Before the hotel tax increase story fades away, it is worth commenting on its destructiveness, both symbolic and actual. Every so often the Virgin Islands government does something that produces a sense of nearly absolute hopelessness. This tax increase was one of those things. It is another telling sign of a political system that has lost its way. It is also typical of a style of governance in which the long-term future of the territory is always sacrificed to some short-term gain that favors a narrow constituency, usually government workers and their paychecks.
Will the tax increase damage tourism? Of course it will. It will increase first-time tourists' sense that they are being abused. They will not become second-time tourists. Virgin Islanders significantly underestimate the negative image that the territory has among travelers. Added to the unconscionable airfares, the rudeness and hostility of taxi drivers, hotel workers and others, and the degradation of the physical environment, visitors will now be confronted by a 10 percent surcharge. Thus, upon checking out, one of their last memories will be of a substantial symbolic and financial slap in the face.
The Source has labeled this action taxation without representation, an assertion that is substantively accurate since the government only represents itself. The hotel industry, however, has resources at its disposal, and, anyway, it isn't paying the tax. The visitor is, and they truly have no representation. Indeed, visitors appear to be seen as a kind of enemy alien. The rub is that, even though they have no representation, they do have choices. They can vote, with their feet. Expect many more to do so.
Of course, Governor Turnbull will probably be out of office before the real shortsightedness of this tax increase is felt. Maybe his successor can raise the tax to 15 percent to make up for the shortfall. It would be an action consistent with recent practice.
Management consultant Frank Schneiger has worked with V.I. agencies since 1975, most recently as consultant to United Way of St. Thomas/St. John. He is one of the founders of the St. Thomas/St. John Youth Multiservice Center.