Draft policy aims to balance cruise, lux tourism

With its growing tourism industry at a “crossroads,” the territory must take urgent steps to strike the right balance between the high-end luxury sector and the high-volume cruise-ship sector, according to a long-delayed draft policy the government released last week for public input.

The National Tourism Policy 2026-2036 — which is expected to help guide a more detailed strategy that is also in the works — calls for careful planning, carrying-capacity studies and comprehensive legislative reforms, among many other measures designed to ensure long-term sustainability.

“At its core, the policy seeks to achieve a balanced tourism model, harmonising the benefits of cruise tourism with the exclusivity and high-value potential of luxury and boutique tourism,” states the 127- page policy, which was released on Feb. 4.

For Sharon Flax-Brutus — the interim executive director of the BVI Yachting, Hotel and Tourism Association — the draft policy is a big step in the right direction.

“I’m finally happy that more in-depth attention is being paid to the future of BVI tourism,” Ms. Flax-Brutus told the Beacon Tuesday. “It is a milestone that we’ve gotten to this stage, and I’m excited for future collaborations. Policy should not be made in a vacuum, especially when it affects so many people.”

Regional view

The policy was drafted by the Ministry of Tourism, Culture and Sustainable Development following an extensive series of consultations within the territory and across the region.

It is framed around the Organisation of Eastern Caribbean States’ Common Sustainable Tourism Policy 2025-2035.

“For the Virgin Islands, alignment with this regional agenda ensures that its tourism sector remains competitive within the wider OECS and Caribbean marketplace, while also benefiting from shared initiatives such as joint marketing, harmonised data systems and coordinated approaches to cruise, yachting and aviation development,” the policy states.

While Ms. Flax-Brutus expressed excitement for the future, she also stressed that more work is needed on the policy.

“I understand the ministry is working on a summary, as a document with over 100 pages is a challenge to digest,” she stated. “The indication [is] that it is a draft, so let’s hope that it’s not steamrolled through the legislative process without proper and complete review.”

She added that she believes the draft policy is “too broad to guide strategy formulation” in its current form.

Cruise vs. luxury

In explaining the territory’s tourism “crossroads,” the draft policy acknowledges “competing visions” between the luxury sector — which includes yachts, resorts and villas — and the cruise sector.

But it maintains that both have a place in the VI.

“The challenge for policymakers is not to choose one model over the other, but to achieve a sustainable balance that maximises benefits and mitigates risks,” the policy states.

While cruise tourism brings economic benefit to some local businesses, it also “carries significant pressures on infrastructure, services and natural sites,” according to the policy.

The environmental strain, it adds, can impact visitors seeking a luxury vacation in the territory.

“Luxury and boutique tourism risks being overshadowed if unmanaged congestion and environmental stress diminish the exclusivity and tranquility sought by high-value visitors,” the policy warns.

To achieve the appropriate balance, the policy calls for “careful market segmentation, where visitor flows are better managed, the carrying capacity of sensitive sites is respected, and investment is channelled into differentiated experiences across the islands.”

Island priorities

To that end, the policy suggests setting individual priorities for each island.

“Virgin Gorda will prioritise boutique and heritage-based experiences, supported by robust visitor management systems at flagship sites,” it states. “Anegada will focus on eco- and culinary tourism at controlled volumes, protecting its pristine environment. Jost Van Dyke will continue to host mass-event tourism, but with upgraded infrastructure, environmental safeguards and safety systems.”

As the territory’s “primary gateway,” the policy adds, Tortola will “balance both cruise and boutique markets through urban revitalisation, cultural programming and improved dispersal mechanisms.”

To implement this vision, the policy states, the government would need to “first commission island-specific carrying-capacity and visitor-flow studies” for Tortola and each of the sister islands.

These studies should inform the creation of visitor-management systems for busy sites such as The Baths and White Bay, which should feature “daily quotas, timed entry slots and differentiated service options,” according to the policy.

Such measures, the policy explains, would help “ensure that large numbers of visitors can be accommodated without diminishing the exclusive experiences sought by high-value overnight guests.”

The policy also recommends creating a “Market Segmentation Strategy” to further support the proper balance of cruise and luxury tourism. This strategy would “clarify target visitor profiles, set out tailored marketing approaches, and provide direction on product development and investment priorities,” the policy states.

Objectives and issues

The policy also outlines objectives in areas including the environment, human resources, governance, economic benefit and data gathering (see sidebar below).

Alongside these targets, it defines several challenges: “policy and governance gaps; regulatory and standardisation issues; infrastructure and access constraints; environmental and sustainability threats; workforce and human capital challenges; data and economic planning deficiencies; product and diversification issues;” and “equity and local economic participation.”

An appendix to the draft connects these challenges to specific objectives and priority action items.

For instance, the policy calls for various measures to boost economic trickle-down from the tourism sector: channeling head taxes and park fees into district-based improvements; offering participation guarantees for artisans, food vendors and performers; and extending the territory’s “bed tax” to charter vessels and live-aboard yachts.

To address threats to the marine environment, the policy suggests implementing a coral network, expanding and re-zoning protected marine areas, and introducing “anchoring exclusion zones over sensitive habitats” such as over seagrass and coral.

Noting a “lack of comprehensive visitor data,” the policy advises building “statistical and research capacity” in the tourism ministry and adding reporting requirements for accommodations, marinas and tour operators.

Another challenge — “inconsistent service quality” — could be tackled by creating a “National Customer Service Certification” for licensed businesses and implementing “tourism service standards” across frontline agencies dealing with responsibilities like immigration, customs, ports, the post and health.

The policy also emphasises the need for legislative reform, including passing a comprehensive Tourism Development Act.

As the “principal legal instrument governing the sector,” this law should codify “provisions for destination management, quality assurance, licensing, training and certification, data reporting, environmental compliance and enforcement mechanisms,” according to the policy.

Additionally, it should clarify the relationships between the ministry, the BVI Tourist Board, a new Festival and Events Board, and the Film Commission with an eye toward eliminating overlap and boosting coordination.

The BVITB should be separated from the Film Commission and “restructured to focus exclusively on destination marketing and hosting functions,” the policy states.

As part of that shakeup, it adds, some BVITB staff should be transferred to the ministry as well.

Meanwhile, legislation should be passed to reconstitute the VI Festival and Fairs Committee into the VI Festival and Events Board, according to the policy.

“This new statutory body will be empowered with a permanent executive structure, transparent budgeting processes, and operational autonomy to plan, manage and promote national festivals and events,” the policy states.

It also calls for other laws to be reviewed to ensure consistency with the new tourism framework, including the Physical Planning Act, the Hotel and Restaurant (Taxation) Ordinance, the Environmental and Tourism Improvement Levy, and the Commercial Recreational Vessels Licensing Act.

Consultations

The policy states that its findings are rooted in an “extensive programme of consultations that spanned communities, sectors and stakeholder groups” on Tortola and sister islands from January 2024 through mid-2025.

Participants included public officers, private-sector groups, youths and other members of the general public.

“The process was designed not only to gather ideas but to ensure that tourism policy reflected the lived realities of communities, the needs of industry and the aspirations of the next generation,” the policy states.

Other published documents

Alongside the draft tourism policy, government published reports on the territory’s consultations, on the OECS regional consultations, and on the Tourism Summit held in January 2025 on Peter Island.

“We are delighted to be able to present these important documents to the public, and we anticipate your feedback as we seek to finalise the policy,” TCSD Ministry Permanent Secretary Joseph Smith-Abbott said in a Feb. 4 press release. “The formulation of the policy is grounded on extensive consultations with tourism stakeholders, who helped shape the future of the sector for years to come.”

History of delays

The tourism-planning effort has been long delayed.

In 2011, the National Democratic Party came to power promising to replace an outdated tourism strategy adopted in the mid-1990s.

Until his retirement in 2019, then-premier Dr. Orlando Smith continued to push the idea, which was also included in the Recovery to Development Plan that government published shortly after Hurricane Irma devastated the territory in 2017.

“The first step to revisioning and repositioning the tourism industry for the future is the development of a national tourism strategy in 2018,” the recovery plan stated.

After that, however, multiple efforts to create the strategy stalled. In January 2024, Premier Natalio “Sowande” Wheatley told the House of Assembly that “consultations” had begun to inform a national tourism plan, which he said would be completed by the end of that year. But that didn’t happen.

Tourism summit

In January 2025, the VI hosted the Peter Island tourism summit, where Mr. Wheatley said a policy set for completion in June 2025 would inform the creation of a plan he said would be completed around October 2025. That didn’t happen either, but Mr. Wheatley provided another update in the HOA last month.

Government, he said, was working on procuring a consultant to draft the strategy after issuing a Nov. 6 request for proposals with a Dec. 22 deadline.

“A robust response has been received to the call for proposals for the consultancy to develop the National Tourism Strategy, with submissions currently under assessment in accordance with established procurement processes to ensure the effective delivery of the plan,” Mr. Wheatley said on Jan. 15.

The chosen consultant, he added, will work closely with the government, industry stakeholders and communities to “produce a practical and implementable strategy that aligns with the national budget cycle, guides public and private investment decisions, and establishes clear mechanisms for monitoring performance and outcomes.”

He did not provide a target date for the completion or release of the strategy.