USVI Public Records

Document text

XXXXXX Spring Revenue Estimating Conference 3.14.23 U.S. Virgin Islands Department of Tourism 1 Agenda ● Airlift ● Accomodations ● Cruise ● STR ● Revenue ● Tax Revenue ● FY 23 Estimated Operational Budget 2 ● For the past three years, the U.S. Virgin Islands has seen a significant increase in airlifts to the destination, with a 21 percent rise in nonstop flights from the U.S. in 2022 compared to 2019 ● Both STT and STX are projected to have significant more seat in 2023. When looking at the continental USA, STT +21% and STX + 23% ● For the rolling twelve months in 2022, traffic was up 22% and traffic is up 15% since before the pandemic, despite higher yields ● The 35.8 percent increase in departure seats between 2019 and 2022 is a testament to the growing popularity of the islands as a top tourist destination and the recognition from airline carriers as a profitable service route Air Capacity and Visitors 3 Regional Flights Breakdown Regional Aircraft - STT Weekly Flights Seats Winter 2021-22 213 2,175 Winter 2022-23 79 1,240 4 Regional Aircraft STX Weekly Flights Seats Winter 2021-22 130 1,584 Winter 2022-23 47 1,145 The Change in Seats/Flights from Winter 2022 to Winter 2023 was primarily due to the small regional aircrafts Source: Air STATS January 2023 Weekly Flights/Seats into USVI Time Period Weekly Flights Seats Winter 2019-20 606 25,314 Winter 2021-22 537 27,796 Winter 2022-23 276 25,907 5 Destination Weekly Flights Seats St Thomas - Winter 2022-23 204 20,458 St Croix - Winter 2022-23 72 5,449 Source: Air STATS January 2023 Accommodations 2022 6 Forthcoming Properties: The Westin Beach Resort & Spa, at Frenchman’s Reef St. Thomas 392 June 2023 The Autograph Collection Buoy Haus Beach Resort St. Thomas 94 June 2023 Sugar Bay St. Thomas 294 TBD Type St. Croix St. Thomas/ St. John Estimated Total Accommodations Hotel/Resort Rooms 1,000 1,800 2,800 Villa 300 600 900 Charter Yachts 250+ 250+ AIRBNB/VRBO 2019 vs 2022 vs 2023 Time Period Revenue 2019 $14,167,016 2022 $36,832,868 2023 $41,045,940 7 Time Period Supply Nights/Demand Nights 2019 73,426/32,876 2022 106,291/ 75,031 2023 112,103/76,243 11.4% from 2022 5.5% (Supply) from 2022 Source: AirDNA Trend Report Jan 2023; AirDNA Pace Report Dec 2019 ● Cruise ship passenger volumes for 2024 is expected to exceed 2019 levels for the USVI. ● Cruise passengers is expected to increase by 640,000 passengers territory wide in 2023. ● WICO: 950,000 Passengers Crown Bay: 700,000 AAMF: 240,000 Passengers ● St. Croix is expected to see cruise passengers increase by 80% over 2022 numbers. Cruise STT and STX 8 Source: BER, VIPA, WICO Cruise STT and STX 2022 Destination Port Calls/Passenger Numbers St. Thomas/ St. John Crown Bay 178/471,314 WICO 195/466,390 St. Croix AAMF 41/83,478 Total Cruise Passengers for 2022 1,021,182 9 Source: BER, VIPA, WICO STR Data YTD 2021 VS 2022 10 Source: STR Report July 2022 HOTEL TAX REVENUE COLLECTED Time Period Revenue Collected JANUARY YTD FY 2019 $5,455,545 JANUARY YTD FY 2022 $5,142,184 JANUARY YTD FY 2023 $11,555,048 11 Source: USVI Bureau of Internal Revenue HOTEL TAX REVENUE COLLECTED Time Period Revenue Collected DECEMBER YTD FY 2019 $3,890,001 DECEMBER YTD FY 2022 $5,806,875 12 Source: USVI Bureau of Internal Revenue TOURISM REVENUE ESTIMATE SNAPSHOT Industry Projected Growth: ● Projected growth rate of 3.5% for FY 2023 ● Projected growth rate of 6% for FY 2024 Projected Collections: ● 2023 Hotel Room Tax Collection: $36,790,731.51 ● 2024 Hotel Room Tax Collection: $38,998,175.81 13 FY 2023 ESTIMATED TOURISM OPERATIONAL BUDGET: 14 To support the initiatives and fiduciary responsibilities of the Department of Tourism, the Fiscal Year 2023 budget recommendation is $39,000.000. XXXXXX Thank You, Questions? U.S. Virgin Islands Department of Tourism 15