The development marks a major step in the federation's ambition to become a leading Caribbean turnaround and, ultimately, homeport destination, with the new facility designed to support embarking and disembarking passengers alongside improved immigration and security processing.

The project follows the announcement earlier this year that P&O Cruises will begin turnaround operations in St. Kitts from November 2027. The line's ships Iona and Arvia will operate Caribbean fly-cruise itineraries beginning and ending in Basseterre, with St. Kitts becoming an additional turnaround port for Iona.

Paul Ludlow, President of Carnival UK and P&O Cruises, welcomed the investment, saying: "This milestone reinforces the destination's growing importance within the Caribbean cruise sector and its commitment to delivering exceptional experiences for our guests."

Officials said the new terminal is expected to generate greater economic benefits by encouraging higher visitor spending, supporting overnight stays and boosting airlift into the destination. St. Kitts has already welcomed more than 950,000 cruise passengers during the current season.

The project has been led by the St. Christopher Air and Sea Ports Authority, the Urban Development Corporation and the Homeporting Steering Committee, chaired by Melnecia Marshall, Deputy Chief Executive of the St. Kitts Tourism Authority. Prime Minister Dr Terrance Drew said the investment would support the country's long-term economic resilience.

"This investment in the cruise terminal will drive economic impact felt across every corner of our tourism industry," he said. "It also advances our vision for a Sustainable Island State: a nation resilient enough, and diversified enough, to not just survive whatever comes our way, but to thrive."

Minister of Tourism Marsha T. Henderson added: "This ceremony represents our determination to invest in infrastructure that strengthens our economy, creates new opportunities for our people, and enhances the competitiveness of St. Kitts and Nevis within the global cruise industry."

St. Kitts is served by twice-weekly direct British Airways flights from London Gatwick, supporting the destination’s growing fly-cruise offering for the UK market.