Wayne Biggs is the CEO of the U.S. Virgin Islands Economic Development Authority (USVIEDA), a semi-autonomous government agency headquartered in St. Thomas, which is focused on economic development in the islands. Since 2001, the agency has been shaping a strong environment for local business growth, generating jobs, and bettering the livelihoods of Virgin Islanders as a result.
Upon consideration of the economic effects of the Covid-19 pandemic on the USVI, Mr. Biggs has confidently expressed the state of recovery that has taken place in the past few years; as one of the first Caribbean islands to reopen Mr. Biggs has seen a significant boost in tourism, which remains the cornerstone of their economy. ‘We’ve rebounded well from COVID,’ he points out, emphasizing the critical advantage of the USVI in attracting American tourists without requiring a passport. This accessibility led to a surge in first-time visitors, many of whom have, in the last few years, returned to the islands.
Recognizing the importance of long-term planning, the USVI has crafted the Vision 2040 Plan. Developed during the pandemic, this comprehensive strategy pinpoints eight target industries poised for growth over the next two decades. The goal is to diversify the economic base beyond tourism, ensuring sustainable development; nevertheless, achieving the goals set out in the Vision 2040 rests on their ability to address urgent challenges facing the USVI –most of all, workforce availability and population growth. “I think a big part of our key is going to be workforce,” Mr. Biggs explains, going further to suggest that attracting the diaspora back to the islands is crucial to revitalizing the regional labor pool.
The USVI’s robust digital infrastructure provides a significant advantage in contemporary economies. Mr. Biggs affirms the scale and efficiency of this network by reminding us that the USVI has “more bandwidth available than anywhere in the world, with the exception of New York,” which will certainly be a draw for those seeking to work remotely. The islands’ advanced connectivity has already drawn remote professionals who seek a blissful way of life in the Caribbean while maintaining their work engagements. And this trend is anticipated to continue. As Mr. Biggs says, “several of my family members come and spend one or two weeks down here even while they’re working… As a matter of fact, my son is here who works in Miami.”
The establishment of the St. Croix South Shore Trade Zone (SSTZ) on St. Croix represents another significant initiative. This legislative measure facilitates business operations by offering substantial tax incentives, allowing goods to move in and out of the trade zone without the usual taxes. This initiative is particularly beneficial for manufacturing and assembly operations, as products can be branded “Made in the USA” if certain value-added processes occur within the zone. Additionally, USVIEDA recently completed and released a shipyard feasibility study with the assistance of First Marine International (FMI), a company of Royal Haskoning DHV (RHDHV), with support from Tractus. The study found there are opportunities and a market to place a shipyard in the SSTZ to repair vessels ranging of up to 574 ft., 328 ft., or 164 ft. in length.
Infrastructure investments are also a critical component of the islands’ economic strategy. The Virgin Islands Ports Authority (VIPA) announced a $250 million investment in both the St. Croix and St. Thomas airports –these upgrades include new jet bridges and expanded facilities to accommodate increasing tourist traffic. “VIPA is currently in the process of negotiating a public-private partnership to renovate and retrofit both international airport terminals, to include with jet bridges and everything elseother amenities,” noted Mr. Biggs, emphasizing the USVI’s efforts to modernize and expand airport capacity to meet future demands.
The investment incentives in the USVI are overwhelmingly supportive of economic growth. The USVIEDA has encouraged this now for more than two decades, and it seems clear that the islands are reaping the rewards. Companies benefit from a 90% reduction in corporate federal income tax, no property tax on operational real estate, and reduced customs duties. These incentives, combined with the islands’ strategic location and solid legal protections, make the USVI a compelling destination for business. “We’re open for business and it’s a good place to inve,” assures Mr. Biggs, inviting investors to explore the opportunities in the US Virgin Islands. Underpinning all of the agency’s efforts he concludes is an earnest desire to bring back all those “individuals who said, under the right circumstances, that they would come back home. I think it’s on us to create those circumstances to bring them home.” It is increasingly clear that with the USVIEDA’s support, those “right circumstances” are becoming a reality for the U.S. Virgin Islands.
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