vessels bringing products into the territory and next as the primary port agent for most of the cruise lines. Our well-maintained port infrastructure has been expanded over the years to now accommodate three of the large cruise ships.
Today WICO is globally recognized for its instrumental role in the U.S. Virgin Islands’ current status as the premiere cruise ship port in the Caribbean. Given our success, the WICO facility has become the model that other Caribbean ports have emulated in recent years. While imitation is flattering, it is a reminder that there are other players emerging in the marketplace.
We are also reminded of the influx of foreign investment that is changing the pace of regional development. China, a global superpower, has entered the Caribbean market with investments in the $300 million range on islands such as Antigua. Also the island of St. Kitts has quietly raised the bar on the types of quality attractions and experiences that showcase their history and culture to cruise visitors and has fast become a serious contender in the marketplace. Additionally there is greater collaboration between the CARICOM nations to create partnerships that translate into new cruise itineraries for larger ships and into new markets for boutique cruise lines. These new routes may or may not include the U.S. Virgin Islands ports in the future.
Regional competition and the continued drive to be a major player in the cruise industry is the reason WICO continues our tradition of reinvestment in our port infrastructure to attract the largest ships; to have them call on us year-round; and to have ships in port every week of each year. As the USVI heads into the 2014-15 tourist season, I am enthusiastic about WICO’s progress in meeting these objectives and am equally optimistic about the growth projections of the cruise industry regionally.
Our newest effort is our planned development of two new state-of-the-art berths that will neighbor the existing WICO pier. Careful thought and planning have gone into this project to ensure that it is in the best interest of the community for the long term. I look forward to engaging our community in the upcoming months on the benefits of our expansion.
In closing, I would like to share a key message that was reiterated at the recent FCCA conference. The fundamental truth is that the location, climate, waters and cultural diversity of the Caribbean provide a competitive advantage that simply can’t be replicated by other regions around the world. In leveraging our partnerships with cruise company executives, WICO is doing its part to keep the entire U.S. Virgin Islands cruise product as the top choice for Caribbean cruise itineraries. Nonetheless, in light of the environmental and other threats impacting the global cruise industry today, WICO is also focused on setting a growth trajectory that will sustain the U.S. Virgin Islands economy for decades to come.
Joseph Boschulte is the president and chief executive officer of the West Indian Co.
