The Virgin Islands economy is on the upswing and the territory should see a spurt in tourism revenues, economist Richard Moore said Thursday.
Moore, for seven years director of the V.I. Bureau of Economic Research, predicted that tourism should experience a "fairly healthy jump in room/nights occupied" — one measure of hotel room demand, according to the Independent.
This will bring in hotel taxes, which in turn will pay for greater marketing and advertising efforts, which in turn will stimulate growth in tourism, he said.
Moore said increased employment is another sign that the V.I. economy is on the upswing.
Employment is close to the level it was 10 years ago, with more jobs and better paying jobs, according to the Daily News story on Moore's speech to the Rotary Club.
Marilyn caused a drop in employment, but now — three years later — employment is poised to expand again. Moore said much of the expansion is a result of St. Croix business expansion and development.
On another issue, the government's long term debt, Moore said the debt service on the $540 million debt is $40 million a year and is being paid by the rum excise tax, which brings in about $40 million a year.
That tax will need to remain stable for the next 25 years in order to reimburse bond holders.
Moore suggested the government needs to find another source of funds in case the rum-excise tax shrinks.
Moore said the Turnbull administration is developing an economic plan that hopefully will include incentives for private-sector growth.
He noted that unlike areas on the United States mainland, the average government worker here makes $5,200 more per year than the average private sector employee.
Moore said IDC benefits are a balancing act between assuring ample revenues to the government while providing benefits to private businesses that are significant enough to induce them to settle here and stay here.
(Editor's note: See Moore's commentary on IDC benefits on our Op-ed page.)