Bermudian Financial Sector Booming, Tourism Recovering Says BCC Chief

by Amanda Banks, Tax-News.com, London

26 June 2003

Speaking recently to the Royal Gazette, chairman of the Economic Committee of the Bermudian Chamber of Commerce, Kit Astwood revealed that despite the difficult worldwide economic climate, the tourist sector is recovering, and the financial services sector is booming.

"International business has totally replaced tourism as the main foreign exchange earner," Mr. Astwood told the Gazette adding: "Our agriculture no longer feeds Bermuda more than 10 percent. Our foreign exchange earnings provide the real money to feed all of our residents and all of our visitors."

Given that the island has no natural resources or industry of its own, the importance of attracting international finance is all the more crucial, and Astwood pointed out that the 300 international firms that have a physical presence on the island provide jobs for over 3,400 residents. In all, 14,000 companies have chosen to establish in Bermuda, according to Astwood.

Although finance has superseded tourism as the main foreign exchange earner, Astwood made the point that the fortunes of the one industry are very much dependent on the performance of the other. "These businesses, hotels and international business support one another and if one fails, both fail – as Bermudians we are bound to understand that," he observed.

Whilst the fortunes of Bermuda lies very much in its own hands, Astwood observed, its dependence on trade with the rest of the world leaves it very much open to external factors, although history has shown the island has traditionally been flexible enough to cope with any external shocks. "In the interest of internal stability for all its resident population, Bermuda had to respond effectively to this external challenge," he announced. "Bermuda’s history tells us that our political, economic and social future is determined by the ability of current and future generations," the Chamber of Commerce Economic Committee chairman added, citing Bermuda's adoption of its own currency linked to the US dollar in the late 1960's after the devaluation of sterling.

Recommended