ROADTOWN Tortola BVI, June 29th, 2012 -- Madam Speaker, stimulating and fixing the economy in an effort to enhance the quality of life of the people of these Virgin Islands continues to be the number one priority of my Government. There is no matter that is of greater urgency. Madam Speaker, this is the reality that continues to be brought home to me and my colleagues everyday when we meet with citizens, employees, employers and business people from all over this Territory, representing small and large businesses, local and foreign alike.
Madam Speaker, at the sitting of this Honourable House on December 19th 2011, I made a statement on the appointment of a new Board of Directors for the BVI Tourist Board. Subsequently, on January 12th 2012, I spoke at a Tourism Stakeholders Meeting at the Eileene L. Parsons Auditorium at the H Lavity Stoutt Community College. Madam Speaker today I want to give this Honourable House an update on some of the principal areas of focus of the new Board.
Honourable Members would appreciate that there are many challenges facing tourism in the Territory. The BVI Tourist Board in conjunction with the Premier’s Office is working assiduously to address these challenges which range from; air access, marketing the destination in what is a fiercely competitive global marketplace, getting the Board’s fiscal house in order, assisting the small locally owned properties with their unique challenges and planning for the long-term global branding of the Territory with a focus on tourism, financial services and the promotion of Ship Registration in the Territory.
Madam Speaker, the principal challenge currently facing tourism in the Territory is that of air access and getting visitors to the Territory in an efficient and cost effective manner. Needless to say that without visitors there is no tourism. While as a government we have clearly articulated how we intend to address this matter in the long-term by expanding the TB Lettsome International Airport, the BVI Tourist Board’s brief has been to look at interim measures which must be taken to ensure that visitors can get to the Territory in a cost effective and efficient manner starting this winter.
Madam Speaker, in this regard the Board and the Premier’s Office have engaged a strategy which focuses on getting visitors to the BVI via San Juan, Puerto Rico and the Cyril E. King International Airport in St. Thomas and for our European visitors, the VC Bird International Airport in Antigua. The Board via its Air Lift Committee and where necessary myself as Premier, the Ministers of Communication and Works and Natural Resources and Labour have met at the highest levels with all of the principal carriers serving or proposing to serve the Territory for the upcoming winter season and beyond.
The objective of these meetings have been to ensure that should American Eagle discontinue its service to the Territory during the next season, that the destination will have in place alternate options for meeting its seat capacity into the Territory from San Juan. We are also working to improve the air capacity from San Juan and St. Thomas into TB Lettsome International and Virgin Gorda. These discussions are proceeding with a view to reaching a conclusion in a timely manner for next winter. Just yesterday we were able to confirm that our discussions with Seaborne Airlines have been fruitful with their announcement that they will have 7 daily flights from San Juan to Tortola by March 2013. These will include their three (3) new Saab 340B -30 seater planes.
Madam Speaker as it relates to air access via the Cyril E. King International Airport on St. Thomas, the objective is to better coordinate the various ferry schedules with the arrival and departure schedules of the airlines servicing the Cyril E. King Airport. Additionally, we are also keen on improving the visitor reception at Cyril E. King for BVI bound visitors. In this regard, we have opened discussions with our tourism counterparts in the USVI with a view to addressing this matter. We are also in discussion with the various ferry operators about establishing an online booking and reservation capability for visitors. Once these arrangements have been established, the BVI Tourist Board will immediately engage in a vigorous promotional campaign to drive BVI bound traffic via St. Thomas.
Madam Speaker on our side of the channel, the Ministry of Communications and Works in conjunction with the BVI Ports Authority have commenced a programme of changes to the ferry terminal in Road Town and West End directed at better accommodating our visitors and nationals traveling between the BVI and the USVI. Discussions are also taking place with the departments of Customs and Immigration to expedite the traffic at these ports of entry. A number of improvements have already been made and additional work will take place in anticipation of the winter season traffic.
Madam Speaker, the second area of high priority for the BVI Tourist Board and one which is receiving commensurate attention is that of marketing the destination in what is a fiercely competitive global marketplace. Since taking office last November, my Government has been diligently working toward revitalising the tourism sector. We recognised that tourism has lost significant market share in our primary markets in the United States and in the United Kingdom. Over the last several years the industry was essentially in free fall and hence is in need of a major strategic overhaul at all levels.
Madam Speaker, the re-launch of our London Office a month ago is a perfect example of what I mean by a strategic overhaul. I am therefore pleased to report to this Honourable House that our marketing effort in the United Kingdom is fully energised and engaged. We have already seen an uptick in the number of local properties who have already been to London working with our office to sell their product with more planned for the Fall and beyond.
Madam Speaker, the Board has made a policy decision that effective this year its annual promotional calendar will run September 1st to August 31. Starting in September the Board will embark on an aggressive marketing strategy to reposition and increase the destination share of voice in our primary markets. The strategy will focus on our strengths in the areas of:
1. Land based tourism - resorts, villas, small properties;
2. Water based and nautical tourism - sailing and diving;
3. Growing the super and mega yacht sector - yacht registration and increased visitations. Madam Speaker during my recent trip to London I was able to engage in a number of high level meetings to get a better appreciation as to what is required for the BVI to secure a larger share of the yacht registration business.
4. Expanding the destination’s calendar of annual events designed to drive visitors to the destination, and
5. Developing the Territory as a location for the lucrative destination wedding and honeymoon market. The Board will be establishing a dedicated unit and staff with a mandate to increase the destination’s share of this market. This unit will also work in tandem with the National Business Bureau to expose service providers and entrepreneurs to the many services and standards this sector will demand.
This strategy will be rolled out across all markets in North America and Europe and will be a combination of promotions, advertising, public relations, social media, trade promotions and consumer events. A critical component of the programme will be the retention of Public Relations firms in the United States and in the
United Kingdom to raise the profile and the level of buzz about the destination in these key markets.
Madam Speaker, as part of the Fall programme for the North American market, the Board will restructure its sales team in the United States. We will utilise energetic and talented Virgin Islanders to sell the destination. Additionally, the Board will begin to lay the groundwork to forge new markets with a view to establishing a formal presence in Canada and in South America. It is anticipated that these programmes will be fully operational early in fiscal year 2013.
The Board is currently finalizing its three year budget submission - 2013 - 2015 which will include a detailed marketing programme covering all existing and new markets.
Madam Speaker, another of the most pressing and critical challenges facing the new Board of Directors of the BVI Tourist Board is that of getting its fiscal house in order. This matter is one of the key priorities I raised with the Chairman on his appointment. Members would all recall the very spirited discussions we had on the matter of the Board’s finances during the last Standing Finance Committee meeting reviewing the 2012 appropriations. I am therefore pleased to report to this Honourable House that the Board has taken a number of decisions which have resulted considerable progress being made to arrest this long standing situation. These include:
1. The establishment of an annual cash flow/disbursement schedule in conjunction with the Ministry of Finance which has resulted in the Board becoming current with its vendors and creditors locally and overseas. This is particularly important in rebuilding the Board’s credibility in the marketplace.
2. The implementation of new policies to govern the use of cellular phones, travel and the use of credit cards. These policies and others have led to a much greater sense of accountability at the Board.
3. The implementation of a process of regular financial reporting to the Board of Directors by the Financial Comptroller.
4. The appointment a dedicated team of two former Financial Comptrollers to complete the preparatory work required so that the Auditor General can complete the Board’s Audits for 1998 to 2011 this year. Work commenced on this project on May 8, 2012 and the Board has already received it first progress report.
5. The Board has been in communication with the Auditor General on an agreed way forward to complete the Board’s outstanding Audits.
6. The Board has taken a decision to seek the assistance of the Ministry of Finance to re-establish a proper Record Management System at the Board.
Madam Speaker, on the matter of assisting the small locally owned properties, on April 10th 2012, I addressed these properties and outlined a number of initiatives aimed at addressing their unique challenges. I am pleased to report to this Honourable House that BVI Tourist Board is working to implement these initiatives directed at assisting these properties to increase their market share. These include:
1. The assignment of a dedicated member of the Board’s staff to assist these properties and manage the various programmes organised by the Board for these small properties.
2. The development of a booking engine, assisting these properties to enhance their online marketing and expand their business.
3. The Board has conducted an information session directed at assisting these properties on how to effectively access the Hotel Aid Ordinance to upgrade their plant. As a result we have seen an increase in applications.
4. In the area of marketing, the Board is working to develop a dedicated marketing programme for these properties and to develop relationships with specific tour operators in the Unites States and United Kingdom.
5. One of the critical initiatives that the Ministry and the Board are working on, is to identify is a source of funding to help the small properties to upgrade and enhance their physical plant on a regular basis. This is a matter that will be explored with the National Bank of the Virgin Islands.
Finally Madam Speaker, in my Budget Address I spoke about the Government’s decision to embark on a rebranding exercise as part of new marketing strategy that links the tourism, financial services and the Shipping Registry. Madam Speaker, we know that these three sectors are not only closely linked, but in many cases target the same clientele. I am pleased to inform this Honourable House that work will commence shortly to develop this new branding. The timeline calls for completion of this work in time so that the new branding can be included in the Fall advertising and promotion programme for tourism, financial services and ship registration.
The intention is to undertake an extensive trade mission to the major markets globally over the next six months to sell the Territory’s tourism, financial services and ship registration services products. The centre piece of that mission will be the establishment of a formal BVI presence in the Asia Pacific Rim with a likely location in Hong Kong.
Madam Speaker, we live and compete in a fiercely competitive global market and if the BVI is to grow its market share, we must think outside of the box and change the way we do business. Our very survival depends on the future of all of our recent graduates who depend on this Territory stepping up to the plate well prepared.
Madam Speaker, I thank you.
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