Download British Virgin Islands

KEY FACTS
British Virgin Islands
Official name: British Virgin Islands
Head of State: Queen Elizabeth II;
represented by Governor Thomas
T Macan (sworn in 14 Oct 2002)
Head of government: Chief Minister
Orlando Smith (sworn in 17 Jun
2003)
Ruling party: National Democratic
Party (NDP) (elected 16 Jun 2003)
Area: 153 square km
Population: 22,700 (2004)
Capital: Road Town
Official language: English
Currency: US dollar (US$) = 100
cents
GDP per capita: US$16,000 (2003)
GDP real growth: 1.00% (2003)
Labour force: 4,911 (2003)
Unemployment: 3.00% (2003)
Inflation: 2.50% (2003)
Balance of trade: -US$161.70
million (2003)
Foreign debt: US$36.10 million
(2003)
Visitor numbers: 560,000 (2003)
COUNTRY PROFILE
Historical profile
1493 The islands were sighted by
Columbus.
1595 Sir Francis Drake visited the channel
which runs through the islands and which
now bears his name.
1648 The islands were settled by the Dutch.
1666 English settlers arrived.
1672 Tortola was taken over by the
English.
1872 The islands became part of the UK
colony of the Leeward Islands. The islands
continued to come under the authority of
the governor of the Leeward Islands until
1960.
1960 An appointed administrator (renamed governor in 1971) assumed responsibility for the islands.
1967 Lavity Stoutt of the Virgin Islands
Party (VIP) became the first chief minister
as the islands were granted internal
self-government.
1995 The VIP won the elections.
1997 The National Democratic Party
(NDP) was formed.
1999 The VIP was re-elected.
2001/02 There was a revival in the tourism sector and the financial services industry continued to be a major contributor
to the economy.
2003 In May, Allen Wheatley, financial
secretary in the local civil service, was
committed for trial on charges of fraud
over a contract for telecommunications
services at the new airport. Charged with
him was a nephew of the health minister.
In the 16 June parliamentary elections,
the opposition party, the NDP, defeated
Chief Minister Ralph O’Neal’s VIP. On 17
June, Orlando Smith was sworn in as
chief minister.
2004 The 2004 budget was presented
under the theme, ‘Empowering our People’; it was passed in February.
Political structure
Constitution
The constitution of June 1977 gives the islands a large measure of internal
self-government. The governor has direct
responsibility for external affairs, defence
and internal security (including the police),
the public services and the administration
of the courts. The constitution provides for
a ministerial system of government
headed by the governor, an Executive
Council (ExCo) and Legislative Council
(LegCo).
The governor is appointed by the British
monarch.
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Form of state
British Caribbean Dependency
The executive
The Executive Council is made up of the
governor, attorney general, chief minister
and three other ministers and has responsibility for finance.
National legislature
The Legislative Council has 15 members,
13 members elected for a four-year term
in single-seat constituencies, one
ex-officio member and one speaker chosen from outside the Council.
Legal system
The legal system is based on the British
common law system with local variations.
Justice is administered by the Eastern Caribbean Supreme Court. A resident puisne
judge presides over the High Court, Admiralty, and associated courts. There is a
Court of Appeal. Final appeals go to the
Privy Council in the UK.
Last elections
16 June 2003 (parliamentary)
Results: Parliamentary: the opposition
party, the National Democratic Party
(NDP), won eight seats out of 13, defeating the Virgin Islands Party (VIP); turnout
was 72 per cent.
Next elections
2007 (parliamentary)
Political parties
Ruling party
National Democratic Party (NDP) (elected
16 Jun 2003)
Main opposition party
Virgin Islands Party (VIP)
Population
22,700 (2004)
Ethnic make-up
African (83 per cent), white, Indian, Asian
and mixed race.
Religions
Methodist (45 per cent), Anglican (21 per
cent), Church of God (7 per cent), Seventh-Day Adventist (5 per cent), Baptist (4
per cent).
Education
The education sector will receive US$46.7
million from the 2004 Budget.
Health
A national health insurance scheme is in
the planning stages in 2004. In the 2004
budget, US$37.3 million is allocated to
the health and welfare sector.
Life expectancy: 76 years: male 75
years; female 77 years (2003).
British Virgin Islands
Birth rate/Death rate: 15 births per
1,000 population; five deaths per 1,000
population (2003).
Infant mortality rate: 19 per 1,000 live
births (2003)
Welfare
A social security scheme exists for workers
between the ages of 16 and 65. The
scheme covers old age pensions, disability
and a survivor’s fund. Contributions are
shared between the employer and employee each providing 3.25 per cent of
worker’s salary. Self-employed workers
pay the full 6.5 per cent themselves.
Main cities
Road Town, on Tortola island (capital, estimated population 9,100 in 2003), East
End-Long Look (5,200).
Languages spoken
Official language/s
English
Media
Press
Local newspapers in the British Virgin Islands (BVI) are issued at regular intervals,
mostly weeklies in circulation. The readership of newspapers is somewhat less than
100 newspapers per 1,000 persons. The
island has an abundant supply of international and regional newspapers, including
radio, television and specialised publications. Newspapers operate freely without
any government influence or pressure and
openly criticise policies and actions.
Weeklies: There are three weekly newspapers. The Island Sun with on-line version
(www.islandsun.com) is the oldest newspaper in the BVI and is published on Fridays.
The BVI Beacon is the second oldest newspaper published on Thursdays
(www.bvibeacon.com). The BVI Penny Saver
is published on Tuesdays. On-line news service from the island includes Islands On-line
(www.islandsonline.com) that provides information on tourism and finance.
In addition to local newspapers there are
regional and international publications including the Daily News (St Thomas), Avis
(St Croix), San Juan Star (Puerto Rico), The
Barbados Advocate, Wall Street Journal
(New York), and New York Times. There
are also a number of newspapers from
other Caribbean countries circulated on a
delayed basis.
Broadcasting
Radio: Two radio stations: Radio ZBVI
and ZRODFM. ZBVI operates a daily
commercial station from Tortola.
Television: VITV (Virgin Islands Television)
Network. Cable television.
Economy
The economy of the British Virgin Islands
(BVI) is dependent on tourism and the financial services sector, which is based on
Agriculture
Farming
The agricultural sector contributes approximately 15 per cent to annual GDP. About
60 per cent of the total land area is agricultural. Crop production in 2003 included: 340 metric tonnes (mt) bananas,
420mt fruit in total, 25mt coconuts. Livestock production included: 266mt meat in
total, 139 beef, 36mt goat meat, 71mt
lamb.
Production is centred on livestock farming,
fishing (langoustine, prawns), food crops
(mainly fruit and vegetables) and sugar
cane for rum production.
Main areas of activity are Tortola, Virgin
Gorda and Jost Van Dyke.
The expansion of the tourist industry has
increased the dependence on imported
foodstuffs, mainly from the US.
Fishing
The typical annual fish catch has declined
since a 116mt high in 1998, by 2001
catches were down to 50mt with 41mt marine fish catches and 9mt all other seafood.
the large offshore sector; the services sector contributes approximately 75 per cent
to annual GDP.
Economic growth has been restrained by
the effects of the global economic slowdown and the decline in tourism following
the 11 September 2001 terrorist attacks
on the US. Nevertheless, tourist numbers
and company registrations are rising. An
increase in public investment has also
stimulated the economy.
The Organisation of Eastern Caribbean
States (OECS) shares a common currency
and central bank. The seven OECS members are Antigua and Barbuda, Dominica,
Grenada, Montserrat, St Kitts and Nevis,
St Lucia and St Vincent and the
Grenadines. The BVI and Anguilla are associate members.
The incoming government in 2003 said
that the BVI’s Treasury was depleted and
ordered a review of all ongoing projects.
However, the 2004 budget prioritises education, health and welfare and youth development, involving an 18 per cent
increase in government spending. The
budget also includes plans to purchase
new land for a home ownership
programme, to diversify the financial services sector and the rehabilitation of the
capital, Road Town. Government revenues for 2004 are predicted to increase
by 10 per cent to US$194.40 million,
compared to US$180.60 million collected
in 2003.
With effect from 1 January 2004, the government lifted the ceiling of tax-exempt income from US$3,000 to US$7,500 per
annum.
Industry and manufacturing
The industrial sector typically contributes
around 10 per cent to annual GDP. BVI
industries include construction, concrete
and rum production.
Tourism
Tourism is the mainstay of the economy.
The BVI are marketed as a quality tourist
destination offering such activities as diving, yachting and boat chartering, with a
stress on return visits, and eschewing
mass-market attractions such as casinos.
During 2002, total visitor arrivals rose to
just under 557,000, a 4 per cent rise over
the previous year. Arrivals by boat and
yacht increased by 5.4 per cent with
cruise ship passenger arrivals rising 5.1
per cent. Arrivals by air only increased by
0.7 per cent, reflecting a fear of flying
among many US tourists. The sector was
boosted by price discounts, although
spending per head declined. Tourist arrivals increased by 4.54 per cent in 2003,
compared to 2002. The infrastructure is
proving inadequate to meet the demands
of increasing cruise tourism, leading the
government in 2004 to investigate means
of making improvements. The BVI Tourist
Board was allocated US$10 million in the
External trade
The visible trade deficit is offset by tourist
spending, capital inflows and by workers’
remittances from overseas.
Imports
Principal imports are machinery and
equipment, foodstuffs, fuel. Imports totalled US$187 million in 2003.
Main sources: US, US Virgin Islands,
Puerto Rico, UK.
Exports
Principal exports are handicrafts, fruit,
vegetables, fish, rum and gravel. Exports
totalled US$25.30 million in 2003.
Main destinations: US Virgin Islands
KEY INDICATORS
Population
British Virgin Islands
Unit
1999
2000
2001
2002
2003
m
0.02
0.02
0.02
0.02
0.02
Gross domestic product
(GDP)
US$bn
GDP per capita
GDP real growth
0.30
0.31
0.32
0.34
0.32
US$
15,000
16,000
16,000
17,000
16,000
%
6.8
6.0
8.7
5.1
1.0
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Nations of the World: A Political, Economic and Business Handbook
2004 budget to assist with resources for
expanding the sector.
Banking and insurance
The business and financial services sector
is the largest contributor to government
income, accounting for around 60 per
cent of the total. There were nearly
51,500 new registrations of International
Business Corporations (IBCs) in 2002, a
rise of less than 0.5 per cent over the previous year. This brought the total number
of IBCs incorporated in the British Virgin
Islands (BVI) to just under 500,000. In
2002, the government established the Financial Services Commission (FSC) to replace the Directorate of Financial Services
(DFS). The FSC operates as an independent regulator and is responsible for domestic and offshore finance.
A new EU tax directive will be introduced
in July 2005 in a number of associate and
dependent EU countries. Each country will
choose between a) informing the tax department of an EU citizen’s country about
the amount of money in savings accounts
and allowing tax to be levied from the
home country, or b) imposing a withholding tax to be passed to the relevant EU
country but retaining the anonymity of the
saver. BVI will use the second method.
Withholding taxes will begin at 15 per
cent and rise to 35 per cent by 2011.
BVI has also agreed to supply information
on tax fraud, for criminal or civil trials,
and notify EU member states about additional malpractices.
Central bank
There is no central bank.
Main financial centre
Tortola
Offshore facilities
The BVI Financial Services Commission licenses and regulates all service providers
operating within the offshore sector.
Time
GMT minus four hours
Geography
At the northern end of the Leeward Islands, in the eastern Caribbean, the BVI
consist of more than 60 islands and cays,
of which only 16 are inhabited. Most of
the islands are mountainous and of volcanic origin; the coralline island of Anegada
is the only exception of any size. They lie
about 100km to the east of Puerto Rico
and adjoin the US Virgin Islands.
Climate
The climate is sub-tropical, with no marked
seasonal variation in temperature – generally 24–30 degrees Celsius (C) during the
day and 10 degrees C cooler at night. Rainfall is generally low, although tropical storms
may occur from July–November.
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Entry requirements
Passports
Required by all, though birth certificate is
sufficient for US and Canadian citizens.
Visa
Not required by nationals of EU and
Commonwealth countries, the US, Japan
and certain others. A return or onward
ticket is required.
Currency advice/regulations
No restriction on import of foreign currency but amounts should be declared.
Exports limited to the amounts declared
on arrival.
Health (for visitors)
Mandatory precautions
None.
Advisable precautions
Typhoid vaccinations. Dengue fever is a
viral disease transmitted by mosquitoes,
which are most likely to bite two hours after sunrise and two hours before sunset.
Use an effective insect repellent on all exposed skin. Take water precautions.
Hotels
Expensive but wide range available. Seven
per cent hotel tax and 10 per cent service
charge usually added to bill.
Public holidays
Fixed dates
1 Jan (New Year’s Day), 1 Jul (Territory
Day), 21 Oct (St Ursula’s Day), 25 and
26 Dec (Christmas).
Variable dates
Commonwealth Day, Good Friday, Easter
Monday, Whit Monday, Queen’s Birthday,
August Festival (first Mon–Wed in Aug),
Prince Charles’ Birthday.
Working hours
Banking
Mon–Fri: 0900–1400; also Fri:
1600–1730.
Business
Mon–Fri: 0830/0900–1630/1700.
Government
Mon–Fri: 1230–2030.
Telecommunications
Telephone/fax
Automatic telephones system links all major islands in the group. IDD from the islands has also been introduced. In 2003,
there were 10,000 telephone main lines
in use.
Electricity supply
120/208V AC, 60 cycles
Getting there
Air
National airline: Virgin Islands Airways
(Air BVI).
International airport/s: Terrance B
Lettsome International Airport (EIS) on
Beef Island, 15km from Road Town on
Tortola. Only inter-island and
intra-Carribean flights arrive at this airport
including regular flights from Puerto Rico,
US Virgin Islands and Antigua.
Airport tax: Departures tax US$10, not
applicable to transit passengers.
Getting about
National transport
Air: Air BVI operates domestic flights linking Tortola, Virgin Gorda and Anegada.
Charter services are also available.
Road: The main highway from Beef Island
through Road Town to West End is surfaced. There is a bridge connecting Beef
Island with Tortola. There is also a surfaced road on the northern ridge from
east to west. Roads on Virgin Gorda are
in variable condition.
Water: Various types of boats ply between islands. Regular ferry services operate between Road Town and West End
(Tortola) and Charlotte Amalie (St
Thomas, US Virgin Islands).
City transport
Taxis: Widely available. Taxi rank in Road
Town is opposite central post office and
Taxi Association on Wickhams Cay.
Tipping is optional. Taxis can be hired on
a time basis.
Car hire
Can be hired on Tortola and Virgin
Gorda. Temporary licences can easily be
obtained from rental agency on production of national driving licence. Traffic
drives on the left.
BUSINESS DIRECTORY
Business directory
The addresses listed below are a selection
only. While World of Information makes
every endeavour to check these addresses, we cannot guarantee that
changes have not been made, especially
to telephone numbers and area codes.
We would welcome any corrections.
Telephone area codes
The international direct dialling (IDD)
code for the BVI is +284, followed by
subscriber’s number.
Chambers of Commerce
BVI Chamber of Commerce and Hotel Association, James Frett Building, PO Box
376, Road Town, Tortola (tel: 494-3514;
fax 494-6179; e-mail:
[email protected]).
Banking
Banco Popular de Puerto Rico, PO Box
67, Road Town, Tortola (tel: 494-2117;
fax: 494-5294).
Bank of Nova Scotia, PO Box 434, Road
Town, Tortola (tel: 494-2526; fax:
494-4657).
Barclays Bank International, PO Box 70,
Road Town, Tortola (tel: 494-2171; fax:
494-4315).
British Virgin Islands
Chase Manhattan Bank, PO Box 435,
Road Town, Tortola (tel: 494-2662; fax:
494-3863).
CITCO Ban (BVI) Ltd, PO Box 662, Road
Town, Tortola (tel: 494-2217; fax:
494-3917).
Crorebridge Bank, PO Box 71, Road
Town, Tortola (tel: 494-2233; fax:
494-3547).
Disa Bank BVI, PO Box 985, Road Town,
Tortola (tel: 494-4977; fax: 494-4980).
Guyerzeller Bank, PO Box 3162, Road
Town, Tortola (tel: 494-5414; fax:
494-5417).
London International Bank and Trust
Company, PO Box 3151, Road Town,
Tortola (tel: 494-3045; fax: 494-3050).
Rathbone Bank, PO Box 986, Road Town,
Tortola (tel: 494-6544; fax: 494-6532).
The Bank of East Asia, PO Box 901, Road
Town, Tortola (tel: 495-5588; fax:
494-4513).
United Chinese Bank, PO Box 901, Road
Town, Tortola (tel: 494-6775; fax:
494-8180).
Travel information
Air BVI, PO Box 85, Road Town, Tortola
(tel: 42-777/8; fax: 42-136); airport (tel:
52-346).
British Virgin Islands Tourist Board, Joshua
Smith Building, PO Box 134, Road Town,
Tortola (tel: 43-134; fax: 43-866).
Ministries
Governor’s Office, Government House,
PO Box 702, Road Town, Tortola (tel:
494-2345, 494-2370; fax: 468-4490).
Other useful addresses
BVI Hotel and Commerce Association, PO
Box 376, Wickhams Cay, Road Town,
Tortola (tel: 43-514, 42-947; fax:
46-179).
BVI Financial Services Commission, Pasea
Estate, Road Town, Tortola (tel:
494-4190; fax: 494-9399;
e-mail: [email protected];
internet site: http://www.bvi.org).
BVI Offshore Financial Centre, Financial
Services Department, Ministry of Finance,
Pasea Estate, Road Town, Tortola (tel:
494-6430; fax: 494-5016; internet site:
http://www.bvi.org).
Cable and Wireless (West Indies), PO Box
440, Road Town, Tortola (tel: 44-444;
fax: 42-506).
Immigration Department, Road Town,
Tortola (tel: 494-3701, 494-3471; fax:
494-4399).
Trade and Investment Promotion, Trade
Department, Central Administration Complex, Road Town, Tortola (tel: 494-3701;
fax: 494-5676).
VITV (Virgin Islands Television) Network,
Butu Mountain, PO Box 118, Road Town,
Tortola (tel: 494-8488/2257; fax:
494-5323).
ZBVI Radio, PO Box 78, Road Town,
Tortola (tel: 494-2250; fax: 494-1139).
ZRODFM (radio station), PO Box 992,
Road Town, Tortola (tel:
494-1037/5832; fax: 494-4564).
Internet sites
British Virgin Islands homepage:
http://www.britishvirginislands.com
Islands on-line:
http://www.islandsonline.com
The Island Sun: http://www.islandsun.com
VP Bank, PO Box 3463, Road Town,
Tortola (tel: 494-1100; fax: 494-1199).
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