St. Vincent and the Grenadines government officially signed a Memorandum of Understanding (MOU) with Global Ports Holding (GPH), the world’s largest cruise port operator. This sets the stage for a massive modernisation of the Kingstown Cruise Port and establishes a framework for future developments in the Grenadines.
Prime Minister Dr. Godwin Friday highlighted the urgent need for the project, noting that while the original port was transformative in its time, the country’s infrastructure is now lagging behind the competitive, capital-intensive cruise industry.
The proposed 30-year concession will be executed in phases, with the government expecting a total investment of approximately $225 million to $250 million EC dollars. Phase one will see an injection of up to $75 million EC dedicated to upgrading the terminal, enhancing commercial spaces, and improving shore excursions to encourage repeat visitors.
The Minister of Tourism and Sustainable Development outlined the dire financial realities that necessitated this partnership. He revealed that over the last five years, the cruise port operated at a loss for four of them, generating a profit of only $266,000 EC in 2023 despite $15 million EC in cumulative expenditures.
Furthermore, regional data indicates that the local visitor spend averages just $59, the lowest in the OECS. The Minister expressed confidence that the GPH partnership, paired with the new “Love SVG” tourism initiative, will drastically improve the visitor experience while adhering strictly to principles of environmental sustainability.
GPH Chairman Mehmet Kutman expressed strong optimism about the destination, stating that St. Vincent is currently “under-marketed” but has the potential to triple its current traffic of around 200,000 passengers within the next five to seven years. Drawing parallels to GPH’s success in the Bahamas—where passenger spending skyrocketed from $56 to $128 per person—Kutman stressed that GPH views itself merely as a “tenant” working on behalf of the local landlords: the citizens.
A central pillar of the MOU is robust local integration. Kutman stated that “rule number one” for his company is that the community must be happy, pledging that GPH will not import management labor and will instead rely entirely on local teams to run operations. Crucially, the agreement includes the creation of a Special Purpose Vehicle (SPV) that will allow Vincentian nationals to invest and hold up to 30% ownership in the port operating company, allowing the public to directly share in the profits.
Dr. Sean Matthew, a St. Lucian native and key GPH executive, spoke to the importance of tailoring the project to local needs. “We don’t know the cultures of each island, and therefore we seek through the government and through partners… to understand where does the government and the people of each island want to take their tourism industry,” he explained. Dr. Matthew praised the local government’s proactive approach, which allowed the partnership to come together rapidly.