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Long Bay & airport development

- First story on looming job cuts at the Long Bay Beach Resort that point to the critical need for much improved Virgin Islands air and seaport infrastructure
Dickson Igwe. Photo: Provided
By Dickson Igwe

An online story of July 25, 2013, described how a cabinet minister in the Virgin Islands stated that, "the government is now trying to find a cheaper way of funding the proposed expansion of the Terrence B. Lettsome International Airport. This was, "after various bids for development ranged from between 377-415 million US dollars."

Yes, this is a huge sum of money, especially for a country with a less than robust economy. This is a Virgin Islands facing challenges to its leading industry, financial services, which earns her government over 60% in revenues. And by a USA and various allies: powers that are growing increasingly intolerant of their own wealthy and their ability to squirrel away billions of dollars in tax havens, avoiding the higher taxes paid by their own Joe Averages. And that is why there is no other option for this country, but to grow the tourism economy. Overtly depending on financial services for her economic well being is unwise in today’s hostile environment. 

Now, for a population of 30,000, 377-415 million would amount to between 12,500 USD to 14, 000 USD per resident of theses Lesser Antilles. At 500 million USD, which can be expected if common sense prevails - knowing how costs rise after contracts have been signed: the hospital model is one example – the developed airport would amount to just under 17,000 USD per Virgin Islands resident.

In any event, not going ahead with developing a state of the art global air facility is still not an option. This is something the Virgin Islands opposition appears to accept, not just the incumbents, if one reads between the lines the assertions made by a leading opposition figure. A global type airport is critical to the future of tourism and the Virgin Islands economy. It is a strategic national asset that will open up the country to the outside world in ways not yet even imagined, plugging the Virgin Islands directly into the global economy.

In any event, this Observer has always asserted that the airport project should be fully undertaken by global investors and the Virgin Islands private sector, with government acting as facilitator. This would be a consortium that would own and manage the project, but with the government protecting and ensuring access to the facility for residents and local interests.  

This is the model for many of the world’s most successful airports: private enterprise and government oversight. And again, this project should go all the way, lengthening the runway further to cater for the largest jets, from all corners of the planet. One further option is offering investors and developers the further option of combining the airport with a resort development. This has been suggested for Anegada by certain commentators in the past. Whether Anegadians will accept that proposition is another matter.

Now, the negative economic effects of below average air and seaport access into the Virgin Islands has been dominating the Op Ed media for over 18 months. It has also been a key subject on national forums. The less than optimum state of ferry services and airlift is a top subject among the chattering classes.

It is a good thing that citizens and residents are thoughtful, and aware of this matter. Residents of this territory instinctively understand the crucial importance of air and sea transportation to the VI national economy. The Virgin Islands is an archipelago sitting in a corner of a great ocean.  Access into and out of the territory by air and by sea are the only options for travel and commerce, unlike most continental countries.

And it is coming to be commonly accepted that limited access into the country affects the national economy negatively, especially Virgin Islands tourism. Why? Because post the 2007-2009 financial recession, debt laden, and less affluent travelers, will no longer accept having to pay hundreds of extra dollars in connecting costs to a destination, no matter how beautiful: add delays that shorten their vacation experience. As a consequence, no tourism destination can take things for granted, in assuming that travelers and guests will visit- come what may.

Another fact is this one: for these paradise islands, when tourism suffers, almost everyone suffers. Tourism remains the country’s largest employer. It is an industry that pays the government a major percentage of its revenues. This is cash that is used to pay for critical national services: education, health and social welfare, and physical development. Tourism puts bread on the Virgin Islander’s and resident’s table, in the form of wages and income. Tourism puts millions of dollars directly into the local economy annually.

This is revenue that provides various spin offs. The increase in the quantity, availability, and circulation of money in the territory that tourism generates, produces economic growth. Yes. The economic news in the Virgin Islands, especially on the tourism front has not been very encouraging. And this is despite some positive signals in recent months, that business has been on an upward curve.

Now, a headline in a national newspaper of July, 11, 2013, was clearly disconcerting. This was a story titled, ‘’ JOB CUTS LOOM AS RESORT RESTRUCTURES.’’ The news piece told of the manager of the Long Bay Beach Resort on the West End of Tortola speaking to news reporters. The manager not only highlighted the problems of limited access into the Virgin Islands for travelers, he further stated that there was no indication in the marketplace that things were going to improve to bring tourists to Tortola.  Apparently the resort is downsizing with up to 50 jobs under threat.

Bear in mind that this resort manager simply echoes statements that have been made by a number of owners and managers in the hotel, resort, and marina business in past months. There has been concern in recent years that poor access into the territory is causing the tourism industry to stagnate, even decline.

Guests, finding it difficult to access the British Virgins, where they could be spending days lounging in hotels, resorts, and villas, or on a catamaran; visiting local bars and restaurants, spending money in the territory; these visitors instead, may prefer to remain, and spend their cash at a preceding port of call: whether it is St. Thomas, St. Martin, Antigua, or Puerto Rico. These destinations offer similar attractions, albeit, they may not possess the quiet charm of this territory. The hard reality is that these are nearby destinations that tourists can access much more readily, easily, and directly, from global cities, conurbations, and population centers. They compete with the BVI directly. In local parlance, they take ‘’bread out of the mouths of Virgin Islands residents.’’    

OK, Long Bay is a spectacular beach. It is very pristine, and popular with walkers. These are locals and visitors who trudge along the white sands from one end of the beach to the other. The dynamic of the water in the bay sculpts the beach continually. It is not unusual for one to visit the beach in the morning to find it flat, and then four hours later, upon return, discovering that part of the beach has turned into a mini cliff of wet sands after a pummeling by strong waves; or that most of the beach has disappeared below surge. But despite the ever changing form of the beach, it is always a pleasure to amble over its thousands of yards of sands.

And those white sands and blue seas often reflect spectra of brilliant hues: these are changing colors ranging from yellow to gold to orange, even purple and pink, according to the positioning and trajectory of a sun that appears to be anything but static. The earth rotates around the sun in orbit; not vice versa. This miracle of the cosmos turns Long Bay into a veritable clock of nature, changing its face as the day proceeds from dawn to dusk.

The blue skies above Long Bay are equally majestic. They drop on a spectacular day from the heavens, to produce a mural of Jost Van Dyke and its surrounds that is simply stunning. And that combination of hot sun and white sand is a wonderful cocktail. Why? Because, Long Bay is always cooled by strong zephyrs originating from exquisite and parallel seas: walking bare foot on the sands is therefore possible even at hottest midday. This is owing to the cooling effect of these ever present breezes that make the beach a veritable pleasure all year long, especially during the hottest months.

And even at night, under a full moon, many walkers can be viewed gracing Long Bay for an excellent exercise routine. One New Yorker this conversationalist struck up a conversation with while ambling on the sands himself, described the beach as a veritable treadmill of sand. Long Bay is an exotic retreat where resort guests can simply relax on a lounge chair all day, without boredom setting in, all the while observing nature’s little secrets at their majestic best.

On a full moon night, Long Bay is a taste of heaven. And even when there is no moon, the homes on the hills proffer electric lighting that illuminates the bordering sea, producing an illumination that enables walkers to trudge on the massive, but soft cushion of sand, well after sunset, and into the night.

To be continued...

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6 Responses to “Long Bay & airport development”

  • xxxxxxxx (27/07/2013, 18:06) Like (0) Dislike (0) Reply
    No one in their right mind would invest money in a run down facility
  • nanny cay (27/07/2013, 23:18) Like (0) Dislike (0) Reply
    all i will say is the BVi is going to hell in a hand basket
  • zoe (28/07/2013, 02:53) Like (0) Dislike (0) Reply
    Mr. Igwe in this article is proposing global investors not sure why!
  • E. Leonard (28/07/2013, 19:14) Like (1) Dislike (0) Reply
    Tourism is a vital part of the VI’s economy; it is 1/2 of the economic twin pillars with financial service being the other half. And its (tourism)its growth, development, success and sustainability is a function of how well its marketing, attractions, environment, accommodations, entertainment, sales, infrastructure, public safety, utilities, social services infrastructure, friendly service, human capital investment, multi-modal transportation…..etc are coordinated, linked and intertwined.

    Moreover, tourism cannot flourish by treating its individual components as discrete components; a system approach is critical to its success. Currently, local tourism product has hit some turbulence.

    Tourism is highly vulnerable to external shocks. And the VI is starting to feel the full force of the stubborn, stalled world-wide economic downturn. The US, Europe and other markets are seeing some slow signs economic growth. Nonetheless, the discretionary income among potential tourists are still down, impacting the local tourism industry. This impact is reflected in lower tourist numbers, which will impact income, wages and government revenue stream. For government to function effectively, it needs revenue to deliver services either through in-house forces or by contract. In these tough economic times where private sector investment is slowed government has to weigh in to stimulate the economy. Smart government expenditure can a multiplier effect upon the economy.

    Further, some hotels are feeling the impact of the economic slow down,i.e, Long Bay Hotel.Air and sea transportation is being tagged about as a contributing cause for the decreasing numbers. However, transportation is probably one contributing factor among many for the declining numbers.
    Multi-modal transportation is vital to the the tourism industry. But the VI must be fiscally responsible,smart and balanced on its approach to meeting its transportation needs: air and marine.

    The ferry service between the VI-USVI has hit some turbulence and heavy seas. Some of the causes for the rough, ground seas are 1)poor scheduling, 2)ineffective preventative and demand maintenance and repair, 3) too many boats and too few passengers, 4)questionable management….etc. The solutions to improving the quality and level of ferry service have been listed by numerous other bloggers so I will not repeat them here. Nonetheless, I will say that urgent actions is needed.

    Now let’s touch on the extension of the Terrance B. Lettsome (TBL) Airport. Invitation for bids (IFB) to extend TBL were issued several months ago; the bids received ranged from $277-$415M. These are significant quotes that per the Deputy Premier were above the government estimate (GE). Though it would have been worthwhile to know the GE, it’s understandable why the government need to hold the GE close to its chest at this point. So where does the VI go from here? Does the VI need and can afford an airport of the size proposed to meet its transportation needs? If it build it, will they come? Do two groups of islands just a few miles apart need two international airports? Are there other options to meet the VI’s transportation needs?

    Moreover, the airline business is a capital- intensive and competitive business with razor-thin profit margin and high operating cost. As such, airlines commit to routes based on their being able to consistently cover available seat miles or meeting minimal passenger load factors. And failing to meet passenger load factor requirements, airlines are quick to pull the cord on a route; they will not start or continue on an unprofitable routes. Thus, there is no guarantee that if the VI invested hundreds of million on a runaway/airport expansion that airlines will come. AE went from up to 10+ flights per day down to probably 3 between EIS and SJU before abandoning the route(true they pull out from the Caribbean). What reason(s) did they give for leaving? So what can the VI do to meet its transportation needs?

    It can invest in modernizing its marine port facilities, along with improving the level and quality of the ferry service between the VI-USVI. An improved service can synchronize its schedule with St. Thomas airport operations to accommodate tourists and locals transiting Cyril King. This scheduling can be similar to what occurs at Juliana Airport in St. Maarten; Juliana Airport services Anguilla, St. Barts and other islands. Anguilla synchronizes its ferry service with Juliana Airport operations. Further, TBL can be improved to facilitate smaller aircrafts. The competitive edge that VI may give up due to lack of direct flights can be made up by better marketing, attractions, environment, entertainment, accommodations, friendly service..etc. The VI needs to wow its guests with a highly memorable, quality experience that they will go back home and tell their family members, friends, co-workers…etc about.
  • pat (29/07/2013, 12:24) Like (0) Dislike (0) Reply
    memorable experiences-- unfortunately, that does NOT include nine vendor structures as a mini-shopping mall at Smugglers Cove, one of the purest and last family beaches on island. It is part of a bigger recreational area where people hike, ride bikes, walk dogs to get a sense of the environment and natural beauty looking at JVD. People do NOt go to the beach to go shopping and it is an attempt to spread out the cruise ship visitors who are there for just hours, most never to return. Who cares? The vendors are wagging the dog. There are no studies that there is a need for them or that the vendors themselves make any money for the government to lay out more money to subsidize squatters. Government needs to make choices about where to promote tourism without impacting its own residents and people. People do not come to be entertained but for an authentic experience. So yes, fix the ferries, which is cheaper than the airport. Start small and see where it goes.
  • long road (29/07/2013, 13:01) Like (0) Dislike (0) Reply
    some of these comments are like a book boss too long!


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