USVI groups take ‘punishing’ BVI charter fees to Feds

A coalition of USVI marine operators has travelled to Washington, D.C., to draw federal attention to sharply increased charter-vessel fees in the BVI, which they say are triggering a crisis in their charter sector.

The group — organised under Project Fair Waters and led by Crown Bay Marina president Kosei Ohno — met this week with officials from the US Departments of State and Commerce, the US Trade Representative, and the Small Business Administration. Their message: the BVI’s new fees for foreign-based yachts are so steep that they are already driving vessels, revenue and jobs out of the USVI.

Because the BVI is a UK Overseas Territory, the USVI cannot negotiate directly on external affairs — leaving federal intervention as the only route for relief.

Since June 1, foreign-based charter yachts have been required to pay up to $24,000 a year to operate multi-night trips in BVI waters, a massive jump from the former $800 fee. Day-charter fees also leapt from $200 to $8,500. Operators say that when added to customs and port-entry charges, the new structure makes cross-border itineraries financially impossible.

BVI officials say the changes modernise outdated legislation and strengthen oversight of foreign vessels. But USVI operators say the fallout has been immediate: dozens of boats have either re-registered in the BVI or cut BVI routes entirely, draining business from USVI marinas, fuel docks, hotels, restaurants and provisioning companies.

The Professional Charter Association in the USVI estimates the charter sector pumps more than $160 million into that economy each year. Project Fair Waters says about 90 vessels have already shifted their homeport to the BVI, a move they estimate represents nearly $14 million in direct seasonal spending lost — and potentially up to $100 million once indirect effects are counted. Those larger figures have not yet been independently verified, but operators say the early signs are clear: fewer crews stocking up, fewer guests booking hotel rooms, and fewer boats in USVI slips.

“Without swift action, the US Virgin Islands will continue losing American businesses, American jobs, and critical maritime capacity,” Ohno warned.

Both sides held discussions earlier this year, and BVI regulators adjusted parts of the initial proposal after industry pushback. However, foreign-based vessels still face the highest cost tier, a structure USVI operators say undermines a region where boaters treat USVI-BVI waters as a single cruising destination.

Industry leaders now hope the US government will raise the matter diplomatically with the United Kingdom. Whether Washington steps in remains uncertain, but with the charter season underway, USVI operators say every week of inaction means more vessels, and more spending, drifting across the border.