The U.S. Virgin Islands (USVI) is embracing its status as one of the very few Caribbean destinations you won't need a passport to return to the U.S. from by air starting on January 23, 2007. Its No Passport Required promotion offers 20 percent off 2007 rates at participating hotels for bookings of five or more nights made by December 31, 2006.
I think the discount is great for people who are planning on visiting the USVI next year and want a little motivation to book now. But, I don't think that anyone should decide against visiting another Caribbean island (or Mexico, or Canada, or anywhere else for that matter) just because they don't have a passport. Because there really is no better travel accessory and you only have to get one every ten years. With the Department of State passport website, it's easier than ever to get one, and if the cost really is a hang-up, a number of hotels in Jamaica, SuperClubs around the Caribbean, and other resorts are offering deals that cover the cost of a passport.