WICO Reports Substantial Cruise Industry Recovery Post-Pandemic

A notable post-pandemic recovery in the cruise sector is providing a positive outlook for the West Indian Company Limited (WICO), as highlighted by Chief Executive Officer Anthony Ottley. During a recent Public Finance Authority (PFA) board meeting, Mr. Ottley presented updates on the company’s projects and strategic plans.

WICO has reported a 20% increase in cruise ship calls from October 1, 2023, to April 30, 2024, compared to the same period last year. “WICO has welcomed 217 cruise ship calls, bringing nearly 729,000 passengers to our shores,” Mr. Ottley stated. An additional 17 port calls are expected by the end of the fiscal year, bringing in over 240,000 more passengers.

For fiscal year 2025, WICO anticipates 289 ship calls with an estimated 1.1 million passengers. “These numbers signify a definitive bounce back from the COVID era and a steady return to pre-pandemic passenger volumes,” Mr. Ottley remarked.

WICO is exploring development opportunities for the Liverpool property, a seven-acre site with potential uses such as resorts, water parks, and marinas. At the Seatrade conference, discussions were held with engineers and planners to refine the development plan. “The ultimate goal is to develop a financially feasible and implementable plan that enhances the cruise passenger experience and generates additional revenue for WICO,” Mr. Ottley explained.

Ongoing construction and maintenance projects aimed at improving the company’s facilities include repairs to the administration building and ancillary structures. “These repairs encompass painting, welding, and replacing air conditioners, metal doors, and windows,” Mr. Ottley noted.

The dredging project for the Charlotte Amalie harbor is progressing, with permits expected soon. “Geotechnical studies and coral relocation will commence once the permit is received, with construction slated to begin by the end of 2024,” Mr. Ottley informed the board.

WICO is also addressing recurring water pipe ruptures by upgrading subsurface infrastructure. The original cast iron pipes, installed in the mid-1900s, have corroded badly, resulting in significant water losses. The upgrade is scheduled for completion in January 2025. “This upgrade is essential to reduce costly water leakages and ensure a reliable water supply for the facility,” Mr. Ottley asserted.

Additionally, WICO has installed new turnstiles as part of the Transportation Worker Identification Credential (TWIC) upgrade and is applying for a grant to enhance its camera system with facial recognition capabilities. “These upgrades are vital for maintaining security and operational efficiency at our facilities,” Mr. Ottley said.

Financially, WICO is in a stable position, with $575,000 in cash and $7.1 million in restricted cash as of December 2023. Operating revenues for fiscal year 2023 were $2.4 million, with operating expenses amounting to $2.3 million. “We are in a solid financial position, and our agreements with major cruise lines like Carnival, Norwegian, and Disney account for approximately 95% of our passenger volume,” Mr. Ottley said.

Mr. Ottley concluded his presentation with an optimistic outlook for WICO’s future, emphasizing ongoing efforts to enhance the cruise passenger experience and strengthen the company’s financial stability.