USVI stands to lose millions in economic activity- USVI Charter Association
Appearing Tuesday, February 10, 2026, before the Committee on Government Operations, Veterans Affairs, and Consumer Protection, Mr Jones warned that the territory’s marine sector and "broader blue economy” are at a "pivotal crossroads: invest and thrive or continue to decline".
His testimony followed a recent decision by the Virgin Islands to impose significant increases in charter fees for foreign-based vessels — a move local stakeholders have characterised as unfair and one that, he said, is already adversely affecting marine tourism in the US Virgin Islands.
More than 90 vessels have already relocated to VI
According to The Virgin Islands Consortium, Mr Jones was invited to provide lawmakers with an overview of current industry challenges and to offer practical solutions and policy recommendations. Among the data points presented was the performance of the 2025 USVI Charter Yacht Show in November, which recorded its lowest attendance outside of the pandemic years.
"By contrast, the British Virgin Islands celebrated their largest show ever, undeniably driven by companies shifting operations from the USVI to the BVI,” Mr Jones stated, adding that more than 90 vessels have already relocated. He cautioned that planned marina and airport expansions in the BVI are expected to further intensify the competitive gap.
USVI stands to lose millions- Kennon Jones
Without what he described as “corrective action", Mr Jones warned that the USVI stands to lose millions in economic activity. He said solutions must be two-fold: the Government of the Virgin Islands should pursue "fair and reasonable fees" for charter operators while also working to "position itself as a destination of its own rather than a gateway to the British Virgin Islands".
To achieve that, the Professional Charter Association is urging the territory to “invest and build locally".
Mr Jones told lawmakers that the permitting process under the Department of Planning and Natural Resources is “prohibitive to growth". He cited Lime Out, which recently opened a floating taco shop on St. Thomas, as an example, noting that the business endured three years of permitting delays.
"How can we hope to compete with the BVI's diverse tourism offerings when even our most iconic marine attractions face such avoidable delays?” he asked. He noted that the St John Lime Out location was recently ranked the #4 boat-only dining destination in the world.
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8 Responses to “USVI stands to lose millions in economic activity- USVI Charter Association”
Capitalism and colonialism have historically exploited small nations, shaping their economies, cultures, and identities in ways that sometimes undermine their sovereignty and authenticity. Imposing foreign norms, extracted resources, and prioritized profit over local well-being, leading to cultural commodification and economic dependency. Capitalism, in its pursuit of profits, can further entrench these dynamics by favoring global brands and international interests over local traditions and industries.
Economic Impacts:
1. Revenue Leakage: A large portion of the profits generated by these corporations often flow back to their home countries, resulting in limited economic benefits for the local community. This reduces the circulation of money within the island economy, hindering local wealth development.
2. Limited Local Business Development:** Dominance of international franchises can crowd out local entrepreneurs, making it difficult for small, indigenous businesses to flourish. This stifles local entrepreneurship and innovation.
3. Job Creation vs. Job Quality:While these corporations may create jobs, they often offer low wages, limited benefits, and little opportunity for advancement, which may not significantly improve local standards of living.
4. Economic Dependence:Relying heavily on foreign corporations makes the economy vulnerable to external shocks, such as corporate decisions or global economic downturns, which can lead to economic instability.
Cultural Impacts:
1. Erosion of Local Identity: The proliferation of international brands can overshadow local culture, traditions, and cuisine, leading to cultural homogenization and loss of unique island identity.
2. Changing Social Norms: The presence of global franchises often brings Western consumer culture, influencing local lifestyles, dietary habits, and social interactions, which can dilute traditional customs.
3. Tourism Experience:Over-commercialization may diminish the authenticity of the tourist experience, making the islands seem more like generic vacation spots rather than places with distinct cultural heritage.
Long-term Consequences:
- The economy becomes increasingly dependent on external entities, reducing local control.
- Cultural heritage may be compromised, affecting community cohesion and the sense of place.
- The local population may experience a loss of cultural pride and self-sufficiency.
In summary, while foreign and mainland businesses can bring short-term economic activity and jobs, over-reliance on them can undermine the economic sovereignty, cultural integrity, and long-term sustainability of small island nations like the USVI. A balanced approach that encourages local entrepreneurship, protects cultural heritage, and ensures economic benefits stay within the community is crucial for their resilience and identity.