OTs must focus on tourism for 'economic transformation'- Margaret E. Hodge
Her appeal comes as the United Kingdom faces increasing pressure to assist its overseas territories, including financial services jurisdictions like the Virgin Islands, in diversifying their economies and reducing their dependence on financial services.
Tourism
According to The Financial Times, Hodge has recommended that these territories make tourism their primary focus for economic transformation. She argued that in exchange for supporting the growth of their tourism industries, the UK government should ensure these territories fully comply with financial transparency regulations.
This call for support aligns with broader efforts to combat corruption and illicit finance, particularly money laundering, which the UK has associated with offshore jurisdictions.
UK OTs under increased scrutiny
The Virgin Islands, Cayman Islands, Gibraltar, and Montserrat are among the UK’s overseas territories that have historically served as hubs for international finance. While they have thrived as financial services jurisdictions, these regions are now under heightened scrutiny due to what is perceived as a lack of transparency in financial dealings. International pressure continues to mount for increased financial transparency, notably the establishment of beneficial ownership registers.
The Virgin Islands has agreed to Legitimate Access to Registers of Beneficial Ownership, and this has been accepted by the UK government.
The VI has also stated in the past that it is willing to have Public Registers, once that becomes a global standard.
Meanwhile, Hodge emphasised that developing alternative economic models is necessary in response to the changing global landscape of finance and governance.
UK has a responsibility to support economic transition
In her statement, she highlighted the importance of gentle persuasion over forceful mandates to encourage these territories to adopt transparency. She underscored that while these areas have traditionally relied on financial secrecy, the UK has a responsibility to assist them in transitioning to sustainable economic models. With the UK advocating for greater transparency, her suggestion is to incentivise the development of tourism as an alternative income source, thereby reducing dependence on less sustainable financial activities.
The solution
Tourism, according to Hodge, presents a practical solution to the ongoing economic challenges faced by financial services jurisdictions in the post-financial secrecy era.
Hodge cited the Virgin Islands as an example of a region that could greatly benefit from increased tourism.
She pointed out that despite its beautiful beaches and an emerging hospitality industry, the lack of an international airport capable of accommodating large flights has limited the VI's tourism potential.
Hodge visited the Virgin Islands in September 2025 and met with various stakeholders in financial services. She admitted that financial services "is a legitimate business" that takes place in the Virgin Islands, but noted that the territory is "on a journey" to combating illicit finance.
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17 Responses to “OTs must focus on tourism for 'economic transformation'- Margaret E. Hodge”
If that VINO report is accurate, how condescending and non-sensical.
The state of the island’s roads and infrastructure is not geared for welcoming tourists.
Fix the roads, remove the derelict car crushing facility at Havers.
Premier stop wasting $$$$ on so much travel around the world with big delegations and put that money into making Tortola a welcoming destination for tourists.
Governments for the last 40 years have taken their eye off the ball and failed to develop the tourism overnight stay sector excluding the cruise sector.
I’m not supporting Ms Hodge’s comments but agree with message. Fail to plan, plan to fail.
Her last name is Hodge...let that sink in.
Hmm.
Moreover, financial services seems to be facing some strong head winds from external forces. The suggestion from the UK is to shift focus and work on strengthening and deepening tourism. Consequently, making up the potential revenue lost from financial services can be a heavy lift. Nevertheless, the VI must boldly take on the challenge to survive and thrive. As such, it must strengthen and deepen its tourism offering by improving its physical and soft infrastructure, viz, roads, water, sewage, drainage, ports( air & sea), telecommunications, energy, health, education, social services, etc, along with increasing accommodations, improving and increasing attractions, etc, continuing the journey of being and sustaining being the top small tourism destination in the region. What potential economic/tourism opportunity(s) is available?
Undoubtedly, the VI needs to diversify its economy, lessening one stumble resulting in a major tumble. Exploring the ‘Blue Economy’ in the Exclusive Economic Zone (EEZ), which extends up to 200 miles from shore. The VI has sovereign rights in the EEZ. Potential economic opportunities in the EEZ include fisheries, offshore oil and gas, renewable energy( wind,wave, tidal), seabed minerals, tourism and recreation activities, aquaculture, marine research, etc.