Are numbers bogus? Vanterpool claims cruise ships to bring in $100M annually by 2020
In a political radio broadcast, outgoing Minister for Communications and Works, Honourable Mark H. Vanterpool (R4), claimed that the cruise ship industry in the Virgin Islands (VI) earned the Territory approximately $70 million, annually in the past two years.
He said , “at this rate and with one million passengers expected by 2020, the people of the VI will be the beneficiaries of $100 million per year.”
The Minister did not however, reveal his source of the information, leaving many to believe the figures are bogus.
Hon Vanterpool, who has been tied to the new cruise project scandal, noted his figures are as a direct result of the new cruise pier and Tortola Pier Park (TPP) development, as he struggled after three years to explain a $40M over run on a $50M project.
The last figure he told the House of Assembly (HoA), on the Tortola Pier Project was $85 million and counting.
voodoo economics?
Hon Vanterpool gave the bold projections for the industry on Monday, September, 3, 2018, during the NDP's ‘Drive Time’ radio broadcast.
He was speaking to the TPP development, in an attempt to shed light on the controversial project.
Trying hard to justify the expenditure, Hon Vanterpool disclosed that TPP businesses provides revenue of $2.3 million annually, to give “a six per cent return to local investors and repay a $50 million loan out of the leases from these businesses.”
One Billion Dollars- More lies?
Speaking to the viability of the project, Hon Vanterpool related that pre-Irma figures indicated that “we welcomed over 700,000 cruise passengers.”
This, he also credited to a January 2014 agreement inked with Disney Cruise Line and Norwegian Cruise Line, guaranteeing a total of 425,000 passengers every year for 15 years.
He said, at $15 per passenger head tax and with an increased clause in this contract, this would accrue to about $7 million each year in revenue for the VI over the next 15 years.
According to Hon Vanterpool, using the current projections the Territory “will be the beneficiaries of $100 million per year from the cruise lines, as a result of the new cruise pier and Tortola Pier Park development.”
Neither the BVI Tourist Board or the Government's Statistics Department could however, confirm these figures, leaving many to wonder if this is just the normal spin with no accountability for the whopping $40M over run.
Socio-Economic
He said over a 10-year period, the figures will translate “to approximately $1 billion that will accrue to the people and the economy,” still not citing any source for this numbers.
The Minister noted too that from a socio-economic standpoint, TPP was built benefitting over 20 local building contractors, in addition to the fact the pier park employs over 200 local persons and provides business opportunities for over 70 individuals or companies.
There have been three reports on the TPP one from a Project Manager Hugh E. Darley, another from the Auditor General Sonia M. Webster and one from the HoA Public Accounts Committee.
They have all spoke to corruption on the project, no value for money, conflict of interest and no one looking out for the tax payers.
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In a nut shell