Gov. Albert Bryan Jr. met this week with leadership from the Virgin Islands Professional Charter Yacht Association, including Executive Director Oriel Blake and newly appointed Operations Director Kenan Cummings, to outline a comprehensive plan for strengthening and growing the U.S. Virgin Islands’ marine tourism sector.
Central to the conversation was the Marine Charter Business Revitalization Act, a legislative proposal that would deliver a decade of targeted tax relief for charter and day-yacht operators. The plan calls for reducing gross receipts taxes to 2.5%, cutting income tax obligations by half, and providing fuel concessions, all designed not only to support existing marine businesses but also to attract new operators and those seeking to relocate to the Territory.
Alongside financial incentives, Bryan emphasized plans to enhance infrastructure critical to the industry’s success, including expanding access to mooring fields, developing sail-up and swim-up beaches, and expanding waterfront dining and recreational amenities, according to a press statement. A portion of the Department of Tourism’s budget, he said, will be specifically dedicated to marketing the Territory’s marine tourism sector — not just charter yachts, but also scuba diving, sportfishing, and other ocean-based experiences.
Bryan also reaffirmed his administration’s focus on workforce development, pointing to the expansion of mooring projects and marine vocational training programs as key steps toward ensuring Virgin Islanders are equipped to participate fully in the growing blue economy.
“These initiatives support our broader Vision 2040 goals,” Bryan said after the meeting Monday. “We are proud to continue working with VIPCA to ensure the Virgin Islands remains the region’s premier destination for yachting and marine adventure.”
The meeting comes as significant changes in the neighboring British Virgin Islands reshape the competitive landscape. Effective June 1, the BVI introduced a new fee structure for foreign-based charter vessels. Under the new regulations, term-charter operators are required to pay $7,500 annually for up to seven visits, with each additional visit priced at $2,100. An unlimited-entry license now costs $24,000 annually. Day-charter operators saw their annual fee increase from $200 to $8,500. Water taxi license fees remain unchanged at $2,500. BVI officials said the changes modernize outdated regulations and are intended to generate new revenue from the sector, which accounts for approximately 60% of the territory’s total visitor arrivals.
The increases have raised concerns within the USVI’s charter community. Several operators have already relocated their fleets to the BVI to avoid the foreign-vessel fees, and VIPCA has warned that more could follow. The association has urged Bryan to implement reciprocal licensing fees for BVI-based vessels operating in USVI waters, as well as stricter enforcement of customs, licensing, and safety regulations.
Bryan has confirmed that no retaliatory measures are currently planned. He has said his administration is prioritizing ongoing negotiations with BVI Premier Natalio Wheatley to develop a coordinated regional framework for vessel licensing and customs, designed to support charter operations across both territories without adding unnecessary administrative burdens.
The BVI’s fee increases mark a significant shift: term-charter operators who previously paid around $400 annually now face minimum costs of $7,500, with additional fees for more frequent entries, while day-charter fees have risen from $200 to $8,500. According to VIPCA, the impact could extend beyond boat operators, affecting marinas, restaurants, shipyards, and other businesses tied to the marine tourism sector.
For now, the V.I. government’s strategy focuses on tax incentives, infrastructure improvements, dedicated marketing, and workforce training, while continuing negotiations with BVI officials. Both governments have said they are working toward balancing revenue needs with the operational realities of marine tourism.
