USVI Department of Tourism defends $39 million FY2026 request as arrivals and airlift climb

Acting Tourism Commissioner Jennifer Matarangus King told the Committee on Budget, Appropriations and Finance on Aug. 19 that the Department of Tourism is asking the 36th Legislature to approve a $39,000,000 operating budget for fiscal year 2026, the same total as FY2025.

King said the department’s top near‑term priorities are staffing key visitor‑experience positions, funding greeters at ports, and sustaining marketing that supports rising airlift and cruise calls. “The budget recommendation for FY 2026 is $39,000,000 directly mirroring our FY ’25 budget,” she said in testimony to the committee.

Why it matters: tourism is the territory’s largest economic driver; the department told senators 2026 airlift so far is projected to exceed 2024 and that both cruise and overnight arrivals have recovered, helping local hotels and small businesses. Commissioner‑nominee King said recent airline additions — American, JetBlue, Sun Country and Southwest routes — have raised seat capacity and that new and renovated hotels have added hundreds of rooms in Saint Thomas and Saint Croix.

What the department will spend the money on: King listed salaries and fringe, contracts, marketing (including offshore sales and public relations), festival and visitor‑experience operations, offshore promotion and film-related activity. The department said it will continue funding the ‘‘destination optimization’’ program that lists and markets local small businesses; the program expanded from roughly 200 businesses at launch to nearly 700.

Senators pressed department officials on unpaid local vendor invoices and contracting delays. Assistant Commissioner Alani Henneman and Administration Director Jamilia Miller said the department owes roughly $1.3 million in vendor payments (mostly local festival vendors), some dating back to late 2024. The department said most of those invoice delays are tied to property/procurement review and finance processing; officials said they are staffing up the finance team and working with OMB and the Department of Finance to get outstanding payments processed before the end of the fiscal year.

Committee members raised recurring concerns about the department’s reputation for late payments. King and staff said they have added financial personnel and are using a third‑party payment contractor in some instances; they also said they will provide more frequent updates and are prioritizing clearing festival and small‑vendor arrears.

Other points from the hearing: - Visitor experience and staffing: the department reported multiple vacant positions important to visitor services (directors of visitor experience and assistant directors of festivals) and the budget request includes funding to fill those roles and to hire contracted greeters at ports. - Marketing and equity among districts: senators asked how advertising dollars are distributed among St. Thomas, St. Croix and St. John. King and Henneman said marketing targets both territory‑wide campaigns and focused promotions for St. Croix (the “Vibe Like No Other” effort) to grow that island’s airlift and visitation. - Festivals and vendor controls: the division of festivals said it collects vendor fees and that festival escrow accounts exist on each island; senators asked for account balances and a clearer process for timely vendor payment.

What’s next: committee members asked for follow‑up documents including a detailed line‑item breakdown of FY2025 expenditures, the department’s updated accounts‑payable schedule, and a plan for when and how greeters will be paid. The department said it would deliver requested details to the committee.

Ending: The department framed the FY2026 request as a request to “execute our mandate” in a year of expanding air and sea service and continued festival activity; senators endorsed the goals but pressed officials for concrete remedies on late vendor payments and for timelines showing the department will fill critical visitor‑experience positions.