Tourism Has Not Studied Potential Passenger Losses From Proposed Airport Fee Increases

The Department of Tourism has not conducted an economic analysis of whether proposed passenger-fee increases under the public-private partnership to redevelop the territory’s airports could raise ticket prices and reduce travel to the Virgin Islands, with officials saying the final fee levels remain unsettled as negotiations continue. The absence of a study drew concern from several lawmakers during the department’s budget hearing Monday, as senators urged Tourism to examine the potential effect on passenger demand before an agreement is finalized. Sen. Kurt Vialet asked whether the department had undertaken a feasibility study or “any type of economic analysis as to whether or not it’s going to result in a decrease [in] passengers or whether or not there’s not going to be any change.” Tourism Commissioner Jennifer Matarangas-King said conducting such a review remains difficult because the proposed fees have not been finalized. She described a feasibility study as a “challenge for ...