“The Waterford” on Grand Cayman is setting a new standard of excellence with Caribbean fractional ownership!

You know that I am not only a fan of fractional ownershipin the Caribbean, it has been the hottest real estate purchase options for the past year.  I have let you know about the opportunities in the Cayman Islands in the past, but what is unfolding at The Waterford on Grand Cayman continues to evolve into one of the top luxury properties in paradise.  Grand Cayman is the ultra-chic island in the Caymans.  It has the international shopping, high end nightlife, along with the traditional Cayman-style homes and a rich Caribbean history.  George Town is the on Grand Cayman and it is the capital of the Cayman Islands.  George Town is also the fifth largest financial center in the world!

Grand Cayman real estate is some of the most valuable and prestigious you can find in the tropics.  The Waterford Private Residence Club is Grand Cayman’s newest oceanfront luxury resort at Safe Haven overlooking the islands North Sound with breathtaking views of Rum Point.  The Waterford is offering purchasers of an oceanfront villa for $1,700,000US - pre-construction!  They are also offering 1/8 fractional ownerships starting at $329,000US - pre-construction!  The end result will be one of the most amazing turn key, fully furnished, luxury residence in the Caribbean!

You will not believe luxurious amenities that are included for you and your guests.  Here are a few of them so your imagination can run wild for a moment or two:

• Use of a car during your stay - Land Rover, Mercedes, Audi or BMW
• Boat privileges - a Boston Whaler complete with your very own captain!
• Private jet services are available for booking a direct flight to Grand Cayman!
• Golf and tennis club membership!
• The Waterford Spa - a 5,000 sq. ft. full service spa and fitness center!
• Two sprawling crystal blue pools right along the sandy beach front!
• The Waterford Cigar Room - one of my favorites!
• An unmatched 24 hour concierge, maid and valet services.
• How about a pre-arrival grocery shopping service? Your kitchen will be stocked!

Are you getting the picture?  The Waterford is creating an unforgettable experience for each of their owners.  From the moment you arrive until the moment you depart, you will experience the most pampered lifestyle I have ever seen,  right in the heart of paradise - the Caribbean!  Your staff of professionals are on-call every day to make sure that ALL of your needs are met!  An added feature is that The Waterford staff speaks English, Spanish, French and Italian.

With its prime location on Grand Cayman, The Waterford provides its owners the ultimate Cayman Islands real estate opportunity by combining the advantages of ownership with five-star amenities and luxury resort services.  All of the residences have breathtaking oceanfront views, elegant furnishings, and luxury amenities and services beyond any of your expectations!  If you have ever dreamed of owning your own luxurious vacation villa in the Caribbean then you may want to seriously consider The Waterford Private Residence Club on Grand Cayman.  Contact me TODAY for the next steps to take in order to find out how easy it is to secure your spot in paradise.  Until next time…your Caribbean lifestyle detective remains on duty!

The decision was made by a specially convened BVI Cabinet meeting on Monday night called by Honorable Ralph O’Neal to defer the implementation of the Harbour Fees!

 ”Timing has everything to do with the outcome of a rain dance.”  The DANCE that is currently underway in the Virgin Islands is how to create a level playing field for the charter yacht communities in the USVI and the BVI.  The timing could not be BETTER than right now to create this result!  A discussion began with the USVI government officials this past week regarding the revision or repeal of the Six Pack Law  .  This topic was ratcheted up a notch yesterday with the announcement by the BVI government deferring the implementation of the harbor fees for yachts entering or remaining in the BVI Territorial waters, or those using a BVI Ports Authority facility. 

What does this mean?  Well, the BVI government had contracted a Canadian company to provide them a report recommending how they could increase their revenue off the backs of the yachting community - primarily the charter yacht owners.  The Canadian company’s approved recommendation was to have a “harbour fee” of $1.00 per foot per vessel for the first day’s stay, $.75 per foot for the second day’s stay, and $.50 per foot for the third and subsequent day’s stay.  The cost to the charter yacht fleet would have been enormous!  And, with the BVI being one of the top charter yacht destinations in the Caribbean it would have meant higher prices for EVERYONE!  This fee was to be effective July 15, 2008 - yesterday.

At the announcement of the deferment of the harbor fee, Premier O’Neil stated that the decision was based “… in an attempt to protect the BVI Territory’s competitive edge as a yachting destination.”  He further stated, “After all, the BVI has been known as the sailing capital of the Western Hemisphere, if not the world, and therefore it was extremely important for the Cabinet to consider the representations that were made by local associations (such as the BVI Charter League) , maritime agents, and others involved in the yachting industry, both locally and abroad.”

He added, “It must be remembered that the yachting industry contributes to the economy of the Territory and the yachtsmen enjoy our waters from Anegada to Jost Van Dyke.  The yachting industry is a significant contributor to the local economy, and as such, the sector must be safe-guarded against adverse economic impacts.”

The Premier concluded, “The Cabinet reviewed the new harbour fees and we considered the cost implications of the charges to the yachting community when compared to the rising cost of fuel.  In addition, the Cabinet determined that if the BVI were to implement this new fee structure, the Territory may have become the most expensive destination in the world for mariners and yachts.”  Premier O’Neil said that the BVI Government is committed to ensuring maximum economic development for the Territory and providing the necessary protections for the sectors that propel its growth. ( The revenue from the charter yacht community is enormous to the BVI! )

This is BIG news for the USVI charter yacht community as it works hard to create a level playing field for economic growth with its BVI neighbors.  It is all of our hope that this move by the BVI government will be a further message to the USVI government administration to address the Six-Pack Law in order to secure and protect the economic growth that continues to move to the BVI because of not allowing more than six charter passengers to be picked up from the USVI.  Again, the millions of tourist dollars that are lost to the BVI is unbelievable.  It is very encouraging to know that this issue is being seriously addressed by the USVI government today.  It appears that the behind-the-scenes person outside the government agencies who is championing this issue from the charter yacht community is Erik Ackerson from the Virgin Islands Charter League.  The message that needs to be heard by the USVI government departments is that we are all standing ready to support the needed changes to the Six-Pack Law.  Your comments are always welcomed.  Until next time…

This law states that a charter yacht vacation that has more than six guest cannot begin their voyage from the U.S. Virgin Islands!

You remember that last November at the Virgin Island Charter League Boat Show in St. Thomas, I was asked to be the internet reporter for the event.  Because taking on this fun and challenging task I had the opportunity to meet and get acquainted with some wonderful people within the charter yacht industry and several of the USVI elected government leaders; Gov. deJongh and his wife, Lt. Gov. Francis and his wife, and Senator Hill.  My last blog posting was about a letter I received from Gov. deJongh last week responding to a letter I sent to him about the Six-Pack law and how it may be time to have it changed.  One of the people at the show that I met was the chairperson for the show, Shelly Tucker - co-owner of the charter yacht Three Moons.  She immediately jumped on the band wagon regarding how to invite the government officials to address the Six-Pack law.  Below is the letter that I referred to in my blog that Shelly wrote and I edited.  IT IS A LONG LETTER,  BUT ONE THAT I BELIEVE YOU WILL FIND VERY INTERESTING.  Today, the results of this law are causing a BIG loss of income to the USVI because any charter yacht vacation with over six guests now picks them up in the British Virgin Islands - about 20 minutes away from American Yacht Harbor in St. Thomas.  ALL of those tourist dollars are spent in the BVI - hotels, restaurants, etc.  We are hoping that finally the USVI government administration will take this project on and get it repealed.  We welcome your input to these government officials by encouraging them to assist with this important issue.

To:  Governor Of The United States Virgin Islands - June 2008

Dear Governor John deJongh, Jr.

Thank you for your reply concerning the strategies to modify the “six-passenger rule”.  According to our files, the last time a position paper was written concerning this law was in 1994. The paper stated that the charter yacht industry contributed well over $100 million dollars to the U.S. Virgin Islands local economy. By 1993, the figure had fallen to below $30 million. The figure was further reduced after Hurricane Marilyn in 1995. Anecdotal evidence supports this contention. In June 1998, an article was published in the Daily News with the following quotes: Judy Knape, former director of the Virgin Island Charter Yacht League, said,  “The organization had 80 members in 1998. In 1991, the figure stood at 102, and in the mid-1980’s, it was over 204.”  Kathy Mullen, who at the time was the head of the Virgin Islands Marine Industry Association stated, “Within the last five years, the number of businesses that support the marine industry, such sail makers and those providing services to the yachts has dropped by 25 percent.”

In 2001 an official meeting was held with charter yacht captains, charter clearinghouse representatives, and the U.S Coast Guard officials on St. Thomas.  Lt. Kevin Smith of the Coast Guard Marine Safety Detachment agreed to try to identify acceptable safety equivalents to regulations concerning passenger vessels to allow previously un-inspected charter yacht vessels to obtain Certificates of Inspection, increasing the guest capacity from six to 12 passengers. Since there has been such an expanse of time since the last attempt at changing the six-passenger law, we must begin again with renewed efforts to bring this to the consciousness of the decision makers who can re-draft it in a manner that meets all the needs of those who are being negatively impacted.

Despite being designed and constructed to accommodate a larger group of overnight guests, many luxury charter yachts classified as “un-inspected small passenger vessels” are currently restricted by the Passenger Safety Act of 1993 to a six-passenger maximum while operating in U.S. waters, including the U.S. Virgin Islands. In order to carry more than six passengers on charters within U.S. waters, vessels must obtain a Certificate of Inspection, which verifies compliance with the Passenger Vessel Safety Act.

Most of the high-end charter yachts in the League cannot meet the Certificate of Inspection criteria without major structural changes, as well as some equipment and systems refits in order to comply with specs written primarily for passenger ferries and other commercial vessels.  The luxury charter yacht industry as we know it today didn’t exist on the same scale at the time the rules were written.

The inspection issue is not about just compromising passenger safety standards.  It’s about financial viability of the charter yacht industry, and the impact this law has on the tourist revenue to the USVI.  The intent is to identify “acceptable safety equivalences”.  We would like to emphasize that this is an interim step in a multi-level process that will require coordination between the U.S. Virgin Islands and Washington D.C., as well as Coast Guard officials to ensure compliance with existing laws and regulations involving licensing requirements, structural and equipment equivalents.

 The Virgin Islands Charter Yacht League would like to call for a multi-pronged approach to return the St. Thomas charter industry to a semblance of it’s former self and again become a major contributor to the revenue of the USVI:

• Negotiate with the federal government and the U.S. Coast Guard to change the six-passenger maximum rule to allow yachts to pick up as many passengers as they have berths. (Such as in the BVI)
• Allow charter yachts not based in the USVI to do a reasonable number of pickups each year without licenses. The BVI currently allows seven pick-ups each year for yachts not based in their area. This would encourage yachts working up and down the Leeward and Windward chain of islands to pick up guests in the USVI. .
• Provide tax incentives for yachts based in the USVI.
• Increased advertising of the local charter industry through the U.S. Virgin Islands Department of Tourism.  
• Have the USVI become more yacht-charter friendly for the benefit of all aspects of the USVI economy.

There are many positive,  supporting facts which strengthen the need to change the six passenger law in the U.S. Virgin Islands:

• Since 1997, the production of luxury yachts 80 feet and above has more than tripled. In 2005, there was a staggering 28% increase in new luxury yachts being built!
• In 1993, the world had fewer than 700 privately owned yachts over 100 feet. Today an estimated 7,000 large yachts are in use!
• Aside from the high entry cost of buying a large yacht, there are tax incentives and advantages to further fuel the desire of owning and providing a yacht for charter.
• Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than $10 million US.
• According to a survey by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 was up 56% from 2005. They attributed majority of the jump in spending toward chartering private yachts - most of which occurred in the Caribbean.  
• Annually, charter yachts in the U.S. Virgin Islands will spend between $20,000 US and up to $200,000 US in provisioning and fuel depending on the size of the vessel.  This does not include the added revenue to the businesses of the USVI from the charter yacht guests who book hotels, restaurants, and shop within the USVI.

The entire VICL Board of Governors is willing to work with you to assist in changing the six-passenger law. Virgin Islands Charter Yacht League mission is to improve the crewed yacht charter business in the U.S. Virgin Islands through public relations, advertising and promotion. Our members stand ready to help you and the USVI Government to restore a “level playing field” and return fair competition between the USVI based charter yacht fleet and our neighboring island/nations. We are truly appreciative of your assistance, and welcome any further questions or comments.

 Sincerely,    Shelly Tucker, VICL Secretary

Until next time…your Caribbean life-style reporter remains on duty!

From:  United States Virgin Islands Governor John deJongh, Jr.      Date:   July 9, 2008

I sent a correspondence to Gov. John deJongh, Jr. a week or so ago and asked for his input as to what his administration is doing to address the challenges of several airlines cutting back their flights to the Caribbean by 40% when tourist visits to the Caribbean have set new records last year - 15 million.  I first met Gov. deJongh at the 2007 Virgin Island Charter League Boat Show in St. Thomas where he was a featured speaker addressing the economic health of the Caribbean.  Here is his letter in response to my correspondence last week.  I sincerely thank Gov. deJongh for his, and his administration’s proactive actions in creating a dynamic economy for the USVI focused on the tourist industry who loves visiting Paradise.

Dear Mr. Walberg, 

Thank you for taking the time to share your views on what is a very important issue. As you rightfully mention, tourism numbers have been steady, in fact they have been increasing, while flight service from two major airlines serving the Territory has been cut. My Administration, in cooperation with the Department of Tourism and the Virgin Islands Port Authority, has been targeting markets worldwide with special packages and incentives to attract new and returning travelers to the Territory; this includes European and other international markets. European travelers, in particular, are encouraged to travel to “America’s Caribbean” as they are able to enjoy a favorable return on the exchange rate. Keeping this in mind, we are also working diligently with other Caribbean nations through the Caribbean Tourism Organization and the Caribbean Hotel Association to forge the relationships that enable our placement as a favored Caribbean destination location for travelers from the mainland United States and globally.

Additionally, our collaborative efforts have recently made possible the increased flight service of other, low cost airlines to the region. This added service will allow visitors’ increased flexibility in their travel plans and highlights the continued commitment of the Department of Tourism and the Virgin Islands Port Authority in working cooperatively to offer incentives for travelers to the Territory.  

Also, thank you for attaching the January 7, 2008 correspondence from Ms. Shelly Tucker, VICL Secretary.  (This was a letter addressing the “six-pack” law which is negatively impacting the charter boat industry and the tourist dollars that the USVI lose because of this outdated law.)  Unfortunately, I had not previously received this letter which responded to my December 2007 correspondence.  I have forwarded this letter to the Commissioner of Tourism for her analysis and our later discussion on execution.  Needless to say, the charter yacht industry is a key component in our package of offerings and its protection and growth is a central focus of my Administration.

Thank you once again for providing your views and for your efforts to raise awareness on these important issues.

Sincerely,
John P. de Jongh, Jr.,
Governor - United States Virgin Islands

I welcome your comments on Gov. deJongh, Jr.’s remarks.  I will pass them on to the Governor’s office.  Until next time…your Caribbean life-style detective continues to be on-duty.

Even though The Bahamas are not the Caribbean, most people still think they are! And…they are one of the easiest islands to get to from the U.S.

You remember one of my last articles about The Bahamas and how they are rated one of the Top Five islands in Paradise. Well, the outer island of Exuma in The Bahamas may be the top pick to check out for fractional ownership today. One of my latest articles was about the challenge that will show up in September to travel to the Caribbean because of the cut backs of American and Continental Airlines. Well, The Bahamas, Bermuda, Cayman Islands, Belize, and The Turks & Caicos will not be affected by these flight cutbacks because of all the direct flights from the U.S., Canada, and Europe that don’t go through San Juan, Puerto Rico. Plus, the ownership of property is even more advantageous because of the favorable tax haven of these islands nations.

The reason why I am featuring the island of Exuma as an option for fractional ownership is because of what is being offered at the February Point Resort. They have fractional ownership opportunities starting at $350,000 and up for a month or more of a second home in Paradise. The specific aspect of February Point that I want you to know about is the fractional ownership opportunities in BIG villas; 4-bedrooms; 4-baths; 3,400 sq.ft. with air conditioning; 2,100+ of verandas around the villa; an infinity pool; and, 360 degree views of The Bahamas. Plus, the villa has a dock on the azure blue water! Are you ready for this? It also includes an SUV; a 26 foot power boat; a BIG golf cart; membership in The Club at Emerald Bay which includes the use of a Greg Norman designed oceanfront golf course; and you can have access to over 150 properties all over the world to visit through the Resort To Resort membership!

And…there are still a few aspects of fractional ownership to pay attention to. The fractional model at February Point is designed to have each owner purchase specific sections of the year. The first one in gets the prime times. So, if you own a piece of February and you want to visit in August you will need to work that out with your other owners or the management company. Also, how do you manage your personal possessions that you want to enjoy when you are at your fractional ownership villa? There are storage facilities available, and the management company unpacks your stuff before you arrive. But, you only have a limited amount of “stuff” to pack into your storage space, so you definitely know your piece of Paradise is not just yours.

What do I know? But, I believe that there is still an upside appreciation waiting for those that jump into the fractional ownership opportunities at February Point! Great Exuma is linked by a narrow bridge to Little Exuma, which used to be a “Caribbean” backwater. Today it still has fewer than 4,000 inhabitants, but all that is changing. With February Point’s oceanfront settings, the luxury amenities of the resort, the furnishings that come with the fractional ownership of the villas, and the tax advantages of The Bahamas, it is a very appealing option for those wanting to own a piece of Paradise. Until next time…your Caribbean detective remains on duty!

The impact of American and Continental cutting back their flights to San Juan, Puerto Rico in September is already causing ripples all over the Caribbean!

My last posting addressed the impact that the American and Continental Airlines 40% cutbacks in flights to San Juan, Pureto Rico - the gateway to the Caribbean Islands!  Well, I have received feedback from the USVI Hotel Association, the Virgin Island Charter League, and several BIG developers - all of whom are VERY concerned about what is unfolding with transportation to the Caribbean.

The USVI Hotel Association has formed an Airlines Task Force this week to create ideas that can address the loss of the flights by American and Continental.  One of the radical suggestions I am making is to have Southwest  Airlines be considered to take over the abandoned flights to San Juan.  Southwest Airlines made a brilliant move several years ago that was almost laughed at by other airlines when they purchase oil futures at somewhere around $50 a barrel.  They are flying with fuel at a price that is almost three times less than other airlines.  You will also note that Southwest has not created a per baggage charge for bags that are checked.  Let’s have the brilliance of Southwest benefit by having them fly the record numbers of tourists who want to visit the Caribbean.

The charter yacht industry is moving into two separate camps at the moment - those who are going to wait and see how the transportation issue of getting people to the Caribbean is solved, and those who have put their charter yachts up for sale because they don’t believe that they will be able to continue a profitable business with the various factors impacting the Caribbean charter businesses - fuel costs and less flights to the Caribbean.

Some of the developers have been ambushed with this latest development of how do willing buyers of both whole ownership and fractional ownership get to the Caribbean.  Many of them have either land banked a significant amount of Caribbean real estate, or they have already broken ground and committed millions of dollars to build out the luxury resorts that have been approved for years.  There is a significant amount of concern by the Caribbean developers - cost of material caused by increased shipping costs, fuel costs for their equipment and vehicles, and increased costs of the land in the prime tourist areas they believe will be the next “it” spot in the Caribbean.

Again, there are island nations that are going to benefit from this upcoming “hurricane” because they are not relying on San Juan as their hub of getting people to their destinations.  Turks & Caicos, Belize, Cayman Islands, Bermuda, and The Bahamas have direct flights from many U.S. cities.  As the next few months unfold we may even see a new airline hub for the Caribbean evolve.  How about Miami, Dallas, Atlanta, New York, and Chicago - just a few that come to mind.  I promise you that the BIG interest in Caribbean real estate will cause solutions to be discovered!

We have more inquiries out to several of the government leaders in the Caribbean to get their input.  As soon as I receive their suggestions I will forward them to you for your input.  I am still looking at the glass half full, so let’s focus on this as a time of opportunity.  Change is not easy, but I believe we have entered into a significant era requiring change - in many aspects of our lives.  I welcome your opinions as to what is going on regarding access to the Caribbean.  Until next time….