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Is the VI economy soft & will the upcoming Tourist Season bring relief?

Many residents of the Virgin Islands along with businesses have complained for the last five months, that the economy is soft and no money is flowing in the country. Photo: Facebook/File
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. Photo: Internet Source
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. Photo: Internet Source
Tourism is one of the key economic pillar of the Virgin Islands driven by the VI's sand, sea and sun. Photo: Facebook/File
Tourism is one of the key economic pillar of the Virgin Islands driven by the VI's sand, sea and sun. Photo: Facebook/File
ROAD TOWN, Tortola, VI - Many residents of the Virgin Islands along with businesses have complained for the last five months, that the economy is soft and no money is flowing in the country.

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?”

  • Agree.. (10/10/2023, 18:52) Like (45) Dislike (0) Reply
    The economy not only soft but weak and yes this tourism season would a plus will bring well needed relief. Still comes back to responsible spending..
  • asura (10/10/2023, 19:02) Like (8) Dislike (1) Reply
    very serious article VINO
  • 2023 (10/10/2023, 19:07) Like (3) Dislike (3) Reply
    maybe popo disrupted cash flow
  • Citizen (10/10/2023, 19:14) Like (2) Dislike (1) Reply
    What about the construction sector that has slowed down
    • @ Citizen (10/10/2023, 22:05) Like (1) Dislike (0) Reply
      The financial-services industry has reached its peak wake up bvi
  • vg youth (10/10/2023, 19:24) Like (6) Dislike (2) Reply
    The economy needs a serious jump start.
  • facts (10/10/2023, 19:25) Like (5) Dislike (4) Reply
    Whether some of you want to admitt it or not it is a researched fact that the economy and crime go hand in hand. A rise in crime is one signal of a decreasing economy. The government is not to blame for crime but they must take a hard look at the economy. The BVI was through this before. Modify what was done before and move forward with urgency.
    • @facts (11/10/2023, 03:41) Like (58) Dislike (1) Reply
      The Government is responsible for crime! Corruption starts at the top, and until they give the Police and Prison Service the tools they need, crime will continue to flourish!
  • get serious (10/10/2023, 19:40) Like (12) Dislike (0) Reply
    horse b4 cart

    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
  • Asking For Myself (10/10/2023, 19:50) Like (6) Dislike (1) Reply
    This sounds fantastic! But when they get a loan where will the money be channeled??
  • 1eye (10/10/2023, 20:00) Like (2) Dislike (7) Reply
    Free the weed free the drew
  • Talk the thing (10/10/2023, 20:12) Like (5) Dislike (0) Reply
    Locals are not giving any opportunities confirming the endemic nature of systemic discrimination against locals in the bvi
  • … (10/10/2023, 20:17) Like (2) Dislike (0) Reply
    A true sense of belonging includes the ability for you to feel you are a part of the community by having a job to feed your family
  • bvibuzz (10/10/2023, 20:26) Like (4) Dislike (0) Reply
    Who do we have in the house of assembly with a deep understanding at a global level of how the economy works? Not one person sadly, if we did it would be invaluable to the bvi economy as we could have continue to grow and expand our services.
  • lol (10/10/2023, 20:53) Like (1) Dislike (0) Reply
    The illicit economy has round to a halt and with it the BVI. BVI will go the way of the rest of the Caribbean with debt to GDP of 100%. Where there is no vision...
  • Anonymous (10/10/2023, 21:01) Like (2) Dislike (0) Reply
    We need a serious economist to assess the fiscal landscape, run the numbers, and advise us on what we needed to do, how we needed to achieve it, to avoid economic implosion. A proper economic policy which we cannot get from this FS or any one below him!!!
  • Not2Sure (10/10/2023, 21:05) Like (3) Dislike (1) Reply
    remember the COI and the Governor cut out petty contracts!
  • my2cents (10/10/2023, 21:10) Like (1) Dislike (0) Reply
    soft economy leads to crime you watch
  • Cindy (10/10/2023, 21:59) Like (7) Dislike (0) Reply
    Both the vip and the ndp are totally fiscally incompetent.
  • lodger (10/10/2023, 22:01) Like (2) Dislike (0) Reply
    Where’s my broker, I need to sell some stock ASAP along with some bvi real estate
  • Rubber Duck (10/10/2023, 22:08) Like (3) Dislike (0) Reply
    The bvi, a tiny dot on the map still is host to a cutting-edge global financial services industry, and still operating in high gear at a level of finance activity with no comparison in the region
  • —————————- (11/10/2023, 00:20) Like (3) Dislike (0) Reply
    Smart local business people know when and how to pivot. If they realized the model won’t work for them then they change directions before making further investments
  • VG Girl (11/10/2023, 00:25) Like (1) Dislike (0) Reply
    I think I felt some inspiration coming on as I read this story... amid the bleakness that so dominates the news these days. Of course, the VI needs different types of businesses to attract a diversity of visitors but the small guest properties are still not been promoted by the bvi tourist board
  • Global issue (11/10/2023, 03:33) Like (3) Dislike (0) Reply
    The economy is in the toilet everywhere. Inflation, high interes rates, high rents yet low pay is becoming mildly unbearable. People are being more cautious with spending therefore the quality of the product is important. If the VI wants consistency with tourism some of the rules need to be adjusted and the infrastructure should be invested in.
  • Dancing with the Stars (11/10/2023, 04:18) Like (0) Dislike (3) Reply
    This is time for the government to invites manufacturing companies to start to businesses here. Because of our strategic location, that is between North and South Ameria, we can develop industries her to be a supply chain for many products. For instance, a brewery or any other bottling plant to produce commodities for sale and reduce the high transportation cost of these products.
  • Interested (11/10/2023, 05:44) Like (2) Dislike (0) Reply
    Article right on point
  • cap (11/10/2023, 06:09) Like (2) Dislike (0) Reply
    It will only bring relief until the government starts taxing local business and visitors more and more. For example, local and foreign vessels are expecting a HUGE increase in fees for their annual licenses. These costs will be trickled down to the tourists, who will eventually stop coming because it will be too expensive when we can’t offer a product that’s worth it. The government thinks we’re the most exclusive country in the world, but, at some point, the visitors will stop spending the extortionate amount of money to come. Solution, government please stop being so greedy.
  • Marine industry (11/10/2023, 07:06) Like (5) Dislike (2) Reply
    The marine service industry is not soft at all. In fact it’s running flat out. Out company is turning away work because we cannot find staff. We have had to hire a staffing agency to help us recruit workers from outside of the territory. Not only are we now faced with very expensive work permit fees we also have to pay the staffing company 20% of the new hire’s salary. We offer great pay and benefits but there are no local applicants who are qualified or have the experience to perform technical work on yachts. We could do so much more if only we could find staff.
  • Missed opportunity. (11/10/2023, 08:23) Like (2) Dislike (2) Reply
    The BVI missed an opportunity last election. Missed the financial cure to our financial illness. Ronnie should have being Premier we would have been in a better financial and responsible position.. The way it is now, no need to be surprise, the people in charge are clueless.
    • @ missed opportunity (11/10/2023, 13:13) Like (0) Dislike (1) Reply
      get this through your hard head the people do not want ronnie or myron as NO dam Premier for now we are sticking with Nat until we can do better
  • Yep (11/10/2023, 09:28) Like (1) Dislike (0) Reply
    The Financial Services industry is doing the BVI a disservice with so many jobs being relocated off island. If these were brought back, the place would be booming.
  • honest john (11/10/2023, 13:18) Like (0) Dislike (0) Reply
    The tourist sector would likely do a lot better if many businesses were able to obtain the work permits they need to recruit sufficiently skilled and experienced staff. However according to the Labour Department it seems that there must a be long list of BVIslanders that are desperate for jobs as barmen, waiters, chefs, deck hands etc....
  • teacher john (11/10/2023, 13:52) Like (1) Dislike (0) Reply
    Career readiness has been identified by many companies as an area of development for those entering or re-entering the workforce.
  • Native Tongue (12/10/2023, 01:42) Like (0) Dislike (0) Reply
    PAY ATTENTION TO THE IRREGULAR ECONOMY....IT IS THRIVING.
  • eh (12/10/2023, 02:23) Like (0) Dislike (0) Reply
    Figure a way how to keep in some of the money that is going out of the country. Most of the money is sent out of the country. Greed is one reason why the economy is soft. When locals work they will have money to spend back in the country with the same businesses who do not want to hire them because they can hire others and pay them next to nothing. Whatever expats work for the larger portion will be sent back home. I am not blaming them they have figured how to survive . Now we have to work on our survival tactics.


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