STXHTA Urges VI Government to Explore Options Before Committing to P3 Agreement

ST. CROIX, U.S. VIRGIN ISLANDS (August 21, 2026)The St. Croix Hotel & Tourism Association (STXHTA) Board of Directors met with representatives from both SkyCity and the Airlines Airport Affairs Committee (AAAC) regarding the proposed P3 agreement with the Virgin Islands Port Authority (VIPA). The Aug. 10 meeting guided attendees through the airline proposal of $390 million and the concerns around the costs imposed by SkyCity’s plan.

Following these presentations and onsiderable discussion, STXHTA voted to approve a position

statement submitted Aug. 18 to VIPA Board of Directors Chairman Willard John, VIPA Interim

Director Ava Penn, Gov. Albert Bryan Jr., the 36th Legislature of the Virgin Islands and Virgin

Islands Department of Tourism Commissioner Jennifer Matarangas-King. The letter urged the

authority not to approve the SkyCity proposal in its current form and to instead engage with the

AAAC to fully evaluate its alternative P3 concept as the basis for further negotiations.

“We want to be clear,” said STXHTA President Suzanne Rosbach in the statement, “We strongly

support modernizing Henry E. Rohlsen Airport. Our concern is with the price, the pace and the

permanence of the SkyCity proposal - not with the need for the project itself.”

“The Virgin Islands should invest the resources necessary to provide safe, reliable, resilient and

welcoming airports while ensuring that public resources are used responsibly and that the

resulting costs are sustainable for our economy, airlines, businesses, residents and visitors,”

Rosbach said.

At the Aug. 10 meeting, the AAAC presented a conceptual alternative that STXHTA believes

deserves serious consideration. Its proposal calls for approximately $390 million in phased

construction and approximately $785 million in total costs, compared with approximately $690

million in construction and $1.2 billion in total costs under the SkyCity proposal. The AAAC

approach is designed to address current airport needs while preserving the ability to expand as

passenger demand warrants.

Importantly for St. Croix, the AAAC proposes a $50–$60 million modernization program

without eliminating essential scope. The plan includes critical infrastructure and hurricane

resilience improvements, terminal modernization, three passenger boarding bridges, improved

holdrooms and passenger experience, and baggage-system improvements.

STXHTA is also concerned about the impact of the SkyCity cost structure on air service. AAAC

projects a 2031 domestic airline cost per enplanement of approximately $126.48 under SkyCity

versus $109.78 under its alternative approach, and warns that escalating airport costs could

negatively affect existing service, future growth and the ability to attract new carriers.

“When our airline partners tell us a proposed deal could threaten air service, we need to take that

seriously. A successful P3 requires all of the key stakeholders to be committed to the direction.

The purpose of this investment should be to strengthen air service and grow our economy, not

risk driving service away at a time when St. Croix can least afford it,” said Elizabeth Armstrong,

President and Owner of The Buccaneer.

The economic analysis should also extend beyond airlines. Increased airport costs may affect

fuel suppliers, concessionaires, rental car companies, cargo operators, parking operators and

other airport tenants, ultimately increasing the cost of doing business and visiting the U.S. Virgin

Islands.

In its position letter, STXHTA requested VIPA withhold approval of the SkyCity agreement in its

current form and enter into discussions with AAAC regarding its proposed alternative P3

partnership. The association also asked that VIPA independently evaluate the costs, financing,

scope and long-term airport charges under both proposals; prioritize essential improvements

while allowing additional capacity and amenities to be added when passenger demand supports

them; and fully evaluate the impact of each proposal on air service, tourism and the broader

Virgin Islands economy.

STXHTA noted the AAAC proposal acknowledges that its current plan is conceptual and will

require additional due diligence, urging that due diligence should occur before the territory

commits itself to the SkyCity structure for the next 40 years.

About STXHTA: Our mission is to unite and protect the interests of our hospitality industry with

the people of St. Croix. Our goal is to develop and promote sustainable tourism, providing

exceptional experiences for the benefit of our guests, members and community