Monday, January 01, 2007Branding the British Virgin Islands

Jane BakewellRegaining Our Edge in the Tourism Industry

For British Virgin Islanders or residents who have lived in the B.V.I. for at least ten years, there is no doubt that change is in the air. A drive through Road Town, the territory’s capital, on most weekdays often means exercising patience, notwithstanding the recent improvements aimed at the flow of traffic and the beautification. Construction used to mean a small traditional block house with plans for a possible next floor, whereas now, the square footage of that same house would equate to a mere ‘great room’ of a mega-house on the hill commanding sweeping ocean views. Reclamation projects have added a beach here, a potential boardwalk there, land for office and retail buildings, a marina, and a heliport for health emergency evacuations.

The present government sailed into office in 2003 on a mandate dedicated to tourism development and a promise of integrity and transparency, coined with the euphemism “government in the sunshine.” The Chief Minister’s role is also that of Minister of Tourism and no other preceding minister has taken such a proactive approach to tourism as the territory’s current leader, Dr. the Honourable D. Orlando Smith. The B.V.I. has unfurled her sails to a mighty gust of change and looking at the islands’ newly designed promotional burgees flapping in the winds, this could be a colourful and exciting time - and a challenging one as well.

Russell Harrigan speaking in his role as Chairman of the BVI Tourist Board feels that this change is vital for the territory’s growth and development. “Tourism is a dynamic and competitive industry that fuels our economy. In this business you either keep up or get out. The B.V.I. has lost its competitive edge and we need to regain that.” Certainly that idea is reflected in the hustle and bustle of changes that have occurred over the last few years in the territory’s high-end resorts.

Both Little Dix Bay Resort on Virgin Gorda and Peter Island Resort have recently upgraded room facilities, added other amenities and luxury spas in spectacularly landscaped environments. And the new lessor of Biras Creek Resort has similar plans for that Virgin Gorda property. Similarly, several of the smaller locally owned properties have undergone extensive renovation and upgrading of their facilities including Treasure Isle Hotel and Maria’s By the Sea.

With regards to delivery of quality service, the government has spent in excess of $1 million over the last three years to institute the Tourism Industry Standards (TISS) training programme for all industry personnel in the public and private sectors. This programme was implemented by the well known Freeman Group out of Texas in the United States. The Chief Minister also led the way in amending the Hotel Aid Ordinance, affording access to the small locally owned properties with as few as three rooms or villas. He has also encouraged the formation of an association of locally owned properties and provided funding for a marketing programme for these properties in North America and Europe under the global branding “Jewels of the BVI.”

It’s one thing however, to add a little “makeup” to what is characterized in the industry as a “market-worn” destination, but quite another to meet the social, economic and infrastructure challenges of several new major developments coming on line simultaneously. Currently the B.V.I. government has signed development agreements with three new major players in the upscale tourism industry: Mainsail Development project on Scrub Island, Quorum Development project on Beef Island, which includes an 18- hole Jack Nicklaus designed golf course and Villa Paradiso, a low key, high end villa development on Smugglers Cove.

With a tourism development growth spurt that is unparalleled in its history, the government of the B.V.I. is facing the challenge of balancing the assets the territory is blessed with in terms of natural beauty, with a managed and sustainable growth.

From its early days as an agricultural and fishing community, the B.V.I. has emerged in the 21st century as a major player in both the financial and tourism sectors - however their growth has not been parallel. The offshore financial industry success has changed the types of cars we see on the roads, the restaurants that we eat in, the rents that islanders are able to charge for their properties. The corresponding need for modernization of telecommunications and the subsequent liberalizing of this industry has opened up the market stirring up competition for the best services. The tourism product comparatively, has lagged behind. It was 40 years ago, when Rockefeller’s investment in Little Dix Resort on Virgin Gorda first brought international recognition and put the B.V.I. on the map for world travelers. However, the BVI has not seen any major tourism developments in fifteen years.

“Two legs are better than one,” emphasizes, tourism promoter, Russell Harrigan “and for years we got comfortable with the financial sector bringing in the revenue and ignored our tourism product.” “Look around now and see what is happening in tourism development in the Caribbean. We lag far behind as a high end destination with the type of upscale facilities the more affluent tourist is looking for these days.” A few “Google” mouse research clicks through upscale travel sites on the internet will confirm this fact. The Turks & Caicos is a case in point. This 40-island archipelago in the British West Indies was virtually unknown as a popular destination site outside the all -inclusive Club Med on the island of Providenciales, which opened in 1984. The 90’s took a different turn with the opening of the elegant 21-suite Grace Bay Club in 1993 followed by more than 20 resorts opening in a 10-year span. Drawing the most recent industry buzz is Parrot Cay, a private island resort development where a one-bedroom villa can set your ‘gold card’ back a mere $2000 a night.

The eastern-most island of Barbados has always been the Caribbean playground for the English and European elite. This luxury destination intent on staying competitive in the ever-changing market has recently begun branding itself as a “world class sporting events” destination. Minister of Tourism, Noel Lynch sees the wisdom in this particular style of branding. “Think of how Monte- Carlo is famous for the Grand Prix,” he was recently quoted as saying. Efforts to provide a world class golf course and optimum cricket court with upscale facilities have paid off with Barbados winning the rights to host both the 2006 World Golf Championships and 2007 Cricket World Cup finals.

The tiny British West Indies territory of Anguilla, on the other hand, has reacted to its dramatic rise in upscale tourism development over the last few years as a “mixed” blessing. Luxury tourism has meant economic growth; however the government has recently put a two-year freeze on further development plans concerned that the economic success can also threaten to overwhelm. In an anguished decision to see economic growth continue without destroying the “goose that laid the golden egg,” the chief minister decided to hold off on the further development saying, “We must be careful that the increased demand for a bit of peace and tranquility on Anguilla, does not lead to over development, a huge mass of visitors, congestion, overcrowding, collapse of our social and physical infrastructure and eventual economic decline.”

So the question regarding the impact of the rise in upscale tourism development in the B.V.I. is not can we make it go away, but how can we successfully manage it? Chairman of the BVI Tourist Board, Russell Harrigan says BVIslanders don’t want to go back to their former way of life, people are progressing economically and the tourism dollar is what is responsible for significant business opportunities for BVI Islanders, improving our roads, our healthcare, and our schools and providing employment, he states. “No developer in his right mind wants to come to the BVI and destroy the environment nor would any right thinking government allow this,” he says. “The natural beauty is the product we are selling.”

One of the Chief Minister’s recent initiatives was to put a new position in place with a liaison officer working out of the Chief Minister’s Office to address the needs of the investment developer, local or foreign, along with the existing regulations of the various government departments so that development projects do not get stalled in red tape. Under the 2004 New Planning Act, the chief minister was given a clear set of responsibilities with regards to proposed development plans and in turn he and his ministers approve a development agreement with a specific time line. Liaison officer, Keith Dawson makes sure that both parties adhere to their end of the agreement. “Because these projects are approved in phases the community has a chance to express their views in our community meetings,” he explained. One example was the recent set of meetings surrounding the Beef Island project, where many of the publics’ concerns were addressed and changes made in the second presentation by the development company.

How will this economic boom in upscale tourism translate into more opportunities for young BVI entrepreneurs? A burning social question surrounds the youth in the territory and the jobs and skills that can be provided for them here. “These resort developments are not inclusive, “Keith assures. There will be many opportunities for spin-off businesses whether in the marine industry or other related fields. The government purchased Prospect Reef Resort with the intention of using this facility for training those interested in the field of hospitality.”

The B.V.I. is poised, ready to share some of “nature’s little secrets” on a much grander scale than ever before. But questions remain just how balanced the growth will be and whether the territory will be able to hold its head high in the global market with the quality of what is offered. Will the BVI be able to maintain its global positioning as a unique upscale destination, which remains indelibly stamped with the pride of its people?

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