Slide in British Pound highlights urgent need for airlift - Premier Smith
The decision was made with strong criticisms, with some of the main arguments being that Government should have invested instead into the ferry services between the Virgin Islands (VI) and US Virgin Islands (USVI) and that it was not prudent to invest in an airline that had suddenly pulled out of the territory and still owed the BVI Airports Authority (BVIAA).
Further, critics of the NDP administration frowned at the fact that if BVI Airways failed to get off the ground the VI Government would not get back a dime of what was invested.
The NDP Government nevertheless continues to maintain that their investment in BVI Airways for direct flights between Miami, USA and Terrance B. Lettsome Airport on Beef Island was necessary and a “game changer” for the Virgin Islands.
Urgent need to improve airlift
"Some analysts forecast the [British] Pound will reach parity with the [US] Dollar by the end of the year. This is another reason why we need to urgently improve our airlift capacity so we do not continue to fall behind in the UK and European Tourism Markets," Premier Smith told reporters at a press conference on February 16, 2017 in the Conference Room, Office of the Premier.
In January, fears of the consequences of a hard Brexit sent the pound to a fresh 31-year-low against the dollar, excluding last October’s flash crash, according to Independent UK.
Meanwhile, Premier Smith said at the Brexit talks he took the opportunity to highlight challenges posed to the UK tourism business by the significant drop in the value of the Pound which has made the VI destination less competitive compared to various other jurisdictions geographically closer to Europe.
Further, as it relates to BVI airways beginning its direct flights, Premier Smith told reporters that the company has made a number of headways towards certain certification for flight worthiness and is awaiting another leg of certification from the USA before it can get off the ground.
.png)
.png)
.png)
Follow Us On
21 Responses to “Slide in British Pound highlights urgent need for airlift - Premier Smith”
The decrease in the pound also will slow down economic growth in the U.K. which persons might migrate for work in other places but I don't think plenty will be coming to the BVI because the BVI has its own problems with the main pillar declining and instability of the government. I don't think the BVI can realistically declare that stable anymore or jumping up and down about persons coming here. Migration often occurs because of fear and better opportunity. Increase taxes in the BVI and permit fees are also unattractive. There's much to fear. The Premier's statement is nothing but a wishlist but let's hope I'm wrong.
Now the Premier's rationale for pumping 7 million dollars to resuscitate BVI Airways to run flights direct to the mainland is that the 'pound is falling' is another attempt to justify the urgency of a questionable deal. However, I fail to understand the connection? You mean by having this flight the UK tourists will be able to get here via Miami at a cheaper price and more convenient time? Really? I don't see that happening. First of all if EIS-MIA-EIS is $ 700-$800 and London- Miami another $300-$400 is it not best to come via Antigua which is about the same price and less hassle with no US immigration? Secondly, would they not just stay closer to home rather than travel?
I would think the target clientele for BVI Airways is the US market where we need to redouble our efforts on that market to compensate for the expected drop in UK passenger arrivals? What about saying that we need to diversify our tourism marketing to other European countries, perhaps Brazil and Asia? What about improving our air/sea connections to various regional hubs like St. Thomas/Antigua/St. Maarten and Puerto Rico?
I wish them the best with this BVI Airways initiative but don't take the people for fools with this baseless justification.
Is Doc trying to make the case that with the slide of the Pound and the commensurate reduction in Brits visits that government needs to increase the arrival of Americans, Canadians, Chinese.......etc and that BVI Airways getting and staying airborne is the transportation mode to attract more visitors? Will Miami become the hub for flying into the BVI? What is the flight schedule for BVI Airways? What is the cost to fly from Miami to TBL? How does cost compare with flying into St. Thomas and taking the ferry over to the VI? Are the airline economics numbers put BVI Airways on a competitive position with St. Thomas and ferry?
The BVI presents the UK with far more opportunities culturally, commercially and environmentally than is currently realised but with this present government at the helm, I fear that an economic partnership will not be a win-win for all parties involved. Holding a post of co-chair of the OCT/EU FS PWP is not enough. Thinking outside the box should have been on the roundtable before the vote was cast for Brexit. The BVI is too reactionary and less preparatory, and at the end of the day are all these discussions with the UK really keeping in mind the rights of the people of the BVI or the pockets of the elite in the BVI. Wake up BVI, this Government has been more reckless than any economic move including Brexit so do not swallow everything these so-called politicians ask of you to eat, question everything and take for granted nothing.
The darn problem is, remove him and who will you replace him with, tall boy or Pickering? This is a perfect example of damn if you do and damn if you don't. Huston we have a problem.
Brits don't travel here via Miami in general, they don't form the bulk of the tourists here, tourism doesn't form the main pillar of the economy, BVI Airways is not going to make a big difference to overall numbers and is going to be $$$$$ when compared to flying from St Thomas (see airport taxes etc).
Govt would be better off sorting out any of (i) the ferries - get a reliable ferry route, get a proper transit to STT, do a deal to allow BVI immigration and customs to be cleared in St Thomas and vice versa (ii) the flights to SJU (lower taxes to enable prices to come down) (iii) flights to ANU and Barbados and (iv) the generally anti-competitive environment which the BVI is, where everyone needs a local partner and needs to make payments to someone to be able to facilitate things.