Gov't sponsorship of Kartel concert will come back in taxes — Premier

Premier Dr Natalio Wheatley has insisted that the government's sponsorship of the Vybz Kartel concert will ultimately yield financial returns to the territory, primarily through tax revenues that will help boost the economy.

The Premier addressed concerns during a interview yesterday about the government's controversial $220,000 investment in the event, highlighting the potential for the concert to generate income by attracting tourists from nearby regions, including the United States Virgin Islands, Puerto Rico, and even further afield.

Premier Wheatley emphasised that entertainment tourism significantly boosts the economy and argued that events like the Vybz Kartel concert are investments with broader benefits. He pointed out that the concert would stimulate many businesses such as hotels, Airbnbs, restaurants, and transport services, all contributing to the economy.

"Most likely, the same money that the government put in sponsorship to help make the show a reality, the government will get back that money in taxes," Dr Wheatley stated.

"Some persons may not understand or be able to appreciate when visitors come to the Virgin Islands, how it contributes to the economy and contributes money towards all of the same things that they're concerned about," the Premier remarked. However, he confessed that he could not give a dollar estimate about the spending done by visitors this year.

The Premier noted that some residents may be concerned about the government spending on entertainment instead of other areas such as education or healthcare. However, he explained that these sectors do not generate revenue directly, unlike tourism. "If you want to get money to spend in education, healthcare, infrastructure, you rely on the main revenue earners for the government," he said, noting that the tourism and financial services sectors are the primary drivers of government revenue.

He also addressed past events like the government-sponsored Music Fest, which had some financial shortfalls. "As it pertains to expenses versus like gate receipts or things on drinks, of course, it would be a loss," Premier Wheatley said. He argued that the government cannot solely assess success based on these direct revenue sources. Instead, the broader economic stimulation must be considered.

The Premier said it is now part of his government's strategy to collaborate directly with private promoters and to avoid having the BVI Tourist Board execute similar events like the Music Fest, as it had done previously.

Meanwhile, Premier Wheatley pointed to examples from other countries, such as Canada's $40 million investment in the Caribana festival, where he said a study was conducted in that country before it realised Caribana's true potential. According to the Premier, Caribana now brings significant financial returns to the Toronto economy. He used this to illustrate that similar events in the BVI can boost tourism, noting that the Vybz Kartel concert could have a similar impact, attracting visitors who contribute to local businesses and the overall economy.