The gradual thawing of long-frozen corporate incentive budgets is finally having an impact on a traditionally popular destination, the United States Virgin Islands. Lodging occupancies in first-class resorts is reportedly in the mid 80-percent range, even in the summer months, and the gradual increase in visitors is accelerating.
With a greater willingness of corporate decision-makers to consider the Caribbean in general, and the USVI in particular, hotel negotiations are getting tougher and lead times are getting longer.
"The good news is that the economy is coming back," said Lisa Hamilton, director of marketing for Frenchman's Reef and Morning Star Marriott Beach Resort, on St. Thomas. "Just within the last eight to 12 months, we're seeing courage coming back to the corporate market, and they're looking longer term. We have inquires into 2008."
And indeed, travel to the three islands comprising the USVI — St. Thomas, St. John and St. Croix — is on the rise. According to the U.S. Bureau of Economic Research, the number of visitors in 2003 was 2.4 percent higher than in 2002, overnight hotel accommodations were up 6.3 percent, and air-visitor arrivals increased by 3.5 percent.
And the trend is accelerating. From January through May this year, the number of visitors was running 8.5 percent ahead of the same period in 2003, supporting Gov. Charles Turnbull's assertions during his recent State of the Territory address that "there were signs the economy is beginning to rebound and that...our tourism industry is poised for a record year."
"The USVI is a U.S. territory, they use American currency, and it's considered safe," said Kerry Visser, a buyer with ITA Group, an incentive company based in West Des Moines, Iowa. Visser has taken several corporate groups to the USVI, including a large insurance group and a soft-drink company to St. Thomas.
While Visser is advising clients to book longer-term, she also tells them the USVI remains a good deal.
"Clients today want to go to islands with a tax writeoff," she said, referring to both the USVI and Puerto Rico. "But there's more. When we cost our programs for land only, the USVI is less expensive than even our domestic options, excluding air. The hotel rates are pretty standard, but F&B and activities are less. It's a good value."