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Bermuda Annual Report Records Benefits Of International Business

Cathy Stovell, Royal Gazette

06 December 2000


This story is reproduced by kind permission of the Royal Gazette at http://www.accessbda.bm

International companies spent a staggering $912.1 million locally last year, an increase of 20.2 percent over the $759 million recorded in 1998.

The statistic revealed in the 1999 Archer Report led Finance Minister Eugene Cox to declare international business as the "strongest pillar" in the Bermudian economy.

Mr. Cox made the remarks on Friday as he presented the 1999 Archer Report to members of the House of Assembly.

The annual report, prepared by economist Dr. Brian Archer, looks at Bermuda's International Companies and their impact on the local economy.

"This Government recognises that much of the Island's prosperity and many of the new jobs created, are as a result of the success of international business in our economy," said Mr. Cox.

"We cannot underestimate their significant contribution as the strongest pillar in our economy."

The report includes statistics on the number of companies registered here, the number of people they employ, the money they spend on wages and salaries, as well as the direct contribution the companies make in terms of foreign exchange receipts.

Other good news it revealed included a 4.92 percent growth in companies registering in Bermuda. Five hundred and thirty-eight new companies were added to the register in 1999 bringing to 11,476 the number of international registered companies on the Island.

Mr. Cox said the 1999 Archer Report also showed that the international companies "have tremendous confidence in Bermuda and demonstrates the huge positive effect they have on the economy".

The principal findings of the report are as follows: International companies spent $912.1 million and their visitors a further $27 million in Bermuda;

-- International companies with a physical presence accounted for 82 percent of the expenditure although they comprised less than four percent of the total;

-- 11,476 International companies were registered in Bermuda at the end of December 1999 - an increase of 4.92 percent on 1998;

-- up to 456 of these companies had a physical presence in Bermuda;

-- $394.5 million was paid in wages, salaries and benefits in Bermuda;

-- $68.9 million was paid as taxes,fees, duties and licences to the public sector;

-- $203.8 million was paid as professional fees and bank fees to Bermudian companies and a further $244.9 million to other companies in Bermuda; and

-- 1,593 Bermudian employees and 1,414 non-Bermudians worked for international companies.

When considering the secondary effects of money spent including household respending and the impact of business visitors:

-- Total income generated by international companies was $1,215 million.

-- Total public sector revenue generated was $248 million.

-- Net impact on balance of payments was $639 million.

-- Total employment generated was over 9,200 jobs and a further 4,500 were strongly influenced.

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