AIRLINE WANTS TO MAKE ST. CROIX ONE OF ITS HUBS

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Aug. 16, 2001 – St. Croix would become the hub for air operations between the mainland and points south if Sun Airways, which stated its case before the Port Authority governing board on Wednesday, is approved to operate in the territory.
Bruce M. Casner, Sun Airways chairman, was introduced to the board by Sen. David Jones, a longtime supporter of bringing off-island investment to the territory.
Casner told the board, meeting on St. Thomas, of plans to make St. Croix the airline's hub for an ambitious schedule. He said Sun Airways expects to transport some 215,000 passengers in its first "mature" year of operation.
A former Washington, D.C., transportation lobbyist, Casner said he foresees the expanded Henry E. Rohlsen Airport as the transit center for air traffic between certain U.S. mainland gateway cities and down island and Latin America. The airline plans to have another hub in Puerto Rico, he said.
Casner noted that American Airlines now dominates the U.S. mainland-Virgin Islands and Puerto Rico traffic, with about 70 percent of the total market. However, he added, American has reduced its number of flights, and this has caused major concern for hotels in the territory.
"We've studied everything about this market that exists," he said. New business investment in the territory is deterred by inadequate air transport capacity, he said.
"Look at the empty ticket counters at the airport now, the empty gates," he said. "We could fill those up with passengers connecting to other flights and those staying in the V.I." He stressed that there is a market for competition with American Airlines, which he charged has "damaged much of its customer base in the Caribbean from poor customer service."
With seven round-trip flights weekly, Casner said, Sun Airways would provide about 34 percent of the available seats from Washington's Dulles Airport to the territory, and the only non-stop service from Orlando. The airline plans to serve European passengers who come to Orlando to visit Disney World and the other theme parks there, he said.
The airline plans to establish maintenance centers, air cargo distribution centers, fueling facilities and an aviation training school, he said.
Asked by board member and Attorney General Iver Stirdiron if the Puerto Rico hub wouldn't compete with the one on St. Croix, Casner said the airline would need Puerto Rico to support its operations. Stridiron commented that airlines have come to the territory before, only to default to the Puerto Rico market. Casner insisted his plans wouldn't allow that, saying the St. Croix hub would provide an "escape valve" for the overcrowded airports of San Juan and Miami.
Because of time constraints in his appearance before the board, Casner said, he didn't get into the airline's financial picture. He said he would submit a financial statement to the board. He also said Golden Gaming LLC, which has a casino application before the Casino Control Commission, "is willing to put some dollars into Sun Airways."
Jones said the airline wasn't asking for anything more from the Port Authority at present than an acceptance of its plan. The board agreed to take it under consideration.

V.I. RED CROSS LISTS HURRICANE SHELTERS

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The following shelters have been inspected and approved for the year 2001 hurricane season.
St. Thomas
– Seventh Day Adventist School, Anna's Retreat
– Charlotte Amalie High School, Sugar Estate
– Nisky Moravian Church, Nisky
– Blue Water Bible College, Fortuna
St. John
– Clarice Thomas Annex, Cruz Bay
– Emmanus Moravian Church, Coral Bay
– Bethany Moravian Church, Cruz Bay
– St. John Methodist Church, Contant
St. Croix
– Claude O. Markoe School, Mars Hill, Frederiksted
– Educational Complex, Kings Hill

'ARRIVALS' AREN'T ALL THEY'RE ADDED UP TO BE

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Aug. 16, 2001 – "Good news" tourism statistics released by Government House Wednesday paint only part of the picture, the presidents of the territory's hotel associations agreed Thursday.
Citing government Economic Research Bureau statistics, Gov. Charles Turnbull said the number of visitors arriving in the territory during the first half of this year was up by 14 percent from the same period last year, to a total of 1.46 million. The figure includes arrivals by both air and sea.
"Concentrating on head counts is how to lie with statistics," countered Richard Doumeng, president of the St. Thomas-St. John Hotel and Tourism Association.
Wendall Snider, president of the St. Croix Hotel and Tourism Association, called Turnbull's claim that the territory's tourism picture is steadily improving "a trip to fairyland."
Snider and Doumeng both pointed out that two of the territory's small hotels recently closed — the 12-room Admiral's Inn on St. Thomas and the 8-room Sea View Farm Inn and its restaurant, Bandanas, on St. Croix.
Saying he fears that such closings may become a trend on St. Croix, Snider noted that smaller properties are the first to feel the pinch in economic downturns. They typically are independently owned by people without the financial resources of hotel chains. "The question is, how deep are their pockets?" he said.
Doumeng said the Economic Research Bureau uses inadequate methods to count people. The numbers don't take into account travelers' ultimate destinations — St. Thomas "arrivals" include a high percentage of people who stay with family or friends as well as people headed to the British Virgin Islands. And the St. Thomas/St. John district statistics do not separate St. John from St. Thomas. This means St. John tourism professionals have no count of how many people have the island as their destination.
In the case of St. Croix, the statistics include the large numbers of arrivals who are heading to work at the Hovensa coker construction project. While some of these workers stay at hotels and condominiums, many are housed in accommodations on the Hovensa property.
Snider, who runs the 38-room Hibiscus Beach Hotel, said that his hotel is running at 50 percent occupancy, but that 40 percent of those guests are on St. Croix in connection with the Hovensa project. While these guests help his occupancy rate, Snider said, they do not for the most part spend money on hospitality-oriented items as tourists do. "Taxi drivers don't get the revenue. Restaurants don't get the revenue," he said.
He said the Hovensa construction workers typically cook for themselves or eat at low-budget restaurants because they get a set food allowance.
Stays are shorter, rates are down, costs are up
Other factors also are hurting hoteliers' bottom line. For one thing, the average visitor stay has gotten shorter. Doumeng said many people now come for only a few days. "Instead of six nights, they might stay three nights," he said.
Doumeng, who manages Bolongo Bay Beach Club and Villas, said that his guests are spending more at the resort's restaurants because they don't venture off the property the way visitors used to. "They don't get rental cars. They don't eat at Craig and Sally's," he said, referring to an upscale Frenchtown restaurant.
To stay in business, Doumeng said, he has slashed rates. When he started working at Bolongo in 1989, the summer rate was $175 a night. Twelve years — and many cost-of-living increases — later, it's $165 a night. Operational expenses have escalated in those dozen years. Property insurance now runs him $190,000 a year. In 1989, it was $36,000. And Water and Power Authority costs are "through the roof," he said.
Doumeng pointed out that the drop in room rates means that the government is getting less money in gross receipts taxes and hotel occupancy taxes.
Actually, the Economic Research Bureau statistics show little change in the numbers of visitors arriving in the territory by air. For St. Thomas, the total from January to June of this year was up 4.1 percent, to 282,161, over the same period last year. In St. Croix, the total number of air arrivals rose by 1.7 percent, to 79,705.
Cruise ship arrivals for the same six-month period showed bigger gains. For St. Thomas/St. John, the number arrivals increased by 12.7 percent, to 1.05 million. On St. Croix, the increased 17.2 percent, to 148,164.
Mike Daswani, who owns the Royal Caribbean camera and electronics shops on St. Thomas, said his revenues were up slightly the first half of this year, but not significantly. "The increase in ships did help," he said.
Cruise ships account for most of the increase
For the first six months of this year, the territory's hotel occupancy rate stood at 67.8 percent, just a tick above last year's 66.3 percent. For St. Thomas/St. John the rate was 71.4 percent, up from 69.4 percent last year. For St. Croix, the rate barely changed, at 56.5 percent from January to June this year, compared to 56.4 percent for the same period last year.
The Government House release also noted that the percentage of tourists from Canada, Europe, Central America and South America registering at V.I. hotels in the first half of this year was down from the corresponding period last year. The numbers dropped by about one-third in the case of Europe and Central America, and 25 percent in the case of South America, it said.
"We are pleased that the economic indicators reflect that we are presently exceeding tourism-related activity achieved during 2000 when we experienced a banner year," the release quoted Turnbull as saying.
Tourism Commissioner Pamela Richards did not return a telephone call requesting comment.

CASINOS DO BEST, VIDEO LOTTERY A LOSER IN POLL

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Aug. 16, 2001 – In the most recent Source poll asking readers their views on the merits of legalized casino, Internet and video lottery gambling in the territory, respondents made it clear they would have done what Gov. Charles W. Turnbull did last week: just say no to video lotteries.
Fewer than 3 percent of the 567 persons taking part in the poll expressed support for video gaming, with or without the other two forms of gambling.
The largest vote territory-wide, 37 percent, was for casinos but against both Internet and video lottery gaming. This option drew even higher support on St. Croix — 44 percent. For St. Thomas and St. John readers, this stance could represent a "known versus unknown" bias, but for residents of St. Croix, it's a bread-and-butter issue. The Big Island is the only place where a casino exists in the Virgin Islands, and the only place where any others will be allowed as the law now stands.
The second-largest bloc of votes — 25 percent overall and 28 percent on St. Thomas — was against all three forms of legalized gaming.
Two other options attracted almost all of the other votes on a territory-wide basis: 17 percent were in favor of all three forms of gambling, while 16 percent came out for casinos and Internet gaming but against video lotteries.
The other four options (for casinos and video lotteries but against Internet gambling; for Internet and video lotteries but against casinos; for Internet but against casinos and video lotteries; and for video lotteries but against casinos and Internet) taken all together drew less than 6 percent of the total vote.
Aside from those respondents who opposed all forms of legalized gambling, the overall percentage who expressed opposition to casino gaming was less than 4 percent, strongly suggesting a general acceptance of the casino gaming industry, which has been a presence on St. Croix for a year and a half.
Again aside from those who opposed all three types of gaming, the overall percentage of respondents opposing Internet gaming was 39 percent. Legalized online gaming does not yet exist anywhere in the United States but enabling legislation was just signed into law in the territory, making the Virgin Islands the second U.S. locale to approve it, after the state of Nevada. Proponents have touted it as a cash cow potentially worth millions of dollars in annual fees and percentages of the take that would be paid into government coffers by franchisers.
Questions and reponses by island and total
Which of the following best expresses your view regarding legalized gaming in the Virgin Islands?
– I'm for casinos, Internet gaming and video lottery terminals.
STT 62, STX 28, STJ 5 = 95 (17 percent)
– I'm against casinos, Internet gaming and video lottery terminals.
STT 81, STX 50, STJ 14 = 145 ( 25 percent)
– I'm for casinos and Internet gaming but against video lotteries.
STT 31, STX 55, STJ 2 = 88 (16 percent)
– I'm for casinos and video lotteries but against Internet gaming.
STT 8, STX 4, STJ 0 = 12 (2 percent)
– I'm for Internet gaming and video lotteries but against casinos.
STT 3, STX 0, STJ 0 = 3 (less than 1 percent)
– I'm for casinos but against Internet gaming and video lottery terminals.
STT 87, STX 111, STJ 9 = 207 (37 percent)
– I'm for Internet gaming but against casinos and video lottery terminals.
STT 9, STX 3, STJ 0 = 12 (2 percent)
– I'm for video lottery terminals but against casinos and Internet gaming.
STT 4, STX 1, STJ 0 = 5 (less than 1 percent)
– All votes:
STT 285, STX 252, STJ 30 = 567

Editor's note: This is not intended to be a scientific poll. But we feel that, as a rough gauge of how Source readers feel about issues confronting the territory, the results are interesting and worth considering. We invite and encourage readers to consider voting in Source polls to come.

AIRLINE WANTS TO MAKE ST. CROIX ONE OF ITS HUBS

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Aug. 16, 2001 – St. Croix would become the hub for air operations between the mainland and points south if Sun Airways, which stated its case before the Port Authority governing board on Wednesday, is approved to operate in the territory.
Bruce M. Casner, Sun Airways chairman, was introduced to the board by Sen. David Jones, a longtime supporter of bringing off-island investment to the territory.
Casner told the board of plans to make St. Croix the airline's hub for an ambitious schedule. He said Sun Airways expects to transport some 215,000 passengers in its first "mature" year of operation.
A former Washington, D.C., transportation lobbyist, Casner said he foresees the expanded Henry E. Rohlsen Airport as the transit center for air traffic between certain U.S. mainland gateway cities and down island and Latin America. The airline plans to have another hub in Puerto Rico, he said.
Casner noted that American Airlines now dominates the U.S. mainland-Virgin Islands and Puerto Rico traffic, with about 70 percent of the total market. However, he added, American has reduced its number of flights, and this has caused major concern for hotels in the territory.
"We've studied everything about this market that exists," he said. New business investment in the territory is deterred by inadequate air transport capacity, he said.
"Look at the empty ticket counters at the airport now, the empty gates," he said. "We could fill those up with passengers connecting to other flights and those staying in the V.I." He stressed that there is a market for competition with American Airlines, which he charged has "damaged much of its customer base in the Caribbean from poor customer service."
With seven round-trip flights weekly, Casner said, Sun Airways would provide about 34 percent of the available seats from Washington's Dulles Airport to the territory, and the only non-stop service from Orlando. The airline plans to serve European passengers who come to Orlando to visit Disney World and the other theme parks there, he said.
The airline plans to establish maintenance centers, air cargo distribution centers, fueling facilities and an aviation training school, he said.
Asked by board member and Attorney General Iver Stirdiron if the Puerto Rico hub wouldn't compete with the one on St. Croix, Casner said the airline would need Puerto Rico to support its operations. Stridiron commented that airlines have come to the territory before, only to default to the Puerto Rico market. Casner insisted his plans wouldn't allow that, saying the St. Croix hub would provide an "escape valve" for the overcrowded airports of San Juan and Miami.
Because of time constraints in his appearance before the board, Casner said, he didn't get into the airline's financial picture. He said he would submit a financial statement to the board. He also said Golden Gaming LLC, which has a casino application before the Casino Control Commission, "is willing to put some dollars into Sun Airways."
Jones said the airline wasn't asking for anything more from the Port Authority at present than an acceptance of its plan. The board agreed to take it under consideration.

ACNVI, INC. GENERAL MEETING

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The Association of Concerned Native Virgin Islanders, Inc. will hold a general meeting at 6 p.m on Wednesday, Aug. 29, at the American Legion Hall in Sub Base.
All members and interested Native Virgin Islanders are invited.

ACNVI, INC. GENERAL MEETING

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The Association of Concerned Native Virgin Islanders, Inc. will hold a general meeting at 6 p.m. on Wednesday, Aug. 29, at the American Legion Hall in Sub Base.
Education and information on financial investments will be discussed.
All members and interested Native Virgin Islaners are invited.

VIHA RESIDENT/MANAGEMENT MEETINGS

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The Virgin Islands Housing Authority will hold Resident/Management meetings at 3 p.m. on Friday, Aug. 24, in the lobby of the Lucinda Millin Home and at 6 p.m. at Bergs Home Community Center the same date.
Come out and bring a neighbor.
Persons with a disaability who will be attending the meeting are asked to contact your Housing Manager's Office at least three days prior to the scheduled meeting.

VIHA RESIDENT/MANAGEMENT MEETING

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A monthly Resident/Management meeting has been scheduled for 6 p.m. on Friday, Aug. 24, at the Bergs Home Community Center. Come and bring a neighbor.
Persons with a disability who will be attending the meeting are asked to contact your Housing Manager's Office three days prior to the scheduled meeting.

VIHA RESIDENT/MANAGEMENT MEETING

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A monthly Resident/Management meeting has been scheduled for 3 p.m. on Friday, Aaug. 24, in the lobby of the Lucinda Millin Home. Come out and bring a neighbor.
Persons with a disability who will be attending are asked to contact your Housing Manager's Office at least three days prior to the meeting.