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​5304 Yacht Haven Grande, Building R,​ ​Suite 105, St. Thomas, VI 00802​ ​Phone: 340.642.0656​ ​Email:​​info@VIPCA.org​ ​Website:​​www.VIPCA.org​ ​February 10, 2026​ ​Testimony before the Committee on Government Operations, Veterans Affairs, and​ ​Consumer Protection​ ​Good Day Mr. Chairman, the Honorable Avery L. Lewis, Committee Members and fellow​ ​testifiers. My name is Kennon Jones. I am the Executive Director of the Virgin Islands​ ​Professional Charter Association (VIPCA) and appear today on behalf of our Board of Directors​ ​and over 700 members. We would like to thank the Chairman and Committee on Government​ ​Operations, Veterans Affairs, and Consumer Protection for inviting us to participate in this​ ​discussion on a comprehensive overview on industry impacts due to the BVI’s charter vessel​ ​licensing fees as well as discussing practical solutions, policy adjustments, or forms of support​ ​the Legislature can pursue to help stabilize and strengthen the Blue Economy and the marine​ ​industry across the Territory​ ​The U.S. Virgin Islands’ marine industry and broader Blue Economy stand at a pivotal​ ​crossroads: invest and thrive, or continue to decline. The 2025 USVI Charter Yacht Show in​ ​November saw the lowest vessel attendance in its history outside of the pandemic years. Of the​ ​vessels that did attend, roughly two-thirds will operate out of the British Virgin Islands (BVI).​ ​By contrast, the British Virgin Islands celebrated their largest show ever—undeniably driven by​ ​companies shifting operations from the USVI to the BVI—taking with them 90 vessels and more​ ​than $90 million in lost economic activity that otherwise would have remained in the U.S. Virgin​ ​Islands.​ ​The BVI continues to accelerate its advantage. A $30–$40 million expansion of Nanny Cay​ ​Marina is underway to accommodate mega yachts and large catamarans that currently rely on​ ​Yacht Haven Grande in St. Thomas. Moreover, approvals for the long-awaited Terrance B.​ ​Lettsome (EIS) airport expansion continue to progress. Once completed, this will inevitably pull​ ​airlift capacity from Cyril E. King Airport (CEK), reducing incoming flights for residents and​ ​visitors and decreasing outbound travel choices for Virgin Islanders if airlines reposition routes​ ​to the BVI.​ ​According to the Virgin Islands Bureau of Economic Research, the marine industry in 2024​ ​generated approximately $93 million in spending, $43 million in wages, and a territorial​ ​economic output between $69 million and $133 million. Without corrective action, these​ ​numbers will decline.​ ​Where do we go from here?​ ​1​ ​5304 Yacht Haven Grande, Building R,​ ​Suite 105, St. Thomas, VI 00802​ ​Phone: 340.642.0656​ ​Email:​​info@VIPCA.org​ ​Website:​​www.VIPCA.org​ ​The Government of the U.S. Virgin Islands must seek fair treatment and reasonable fees from the​ ​BVI Government for USVI-based charter operators. Concurrently, the U.S. Virgin Islands must​ ​position itself as a destination of its own, rather than a gateway to the British Virgin Islands. We​ ​must grow local marine tourism by investing in infrastructure, workforce development, and​ ​business-friendly regulatory reform. On behalf of VIPCA membership and the marine industry​ ​as a whole, I propose the following actions to revitalize the marine industry and secure the future​ ​of the U.S. Virgin Islands.​ ​1.​ ​Invest and Build Locally​ ​Current DPNR and CZM permitting processes are prohibitive to growth. LimeOut St. Thomas​ ​required three full years to secure approvals and navigate red tape to expand to a second location.​ ​How can we hope to compete with the BVI’s diverse tourism offerings when even our most​ ​iconic marine attractions face such avoidable delays?​ ​Beyond new attractions, the USVI urgently needs basic dinghy and small-craft access docks so​ ​that guests aboard charter vessels can easily reach shoreside businesses. When visitors step​ ​off their vessels and access restaurants, shops, and services, they spend money locally. That​ ​local spend and economic activity stays in the Territory rather than flowing to the BVI. Areas​ ​of particular importance include:​ ​•​ ​Downtown Charlotte Amalie​ ​•​ ​Red Hook​ ​•​ ​Cruz Bay and Coral Bay, St. John​ ​•​ ​St. Croix’s Boardwalk and the Frederiksted Cruise Pier Area​ ​One of the most impactful improvements with minimal environmental impact would be​ ​establishing managed beach access and moorings at Magens Bay. A simple dinghy tie-off line​ ​on floats near shore, similar to the successful system used in the St. John National Park, and/or a​ ​designated area for day boats to “stern to” the beach would create a world-class stop for charter​ ​guests. The shoreside amenities already exist: a restaurant, bar, restrooms, and supporting​ ​infrastructure. A management agreement allowing for reasonable user fees, properly installed​ ​moorings, and mooring fees could fully fund installation, maintenance, and ongoing operations​ ​as well as support conservation efforts.​ ​Under Title 12, Section 910 of the Virgin Islands Code, the Legislature may act in place of the​ ​CZM Committee to expedite permit approvals in the public interest. We strongly encourage​ ​using this authority to rapidly develop this essential marine infrastructure.​ ​2​ ​5304 Yacht Haven Grande, Building R,​ ​Suite 105, St. Thomas, VI 00802​ ​Phone: 340.642.0656​ ​Email:​​info@VIPCA.org​ ​Website:​​www.VIPCA.org​ ​2.​ ​Invest in Infrastructure and Skills Training​ ​Over the past eight years, VIPCA has delivered marine apprenticeship training to nearly 100​ ​Virgin Islanders seeking long-term careers in the marine trades. A strong marine industry​ ​produces strong local jobs.​ ​The single most transformative investment the USVI can make is the development of a world​ ​class shipyard in St. Thomas, ideally at the former Adelita Cancryn School property or another​ ​suitable location in St. Thomas. Such a facility could host the Caribbean’s largest vessel-lifting​ ​and repair capacity and serve as a training hub for technical trades, apprenticeships, and​ ​longterm, high-wage careers.​ ​Without a functioning shipyard, we cannot expect to expand the marine trades or even maintain​ ​them. With the impending closure and relocation of Subbase Dry Dock, the USVI will lose the​ ​ability to service and inspect its own ferry fleet.​ ​3.​ ​Implement Business-Friendly Regulations​ ​The dollar thresholds for Major CZM Permits have not been updated since 1979. As a result,​ ​any project exceeding $55,000—even a modest beach bar or public dock—triggers the same​ ​permitting requirements as constructing a cruise pier. This stifles small and medium-scale​ ​development. Additionally, operating a charter business in the USVI is more expensive than in​ ​the BVI. The USVI can narrow this gap by:​ ​•​ ​Reducing the Gross Receipts Tax for charter operators​ ​•​ ​Eliminating duplicative DLCA licensing requirements​ ​A vessel’s commercial registration with DPNR, along with mandatory safety inspections, should​ ​serve as sufficient licensing to operate legally.​ ​A one-stop shop for commercial vessel registration should be established. Bureaucracy is poison​ ​to innovation and growth. A simple DLCA-managed portal that enables vessels to be registered​ ​for commercial work in a single streamlined process would eliminate the current​ ​multidepartment overlap, which slows business, increases costs, and discourages investment.​ ​4.​ ​Revive the Sport Fishing Industry and the Boy Scout Open​ ​From 1972 to 2017, St. Thomas hosted the world-renowned Virgin Islands Open/Atlantic Blue​ ​3​ ​5304 Yacht Haven Grande, Building R,​ ​Suite 105, St. Thomas, VI 00802​ ​Phone: 340.642.0656​ ​Email:​​info@VIPCA.org​ ​Website:​​www.VIPCA.org​ ​Marlin Tournament, known as the “Boy Scout”—once called “The Super Bowl of Big-Game​ ​Fishing.” New licensing restrictions imposed by the BVI ultimately ended the tournament, along​ ​with the millions of dollars in economic activity it generated.​ ​We urge the Government of the U.S. Virgin Islands to work with the Government of the British​ ​Virgin Islands to establish reciprocal licensing, customs, and fishing agreements that would​ ​relaunch the tournament to the benefit of both territories. With fleets based at American Yacht​ ​Harbor and Scrub Island Marina, proceeds could again support Scouting organizations in both​ ​the USVI and BVI.​ ​5.​ ​Prioritize Environmental Stewardship and Derelict Vessel Removal​ ​The Territory must fully utilize federal and local resources to remove the many abandoned and​ ​derelict vessels that continue to pollute our waters and pose navigational hazards. These vessels​ ​can be reprocessed locally, with crushed fiberglass repurposed as aggregate material for concrete​ ​and asphalt—reducing the long-term costs of road and infrastructure repairs.​ ​Importantly, federal grants for environmental cleanup, resiliency, and coastal restoration projects​ ​typically require matching funds. To ensure the USVI can fully capitalize on these opportunities,​ ​the Government should establish a dedicated matching fund specifically reserved for​ ​environmental and marine infrastructure grants.​ ​A portion of each vessel’s DPNR registration fee should be directed into this dedicated matching​ ​fund, ensuring a reliable and sustainable revenue stream that unlocks federal dollars and enables​ ​timely removal of abandoned and derelict vessels. This approach guarantees that the Territory is​ ​never forced to forgo federal support simply due to a lack of matching dollars.​ ​The opportunity is here, and the time is now, to make bold investments and forward-thinking​ ​decisions that will secure the future of the U.S. Virgin Islands’ blue economy. We stand ready to​ ​support and assist in implementing these recommendations and respectfully request your​ ​feedback and engagement.​ ​Sincerely submitted,​ ​Kennon Jones, Executive Director​ ​Virgin Islands Professional Charter Association​ ​4​