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economy in st thomas

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economy in st thomas

considering visiting st thomas to investigate a business for sale there. just wondering how the economic crisis has affected the area. any feed back would be appreciated.

St Thomas
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1. Re: economy in st thomas

It's not good at all and, since we generally lag behind a mainland US recession by about 18 months, there is no doubt it's going to get a lot worse.

Virgin Islands
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2. Re: economy in st thomas

It depends on what type of business you are in. Some sectors of the economy are fine and others such as the high end tourism and some high end restarants are lagging. We didi not have any sub prime mortgages so we do not have forclosures. Our tourism dept has been doing lots of promotion specials so the airlines are very busy and the hotels have been bust. The Marriott was fully booked this week.

Michigan
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3. Re: economy in st thomas

My opinion is that you will probably get a very good price on the business now and reap the benefits in a year or 2 when the economy swings back around!

St Thomas
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4. Re: economy in st thomas

I beg to remain realistic!

The hotels are taking a major hit and have been for the past six months. The Vi Department of Tourism has spent a lot of money working with the hotels and the airlines to offer promotional deals to encourage mainlanders to visit the islands and, with all due respect, their combined efforts have worked but not much to the general benefit of small businesses.

One or two hotel's occupancy rate being high for a couple of weeks does not in any way denote that our general economy is in any way stable. In the last year and a half we have seen a huge increase in our local unemployment rate. The number of "snowbird" youngsters who usually descend during season was SO depleted this past "season" and those who decided to come despite the general admonition that things here were no better than they were back in their hometown, quickly hightailed it back home.

Several business owners and homeowners here sold and exited a year ago when they saw the writing on the wall. We may well not have the foreclosures common on the mainland but the housing market here right now is stagnant with lots of properties simply sitting and likely to drop in value in the next six months to a year.

StonehouseVI sees that some of the high end restaurants are suffering but maybe doesn't see that that a whole bunch of both high end and middle of the line restaurants have closed in the last six month with a whole bunch currently but quietly "for sale!". And likewise many high end businesses in general have cut back on their staff and cut back hours.

Dtenel is a visitor and, with all due respect, shouldn't be opining about doing business here. It's one whole different ball game.

With all due respect, sheusa, come on down and look into it but be very careful and extremely cautious. Cheers!

St Thomas
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5. Re: economy in st thomas

Here's an article in today's "Source" which might be of interest:

www.onepaper.com/stthomasvi/…

St. Thomas
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6. Re: economy in st thomas

Frankly, nobody can say without knowing what business & what your plans are but the economy is in the toilet & it will last longer than the US because people are more cautious after a major economic melt-down.

That said, there are a few businesses that are booming from what I can see. Go into Delly Deck any day including days with no ships & they're busy. There are a few more examples like that but mostly it's those that don't depend 100% either on tourists or locals.

DTenel may be correct if you can get a real bargain, know what to look for & have enough cash to ride out the current storm but be really careful & look beyond sun & sand. You will work extremely hard here & it's a completely different culture.

Michigan
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7. Re: economy in st thomas

Wow....as a business owner here in Michigan, I was only saying that if the OP is seriousely interested in buying a business on STT...he could probably get a really good deal now. However, I was assuming that they were smart enough to be able to ride out the storm with the economy. Thus meaning: having enough capital to cover costs, ect until the economy turns around. I would hope the OP has his "business sense" to know that right now it is slow, but come on guys...the economy will turn around at some point. Maybe a year...two...three....but it is bound to happen. THEN, I was saying the OP would have gotten a great deal.

Just like real estate. I am pretty sure that some people that have the money to spend now and were already interested in buying on STT will jump on some of these houses when the prices drop.

Yes, I am a visitor, but like I said I am also a business owner and was thinking like one. I didn't mean to offend any of the locals living through this slump. Hey....we own a used car lot here in Michigan....we aren't having it easy now either.

St. Thomas
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8. Re: economy in st thomas

One other thing: I'm delighted to hear good occupancy rates at the Reef which I believe is the largest employer on St. Thomas (after the government) as well as good occupancy in the other hotels. Keeping all those people working trickles down to most island businesses one way or the other, for sure.

Washington DC...
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9. Re: economy in st thomas

One would have to be very cautious about buying any kind of business anywhere right now. It's one thing to get a great deal on a house...it's quite another to buy a business that may well be failing and continue to do so.

We have a number of friends on the island who work in various occupations -- restaurants, hotels, shop owners, taxi drivers, artists, etc. and not one was very optimistic this last trip. They were all hurting financially. Hotel occupancy was down during the high season when most of the money is made and that trickles down to fewer people eating, taking cabs, and buying stuff. A good friend who owns a shop in Charlotte Amalie said the cruise passengers usually bring in a lot of $$$, but not so this year. Lots of cruisers didn't want to cancel their trips and lose the money they'd already paid, so they took the cruise but they didn't buy anything in town and nowadays they tend to go back to the ship for lunch. This is a real loss for the businesses that depend a great deal on the cruise traffic.

So...it's not good anywhere and I wouldn't hold my breath for it to get better anytime soon. :(

10. Re: economy in st thomas

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