The charter world in the Virgin Islands has entered a new era. As of June 1, 2025, sweeping regulatory changes in the British Virgin Islands (BVI) have fundamentally altered how yachts can operate between the U.S. Virgin Islands (USVI) and the BVI. These changes have significant implications for your charter if you are are planning cross-border itineraries that includes both the BVI and USVI.
📍 What’s Behind the Regulation Update?
In late 2024, the Government of the BVI amended three major pieces of legislation governing commercial charter operations.
These amendments became effective June 1, 2025 to ensure foreign vessels contribute fairly to the BVI economy.
🚢 Key Changes That Affect Yacht Charters
1. Maximum Cross-Border Trips for USVI-Based Yachts
Under the new rules, USVI-based charter yachts now face limits on how many times they can enter BVI waters:
- Only 7 total entries or pickups per year include any charter pickup or drop-off in the BVI.
This means itineraries that previously started in St. Thomas and sailed into the BVI may no longer be feasible once a yacht exceeds its annual allowance of 7 crossings.
2. Why Your Charter Costs More
One of the most controversial aspects of the changes is the dramatic rise in charter licensing fees for non-BVI vessels:
- Annual BVI charter licenses for foreign yachts (USVI-based yachts) have jumped from under $1,000 to as much as $7,500–$24,000.
- Water taxi licenses now cost around $8,500, up from roughly $200.
These increases are up to 4,000%!
3. Rules for BVI-Based Yachts Entering the USVI
While less publicized, the new regulations also affect BVI-based yachts visiting the USVI:
- They are limited to a fixed number of pickups/drop-offs in the USVI which is 7.
This model is intended to prevent vessels from registering in the BVI but operating primarily from the U.S. side with minimal contribution to the local economy.
🎯 What This Means for Charter Travel
✈️ If You Were Planning a St. Thomas Pickup
Chartering a USVI-based yacht to begin in St. Thomas and then sail into the BVI is now far more complicated. The 7-entry cap and high licensing costs may make this option rare, expensive, or unavailable depending on how many trips the vessel has left in its quota.
Alternatives include:
Booking a BVI-based yacht and either flying directly into EIS airport in Tortola OR flying into STT and arranging transport (ferry or water taxi) from St. Thomas to Tortola to pick up your yacht
🗓️ If You Want a USVI & BVI Combined Itinerary
It’s still possible but only under certain conditions:
- Some operators may offer limited cross-border pick-ups by managing their visit allocations across the season.
- Guests must carefully confirm that their yacht has available “BVI credits” left before booking a cross-border route.
Because the entry limits are per vessel, not per charter, booking early and checking the vessel’s status is now essential.
🛥️ Market Shifts & Industry Response
These changes have sparked significant industry shifts:
- Some USVI operators are relocating yachts to the BVI to avoid limitations
The near-term effect is a rebalancing of where yachts are based and how cross-border itineraries are structured in the Caribbean charter market.
🧭 Final Tips for Charter Guests
Before you book:
- Ask whether your desired yacht is USVI-based, BVI-based, or dual-licensed.
- Confirm how many BVI entries or pickups remain for the season.
- Understand the limits on days in foreign waters if combining USVI and BVI stops.
Being proactive can help ensure your dream charter doesn’t run into regulatory headaches mid-itinerary.
🌊 Conclusion
The 2025 regulatory overhaul in the Virgin Islands represents the biggest shift in charter operations in decades. While the intention is to modernize maritime governance and protect local industry, the real impact extends to itinerary planning, scheduling, pricing, and how charters operate between the USVI and BVI.
For charter guests, the best strategy in this evolving landscape is clear communication with your broker, early booking, and a solid understanding of how these limits will affect your charter season.