Ahead of talks with the United States Virgin Islands governor here tomorrow, Premier Natalio “Sowande” Wheatley said his government will not be “bullied” by its neighbour in a public spat over access to the territory’s waters.
USVI Governor Albert Bryan Jr. said Monday that he is coming to Tortola for “candid” discussions about proposed reforms that would increase fees for USVI boats that operate here by as much as 6,000 percent.
The move follows Mr. Bryan’s threat to impose 25 percent tariffs on goods imported from the VI and increase transit charges unless Mr. Wheatley backs down on his plans to raise charter fees for the first time since 1992.
During a press conference on Friday, the premier accused Mr. Bryan of threatening “Trump-like” tactics and said it is “insulting” for the USVI to resist the first price hike in 33 years.
Despite legal uncertainty about Mr. Bryan’s power to implement tariffs, Mr. Wheatley conceded that the threat doesn’t appear to be off the table.
“It seems they are exploring their options,” he said. “We are open to dialogue in good faith. A tactic of putting tariffs on the BVI is a bullying tactic.”
‘No change’
Mr. Bryan said he, too, wants to find a friendly way forward.
Stressing the bonds of kinship across the islands, he told a press conference in the USVI on Monday that his planned meeting with Mr. Wheatley tomorrow is designed to “have an open and candid conversation” about the proposed fee increases and “obtain an equitable resolution that builds our charter yacht industry” and “creates economic wins for both territories.” However, he stressed that changes are needed.
“I do not engage in diplomacy through headlines, but we have had this conversation over and over again with the BVI,” the governor said. “Last year we met; we decided that things would change. A year has gone by — no change.”
He added that he understands the VI wants to build its marine industry.
“However, when those efforts come at the detriment of the USVI industry, we must address them with respect, sensitivity, and, above all, substance,” he said. “This is not how families treat each other. Nor is it equitable.”
The governor added that he wants to work “collaboratively” to achieve a path forward.
“The strength of our relationship has been tested before. And each time we have chosen cooperation over conflict,” he said.
‘Insulted’
Mr. Wheatley said Friday that he had invited the governor for talks, but he said it is unacceptable that the VI is receiving just $200 a year for certain foreign vessel licences considering that the yachting industry is boosting the USVI economy by almost $100 million annually.
“I feel insulted by the concept that the BVI is not worth more than $200 a year to be able to access our pristine waters,” he said.
Mr. Wheatley insisted that fees must go up.
“We are willing, where necessary, to make concessions, but it has to be fair,” he said. “To pay fees from 1992, which are 30 years old, is unacceptable. The fees will increase.”
The premier rejected any claim that the USVI holds most of the cards in the dispute.
“Most of the chartering industry takes place in the BVI waters, so you will be able to figure out who holds the cards,” he said.
The premier added that the current system does not reflect financial reality.
“For example, when a charter company receives a booking for a yacht charter, the charge to the customer can average between $50,000 and $100,000 a week,” he said. “This is being earned weekly over the course of 12 to 13 weeks while these vessels on a daily basis are enjoying the use of our waters, beaches and fishing grounds as a central feature of their packages. All we collect on the BVI side is an annual fee of a few hundred dollars per vessel for the commercial vessel licence approved to traverse our waters.”
Proposed new fees
To address this issue, the government is proposing a new fee structure that would dramatically increase fees for USVI vessels operating here.
For example, the annual fee for “unrestricted” foreign vessels shorter than 115 feet would be $24,000 — a 2,900 percent increase from the $800 maximum annual fee in the existing 1992 legislation. Meanwhile, foreign day charters would have to fork over a $12,500 annual fee — representing a 6,150 percent increase from the existing $200.
Government is also proposing to increase fees for commercial vessels based in the VI, but not nearly as dramatically as for foreign ones.
For example, the annual fee for a VI-based commercial boat under 40 feet would double from $200 to $400, and the annual fee for VI-based vessels between 40 and 115 feet that offer day charters would quadruple from $200 to $800.
Pushback at home
Besides the pressure from the USVI, the premier has also faced pushback from many VI stakeholders claiming the proposed reforms would seriously hinder local businesses.
The Marine Association of the BVI, a non-profit organisation that claims more than 60 members employing more than 2,500 people in the territory, sent a pointed letter to HOA members after the proposed legislation was Gazetted in mid-January.
The association agreed that reforms are needed, but it criticised many of the government’s proposals and complained about a lack of consultation on the issue.
“The majority of industry stakeholders consulted thus far believe these legislative amendments are generally counteractive to the good of BVI, its economy and its marine industry,” stated the letter, which did not take issue with the fee hikes.
Consultations
Mr. Wheatley, however, said Friday that the government had consulted widely on the changes.
“We held extensive consultations between 2023 and 2024 with our local marine industry stakeholders,” he said. “In total, 22 amendments were proposed across three pieces of legislation. In fact, the government accepted a number of the industry’s proposals, including the proposed new price of the Commercial Recreational Vessel Licence for non-BVI vessels.”
The three bills in question, which were introduced recently in the House of Assembly, are the Customs Management and Duties (Amendment) Bill 2024, the Commercial Recreational Vessels Licensing (Amendment) Bill 2024, and the Cruising and Home Port Permit (Amendment) Bill 2024.
Besides raising fees, they seek to amend various regulations in the commercial recreational vessel sector, including tightening licensing requirements.