The Department of Tourism came before the Senate Finance Committee on Friday to defend its 2015 General Fund budget request of $2.61 million.
The department would also receive $650,000 from the Tourism Advertising Revolving Fund for its operating expenses. The fund, which consists of revenues from the 8 percent hotel occupancy tax, is expected to gross more than $20 million next year, with $17.5 million of that funneled through Tourism towards marketing and promotional activities.
The commissioner the Advertising Revolving Fund continues to fund $2,250,000 in appropriations for various programs and events such as $650,000 for the operation of carnival and festival activities; $850,000 for the Virgin Islands Police Department’s programs; $300,000 to Public Works; $300,000 to V.I. Waste Management Authority; and $150,000 to the Bureau of Economic Research with the Office of the Governor.
In the past year, the Department of Tourism has engaged with more than 12 million consumers on social media and developed two new television advertisements that were created locally by Eric Zucker and feature Pressure’s song “Virgin Islands Nice," Tourism Commissioner Beverly Nicholson-Doty said.
Sen. Clifford Graham asked Doty to focus on the comparison between the British Virgin Islands and U.S. Virgin Islands in regards to our air-arrival numbers. The senator pointed to the notion that, in the U.S. Virgin Islands, air-arrival numbers are down, while the BVI is claiming that they had a banner year of overnight visitors.
Graham said many V.I. overnight air-arrivals are coming to Cyril E. King airport, then taking a ferry to the BVI.
Nicholson-Doty agreed, saying about 150,000 of just less than 800,000 air passenger arrivals a year are actually headed to the BVI.
Graham said, "We could find away to incentivize these tourists to stay a night before or after their BVI stay, generating revenues where we are not receiving any."
Nicholson-Doty said St. Thomas’ position in the yachting industry makes it an attractive port to people ultimately heading to other Caribbean ports like the BVI.
The General Fund budget of $2.61 million includes $1.44 million for wages and salaries; $560,000 for taxes and fringe benefits; $50,000 for capital outlays; $11,000 for supplies; $319,000 for other services and charges; and $165,000 for utilities.
No votes were taken at the information gathering budget hearing.
