Seeking answers and found questions....
I just returned from a week in STX yesterday and I miss the island already. My wife and I were treated so incredibly well during our stay. Everyone was so polite and helpful. The food was great and the drinks were cold!!
For us, however, the trip was 1/2 vacation and 1/2 business. This was not my first trip to the island and in fact, I have been keeping an eye on STX for a few years now. Along with some other businesses I own stateside, I am partner in a property development company looking for opportunities wherever they may exist. This trip was all about looking at real estate markets and meeting with as many people as possible to talk about the short and long term future of STX.
What I found was great optimism about the possibilities of a growing tourism market. Nearly everybody was excited by the two development projects; William & Punch and Wyndham Great Pond, along with the Disney Cruise Line and a second cruise line coming to the island in 2009. Others were encouraged by new businesses relocating to STX and the business proactive stance of the Governor.
I came seeking answers but found as many questions as I did answers. I don't have any doubt that STX will have great opportunities to grow and develop a lucrative tourism trade that will someday surpass the refinery business as the chief economic engine....no questions there for me. Most of the questions I left with are centered around the ability of STX to capitalize and enjoy the success that it is seeking. I really want STX to succeed and I would like to find a way to be a part of the success but I am concerned about how STX will handle the big changes that are headed its way.
For instance, should one or both of the resort developments open, where will all of the hundreds of operating and support staff live on the island? The availability of residential housing for this wave of new full time employees does not exist on STX from what I could see. Perhaps somebody is already addressing this but from the people I spoke with in government, this is not the case. This left me with questions concerning the need to develop housing to serve what could be a significant surge in population. I think you have to keep in mind that along with resort staff, there will be growth in support industries such as food service, maintenance, entertainment and a host of others. With STX currently at around 3% unemployment, most of the new jobs will need to be filled by people moving to STX.
Other questions..... Can existing support businesses ramp up to serve the needs of growing full-time and tourist populations? How will the roads and transportation segment accommodate what will be significant stress to their systems? With WAPA at 4-5 times over stateside costs, will STX find alternatives to this growing problem for both residents and businesses alike? Will the cruise line tourists find STX interesting enough to want to return and stay for a week or will they find STX to be just another island with Tshirt shops on every corner....in other words, how will STX promote itself to the cruise line tourists coming in 2009 to capture them for more lucrative , long term stays in the future?
Just so you know, I equate questions to opportunity. I see a lot of my concerns as a chance to make a contribution to the success that I think the great people of STX deserve. I thought I would toss these thoughts out to see what the fine folks on this forum think. And for those of you whom I had the chance to meet this past week....thanks so much for being so welcoming. We had a blast!!
I would get the impression from you that there will suddenly be this huge wave of business overnight. Nothing moves that quickly down here. Everything moves slowly & usually businesses take a long time to get off the ground so it's not like overnight the ships are pouring in & hotels are sprouting like mushrooms.
I am curious about the 3% unemployment statistic. Who do you see as being the new full-time employees needing housing?
The governor may be pro-business, but the legislature fights him every inch of the way.
Good point, EE. However, I hope STX does get a boost.
Good Morning Trade....
I think my concerns regarding the two cruise lines are more immediate as they will be taking place next year.
Regarding the two developments, it is my understanding the W&P development is in final stages of approval pending approval to move the ocean side road east around the property so it is not cut off from ocean access. Once approval is granted, the project moves forward. Granted, it could take 3+ years to build out but the infrastructure needed to support it could also take that long. If there are no plans for infrastructure improvements to run in tandem with the build out, then a problem could exist. Again, these are just concerns that I am expressing, not necessarily the reality of the situation. I understand that things move at island time. Thanks for you thoughts.
Good Morning East Ender....
The 3% stat came from a meeting I had with the STX Chamber. The employees coming in from the states would be hospitality workers of all types from housekeeping to administration plus all the various out-sourcing companies needed to support the resort which could amount to a significant population of people. As more people move to STX it will put stress on the existing businesses servicing the infrastructure needs of the island requiring in some instances a need to hire additional employees. So you will have the new resort employees + 3rd party support companies + general population infrastructure companies. With a 3% unemployment rate, this will dictate the need to "import" the labor force. Again.... my thoughts...just looking for yours.
Thanks!!
it is my understanding the W&P development is in final stages of approval pending approval to move the ocean side road east around the property so it is not cut off from ocean access. Once approval is granted, the project moves forward.
Not true. The road situation has barely been addressed and it's situation tenuous. Since it is a major public road, hurricane escape route and on ecologically important ocean-front land, the Army Corps of Engineers must be involved with the process (I'm not sure about the official criteria--I just know from CZM people that the ACE must be involved). There is also a lot of local opposition to diverting that road--you may think that beach access may be important to the resort, but don't underestimate Crucian protectiveness of full beach access (ie have to be able to drive up to the beach and be able to unload camping gear and such).
Also, the W&P CZM permit is far from being approved. No matter what Rames and Elliot try to tell you, the deficiencies CZM found were serious and cannot be addressed overnight with just some editing. Many of the problems in the permit require long-term study (2-3+ years), especially those to do with ecological impact (to name a couple: runoff, reef destruction, turtle nesting, sand transport systems (also vital for turtle nesting)).
Basically, I wouldn't be hedging any business bets anytime soon on whether the WP project will be up and running in the near future.
As for the cruise ships--Disney is making a total of about 9 stops next year and Royal Caribbean has yet to commit since we need to redredge the pier. But last time they asked us to dredge the pier, and we did, they didn't come. So personally, I won't believe it till I see them in dock with tourists actually getting off the boat and walking around in town. We are not about to be deluged with this sudden mass influx of tourists that we cannot handle.
"Will the cruise line tourists find STX interesting enough to want to return and stay for a week or will they find STX to be just another island with Tshirt shops on every corner"
St Croix is trying to market itself as more of a cultural and historical destination. This method has been quite successful with the Danish tourists so there is no reason why we cannot market ourselves that way to Americans. With the Fort restoration, the new Alexander Hamilton property the National Park Service just acquired and our other sites --lighthouse, Whim, ruins, Rum factory, C'sted and F'sted architecture and history (hopefully more will be restored and the historical walks will become more commonplace) as well as other attractions like great nature hikes and diving, I don't think we will become just another tourist destination complete with Outback steakhouses and all that baloney. Of course, this marketing strategy might conflict with the one the developers seem so eager to promote--that we are the new Las Vegas of the Caribbean with "a casino on every side of the island". I honestly don't see why every new hotel has to have a casino.
"The employees coming in from the states would be hospitality workers of all types from housekeeping to administration plus all the various out-sourcing companies needed to support the resort which could amount to a significant population of people"
I think the 3% unemployment rate you quoted is a bit low. Check out this site http://www.vidol.gov/Units/BLS/LAUstats.htm which gives a more realistic number of about 7% for St Croix. As for the wave of hotel employee's if/when the resorts are finished--the government has a long-standing policy that to get certain tax breaks, 80% of the workforce must be local (ie someone who has been a resident in the VI for at least 1 year). And, if there is a lack of qualifications for employment, the company must provide training to local people. I'm assuming the new resorts would be under the same restrictions? So I would not be anticipating some mass influx of stateside workers (which I believe would also cause animosity with the local population).
Also as regards staffing, many existing businesses are concerned that staffing, already difficult for some positions, will become even more so as opportunties increase.
My bet will be slow and hopefully steady growth.
Americans do not care about our cultural and historical attractions. Europeans, maybe, particularly the Danes, but Americans, no. There are pockets of people who might visit STX for those type of attractions, but they won't sustain tourism. Historical attractions are secondary attractions.For most Americans, it 's all about the beach! Mountains are popular, but beaches take first every time. Ecotourism is the future, in my opinion. Have you noticed, everything is going green? About time. Look at St. John. There aren't any major historical attractions. Sure, there are tidbits of history and culture available to tourists, but the spendy resorts and the eco-camps are the big draw. Quite honestly, I would love to own a spendy eco-camp on STX. Also, you may not like it, but casinos draw tourists. Not one casino, but several. One casino is simply a drain on the local disposable income.
"Americans do not care about our cultural and historical attractions............."
Since when ????? You know all Americans?
NoMoreSnow,
I don't mean to be cynical, but what type of people did you talk to about these future projects when you were here? What classes of Crucian society did they come from? Because if all you did was talk to those who are of your background, you cannot get an accurate idea of the sentiment regarding these developments. I don't know too much about William and Punch, but Wyndham Great Pond is a shame. Great Pond is one of the most ecologically sensitive areas on St. Croix and has both colonial and preColumbian artifacts and ruins. Also, every resort needs a good beach.... there is no nice beach at Great Pond! What are they going to do, import sand and mess up the ecology even more ?
You say "With STX currently at around 3% unemployment, most of the new jobs will need to be filled by people moving to STX." THat is an inaccurate figure. I work in government and can tell you the official figure is what stxem said but if you actually observe for yourself, it's much higher than 7%. I think government needs to find better ways of measuring our citizens.. but that's another topic. Also, the positions you mentioned (from housekeeping to administration) can be found on among the local Crucian population! Housekeeping ? Are you really telling me we would need to import janitors (an unskilled labor) to the island, with all the unemployment we have?
You also mention "food service, maintenance, entertainment and a host of others." Food service and entertainment are areas directly related to Crucian culture, so why would one bring in non-Crucians to work in these fields? Tourists who come to St. Croix are going to want to eat Crucian food prepared by Crucians and hear authentic Crucian music performed by Crucians, not American hamburgers and fries served from a bar with transplanted Jimmy Buffet music in the background. We already have tourism people in the high schools talking to kids about opportunities in the tourism industry.. these kids will become adults who need a career. This is the tourism industry's primary labor resource. Also, there are a lot of young Crucians in the continental United States who would come back down if it were not for low wages and limited jobs, so there's an important talent pool if one is in search of a resort workforce.
Angela,
I meant no offense. Please reread my post. I try very hard to never say never and never say always. Don't take it quite so literally, but I do know lots of Americans. Not personally but through market research and trends. I spent half of my working life traveling around America promoting tourism. I have talked to many thousands of consumers, travel agents and tour operators about what they seek in a vacation destination.
DL, You made some great points. I too was wondering who NoMoreSnow talked to. I will go out on another limb here, though, and say that there is definitely a place for burgers, fries and Jimmy Buffet when you are speaking of American tourists. Tropical beach destinations tend to get all blended together as "Margaritaville" . I have more to say about this, but I just looked at my watch. Gotta go.
To answer the question about whom I spoke with while here on the island, I would have to say I tried hard to get a good cross section of people from those I met doing some grocery shopping, enjoying awesome food at restaurants, government reps, chamber of commerce, local businessmen and whomever would want to express their opinion to me of which I found that almost everyone on the island has a strong opinion...that's for sure!!
I appreciate everyone's thoughts. I was quoted the 3% unemployment number from the Chamber. I assumed they would know and it would be true. At a 3% level, that leaves very few workers to fill many, many new positions. That is why I suggested that STX might see a lot of new faces coming from outside the island to fill job openings that cannot all be filled locally. If the number is closer to 7% that would make somewhat of a difference.
I am viewing this as a business decision and trying very hard to keep emotions out of it particularly because I really love STX and the people of STX. Because I have an emotional attachment to the island, I want to make sure that I understand what exactly is really happening before I make any moves toward a business opportunity.
Thanks again for all the great responses!!! As I sit in my office in Nebraska today in a tornado watch....I really miss the island....really....
where in Nebraska? i just spent 10 months in omaha getting to know my birth father,living and working in regency
"Tourists who come to St. Croix are going to want to eat Crucian food prepared by Crucians and hear authentic Crucian music performed by Crucians, not American hamburgers and fries served from a bar with transplanted Jimmy Buffet music in the background."
For most Americans, spending their vacation where the majority is a different color and where vehicles are driven on the "wrong" side of the road is about as far outside their comfort zone as they feel they can safely stray. If you give them a menu full of unfamiliar food they might snap! 😀
that and about 2 days of steel pan is about all that most people can take before it becomes all the same and grating on the nerves
if you want to build something build a retirement home complex with apartments and center for people from the states,make it affordable for singles and low income couples, but put a 55 minimun age on it, do it center island somewhere on flat land and put in a pool, give people the option of an apt or townhome type situation with the option of an assisted living type of thing, if they can do it in albert lea or blue earth MN it can be done here.
trw,
That's actually one of the options we kicked around a bit when we bought our apartment complex. It's a good idea. We're just getting too old, tired and lazy to deal with all the modifications, ie wheelchair access, that type of thing. If we were 20 years younger, we would definitely give it more serious thought.
trw,
I think you are SO right on. My (94 yo) mom is living in a Catholic (even though she's Lutherin) 50+ apt in Virginia. She tried assisted living about 4 years ago, but she didn't need that level of care, and didn't like the cost. This 50+ apt is about 1/2 the cost of any other apts around. It's subsidized by the church, and the apts are very small. Perfect for seniors. With all of the baby boomers getting to retirement age, it's "grey gold". But, if you want to keep them in the area, then there will have to be accessible health care.... otherwise, the states will be more "convenient". So, if they build a hospital on STX, it would be nice to plan for senior apts nearby.
you know i think about this type of thing alot now, i'm 46 and i worry about what i'm/us are going to do when we get old and grey, there are so many people str8 and gay that do not have families to look after them when they get older and in need, it really is a scary situation especially for low income seniors
I hope this senior appt idea catches on elsewhere (maybe it has... I really don't know). Seniors don't need a lot of infrastructure (schools, play fields, etc.), and don't drive around as much (unless they still work), so it's kind of a win-win: they pay taxes, are quiet, spend money locally, and don't clog the roads during rush hours. Seniors do need more health care, but so do families with kids that play sports!
What competes with this model is all of the baby boomers that are financially successful. I see plenty of senior housing/condos that are VERY expensive. The cost would swallow up every bit of equity from a house sale. The grounds are beautiful, the condos are spectacular, the areas are prime real estate, and they sell out before their construction is completed. I'm sure local governments love these because the seniors pay even more in taxes, and spend more.
Our main, family doctor is gay (believe it or not). One of the most caring doctors you'll ever meet... he actually spends time with you, and wants to know about EVERYTHING that ails you... not just what you came in to see him about. He heads a county panel to address future health needs for our county. I'm sure that he fights for everyone in the county. So, there are pockets in the US where some things are being done to include everyone.
As far as future development:
- it seems like it is a poker game, with those with incoming money (developers, cruise ships) across the table from providers (governments, businesses). Both sides trying to get the other side to ante up first, and substantially. I don't envy either side.
- I would be sad to see a bigger social gulf between the locals and new comers.
- I would be sad if the locals did not feel that they were benefiting from the growth (schools, services, roads, hospitals, etc).
- I would be sad to see tourism or growth spoil the natural beauty of the island (ratio of business/residential land to free land/parks; crowded roads; ratio of road-land to free land/parks; etc).
- I would be happy to see tourism that compliments the island's natural characteristics, and leaves the tourists with respect for the island and the inhabitants (eco tourism, educational tourism: cooking tutorials, SCUBA/snorkeling lessons, sailing lessons, natural resource hikes, tours; health related tourism: swimming, hiking, outdoor yoga; spiritual tourism: habitat for humanity, yoga, etc).
- I would be happy to see tourism fuel other businesses that also compliment the island's natural characteristics.
IMHO...
as of this time i know of 3 retirement communities for gay people, one in fla one in new mexico and then ca and of course new york and san fran have a couple each as well but they are mainly high end places, my grandparents went into a place in albert lea they paid so many thousands for an apt and then the monthlies and then when grandpa's dementia kicked into high gear he went into assisted living while grandma stayed in the apt right there on property until she died 3 years later, then the apt reverts back to the complex and they sell it again,thats the type of situation that i think would be the most usefull, i think less financially succesful boomers will be the norm, there will be more of a need for people that saved 1to2 hundred thousand or less over their lifetimes those are the people that will need the help not the people like my father, see when the other half and i do finally sell this place we'll need to go into one of those 55 plus places,lol i just cannot imagine all of this house when i'm in my 60's no thanks
It is very hard for assisted living facitlites to make it. They get sued like crazy and health care never goes down so the profit margin really shrinks. Marriott sold off almost all of theirs about 5 yrs ago.
And until we get better healthcare overall on this island I think this is not the best idea. I personnally go stateside with anything serious and most of my local friends go to puerto rico. I don't think we are ready for something like this.
My wife has always had a talent for pointing out the obvious. While we were in STX, we visited the "Home for the Aging" (I think that was the name). It was a plain building just off of Centerline with a courtyard area. I believe it is the only senior care facility on the island (?) My wife has been involved in the Alzheimer's / senior care industry for about 15 years now and has operated facilities. She has a strong passion for caring for elderly and told me that she thought there might be an opportunity to open an assisted care facility on the island. When we returned home to Nebraska she started doing her research and found that the facility on STX has a long waiting list. .......After 27 years (28 as of this Friday) of marriage, you'd think I would pay more attention to her observations. I think we will look into this.
It might just be terminology, but I think of a huge difference between senior apartments and assisted living:
- assisted living:
---- apartments for elderly (no kitchens)
---- community cafeteria
---- cleaning staff (I think?)
---- some medical staff on hand
---- perhaps a medical wing like a hospital
- senior apartments:
---- small apartments (only need room for 1 or 2 people)
---- kitchens included
---- laundry rooms (like hotels)
To me it seems that assisted living will always be expensive because of the services provided. But, senior apartments will always be inexpensive because the people/sqft density is relatively high and the services provided are low. And, I think that people are generally healthier (or healthier longer) these days; thus allowing more years in a senior apartment before assisted living might be required. I don't know how hospice care fits into this, but I would think that hospice care makes senior apartments even more viable.
I think the cultural aspect of St. Croix should be embraced, cultured and exploited like it's done in Hawaii. Sure the luau and all that is exploited. On the North Shore of Oahu, there is The Polynesian Cultural Center. It is run by the Mormon church but you'd never know it. It accurately portrays the culture and rituals of several of the Sandwich Islands. There is Wiamea Valley which has examples of most of the indigenous and imported plants and trees and examples of Native Hawaiian architecture and many other hieu's,and places of interest.
Like STX< Hawaii was big into sugar, that whole thing is very interesting. There's the Dole Plantation with a huge maze and cultural and agricultural demos. I read that years ago a bunch of senators spent some time there to see how the VI could perhaps model some of they're sauces. I never saw any report or anything. They probably sat on Waikiki Beach and drank Mi tis.
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