US VIRGIN ISLANDS: Disagree On Impact Of Cuba On V.I. Tourism

The thawing of relations between the United States and Cuba was the topic Monday at a hearing of the Senate's Economic Development, Agriculture and Planning Committee, and opinions varied about what should or could be done to protect the territory's tourism and revenue.

"There is considerable concern among Caribbean tourism officials that the re-opening of Cuba will have a disruptive impact on our economies," said Bernadette V.M. Melendez, the director of the Bureau of Economic Research. "The Caribbean Hotel and Tourism Association said that the biggest and most disruptive pebble to be dropped into the Caribbean pool in 50 years will arrive with the opening of travel to Cuba for United States citizens," she said.

However, Sen. Tregenza Roach said Cuba isn't the issue; the issue might be that the region has become too dependent on tourist dollars.

"Maybe Cuba gives us the opportunity to think about, are we too dependent on tourism? Are we too dependent on tourism because we believe we have nothing else? Those are questions that I think we need to ask," he said.

Testifiers representing tourism, economic and government agencies suggested that the Virgin Islands needs to prepare for increased competition for travelers as Cuba changes, but the territory also may benefit from the opening of another Caribbean destination.

"We must plan for it and mold it to our benefit," said Sen. Janette Millin Young, the chairwoman of the committee. She said she hoped the hearing would begin a much-needed dialogue on the impact of normalized relations between the United States and Cuba.

"Now is the time to assess our position, to plan, and then to act," she said.

Tourism Commissioner Beverly Nicholson-Doty said, "There is a curiosity about Cuba, having been off-limits for half a century, and it should be anticipated that there will be some initial impact on visitor arrivals."

What benefits the territory, she said, are things that won't change, including that no passport is required to come to the territory from other parts of the United States.

"The fact that English is our primary language means that there are no communications barriers. Americans can be comfortable exploring our islands," Nicholson-Doty said. "Our most serious challenge may be our own arrogance and complacency," she said.

The territory needs to make changes to keep attracting tourists and to keep them returning, Nicholson-Doty said.

She and others said the islands need infrastructure improvements at the airports and seaports; newer hotels are needed, and safety and security remains a key factor for visitor travel.

"If a place isn't considered safe to live, it will certainly raise concerns as a destination," Nicholson-Doty said.

She also said people here must want to welcome visitors.

Sen. Nereida Rivera-O'Reilly took a different tack, saying the Virgin Islands "really are a speck in comparison to the size of Cuba and all that it has to offer, and

"Cuba didn't just open its doors to tourists," Rivera-O'Reilly said. "It has been accommodating tourists from other countries for a long time. So they're not new at this. At the end of the day, if we had stayed on top of our game, we wouldn't even be having this conversation."

Shelly Moorhead, the special advisor to the governor for external affairs, said: "The office of the governor sees this as an opportunity to better our relationship with the Cuban government and to strengthen the socio-economic, cultural and historical ties between our two peoples, and to also examine the potential for trade relations."

But economic stress can come from areas other than tourism, he said.

"One area of concern to me, with the opening of the Cuban markets and the relatively low cost of labor there, is the impact this will have upon the territory's rum industry," he said. "Multinational rum companies, spirit manufacturers, distilleries and breweries in the region and around the world will be looking for partnerships in Cuba, and this can potentially upset the industry and affect markets."