Summary
New Passenger Fee for Royal Caribbean Group Ships
The U.S. Virgin Islands plans to introduce a new per-passenger fee for Royal Caribbean Group ships docking in St. Thomas or St. Croix. This initiative aims to fund vital port improvements.
Starting January 1, 2024, each passenger aboard Royal Caribbean Group vessels will incur a $5 Capital Cost Recovery Charge as stated by the Virgin Islands Port Authority. This fee will apply specifically to ships associated with Royal Caribbean Group, which encompasses renowned cruise lines such as Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, docking at either the Austin “Babe” Monsanto Marine Terminal in St. Thomas or the Ann E. Abramson Marine Facility in St. Croix.
Benefits of the Fee for U.S. Virgin Islands
Carlton Dowe, the executive director of the Virgin Islands Port Authority, remarked, “We look forward to continuing our strong partnership with Royal Caribbean Group as we move forward in the development of these exciting projects that will benefit the territory.” He emphasized that actions are needed promptly, stating, “The time for progress is now.”
This fee is expected to facilitate significant improvements in port infrastructure, including the development of a third cruise ship pier in Crown Bay on St. Thomas. It will also help cover preliminary development costs necessary for accommodating the larger Freedom-class cruise ships in St. Croix in the future.
Wider Impacts on Cruise Industry
The U.S. Virgin Islands stands as a favored cruise destination within the Caribbean, boasting stunning beaches, a rich culinary landscape, and a significant historical backdrop. However, it is not alone in imposing fees on visiting vessels. Next year, the Bahamas is set to implement a new passenger tax increase. This will notably impact travelers visiting a cruise ship’s private island without also docking at another port in the Bahamas.
Moreover, the Bahamas is set to enforce a $5 tourism environmental tax and a $2 tourism enhancement tax for every cruise passenger. These changes indicate a broader trend within the cruise industry, where fees related to environmental and tourism enhancement are becoming increasingly commonplace.
