Is the VI economy soft & will the upcoming Tourist Season bring relief?
The territory’s two main economic pillars are that of Financial Services and Tourism and there is also a parallel informal economy like in any other part of the world, that has a capitalist system as is the case in the Virgin Islands (VI).
The informal economy is under pressure, and by informal economy we mean any trade that is illegal.
In addition, the Government has not poured money into the economy through capital projects, or petty contracts so it is believed that the so-called 'little men' on the streets have no money to spend in the brick-and-mortar industry, such as bars, clubs, restaurants, rental cars, buy clothes and jewelry or support local barber shops and salons.
Some areas are down in the Financial Services Sector
When one looks at the statistics from the Financial Services Commission (FSC), it has confirmed that in the second quarter of 2023, company incorporations via the Financial Services Sector dropped sharply.
The record shows that 4,518 companies were incorporated in the second quarter, down some 22 percent from the previous quarter of 5,830.
In addition, the financial services sector, one of the main pillars, had another decline in quarter 2 of 2023 with the total number of active business companies registered declining by 6,389 from the first quarter of 2023 to 366,050 according to FSC data.
There is not all bad news, as in quarter 2, limited partnerships had 78 new companies which increased by 20 percent compared to the first quarter of 2023. Meanwhile, the total number of new applications to register a trademark in quarter 2 of this year remained the same when compared to the statistics of this same time in 2022.
2023-2024 Tourist season expected to be great
While we were unable to obtain current statistics from the BVI Tourist Board, many marinas and charter boat companies along with hotels told our news center that they are booked up for the 2023-2024 Tourist Season.
Some hotels on the different cays told us their bookings are up and they anticipate a positive 2023-2024 Tourist season.
One local economist speaking to our newsroom on condition of anonymity noted that the Government of the day must do “their part in getting some petty contracts on the streets along with some major capital projects".
If they [government] are going to get a loan they must do it fast, as “residents at the bottom of the scale are feeling it most, and many of them in the tourism sector are struggling to wait for the start of the 2023-2024 Tourist season” which starts next month.
Many residents are tired of being told “when the budget passes” therefore, the administration of Dr the Hon Natalio D. Wheatley (R7) must act now and fast so the “local economy can have money to buy Christmas gifts,” and support the final quarter of 2023 the economist noted.
37 Responses to “Is the VI economy soft & will the upcoming Tourist Season bring relief?”
when a leader travelling around the world wid side calling them employee taking people for dummies we not heading nowhere ...if you think the economy soft just wait it going collapse with this mismanagement