The Virgin Islands Division of Festivals faced questions from senators Tuesday over unpaid local vendors, rising event costs and the absence of completed economic impact data tied to territorywide carnivals and celebrations.
During an oversight hearing of the Senate Government Operations, Veterans Affairs and Consumer Protection Committee, lawmakers examined how the Tourism Department and its Division of Festivals are managing millions of dollars in public and sponsorship funds. Lawmakers focused on fiscal oversight, vendor payments and the financial and cultural returns from events on St. Croix, St. Thomas and St. John.
Division of Festivals Director Ian Turnbull told senators that recent festival expenditures totaled about $2.5 million. He said the division’s budget was approximately $2 million and that additional sponsorships and festival revenues were not included in that figure, contributing to a total spending of about $2.5 million.
Senators referred to the difference as “the delta” and pressed Turnbull on how the overage was covered. They noted that the Tourism Department operates under a larger lump-sum appropriation of roughly $28 million to $30 million, rather than a line-item budget, allowing funds to be reallocated internally.
Turnbull said marketing and planning decisions pushed spending beyond the original $2 million allocation and that the additional costs were absorbed within the broader Tourism Department budget, including its marketing line items.
Fiscal scrutiny intensified when senators turned to overdue vendor payments, a recurring concern throughout the hearing. Lawmakers highlighted, as one example, Queenie’s Cuisine, described during testimony as a female‑owned small business that had not been paid for services provided during the 2024 St. Thomas Carnival.
Sen. Carla Joseph said she had raised the matter several times with both the outgoing and current tourism commissioners and had sent the vendor’s invoices to the department. She noted that the business is locally owned, that its operators live in the territory and pay taxes, and that services were in fact provided.
Turnbull said that vendors with long‑outstanding balances are often in that position because their invoices are under review to confirm that billed services were delivered. He said the division recently hired a new chief financial officer and that the financial team is working to review and clear outstanding vendor payments.
Joseph rejected the explanation that an invoice could remain under review for years and tied the case to broader concerns about how taxpayer funds appropriated for festivals are being managed.
“I am not buying that,” she said. “You can’t be reviewing an invoice for years. Come on now. Who you talking to? You got to find some closure and meet some agreement with the human being who provided the services.”
She added, “I am very concerned here about the management of the funds that we taxpayers give and this body appropriates.” Joseph continued, saying that “the majority of them is local people, local human beings who are paying taxes,” and warning that vendors “from this soil” who “are ready to pitch in quick” when the territory needs help must be paid for work they have already completed.
Officials said a newly hired chief financial officer and financial team are supposed to prevent similar problems.
Lawmakers pressed Turnbull for concrete data on the economic impact of government-run festivals. He estimated that the most recent Crucian Christmas Festival generated millions in revenue for the territory, but said a formal report is still being compiled using exit surveys from the Bureau of Economic Research and internal tourism analytics. Senators urged the Division of Festivals to coordinate with the Internal Revenue Bureau to track any potential increases in tax collections during festival periods.
Turnbull said the tourism department’s internal team is leading the effort, with the Division of Festivals spearheading the work, and that officials are awaiting the St. Croix exit survey data before completing the report.
In a broader discussion of tourism finances, senators noted that the Tourism Revolving Fund, primarily funded by hotel occupancy taxes, collected more than $50 million last year, with early indications that collections may rise. They called for a more detailed accounting of how that fund, along with the $28 million to $30 million allocated to the Tourism Department, is spent, especially on festivals and related tourism activities.
Scheduling and coordination issues also drew concern, including conflicts between J’ouvert and Food Fair activities on St. Croix. Senators said festival dates should be set and publicized well in advance in coordination with the Virgin Islands Police Department and other agencies, allowing visitors to plan travel and public safety resources to be aligned. Tourism officials said after-action reviews have been completed, planning for the next festival cycle is underway, and a year-of-activities overview for all three islands has been published, with more detailed schedules to follow.
Several lawmakers raised concerns about declining school participation and the preservation of cultural traditions in parades and pageants. Turnbull and his staff said they are meeting with schools and parade organizers to increase student involvement and that a newly hired cultural program coordinator has been tasked with keeping traditional Virgin Islands culture central to festival planning.
Senators also questioned the balance between local and visiting performers. Turnbull said approximately 60% of festival artists are local and that the department promotes Virgin Islands performers at off-island events. Tourism officials described digital marketing campaigns highlighting beaches, culinary events, and cultural celebrations, as well as collaboration with the Economic Development Authority’s Made in the USVI program to feature locally made products and outreach to taxi associations and private stakeholders regarding participation in industry trade events.
Looking ahead, Turnbull said the Division of Festivals will continue planning upcoming festivals, complete the pending economic impact report once exit survey data are received, finalize analysis for a proposed music festival before issuing a request for proposals, work with the new chief financial officer to resolve outstanding vendor payments, and expand coordination with schools and government agencies to improve planning and accountability.
