1. The Country
2. Economy & Foreign Trade
3. Doing Business in the Cayman Islands
4. Customs & Regulations
5. Your Business Visit to the Cayman Islands

I. The Country

Location & Geograph

The three small islands that constitute the Cayman Islands - Grand Cayman, Cayman Brac and Little Brac - are located in the western Caribbean, 740 Km. south of Miami and 290 Km. north west of Jamaica. Grand Cayman, the largest island, is separated by a distance of 137 Km. from the other two islands; Cayman Brac and Little Cayman. Little Cayman is 8 Km. west of Cayman Brac. These islands have a total area of 259 square kilometres. Grand Cayman accounts for 197 Sq. Km., Cayman Brac accounts for 36 Sq. Km., and Little Cayman accounts for 26 Sq. Km. Grand Cayman and little Cayman are relatively flat , with a maximum height of 18 meters above sea level, while Cayman Brac has a central limestone plateau, The Bluff, rising to 43 meters at its eastern end. The coastal areas are mainly protected by offshore reefs, as well as several mangrove fringes. These often extend inwards creating swamps which play a key role in the Islands' ecology.

Climate:

The average temperature from November to April is 24 deg.C. while from May to October it averages around 29 deg. C. The warmer season is also the rainy season and mosquitoes can be a major nuisance. The Cayman Islands are in the centre of the north east trade wind belt and a gentle breeze is common even on the hottest days.

Local Time:

Eastern Standard Time: 5 hours behind GMT. Daylight Saving Time is not observed.

Population:

The total population of the islands is estimated at 43,103 (July 2004) an estimated 2.71% growth rate up to July 2004. Caymanians constitute approximately 62% of the total population. Their ethnic composition is of mixed African and European descent. The major factor in the population growth is the number of non-Caymanians admitted with work permits. The latest available labour force figures (1997) estimated the employed labour force at 21,620, with a Caymanian composition of over 55%.

Principal Cities:

The capital, George Town is located on the west side of Grand Cayman. This is the port of entry as well as business, administrative and government centre for the Islands.

Language / Adult Literacy:

English is the official language of the Islands with an adult literacy is approximately 98 % for both sexes. Education is compulsory to age 16 and is free to all Caymanian children. Schools follows the British educational system and there are ten (10) primary, one (1) special education and three (3) high schools, all operated by the Government. Additionally, there is a technical school, law school an a community college.

Religion:

Christians of various denominations, including Presbyterian and Baptist.

Weights and Measure:

The British Imperial system is used.

Electricity:

Standard electric current is the same as in Canada and in the U.S.A--110 volt, 60 cycle. In 2001, electricity production stood at 381.9 million kWh.

Public Holidays 2004:

Business Hours:

Normal business hours are: 8:30 AM to 5:00 PM.; Monday through Friday. Banks are open from 9:30AM to 2:30 PM and 9:00 AM to 4:30 PM on Friday with a 1 1/2 hour lunch break between 1:00 PM and 2:30 PM. Some banks now remain open until open to 4:00 PM each day.

History:

The Cayman Islands remained largely uninhabited until the 17^th century when 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 Caymans, along with Jamaica, under the Treaty of Madrid in 1670. Following several unsuccessful attempts, permanent settlement of the islands began in the 1730s. Historically, the Cayman Islands have been popular as a tax haven. Legend has it that in 1788, Caymanians rescued the crews of a Jamaican merchant ship convoy which had struck a reef at Gun Bay and the Caymanians were rewarded with King George III's promise to never again impose a tax. The islands were initially administered as a dependency of Jamaica and became an independent colony in 1959, known as a self-governing British Overseas Territory.

The difficult terrain of the Islands hampered the development of agriculture and until about 30 years ago most Caymanians earned their living either as fishermen or as crew members of ocean-going ships. Since 1966, the government has pursued policies aimed at developing the islands through two main economic pillars; tourism and finance. Today the Islands remain a separate dependent territory of the United Kingdom.

Government:

Political parties have operated infrequently in the past and public officeholders tend to be independents. Since the 1970s, groups of candidates have organized themselves into ad hoc coalitions called teams and thereafter run on platforms of shared concerns. General elections are held every four years.

The British Crown appoints a Governor of the Cayman Islands, who is recruited from the U.K. Government service and serves as the British representative. The daily administration of the islands is conducted by the seven-member Executive Council, of which the Chief Secretary, Financial Secretary and Attorney-General are appointed by the Governor. Responsibility for defence and foreign affairs rests with the United Kingdom. The remaining four members of the Executive Council are elected by the Assembly and divide the remaining administrative portfolios.

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 and a final appeal may be heard by Her Majesty's Privy Council sitting in London.

II. Economy & Foreign Trade

Over the past three decades, the Cayman Islands have emerged as a thriving international financial centre, home to the world's leading banks, trust companies, investment agencies, insurance companies, accounting and law firms.

The advent of modern transportation and telecommunications, led to the emergence of what are now considered the Cayman Islands' "twin pillars" of economic development: international finance and tourism. Cayman's banking and trust sector is comprised of more than 600 licensed banks and licensed trust companies, representing 65 countries. As at February 2002 some 35 of these banking institutions held Category "A" licences which allow them to conduct business both locally and internationally. The remaining banking licences fall under Category "B", and are for the most part restricted to transactions with non-residents. Forty-three (43) of the world's top 50 banks have licensed branches or subsidiaries registered in the Islands. Since the introduction of the Insurance Law (1979) offshore insurance developed rapidly, and Cayman now has a total of 450 offshore insurance companies, ranking second in the world as a captive insurance centre. At the same time, the Cayman Islands Government maintains strict legislation against money laundering activities

The Islands have become internationally renowned for a wide range of watersport activities, and offer more professional diving operations and peripheral services than most other tourist destinations. The government puts a great deal of emphasis on environmental protection, particularly in terms of the fragile marine environment considered vital to the tourism industry, but also focuses on terrestrial species and ecosystems.

Agriculture has always been limited by the scarcity of available land. The lack of cultivable soil and the heavy manual labour required, along with high land prices make agriculture, for the most part, unviable. Ten (10) large farms covering over 40 ha are in operation, and production is concentrated on cattle raising, vegetables and tree crops for domestic consumption. Agricultural products include: tomatoes, bananas, lettuce, honey, mangoes, citrus fruits, various ground vegetables and coconuts. These, however, are not enough to support local demand and most food stuffs have to be imported. Turtle fishing is strictly controlled and the local fishing industry is limited to supplying supermarkets and domestic consumers.

Light industry exists on a very limited scale, mainly building materials (tiles, concrete blocks), jewellery, printing and bakeries, although legislation providing incentives has been in force since 1950. Recently established manufacturing operations include furniture-making, chemicals packaging and bottling. The shortage of local labour acts as a significant constraint on any expansion.

The Cayman Islands have no income tax, corporate tax, capital gains tax, withholding tax or estate duty. The main revenue earners are import duties, financial-sector licence fees, stamp duties, tourist taxes, cruise ship passengers and airport departure taxes.

Economic Indicators:

(Source: Statistics Canada; CIA World Factbook)

External Trade:

Tourism is the mainstay of the economy, accounting for 70 percent of GDP and 75 percent of foreign exchange earnings. Americans account for more than 50% of the 1.2 million visitors to the Cayman Islands in 2002, with the number of Caribbean and Canadian visitors increasing. Hotel occupancy is high, especially along Grand Cayman's famous Seven Mile Beach.

The Cayman Islands import about 90% of the islands' food and consumer goods from a number of countries, including the USA, Venezuela, Japan, UK, Trinidad & Tobago and the Netherlands Antilles. In 2003 Canadian exports to the Cayman Islands totalled C$9.84M, and consisted of newspaper, machinery, pharmaceuticals, plastics, etc.

The following table lists the major Canadian merchandise exports to the Cayman Islands for January to December 2003:

CANADIAN EXPORTS TO THE CAYMAN ISLANDS - 2003
(Millions of Canadian Dollars)

III. Doing Business in the Cayman Islands

Opportunities for Canadian Goods and Services:

There is a good market for competitive Canadian exporters, due to the heavy reliance on imports. As represented in the previous table, major merchandise imports include food, manufactured goods, beverages, tobacco, petroleum products, machinery, cars, I/T products and building materials. It is important to note that in November 2000 the Financial Secretary announced in his annual budget address the removal of import duty on basic foods such as butter, eggs and bakery products, and reductions on wines and spirits.

Several public sector projects are being undertaken including roads and housing construction, seaport and airport expansion, hotel construction and renovations. Additionally a number of schools are being upgraded and hospital facilities are being expanded and improved. The growth in Tourism forms the nucleus for the growth in several other sectors.

Channels of Distribution:

Exporters who wish to sell to the Cayman Islands are advised to engage the services of an agent or distributor who in turn, sell to independent retail outlets.

Advertising and Promotion

Newspapers, radio and television are the major forms of promotion in the Cayman Islands. There are currently two television and three radio stations. Most Caymanian homes and commercial establishments have satellite dishes to pick up U.S. programming.

The "Caymanian Compass" is the local daily newspaper, published weekdays in tabloid form and "The New Caymanian", is published weekly by the Cayman Media Corporation.

Price Quotations:

As there are no direct shipping routes from Canada to the Cayman Islands, price quotations should be FOB Miami in US or Canadian Dollars. Alternately, freight consolidators in southern Florida can be used to take advantage of the numerous sailings from ports in that area. George Town is the principal port and there are good freight handling services.

All correspondence and trade literature must be in English.

Terms and Method of Payment:

The largest importers in the Cayman Islands tend to be the oldest and most well-established of businesses. As such, Caymanian importers generally work on an "open account" system of payment with their suppliers. Credit terms are usually 21/30/60/90 days.

Sight draft method of payment is also acceptable or Term Drafts on 30, 45, or 60 days.

Banking Services:

Canadian-owned banks include the ScotiaBank (Cayman) Ltd., First Caribbean International Bank and the Royal Bank of Canada (Cayman) Limited all of which have been operating in Cayman for at least 25 years. The largest locally owned banks is the Cayman National Bank & Trust Company.

The largest locally owned banks is the Cayman National Bank & Trust Company

Currency/Exchange Controls:

The Cayman Island Dollar is (CI$)=100 cents. A picture of Her Majesty Queen Elizabeth II is reproduced on six notes (dollars) and four coins (cents). At October 2003 the Exchange rate was pegged at CI$1 = .52 CI$ (CI$1 = US$1.24).

Ports of Entry:

By Air: The Owen Roberts Airport is 1 1/2 miles from the capital, George Town. Cayman Airways with the most daily flights between Cayman and the USA operates the largest freight service (90% of goods out of Miami) . Northwest Airlines, with a network of over 200 cities, also provides an important link. Other freight carriers are American Airlines Cargo, Air Jamaica and Jamaica Air Freighters Ltd. George Town is the principal port by sea. Major shipping lines include: Atlantic Cargo Services, Cutlass Line, Griffiths Line, Harrison Line, Kirk Freight Line, M/V Tania Del Mar, Ocean Express Lines and Thompson Shipping Co.

IV. Customs & Regulations

Import Duties:

Import duty is 20 percent ad valorem on most goods. Certain items are duty free, including agricultural machinery and supplies, certain basic foodstuffs (including fish, cheese, coffee, macaroni, fresh and evaporated milk, potatoes, poultry, lard, dried peas and beans, onions, cornmeal, wheat flour, margarine, rice, salt beef and water) and some luxury items such as perfumes, cameras, fine china and crystal. The duty on jewellery is at 10 percent and 27.5 to 40 percent on motor vehicles, depending on the value.

Documentation:

Unless an import permit is required (such as for firearms, trailers, prefabricated buildings and plants), the only documentation necessary are standard shipping documents and the commercial invoice. There are various local agents available who can arrange for clearance and local delivery of imported goods.

V. Your Business Visit to the Cayman Islands

You may wish to advise and consult with the Business Development Division of the Canadian High Commission in Kingston, Jamaica, well in advance of your planned business visit to Cayman. Inform that office of the purpose of your trip and include several copies of any product literature you may have. It would also be helpful if you compute in advance, the cif or fob prices on at least a part of your product range. With this information, the staff of the Business Development Division would be pleased to assist you with your arrangements.

When to go:

Companies whose major market is in the hospitality industry are advised to visit during the May-October period when firms can still place orders for the coming winter season. Hotel rates are lower in this period also. Other companies may visit any time of the year. However, it is important to contact prospective purchasers before a business visit is considered.

How to get there:

Cayman Airways operates scheduled flights between Grand Cayman and Miami, Jamaica, Houston, Tampa, Orlando as well as Atlanta. Cayman Airways also operates a direct service between Miami and Cayman Brac Delta, Northwest, US Air and American operate additional service between the Cayman Islands and the U.S.A..; Air Jamaica operates between Kingston, Montego Bay and Grand Cayman.  Cayman Airways also offers an inter-island service to Cayman Brac and Little Cayman.

Internal Transportation:

Taxi services are readily available and unmetered fixed fares apply for most trips. It is recommended that your fare be agreed upon before the journey commences. Some hotels provide courtesy transportation service.  Car rental services are readily available and several agencies are located in the Islands. A temporary local permit will be issued on the strength of home licences. Caymanians drive on the left. There are approximately 200 miles of paved roads.

Accommodation:

There is a wide choice of first-class hotels, mostly at the high end of the market with a 10 percent room tax and a service charge, generally of 10 percent.

Entry Procedure and Caymanian Immigration:

Citizens of Canada, the USA and the UK just have to show proof of nationality, and possess an onward/return ticket. Valid passports are required by all other citizens. Visitors may remain for up to six months, provided they obtain proper immigration extensions. Work permits are not required for business visits of short duration, however they are required for non-Caymanians wishing to work there. The prospective employer applies to the Immigration Board for the permit. Not all applicants are successful.. There is a departure tax of US$ 12.50 / CI$ 10.00 per person, payable on leaving the island.

Dress:

Business attire is usually: Shirt and tie for men, with jackets being worn for official functions. Suits and dresses for women.

Communications:

Digital telephone exchanges provide all three islands with International Direct Dialling to over 100 countries. International telephone, telegram, facsimile, data transmission and private leased services are available. Other services offered by the telephone company; Cable and Wireless, include public voice and fax mail, an island -wide cellular mobile telephone service for both residents and visitors, internet, 800 services, PBX and Key Systems for small and large businesses and many card and coin phone locations around the islands.

In Canada:

International Trade Canada (ITCan)

Latin America and Caribbean Bureau (LCR)
Lester Pearson Building
125 Sussex Drive
Ottawa, Ontario, Canada
K1A OG2.
Tel: 613-943-8807
Fax: 613-944-0760

The British High Commission
80 Elgin Street
Ottowa, Ontario, Canada
K1P 5K7
Tel: 613-237-1530
Fax: 613-237-7980

In Jamaica:

Canadian High Commission

Business Development Division

3 West Kings House Road

P.O. Box 1500
Kingston 10, Jamaica, W.I.

Tel: (876)926-1500

Fax: (876)511-3491

Email: kngtn-td@international.gc.ca

Web: http://www.infoexport.gc.ca or http://www.kingston.gc.ca

Snr. Trade Commissioner: Russell Merifield

 

In the Cayman Islands:

Consular Contact:
Canada's Honorary Consul to the Cayman Islands
Cayman Islands, BWI

Tel: (345) 525 1225 or (345) 949 9400

Fax : (345) 949 9405

vdm@candw.ky or dingler@candw.ky

Honorary Consul: Mr. Charles Dingler

Cayman Islands Chamber of Commerce
P.O. Box 1000
George Town

Grand Cayman

Cayman Islands, BWI
Tel: (345)949-8090
Fax: 345-949-0220
Website: http://www.caymanchamber.ky/
E-Mail: chamber@candw.ky

ScotiaBank (Cayman) Ltd.
Cardinal Avenue
P.O. Box 689G
George Town, Grand Cayman
Tel: 345-949-7666
Fax: (345)949-5130

First Caribbean International Bank (formerly CIBC)

P.O. Box 694 & 695GT

Edward Street

George Town

Grand Cayman

Cayman Islands, BWI

Tel: (345)949-8660

Fax: (345)949-0260

First Caribbean International Trust Co. (formerly CIBC Trust Co.)
PO Box 694 & 695 GT

Edward Street

George Town

Grand Cayman

Cayman Islands, BWI
Tel: 345-949-8666
Fax: 345-949-7904

Royal Bank of Canada Trust Company (Cayman) Ltd.
Cardinal Avenue
P.O. Box 1586
George Town

Grand Cayman

Cayman Islands, BWI
Tel: 345 949-9107

Fax: 345 949-5777

Cayman Islands Customs Department

PO Box 898

The Tower Building - 5^th Flr.

Harbour Drive

George Town

Grand Cayman

Cayman Islands, BWI

Tel: (345)949-2473

Fax: (345)945-1573