The Tourism Department asked senators Tuesday to approve a $39 million budget for fiscal year 2026, the same amount as last year, while facing questions about more than $1.3 million in unpaid vendor bills.
Commissioner nominee Jennifer Matarangas-King testified that as of July 18, the department had received $32.4 million in allotments for the current fiscal year but still owes about $1.3 million to local vendors. She said the outstanding payments cover sponsorships and festival-related services, some dating back to December 2024.
Assistant Commissioner Alani Henneman described the bills as a mix of community sponsorships and direct vendor payments. “All of the payments are local payments, senator. It’s just a variety of sponsorships. I would say maybe 10 to 50, maybe Festival-related, direct vendor payments,” Henneman explained. “The $1.3 [million] is a combination of some outstanding festival payments that were miscellaneous payments, but also some sponsorships that have to go through the Property and Procurement process.”
King told lawmakers the delays were caused by procurement hurdles and staff shortages, but said the department has recently begun working more closely with the Office of Management and Budget and the Finance Department to address those issues. “We have begun working very recently, meeting with the leadership for OMB and Finance, and it was an opportunity for them to tell some of their pain points in terms of what we need to do,” King said.
Senators pressed officials to act quickly to restore trust. “Department of Tourism has a bad reputation when it comes to paying people. We don’t want to tarnish it. It’s a bad reputation, so let’s fix it,” said Sen. Dwayne DeGraff.
Sen. Carla J. Joseph underscored the impact of delayed payments by sharing the story of one local vendor. “The vendor provided food, and they’re owed over $13,000,” Joseph said. “That’s a local person who went out on a limb, not once, but twice, for our Festival, and they have not received their payment. That’s tax monies you’re spending that is used by us to pay the outside vendors first, and we aren’t taking care of our people first. Charity begins at home. Make it a priority to take care of our people first, because it’s their tax money.”
Department leaders detailed how money was spent in fiscal year 2025. Personnel costs totaled nearly $3 million, with $1.26 million spent by July. Fringe benefits accounted for $573,121, while supplies and utilities cost $116,936 and $77,292, respectively. By far the largest category was “other services,” which consumed more than $32 million — a line item lawmakers questioned for its size and lack of clarity.
Officials said the broad category covers a wide range of initiatives, including advertising, festivals, strategic partnerships, public relations, and sales. “The recommendations of the budget will cover all operational costs for the department, salaries and fringe benefits, contracts, office expenses, offshore sales, film visitor experience and the Division of Festivals, sponsorships, collateral, social media, advertising and marketing,” said King.
The future of parade broadcasts by WTJX, the Virgin Islands’ public television station, is in question as lawmakers and Tourism officials grapple with funding shortfalls following the loss of federal support, as well as WTJX not being able to stream the St. John Parade, as reported on during their July 15 hearing.
For decades, WTJX has aired local parades at no cost to the Tourism Department or the Division of Festivals, providing a vital service to the community — especially elders who rely on television rather than online streaming. “Since forever, parades have been broadcasted by WTJX,” said Ian Turnbull, director for the Division of Festivals. “We have supported WTJX, I think, to the tune of about $71,000 over a couple years.”
This year, WTJX has requested additional support to continue its coverage, citing financial strain after federal funding cuts. “WTJX is even under more dire circumstances because of the federal government and the cuts,” said the commissioner. “Livestreaming is fine, but a lot of elders, especially, they’re not going to be streaming, they’re going to be watching it on TV, and they’ve been relying on that. So that’s something that we need to take a look at moving forward.”
Lawmakers echoed the need for action, with Sen. Kurt Vialet urging, “I just think we need to include this in the budget. We need to make it a line item and just move forward from there.” The committee Chair, Sen. Novelle Francis, added, “We just can’t lock out WTJX, who have traditionally done this. A lot of people are looking forward to being able to view the parades via WTJX, and were really denied that opportunity.”
Alongside questions about spending, staffing challenges remain a pressing issue. The department currently employs 29 people but has 11 vacancies and 10 new positions approved in the upcoming budget. Director of Administration and Management Jamila Miller said the agency has struggled to recruit for critical roles, such as the assistant director of Festivals, which has been vacant for more than a year. “We have received resumes for those positions, and the intent is to start scheduling interviews,” Miller told lawmakers.
Despite these challenges, Tourism indicators continue to climb. The Virgin Islands is on pace to surpass its 2024 record of nearly 1 million overnight guests. Seat capacity is projected to reach 706,689 in 2026, a 5% increase over 2024. The average daily hotel rate is $664, with more than 620 new hotel rooms added in St. Thomas and St. John.
“The United States Virgin Islands continues to solidify its place as a preeminent travel destination within the Caribbean and worldwide, supported by consistent arrival numbers and industry-leading marketing initiatives,” said King.
Marketing campaigns have also expanded the territory’s reach. The “A Vibe Like No Other” promotion brought 1,500 visitors to St. Croix, distributing $375,000 to local hotel partners. The number of businesses listed on VisitUSVI.com has grown to 700 from 200 last year, and a monthly newsletter now reaches more than 300,000 readers worldwide.
“The most recent Business Research and Economic Advisors study ranked St. Thomas second in average passenger spending among all Caribbean destinations. This continued growth reflects intentional strategy and consistent execution through a coordinated blend of public relations, advertising and digital engagement, the Department of Tourism strengthens the territories profile and sets the U.S. Virgin Islands apart from regional competitors,” said King
