[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Extensions of Remarks]
[Page E2523]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       THE CHARTER BOAT INDUSTRY

                                 ______
                                 

                       HON. DONNA MC CHRISTENSEN

                         of the virgin islands

                    in the house of representatives

                       Friday, November 19, 1999

  Mrs. CHRISTENSEN. Mr. Speaker, I rise today to introduce a bill to 
help to revitalize the charter boat industry in my district by giving 
charter boat operators the ability to compete against their competitors 
in the neighboring non-U.S. jurisdictions. In the almost three years 
that I have served as the elected representative of the people of the 
U.S. Virgin Islands in the House of Representatives, there have been 
few other issues that have generated more passion and concern among the 
Virgin Islands business community than this one.
  Mr. Speaker, the Passenger Vessel Safety Act, which was enacted on 
December 20, 1993, made several changes to the laws for passenger 
vessels. One such change, which required uninspected vessels weighing 
less than 100 gross tons to carry not more than 6 passengers, has had a 
significant negative impact on the charter boat industry, as well as 
the overall economy of my district. The limitation of only six 
passengers for uninspected vessels has resulted in virtually all 
vessels, which are able to carry more than 6 passengers, leaving U.S. 
Virgin Islands waters and relocating to the nearby British Virgin 
Islands.
  According to Virgin Islands charter boat industry officials, 
approximately one third of all charters on crewed yachts carry more 
than six passengers and less than twelve. Just about all of this type 
of business has relocated to other areas, primarily the British Virgin 
Islands which is located only 12 miles from St. Thomas. Additionally, 
it is estimated that each charter yacht and their clientele spend over 
$500,000 annually.
  Because the international standards for the inspection of passenger 
vessels only apply to vessels that carry more than 12 passengers, 
foreign registered vessels cannot comply with U.S. laws and enter 
U.S.V.I. waters carrying more than six passengers. Guests who might 
otherwise enjoy visiting the U.S.V.I. while chartering in the BVI are 
not able to visit us if their charter numbers more than six passengers.
  Mr. Speaker, enactment of this bill is important to the Virgin 
Islands because of its potential to help revitalize our currently 
stagnant economy. As recently as 1988, U.S.V.I. marine businesses 
generated more than $85 million in revenue. But that figure has dropped 
to less than $15 million today, because of the decline in the industry 
due to the change in law.
  I urge my colleagues to join me in supporting this bill which is 
vitally important to the economy of the U.S. Virgin Islands, due to its 
heavy dependence on tourism.

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