VIRGIN ISLANDS GOVERNMENT SUPPORTS DANISH CHARTER

Acting Governor Vargrave Richards announced that he signed a contract today in continued support of the Danish West Indies Travel Agency's advertising efforts in Europe to aggressively market non-stop flights to St. Croix from Copenhagen, as well as packages for 14-night hotel stays in the Virgin Islands.

The contract, which is between the V.I. Department of Tourism and the Danish charter flight company, is a public-private partnership in which the Virgin Islands Government will contribute $250,000 to market the charter operation next year in Denmark, Norway and Sweden.

"The current Danish charter program is a success, and an excellent example of public-private partnership in action," said Acting Governor Richards, who instituted the pilot tourism program last October. "In actuality, we are venturing into a viable market and opening the gateway to northern Europe via St. Croix."

The Acting Governor noted that according to the V.I. Bureau of Economic Research, the Government's initial investment of $400,000 to market the Virgin Islands in Denmark last year resulted in 3,200 two-week hotel stays. Based on the Territory's hotel occupancy tax, this resulted not only in a complete return on the Government's investment to the Tourism Revolving Fund, but contributed another $300,000 in gross receipts taxes and infused an additional $10 million dollars into the Virgin Islands economy.

The Danish West Indies Travel Agency reported that more than 700 14-night hotel stays have already been booked for 2005 through its charter flight program.

"The timing is right for this project," Richards said. "The Danes love our culture, particularly the historical aspects of St. Croix. With the dollar weak against the Kroner and Euro, it is appropriate for us to tap the Norwegian and Swedish and other European markets and advertise how easy it now is to take a holiday in paradise."

The contract with the Danish West Indies Travel Agency also calls for the company to assess the feasibility of arriving weekly on St. Croix. The charter's present schedule allows for biweekly arrivals.