Tourism Director Joseph Boschulte testified on the proposed budget on Tuesday. (Photos by Virgin Islands Congressmen Alvin Burke Jr., Mario Foncica and Barry Leedham)
Tourism Commissioner Joseph Boschulte delivered an optimistic report to the Budget, Appropriations and Finance Committee, highlighting the “record-breaking” number of tourism visitors to the territory.
He said the airline added 971 new flights this fiscal year, which, combined with increased hotel capacity, contributed to a healthy growth rate in hotel bookings. He also cited the opening of Pink Palm and the reopening of two properties at Frenchman’s Reef: the 392-room Westin Beach Resort & Spa and the 94-room Morning Star V-House Beach Resort.
He added that hotel tax collections will be 24% higher than 2023 revenues, amounting to $35,934,054 year-to-date as of May 2024.
That projection is on track to surpass record revenue of $57.8 million in 2022, according to department figures.
Senate President Novelle Francis praised Boschulte’s work at the Treasury, then asked why the department wasn’t paying the bills.
Boschulte said the department is doing everything it can to pay local vendors $1.7 million in back payments, adding that marketing companies also owe $4 million.
“Tourism is our largest industry, but it’s not making money,” said Sen. Donna Frett Gregory, the committee’s chairwoman. She added that if the situation isn’t fixed quickly, the agency’s credibility as a tourism agency will quickly decline.
“Five months is a long time to wait to get your paycheck,” Sen. Franklin Johnson said.
Vendors aren’t the only ones not getting what they’re due. Some employees who were approved for raises a year ago still haven’t received them. “I’m fine with people not getting paid,” Johnson said.
Another concern raised by Frett Gregory is the lack of golf courses on St. Thomas. He said that unless Mahogany Run is reopened, there is nowhere on St. Thomas to build a golf course. Boschulte said that in some cases, groups have found out there are no golf courses on St. Thomas and decided to go elsewhere. The University of the Virgin Islands has some practice holes on the St. Thomas campus, but they are not enough to attract tourists. St. Croix has two high-end golf courses and another course that attracts intermediate golfers.
Mahogany Run has been closed since the 2017 hurricane. Boschulte said several potential buyers have inquired but haven’t heard back. Frett Gregory said the government should try to revive the course. One-fifth of public golf courses in the U.S. are owned by government entities, according to the National Golf Foundation.
Boschulte said 1.7 million cruise passengers will arrive in the region on 495 cruise ships in 2023. At the Anne E. Abramson Marine Facility, passenger numbers in St. Croix grew from 54,827 to 159,658 from 2019 to 2023. St. Thomas welcomed 1,613,554 passengers between WICO and Crown Bay.
The budget presented for 2025 is the same as 2024: $34.4 million.
Senators Marvin Bryden, Diane Capehart, Samuel Carrion, Dwayne DeGraff, Ray Fonseca, Novelle Francis, Donna Frett Gregory, Kenneth Gittens, Javan James, and Franklin Johnson attended the hearing.
