British Virgin Islands Premier Natalio Wheatley confirmed in his territorial address Tuesday that changes to fees visiting foreign-based charter yachts will pay are on the way.
Wheatley did not give exact figures, but said the differential would be significant, part of a plan to create a stronger and more revenue-generating tourism sector that integrated with other areas of the economy not normally associated with tourism.
“This tourism transformation has already begun in the yachting sector, where we are near completion of its legislative management and revenue overhaul, with amendments to the 33-year-old commercial vessel licensing act. We expect to significantly increase revenue collections from the yachting sector, which represents about 60 percent of our visitor arrivals. The amendments will modernize and promote fair and equitable fee structures and operational measures. The fees and measures were agreed after consultations with our key stakeholders, including our local industry and our neighbors in the USVI,” the BVI leader said.
Both British and U.S. Virgin Islands charter boat industry insiders had warned steep fee increases could cripple the commercial sector, including commerce secondarily associated with yachting — hotels, groceries, shipyards, and more. It alarmed the USVI boating community.
In February, changes under consideration by the BVI government sought to dramatically increase annual fees for USVI-based commercial yacht charters sailing the British overseas territory. An overnight operator’s annual fee would increase 5,900 percent — from roughly $400 to $24,000 if the Commercial Recreational Vessels Licensing Act of 1992 was amended as proposed. A day sail charter operator’s annual fee would go up 6,150 percent, from $200 to $12,500.
A back-and-forth between Wheatley and Gov. Albert Bryan Jr. opened the door to “Trump-style” tariff threats later in February. Subsequent meetings found leaders of the two territories finding common ground, according to Lt. Gov. Tregenza Roach.
Still, official new fee structures beyond those suggested in February have been announced. If enacted, the fee schedule could change as soon as June 1.
In the lengthy speech, Wheatley outlined a long list of accomplishments in the previous year and future plans — utilities infrastructure, healthcare, schools, and other efforts related to recovery from the twin 2017 hurricanes. It was all part of “building a sustainable Virgin Islands,” he said.
Wheatley said the BVI — lacking the sort of investment from London that the USVI received from Washington — had taken out a $100 million loan.
“Today we will explore the tangible progress made in strengthening and diversifying the economy, including both our vital tourism and our financial services,” Wheatley said.
“During the past year, the Virgin Islands tourism sector has demonstrated remarkable resilience and innovation,” he said. “In 2024, we welcomed more than one million tourism visitors, the second time in BVI history that we have crossed the one million mark and the highest arrival since the 2017 hurricanes.”
Total tourist arrivals in 2024 surged to 1,092,139 guests, a substantial 1.98 percent increase compared to 2023, Wheatley said.
Both cruise arrivals and day trippers hit highs. Cruise arrivals were up to 768,293. Day trips reached 17,970, and overnight guests hit 305,876.
“This remarkable recovery and growth are a testament to the hard work, dedication, and collaborative spirit of everyone involved in our tourism industry,” the premier said.
