Projected decline in financial services industry worries Walwyn
Sixth District Representative Myron Walwyn has bemoaned the lack of adequate response from the government regarding local projections showing that some areas of the financial services industry are declining.
The financial services industry is not fully understood by the average resident, but the community is protective of the industry as there is an awareness that it is the biggest revenue earner for the BVI.
Speaking in the House of Assembly recently, Walwyn referred to the mid-year fiscal report (2023), which showed that several areas of the financial services industry had declined when compared to 2022.
The report said the declines are believed to be linked to the numerous global threats facing the industry, including market saturation, taxation challenges and issues around publicly accessible registers of beneficial ownership.
Walwyn also pointed to the 2024 budget speech, which said that “revenue from the Registry for Corporate Affairs, which pertains to our financial services industry, is forecast to drop by 1.24% compared to 2023 — from $$208.63 million to $206.05 million.”
Despite these projections Walwyn said the government hasn’t outlined its plans to make up for the revenue that will be lost from financial services.
“Those of us who understand the financial services sector and the importance to the economy; if we only lose even 10% of the revenue from financial services, it spells catastrophe for the services we offer here in the territory,” Walwyn stated.
He continued: “But while the discussion is going on about open registry (public accessible), there’s no conversation about how the government will deal with the possible loss of revenue. This budget in no way addresses what we are going to do to diversify or improve our tourism product in case something unfortunate happens.”
Walwyn said investing in tourism is the quickest way to make up for possible dips in revenue from the financial services industry. But he, other opposition legislators, and tourism industry players agree that the current administration is not doing much to improve the industry.
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All Natalio Wheatley can talk about is expeaning the runway so we can get bigger planes and more people with no where to put them driving on roads that has to be the worse in any carbbeian island. The Island looks like shit with discarded cars junk and boats all over the BVI or goverement has no shame, some of the people he is complaning us to they are just as bad. We need a change from this goverement the sooner the better.
WE NEED A FRESH ELECTION ASAP
Both financial services and tourism are susceptible to market trends. Furthermore, they are largely dependent on foreign investment and participation.
@Roger Burnett and what is your point?
@PTO9
My point is: neither is a basket that you should put all your eggs in.
pillars of the BVI economy are:
Tourism: a serious pandemic will ruin it again.
Financial services: subject to the irregularities of the global financial economy.
As usual the HOA members have no plans to resolve these problems.
Not long ago government tried to force FS businesses to employ underqualified and inexperienced locals for top management positions. The businesses told them what would happen. Recently we have that crazy lady bemoaning the charter company practice of not employing local captians who just finished a nothing course at a nothing college, HLSCC, for top jobs on top yachts.
The FS is failing partly due to poor management in the offices. That’s a fact, and it began in the last 10-15 years when managers were chosen based on their gender and ethnicity over their qualifications and experience.
This will be a bitter pill for some people to swallow; the truth usually is.
These are comments of someone that does not have a clue about the FS industry so the less said about them the better. You need to do some proper research assuming that you did any at all before writing this garbage. Decline in a global industry is caused by local management..gimme a break.
I suppose your next piece will be global warming caused by BVI locals hijacking the planet..just plain absurd
1) I am neck deep in the FS industry.
2) Please improve your comprehension of the English language: “partly” means not in totality.
3) There are attractive jurisdictions that offer the same products that have a more positive outlook and far better service than the BVI.
4) You need to think before you type.
The financial services industry is in decline globally. Could the BVI have done things differently to mitigate the downturn? Yes. Was it avoidable? No.
When they stop the money laundering of the drug money the flow of money to the government is going to dry up.
and governments, for the past 30 years, have failed to diversify the economy through education, training and infrastructure development. This country’s leaders have no vision and act like the gravy trains will keep on rolling, providing enough money to keep government employees (voters) paid for doing very little.
Goodbye BVI as a viable economy if attitudes don’t change fast.
Fair points, but fair to say that Myron was himelf previously part of govt. He did not seem to think twice but spending $ 1 million on a wall around the school, without justifying the costs.
The dude with the wig as our premier we are pretty sure he can do better than all bod these set of wannabes who thinks that they are GODS gift to us / but he only has energy for writing and blogging racism on his yello site where he is king and rules Supreme.
Arrested and charged for government money
You can tell that you’re a nasty person who celebrates in the demise of other people. It must be terrible being someone like you. Get some help.
I am glad to have this man back in the House of Assembly. District 6 must be proud to have someone who could speak up for them on any issue in House. Keep hitting Myron.
Third pillar gone
1. The projected decline is 1.25% is what the article says. That could be just be an error rather than a significant trend. It would be more informaive to report the trend over the last several years. Would you get excited about a 1.25% discount?
2. If there is less money coming in, then govt needsto improve the efficiency with with which it spends it. In most places, that woukd involve closer scrutiny of expenditures, including prioritizing porjects and suspending less important work (e.g. covering the vendor stands at Pier Park for which govt already paid an astounding $1 million plus). What happens is you keep spending the sme but your salary is cut?
3. The writing’s been on the wall for financial sercices for a long time. The number of BVI resgistered companies is less tan half of waht it was 20 years ago. MW should already know this. Has any plan been made to address this loss of rvenue, besides imposing an environmental tax on visitors upon arrival?
Why don’t you stop trying to paint a bleak picture where there is none the offshore financial sector is still strong and bringing in lots of revenue and providing jobs. It’s you all Politrickians who need to stop doing sh.t and embarrassing the country, thus reducing investor’s confidence.