Premier Natalio “Sowande” Wheatley has warned the United States Virgin Islands to back off threats of retaliation over increased charter-yacht fees.
Mr. Wheatley insisted that his government will defend its right to charge higher rates for boats visiting these waters after the USVI Governor Albert Bryan Jr. urged US President Donald Trump to intervene in the matter and consider penalising the VI.
“Our maritime space is one of our most valuable natural endowments,” Mr. Wheatley told the House of Assembly last Thursday.
“It is a strategic economic asset, a source of national prosperity, and a pillar of our blue economy. This administration is firmly committed to ensuring that it is governed responsibly, sustainably and in the best interests of the people of these Virgin Islands.”
Mr. Wheatley insisted that the territory was right to raise fees last year.
“This is an exercise in sound governance, not confrontation— in stewardship, not restriction,” he said. “The revised framework has delivered clear and positive improvements.”
Economic hit?
Last month, the USVI governor wrote Mr. Trump and US Secretary of State Marco Rubio claiming that the fee increase had forced 90 USVI boats to move their registration here.
Mr. Bryan — who urged Mr. Trump to address the matter with the VI and the United Kingdom— also alleged that the USVI economy had already taken a $14 million hit and is now facing a near $100 million annual loss to its economy.
But last week, Mr. Wheatley said the changes have taken the VI forward in a new business model.
“The framework has improved value capture from higher-value segments of the marine tourism market, including foreign-based vessels and larger charter yachts,” he said.
He added that the price hikes are “inseparable” from his government’s plan to provide better services through a Commercial Recreational Vessel Licence digital portal now in advanced stages of testing.
“This platform will transform how operators interact with government by streamlining applications, renewals, approvals and payments; reducing processing delays; improving compliance oversight; and increasing transparency,” he said.
“The system is undergoing rigorous real-world testing to ensure security, reliability and seamless integration before full deployment,” he said.
Cooperation
The premier added that he wants good relations and mutual respect with the USVI.
“Cooperation does not diminish sovereignty,” he said. “The government of the Virgin Islands will always exercise its diplomatic and legislative authority to protect its economic interests and responsibly manage its natural resources.”
Mr. Wheatley pointedly rejected claims by Mr. Bryan that the fee hikes — which were lowered from originally planned rates after the USVI objected — were unusually damaging to the neighbouring territory.
“These reforms were not designed to target any jurisdiction, nor are they retaliatory in nature,” the premier said.
“They are a legitimate expression of our right to regulate commercial activity within our territorial waters in a manner that is fair, transparent and internationally aligned.”
Mr. Wheatley also called for a cooling in rhetoric between the two territories.
“This administration has also been deliberate in rejecting escalation,” he said.
“There have been no moves toward punitive measures or retaliatory enforcement. Instead, we continue to pursue dialogue, de-escalation and engagement through established inter-Virgin Islands mechanisms, while remaining steadfast in our responsibility to govern in the best interests of the Virgin Islands and its people.”
Initial plans to update VI charter charges sparked a major diplomatic spat last March when Mr. Bryan urged Mr. Trump to retaliate by imposing tariffs and travel restrictions against the VI.
A summit in April between Messrs. Wheatley and Bryan led to an understanding where the VI agreed to lower the proposed charges.
However, the row erupted again after the fees took effect, with Mr. Bryan writing Mr. Trump on Dec. 4 to urge the US to use the “full weight” of American power to make the VI change course.
Fee rates
Under the revised measures agreed in April, USVI charter boats are charged $7,500 annually for up to seven entries to VI waters, with an additional fee of $2,100 for each extra visit — or $24,000 a year for unlimited access, according to government.
Under the originally proposed legislation — which was modified following the USVI’s objections — charter fees would have risen by up to 6,000 percent with the annual licensing fee being a flat $24,000 — a 2,900 percent increase from the previous $800 annual maximum.
The revisions also lowered the new annual fee for USVI boats offering day charters: The originally proposed $12,500 — a 6,150 percent hike on the current $200 fee — was lowered to $8,500, the premier said.
The new fee for water taxis stayed the same, at $2,500 per year.
Mr. Wheatley said changes were needed as the fees had not been updated since the 1990s.