Cayman Islands

 

Bureau of European and Eurasian Affairs                                       
June 2007                                                                     
                                                                       
  Background Note: Cayman Islands                                             
                                            
  The Mariner's Memorial in George                                            
  Town, Grand Cayman, May 10, 2003. [©                                        
  AP Images]                                                                  
                                                                       
  Flag of Cayman Islands is blue, with the flag of the United Kingdom in the  
  upper hoist-side quadrant and the Caymanian coat of arms centered on the    
  outer half of the flag.                                                     
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Cayman Islands                                                              
                                                                       
  Geography                                                                   
  Area: 259 sq. km. (100 sq. mi.) on three islands: Grand Cayman (76 sq. mi.),
  Cayman Brac (14 sq. mi.), and Little Cayman (10 sq. mi.).                   
  Capital: George Town (pop. 20,626.                                          
  Terrain: Low-lying limestone base surrounded by coral reefs.                
  Climate: Tropical.                                                          
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Caymanian(s).                              
  Population (2007 est.): 46,600.                                             
  Annual growth rate (2007 est.): 2.496%.                                     
  Ethnic groups: Afro-European 40%, African 20%, European 20%, other 20%.     
  Religious affiliations: United Church, Anglican, other Protestant, Roman    
  Catholic.                                                                   
  Language: English.                                                          
  Education: Years compulsory--to age 16. Literacy (age 15 and over)--98%.    
  Health: Infant mortality rate--7.8/1,000. Life expectancy--males 77.45 years;
  females 82.74 years.                                                        
  Work force: 23,450.                                                         
                                                                       
  Government                                                                  
  Type: British Overseas Territory.                                           
  Constitution: 1972; called the Cayman Islands Order.                        
  Branches: Executive--Governor and Governor-in-Cabinet (representing British 
  monarch), Cabinet. Legislative--unicameral Legislative Assembly (15 elected,
  three appointed members). Judicial--Summary Court, Grand Court, Cayman      
  Islands Court of Appeal, Her Majesty's Privy Council.                       
  Subdivisions: Eight districts.                                              
  Political parties: People's Progressive Movement, United Democratic Party.  
  Suffrage: Universal at 18.                                                  
                                                                       
  Economy                                                                     
  GDP (2004 est., purchasing power parity): $1.939 billion.                   
  Growth rate: 0.9%.                                                          
  Per capita income (2004 est., purchasing power parity): $43,800.            
  Natural resources: Scenic beaches and underwater attractions, favorable     
  climate.                                                                    
  Agriculture: Products--Minor production of vegetables and livestock, turtle 
  farming, aquaculture.                                                       
  Industry: Types--tourism, banking, insurance, mutual funds, finance, and    
  construction.                                                               
  Trade: Exports (2004)--$1.2 million: turtle products, manufactured consumer 
  goods. Major market--United States. Imports (2004)--$722.4 million:         
  machinery, manufactures, food, fuels, chemicals. Major suppliers--U.S.,     
  Jamaica, U.K., Netherlands Antilles, Japan.                                 
  Official exchange rate (Nov. 2003): CI $0.82=U.S. $1.                       
                                                                       
  HISTORICAL HIGHLIGHTS                                                       
  The Cayman Islands remained largely uninhabited until the 17th century. A   
  variety of people settled on the islands, including pirates, refugees from  
  the Spanish Inquisition, shipwrecked sailors, deserters from Oliver         
  Cromwell's army in Jamaica, and slaves. The majority of Caymanians are of   
  African and British descent, with considerable interracial mixing.          
                                                                       
  Great Britain took formal control of the Cayman Islands, along with Jamaica,
  under the Treaty of Madrid in 1670. Following several unsuccessful attempts,
  permanent settlement of the islands began in the 1730s. The Cayman Islands  
  historically have been popular as a tax-exempt destination. Legend has it   
  that Caymanians in 1788 rescued the crews of a Jamaican merchant ship convoy
  which had struck a reef at Gun Bay and that the Caymanians were rewarded with
  King George III's promise to never again impose any tax.                    
                                                                       
  The Cayman Islands, initially administered as a dependency of Jamaica, became
  an independent colony in 1959; they now are a self-governing British Overseas
  Territory.                                                                  
                                                                       
  ECONOMY                                                                     
  Although Caymanians enjoy one of the highest standards of living in the     
  world, about 90% of the islands' food and consumer goods must be imported.  
                                                                       
  From the earliest settlement of the Cayman Islands, economic activity was   
  hindered by isolation and a limited natural resource base. The harvesting of
  sea turtles to resupply passing sailing ships was the first major economic  
  activity on the islands, but local stocks were depleted by the 1790s.       
  Agriculture, while sufficient to support the small early settler population,
  has always been limited by the scarcity of available land.                  
                                                                       
  The advent of modern transportation and telecommunications in the 1950s led 
  to the emergence of what are now considered the Cayman Islands ' "twin      
  pillars" of economic development: international finance and tourism. In 2004,
  there were more than 70,000 companies registered in the Cayman Islands,     
  including 446 banks and trust companies. Forty of the world's largest banks 
  are present in the Cayman Islands.                                          
                                                                       
  It is estimated that financial services represent 40% and tourism between   
  30-40% of gross domestic product. Unspoiled beaches, duty-free shopping,    
  scuba diving, and deep-sea fishing draw almost a million visitors to the    
  islands each year.                                                          
                                                                       
  Education is compulsory to the age of 16 and is free to all Caymanian       
  children. Schools follow the British educational system. The Government     
  operates 10 primary, one special education, and two high schools. In        
  addition, there is a university and a law school.                           
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The Cayman Islands' physical isolation under early British colonial rule    
  allowed the development of an indigenous set of administrative and legal    
  traditions which were codified into a Constitution in 1959. Although still a
  British Overseas Territory, the islands today are self-governed in nearly all
  respects. The Constitution, or Cayman Islands Order, that now governs the   
  islands came into effect in 1972 and was amended in 1984.                   
                                                                       
  The Cayman Islands' political system is very stable, bolstered by a tradition
  of restrained civil governance, sustained economic prosperity, and its      
  relative isolation from foreign policy concerns by virtue of its colonial   
  relationship with the United Kingdom. Public discussion revolves around     
  public sector expenditure and social services, the pace of additional       
  economic development, and the status of the large foreign national community
  on the islands.                                                             
                                                                       
  Government Structure                                                        
  The Cayman Islands form a British Overseas Territory with a large measure of
  self-government. The present constitution, which came into effect in 1972,  
  provides for a system of government headed by a Governor, a Legislative     
  Assembly, and a Cabinet, which administers the islands. The Governor is     
  recruited from the U.K. Government Service, serves as the British government
  administrator, and retains responsibility for the civil service, defense,   
  external affairs, and internal security.                                    
                                                                       
  The Governor also chairs the Cabinet and appoints to the Cabinet the Chief  
  Secretary, the Attorney General, and the Financial Secretary, while the     
  Legislative Assembly elects the Cabinet's other five members. Unlike other  
  Caribbean Overseas Territories there is no Chief Minister but a Leader of   
  Government Business. The Leader of Government Business is an elected        
  politician, while the Chief Secretary is the most senior civil servant.     
  Currently, the Leader of Government Business is also the Minister for       
  District Administration, Planning, Agriculture and Housing.                 
                                                                       
  Responsibility for defense and external affairs resides with the United     
  Kingdom; however, the Chief Secretary has responsibility for the Portfolio of
  Internal and External affairs, and the Cayman Government may negotiate      
  certain bilateral matters directly with foreign governments. The elected    
  members of the Cabinet divide the remaining administrative portfolios.      
                                                                       
  The 18-seat unicameral Legislative Assembly is presided over by an          
  independent speaker. Elections are held at the discretion of the Governor at
  least every 4 years. Members of the Assembly may introduce bills, which, if 
  passed, are then approved, returned, or disallowed by the Governor. The U.K.
  Government also reserves the right to disallow bills approved by the        
  Governor.                                                                   
                                                                       
  The four-tiered judicial system is based on English common law and colonial 
  and local statutes. The Cayman Islands Court of Appeal is the highest court 
  on the islands, but Her Majesty's Privy Council sitting in London may hear a
  final appeal.                                                               
                                                                       
  Political Coalitions                                                        
  Since 2000, there have been two official political parties: The United      
  Democratic Party (UDP) and the People's Progressive Movement (PPM). While   
  there has been a shift to political parties, many contending for an office  
  still run as independents. In May 2005 elections, the People's Progressive  
  Movement won, receiving nine of the 15 seats.                               
                                                                       
  Principal Government Officials                                              
  Head of State--Queen Elizabeth II                                           
  Governor--Stuart Jack, since November 2005                                  
  Leader of Government Business--The Honorable Kurt Tibbetts, since May 2005  
                                                                       
  The Cayman Islands are represented in the United States by the United Kingdom
  Embassy at 3100 Massachusetts Avenue, Washington DC 20008; tel: 202-462-1340;
  fax: 202-898-4255.                                                          
                                                                       
  The Cayman Islands Department of Tourism, with offices in Miami, New York,  
  Houston, and Chicago, also may provide travel information.                  
                                                                       
  U.S.-CAYMANIAN RELATIONS                                                    
  Although the United Kingdom is responsible for the Cayman Islands' defense  
  and external affairs, important bilateral issues are often resolved by      
  negotiations between the Cayman Government and foreign governments, including
  the United States. Despite close historic and political links to the U.K. and
  Jamaica, geography and the rise of tourism and international finance in the 
  Cayman Islands' economy has made the United States its most important foreign
  economic partner. Following a dip in tourists from the United States after  
  September 11, 2001, over 200,000 U.S. citizens traveled by air to the Cayman
  Islands in 2004; some 4,761 Americans were resident there as of 2005.       
                                                                       
  For U.S. and other foreign investors and businesses, the Cayman Islands '   
  main appeal as a financial center is the absence of all major direct taxes, 
  free capital movement, a minimum of government regulations, and a           
  well-developed financial infrastructure.                                    
                                                                       
  With the rise in international narcotics trafficking, the Cayman Government 
  entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance
  Treaty of 1986 with the United States in order to reduce the use of its     
  facilities for money laundering operations. In June 2000, The Cayman Islands
  was listed by multilateral organizations as a tax haven and a non-cooperative
  territory in fighting money laundering. The country's swift response in     
  enacting laws limiting banking secrecy, introducing requirements for customer
  identification and record keeping, and for banks to cooperate with foreign  
  investigators led to its removal from the list of non-cooperative territories
  in June 2001.                                                               
                                                                       
  U.S. Representation                                                         
  The United States does not maintain diplomatic offices in the Cayman Islands.
  Diplomatic relations are conducted through the U.S. Embassy in London and the
  British Embassy in Washington, DC.                                          
                                                                       
  The Cayman Islands are, however, part of the consular district administered 
  by the U.S. Embassy in Kingston, Jamaica. Inquiries regarding visas to the  
  U.S. or other consular matters should be directed to the consular section of
  the U.S. Embassy, 142 Old Hope Road, Kingston 6, Jamaica; tel: (876)        
  702-6000; fax: (876) 702-6001. There also is a U.S. consular agent in the   
  Cayman Islands to assist in providing services for American citizens.       
  Address: Unit 222, Mirco Center, North Sound Road, Georgetown, Grand Cayman;
  tel: (345) 945-8173; fax: (345) 945-8192. For after-hours emergencies call  
  the U.S. Embassy in Kingston, Jamaica, tel: (876) 702-6000. The Consular    
  Agency in Georgetown is open to the public: M-W-F 0730 to 1100 and T-Th 1200
  to 1530. The office is closed on U.S. and Caymanian public holidays.        
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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