REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS + 3

to correct the situation and which, as described above in this report,
also provides the basic power for the production of 275,000 gallons
of fresh water per day as a dual product. A 3,000 kilowatt diesel
unit was also installed in St. Croix during the year, greatly -ameliorat-
ing the situation in that island.
 It is planned that an additional 3,000 kilowatt diesel engine will be
installed in St. Thomas later in calendar 1962 or early in 1963.
Longer range plans also call for the installation in St. Thomas of an
additional 5,000 kilowatt steam engine and a 3,000 kilowatt diesel
engine in St. Croix at a later date. Funds will have to be requested
from the United States Congress by the corporation for the latter two
units mentioned. The corporation has been assured by its power con-
sultant that the acquisition and installation of these additional units
will assure the Virgin Islands of firm power for the foreseeable future.
 During the year the number of tourist visitors increased greatly.
This growth has been phenomenal, whether measured by number of
visitors or by estimated expenditures. An effective advertising and
promotional program was inaugurated and carried out, highlighting
the islands as a year round resort with wonderful climate, scenic
beauty, Old World charm and atmosphere, excellent swimming and
snorkeling, a free port with many well stocked gift shops, bargain
prices, and a convenient place to come to where English is the official
language. Hotels and guest houses were full during the winter sea-
son and continued with good business during the rest of the year.
Shops and stores also experienced increased sales in spite of the many
new ones that opened for business during the year. This increased
business was shared by everyone. As a direct result, Customs dues
increased from $502,000 in the fiscal year 1961 to $890,000 in fiscal
year 1962. Expenditures by tourists leaped to approximately
$35,000,000, an increase of $10,000,000 over the preceding year.
 The National Park Service expanded and improved its facilities
on the island of St. John and established the Buck Island Underseas
Park, expected to become a prime visitor attraction on St. Croix.
 These programs, together with the special $200 Customs allowance
for tourists generated unprecedented prosperity. Total revenues of
the islands jumped to $11,000,000-an increase of 251/2 percent-the
highest on record in the history of the territory, thereby permitting
record operating and capital improvements budgets.
 At present, tourism is the principal industry and of primary im-
portance to the overall economy of the islands. While this is true,
and while tourism will continue to be exploited to its fullest potential,
it cannot, and should not be the islands' only industry. Prudence
and wisdom dictate diversification. Small industries are being en-
couraged to establish, creating new job opportunities at higher wages.