No Fronting in Charter Industry
Junior Minister for Financial Services Lorna Smith has warned against ‘fronting’ in the charter boat sector, as the government seeks greater local participation in day charters, water taxis and dive operations. Meetings held on Virgin Gorda and planned for Tortola aim to tighten oversight, encourage joint ventures, and ensure vessels operate legally under BVI trade and licensing rules.
Junior Minister for Financial Services Lorna Smith has issued a warning against "fronting" in the British Virgin Islands charter boat industry as the government moves to ensure more Virgin Islanders benefit from the territory's lucrative marine sector. Smith made the comments on the Talking Points programme, saying the government recently held stakeholder meetings on Virgin Gorda and will hold further discussions on Tortola in the coming weeks to address concerns about how some charter businesses operate.
She described the BVI as "the charter boat capital of the world" and said it was important that British Virgin Islanders share in the sector's economic gains, especially in day charters and water taxi services. The junior minister praised several local operators across the territory, pointing to successful businesses involved in day charters, water taxis and dive operations.
Officials on Virgin Gorda concluded there are sufficient locally owned vessels to serve the day-charter and water-taxi markets, Smith said, underlining the potential for homegrown operators to meet local demand. Smith also urged customs officers and other regulators to broaden their oversight beyond the search for contraband. "Customs need to look beyond.
Yes, looking for contraband is essential, but they also have to look at the way in which the boats operate to make sure that they are operating legally," she said, stressing the need to ensure compliance with trade and licensing frameworks. The Trade Department plans to step up dialogue with operators to minimise instances of fronting, a practice in which locals are allegedly used as nominal owners or representatives for businesses effectively controlled by others. "I'm all for joint ventures.
What I don't like is fronting," Smith said. "And I don't think that any of us can honestly say that fronting is the right thing to do. So the Trade Department needs to have more dialogue with the operators to make sure that this is minimised." Local participation in the charter industry has been debated in the BVI for years, with concerns about foreign dominance affecting employment, local business opportunities and the distribution of tourism revenue.
Smith's intervention signals a government push to clarify licensing requirements, strengthen enforcement and create clearer pathways for bona fide BVI-owned enterprises to grow. Further meetings with operators and regulators are planned and Smith said the government will monitor progress closely. "We're going to watch this space," she added, signalling that residents can expect continued engagement, enforcement attention and opportunities for legitimate local businesses in the marine tourism economy.
Primary source: BVI News