USVI Cannabis License Applications: Which Island to Choose?
Multiple Locations For Cannabis Businesses
Situated in the beautiful Caribbean and just east of Puerto Rico, the U.S. Virgin Islands or USVI is made up of over 50 islands though there are tree main ones that you as a prospective cannabis applicant would likely be most interested in. These are: Saint Croix, Saint John, and Saint Thomas.
There’s plenty of factors to consider when not just pursuing an upcoming cannabis license in the USVI and one of the biggest is determining which island to choose.
Here we’ll break down some of these major factors, so you can decide which island is best for you and your U.S. Virgin Island cannabis license pursuit.
Cannabis Tourism Considerations
Year-Over-Year Growth
One of the primary draws of the USVI is tourism. Since 2021, tourism figures have by and large increased annually, with 2024 having already outpaced 2023 year to date. 2023 saw over 782,000 tourists visiting the islands but crucially also saw 1.6 million cruise visitors. 2024 already has a 30,000 tourist lead on 2023 for cruises and over 130,000 additional tourists or a 23% increase in overnight visitors from last year. 2023 saw over $343 million in tourism revenue generated with 2024 eclipsing this figure already.
Different Opportunities For Different Islands
These are fantastic statistics to consider seeing as how more and more people continue to flock to the islands—but which islands?
You’ll want to look at Saint Thomas and Saint Croix here. Saint Thomas is where the territorial capital, Charlotte Amalie, is situated and is where Cyril E. King Airport is located, this being not just the largest airport in the islands, but one of the busiest islands in the whole of the Caribbean. Saint Thomas is also a major thoroughfare for those visiting the neighboring British Virgin Islands. But don’t underestimate Saint Croix, which is the largest of the three islands and is often included most on cruise itineraries.
Local Cannabis Support and Residency Requirements
USVI Residency Is a Priority
While tourism is the dominant source of island revenue, you won’t want to forget the locals. The Virgin Islands Office of Cannabis Regulations (OCR) is governed by an eleven-member Board known as the Virgin Islands Cannabis Advisory Board (VICAB). In their eyes, residency and local support are paramount for being awarded one of these merit-based licenses.
As part of the application process, there are residency requirements with a majority or 51% ownership stake having to be held by residents. For the purposes of the application, a resident means anyone who currently resides in the Territory and has resided in the USVI for 10 of the last 15 years.
Large Populations Could Mean Better Networking
With each island boasting populations of over 40,000, again you’ll want to look towards Saint Thomas and Saint Croix to reach more individuals and have a better chance at networking and connecting with locals (this is compared to Saint John which has a population of just over 3,000).
Island Business Practicality
Logistical Challenge or Untapped Opportunity?
Given the nature of being on an island, limited real estate and transportation options become wildly important. Here is where Saint Croix may be the most challenging. Geographically, Saint Thomas and Saint John are much closer, the two being just six miles apart. Meanwhile, Saint Croix is much further south, being over 35 miles away from Saint John.
Transportation Could Be Key
While there are twice daily ferries from Saint Thomas and Saint Croix, these are over two hours long. There are also 25-minute flights between the two most populous islands. This is something to consider given its another step in the supply chain. Meanwhile, between Saint John and Saint Thomas, there are multiple 15–20-minute ferry rides daily. Of all the islands, from a practical standpoint, Saint Thomas is the clear standout being the most visited, most urbanized, and connected to the other two islands.
Cannabis Licenses Per Island
There are limited licenses that will be issued for cultivation and dispensaries. For both Saint Thomas and Saint Croix, there will be 15 cultivation licenses and 7 dispensary licenses for each island. Meanwhile, Saint John will have 5 cultivation licenses and 3 dispensary licenses.
Only Comprehensive Applications Will Win
Now say you are the only applicant for a dispensary license in the small, less populated Saint John. Surely no matter what state your application is in, you’ll get licensed, right? Not so.
The OCR has made clear that even if there is a single applicant for a license type on an island, and that application doesn’t meet the merit-based requirements for licensure, they will be rejected. It is paramount that you fill out a robust and comprehensive application once the window opens later this year.
Which USVI Island To Choose For Cannabis?
From purely a business development perspective, Saint Thomas is likely the best bet given its tourism and practicality elements, followed by Saint Croix, and then Saint John. However, it’s vital to note that the best scoring application in Saint John would have a better chance of actually opening and becoming profitable compared to a lackluster application submission for Saint Thomas given the merit-based approach.
No matter what island you submit for, you’ll want to make sure you have the best qualifying application possible and we at Canna Advisors are ready and eager to help you apply in the USVI.
Contact our team or book an hourly consultation today to take advantage of decades of seasoned cannabis consulting experience and an active pulse on the USVI cannabis market.