Limetree Bay Closure Results in 800 Job Losses, $1.8 Billion Drop in Economic Activity, Bureau of Economic Research Reports
The closure of the Limetree Bay Refinery on St. Croix's south shore is projected to result in steep annual economic declines for the U.S. Virgin Islands, with everything from deep losses in economic activity, nearly 1,000 jobs lost, and a drop of over half a billion dollars in gross domestic product, according to a V.I. Bureau of Economic Research report.
2021-11-10 12:09:31 - VI News Staff
The report, issued Tuesday, brings into focus the positive impact the refinery was having on the territory's economy, especially on St. Croix before its closure following a massive flare incident on May 12, which led to the facility's eventual closure.
According to the report, the USVI will suffer an annual loss of a $632 million reduction in territory's GDP, almost $2 billion in lost economic activity along with 800 job losses — with the more significant impact being felt on St. Croix.
The closure will also result in a $25 million loss in annual tax revenue to the government of the Virgin Islands, B.E.R. said.
“The LBR creates economic impact well beyond the refinery, as it supports additional jobs through local revenue and supply-chain activity associated with its operations,” states the report. “As those employed directly by LBF and in the supply chain spend their wages, jobs are supported in the broader economy in industries such as construction, retail and business service establishments. The ripple effects of the closure likely will result in additional employment, income and tax revenue losses in those sectors.”
According to B.E.R., Governor Albert Bryan, upon release of the information in the impact study, called the closure of the refinery an economic setback for the territory. He stated, however, that the steady increase of tourism and the many capital improvement and recovery projects ongoing across the territory "should more than offset the effects of the closure."