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February 26, 2026 The Honorable Senator Novelle E. Francis, Jr. Thirty-Six (36th) Legislature of the Virgin Islands Capitol Building St. Thomas, Virgin Islands 00802 Re: Committee on Budget, Appropriations, and Finance Good Morning, Chairman of the Committee on Budget, Appropriations, and Finance, Honorable Senator Novelle E. Francis, Jr; distinguished members of the Committee; Senators of the 36th Legislature of the United States Virgin Islands; legislative staff; members of the media; and the listening and viewing public. I am Assistant Commissioner Alani Henneman, at the US Virgin Islands Department of Tourism. Pursuant to your invitation, I am here on behalf of Commissioner Jennifer Matarangas-King, and am pleased to provide testimony regarding Bill No. 25-0936, an Act reprogramming administrative fees resulting from the bonds issued for the Fortress Investment Group, transfer for various projects and initiatives to enhance the economic development of St. Croix and for deposit into the Budget Stabilization Fund. The Department appreciates the clarification reflected in the amendment changing the language from the “Project Fund” to the “ERF Trust Account,” as this adjustment provides greater transparency and alignment in the administration of these funds. With specific regard to subsection (b), allocating $500,000 to the Virgin Islands Department of Tourism for hotel development incentives on St. Croix, the Department respectfully notes that direct hotel development incentives are more closely aligned with the statutory purview of the Virgin Islands Economic Development Authority, as such incentives fall within economic development structuring and administration. If the legislative intent is to support hotel-related marketing, promotional efforts, or investor engagement initiatives, the Department would be well-positioned to administer such funding. For example, resources could be directed toward territorial or district-level hotel development marketing efforts, including collaboration with the Economic Development Authority to position St. Croix at major hospitality investment conferences such as CHICOS, NABHOOD, and CHRIS, where direct engagement with developers and industry stakeholders occurs. Similarly, funding could support targeted awareness campaigns that highlight available hotel incentives and investment opportunities within the Territory. The Department is currently finalizing a comprehensive hotel development study that outlines the benefits of doing business in the U.S. Virgin Islands and provides detailed guidance on how existing incentives may be utilized to support hotel investment and expansion. This study will serve as a strategic tool in strengthening the Territory’s competitive positioning within the regional hospitality marketplace. The Department of Tourism remains committed to working collaboratively with the Legislature, the Economic Development Authority, and all relevant stakeholders to ensure that any allocated funds are structured appropriately, aligned with statutory authority, and utilized in a manner that maximizes sustainable economic growth for the entire U.S. Virgin Islands. Thank you for the opportunity to provide testimony on this measure, and we stand ready to answer any questions you may have.