BVI’s proposed charter fee hikes at root of USVI’s tariff threat

The call by USVI Governor Albert Bryan for an emergency legislative session to discuss imposing a 25% tariff on imports from the BVI was reportedly prompted by proposed BVI legislation that would drastically increase fees for commercial yacht charters entering BVI waters.

According to the VI Consortium, the proposed amendments to the BVI’s Commercial Recreational Vessels Licensing Act, initially enacted in 1992, suggest a substantial fee increase and could potentially cripple the USVI’s charter sailing industry. Overnight operators would see annual fees rise from $400 to $24,000, while day sail operators’ fees would escalate from $200 to $12,500.

Staci Smith, executive director of the Virgin Islands Professional Charter Association (VIPCA), highlighted the economic significance of marine tourism to the USVI. “Marine tourism is a vital economic driver to the USVI, contributing more than $100 million annually,” she stated. Smith expressed concern that the proposed BVI fee increases could threaten the growth and viability of the USVI charter industry.

Andrew Ball, chair of the BVI’s Marine Association, addressed these concerns during a recent meeting, emphasising the importance of collaboration between the territories. He noted that up to 80% of some BVI service providers’ business comes from USVI-based operations.