Cruise ships opted not to come to VI under NDP Gov’t
And the previous National Democratic Party (NDP) administration has come in for criticisms for hiding critical information about cruise tourism from the House of Assembly (HoA).
Upon taking office on February 26, 2019 the new government led by Premier and Minister of Finance, who also heads the tourism sector, Honourable Andrew A. Fahie(R1), immediately began to evaluate the state of the territory’s main economic pillars, including tourism.
NDP Mask
What was unearthed in many instances was that the then government was hiding key information on the true state of affairs of especially the cruise tourism product.
During the Fourth Sitting of the First Session of the Fourth House of Assembly, June 3, 2019 the world heard the harsh words that were allegedly said to the previous administration by a high ranking cruise line. “At Sea Trade (Global) 2019 one cruise line even advised my delegation and myself that they told members of the previous administration that they would rather send their ships to Antarctica than to send them to the BVI,” referring to the level of poor communication strategy by the BVI Ports Authority (BVIPA).
This resulted in the redirecting of cruise ships to other destinations by the aggrieved cruise line. “They were dis-satisfied with the previous communications with the BVI and how their relationship was being handled.”
Stating that he takes no pleasure in revealing the findings, Premier Fahie said, “I cannot understand how persons can profess to love these blessed British Virgin Islands and then conduct the business of the people and the territory with such neglect and contempt.”
Berthing Agreements poorly managed
The Leader of Government Business noted that once the berthing agreements were executed by the BVI Ports Authority, they were poorly managed and no measures were put in place to monitor the key deliverables and performance elements embedded in the agreements. According to the Premier, the Management of the BVI Ports Authority has to be held accountable.
Also discovered in their review were critical ship call information which Premier Fahie said was never communicated to the House of Assembly by the ousted NDP government, “Despite the obvious serious negative impact it would have on the BVI economy.”
He explained that while Norwegian and Disney continues to be good partners, “Norwegian has made a commercial decision that they will adjust their itineraries and reduce ship calls to our BVI port, which is further compounded by the fact that they will not meet their minimum passenger movement guarantee for the upcoming seasons.”
VI facing a $14M loss in cruise tourism
This information, according to Premier Fahie, was critical to be shared in the previous House to guide budget and expenditure processes.
Revealing further details unearthed, the Premier highlighted that Disney Cruise Line has consecutively met their minimum guarantees since the execution of the berthing agreement.
However, in November of 2016 Norwegian had sent correspondents to the Government of the day advising of a pending shortfall of some 18, 200 passengers for the 2017 – 2018 season. It was revealed that the BVI Ports Authority accepted the remedies suggested by Norwegian Cruise Line to pay a shortfall fee based on the passenger tax. “However, no plans or remedies were put in place to ensure that the shortfall did not continue for future seasons,” stated the sitting Premier.
“This administration has now inherited a position of vulnerability which was derived from a significant increase in passengers’ shortfall for the 2019 – 2020 of one hundred and eighty thousand passengers.”
“This translates to an estimated loss of passenger revenue of over fourteen million dollars projected using a passenger spend of $78.11 based on studies conducted by business research economic advisors BREA.”
Norwegian Cruise Line breaches agreement
According to Premier Fahie, in his government’s most recent discussion with Norwegian Cruise Line, they have indicated they will not be able to meet the minimum passenger guarantee for the foreseeable future. “This is the reason why I had to put the 2019 Standing Finance Committee budget meeting on hold in order to personally attend the 2019 Sea Trade Global in Miami and attempt to have these matters rectified.”
The House of Assembly also heard that the tourism products of the territory have significantly declined across the territory due to the hurricanes and only minimal steps were taken by the previous administration to ensure the products were restored to a satisfactorily standard “so that the BVI could maintain its reputation and market share.”
This, Premier Fahie said, could have a negative impact on key stakeholders, including taxi operators and other vendors.
VIP fixing the damages
Premier Fahie said the cruise partners were assured that his administration is very serious about the industry and values their partnerships. “Although Carnival and Royal Caribbean Cruise Lines had previously pulled most of their ships from calling to the BVI, I am now pleased to say that significant steps have since been taken by both cruise lines in the efforts to once again increase calls to the territory.”
Last month the President and Chief Executive Officer of Carnival Cruise Line and other top executives were on a courtesy call to the territory in a move that reconfirmed their commitment to repairing the relationship with the VI.
According to the Premier, plans have been developed and will be implemented in a phased manner, including holding Norwegian accountable to their berthing agreement and devising a strategy to mitigate the pending shortfall.
The government intends to appoint a person to oversee and manage cruise industry relations while maintaining continuous dialogue with industry partners.
22 Responses to “Cruise ships opted not to come to VI under NDP Gov’t”
dissatisfied with the level of service being offered in the BVI, they would in my opinion offer recommendations as to what they wish to see accomplished . They are in the business of making money and more people wish to travel to the Caribbean than to Antarctica .
Quiz?
What is the function of the eyelids?
Can we even have control of our imagination anymore?
Help the brother...and stop hating!!!
Are our people really/truly serious about tourism as an economic pillar?
My children has travelled extensively and it will be very difficult at this time to come back home with our mentality as a people- although I am dying to do so. We as melanated people need to change how we treat each other.
One of my daughters’ links abroad:
https://youtu.be/1RGLYBGy9_0
The world is watching.
Plug. ZBVI Radio online. The Chairman, I am still listening. School Dayz, bredren.
My daughter, Sapphire, said to also plug PULSE VI - young people thing that.
We seem to be blaming NDP but I seem to recall a particular “man of the clergy” now turned radio talk show host and Climate Change Expert was the one leading BVIPA up till the time things went sour with NDP in the last shower of rain.
Does anyone else remember this fact or nah? Hmm.....interesting facts indeed
Between unwelcoming officials, over regulation, high fees and taxes the BVI has seen its days of strong tourism. Clean the damn place up and start welcoming people again !