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Residency For 1000 Permit Holders In Cayman Islands Could Create Billion In Spending

Caymannetnews

12 February 2001

This story is reproduced by kind permission of Caymannetnews at: http://www.caymannetnews.com

The arithmetic is simple. The answer is right before the eyes of our new Government. We have a captive economy.

Instead of so many work permit holders sending the handsome salaries they earn here in the Cayman Islands back to their homeland, there could be an immediate boost in our lagging economy.

Of the 15,000 persons on Work permits, some who have started families here, and legally resident because their spouses hold work permits, could be converted to spend their money here on land, homes, and apartments - if they had security of tenure.

One does not have to look too far to come to the conclusion that if 1000 of these Work Permit holders who have have been here for five years or more could easily qualify to become residents with the right to work - each may spend over time, an average minimum of $100,000 on real estate.

As mind boggling as this is, this could translate to one billion dollars being pumped in to the economy. With a multiple factor of five, a truer figure of five billion dollars will be realized.

Our cover subject of this issue, a very bright Jamaican-Caymanian, who came here a mere thirteen years ago has built up a respectable empire in financial services and other investments. Cayman's burgeoning economy is also fueled by the Jamaican and other expatriate population.

Is it then not sensible to tap this captive source of consumer spending by giving them the incentive to keep in the Cayman Islands the money they have earned here?

To hear a quite successful Jamaican businessman tell it: He has a general maintenance man from Jamaica who has been in his employment for the past eight years. This employee sends home religiously, every week a significant portion of his paycheck, purchasing house lots and building homes for sale and rent over there.

When asked why he does not invest in the Cayman Islands, the handyman told his employer in no uncertain terms that he is not sure when the renewal of Work Permit will be refused, so it is best that "his assets gets home before he does."

There are four money transfer operations in the Cayman Islands: Quick Cash, MoneyGram; RIA; and the biggest - Western Union. The sums they transfer out of Cayman from 'ordinary' consumers is phenomenal.

On the other hand, the major retail banks also transfer even a far vast amount of funds for commercial purchases from overseas.

In the absence of the past years of rigorous spending by investors in real estate, it is incumbent on the new government to get a 'fast tract' programme in place to offer permanent residence to those who qualify ... so that they can spend the money they earn here at home instead of shipping it out, thereby stemming the bleed our economy is now going through.

The success of the Cayman Islands has been built by many. It therefore makes a lot of sense to keep the money generated here at home instead of seeing it shipped abroad.

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