British
Virgin Islands Geography
The British Virgin Islands comprise 36
islands in the Caribbean sea of which
only 16 are inhabited. The islands are
located about 80 kilometres east of Puerto
Rico, north of the Leeward Islands and
adjacent to the US Virgin Islands.The
aggregate land area of the island group
is 153 square kilometres. The principal
islands are Tortola, Virgin Gorda, Anegada
and Jost Van Dyke.
Generally
the coral islands are relatively flat
and the volcanic islands are steep and
hilly with the highest point being 521
metres at Mount Sage. The climate is sub-tropical,
but the humidity and high temperatures
are tempered by cooling trade winds.
The
island of Tortola (land of turtle doves)
is the largest of the British Virgin Islands
situated about 130 kms east of Puerto
Rico overlooking Sir Francis Drake Channel,
and has Road Town, the capital, and the
international airport (Beef Island). Frequent
scheduled flights operate to Puerto Rico.
Time is (US) Eastern Standard Time.
Little Forest National Park, a 36-acre
wildlife sanctuary on Virgin Gorda was
once the site of a Spanish fort whose
stone walls are still evident. The Coppermine
on the southwest tip of the island was
mined by Cornish miners between 1838 and
1867 and the mine shafts remain today.
Gorda Peak National Park contains a variety
of indigenous plants and has been reafforested
with mahogany trees. The island's highest
point is 521metres. An intriguing group
of giant granite boulders form a beach
known as "the Baths" which are a series
of spectacular pools and grottoes flooded
with sea water.
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British Virgin Islands Population,
Language and Culture
The population of the British Virgin Islands
is approximately 24,000 (2008 est) and the
official language is English. The population
consists of a mixture of British, Spanish,
Dutch, Amerindian and Caribbean racial types;
in the last twenty years immigrants in search
of work from other parts of the Caribbean
have more than doubled the population. Some
relatively minor tensions exists between
the newcomers and the 'belongers' who see
their relaxed lifestyle threatened. Proposals
for tough new immigration laws are controversial.
Historically,
the Islands were settled by the Arawak and
Carib Indians. In 1493 the islands were
discovered by the Spanish, however, the
first foreign settlers were Dutch planters.
The British controlled the islands from
1666; they were part of the Leeward Islands
from 1872 until 1956, since when they have
formed a separate territory.
Economic
ties have been forged with the US Virgin
Islands rather than the West Indies Federation
of British Territories.
Tourism,
with 820,000 arrivals in 2005, is inevitably
a dominant feature of the islands' present
culture. Despite the BVI's status as a British
dependent territory (with which the islanders
are content) and many British influences,
the prevailing cultural influences are more
American than British. However, Road Town's
picturesque setting and sheltered harbour
still offer a glimpse of the easy lifestyle
evolved over the last 4 centuries by English,
Dutch, French and Spanish adventurers followed
by plantation owners and early settlers
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British Virgin Islands Government
The Islands are a dependent territory of
the British Crown, and a member of the Commonwealth.
The legal system is based on English Common
Law. The Queen of England is the Chief of
State who is represented by a Governor appointed
by the Crown. The islands are largely self-governing
since the 1967 Constitution and to a limited
extent rely on UK statutes on international
matters. In 2002 the BVI Government said
it wanted to increase its establishment
and asked for some of the Governor's powers
to be transferred over, recognising the
BVI's 'constitutional maturity and prudential
system of government'. The then Chief Minister
Ralph T O'Neal was concerned that rules
for the conferment of Belonger Status should
be brought into line with the granting of
nationality under the British Nationality
Act, 1993, in order to remove confusion
over the granting of passports.
At
the end of February 2007, the UK and the
BVI government successfully completed negotiations
for a new constitution for the islands.
Described by Lord Triesman, British Minister
responsible for the Overseas Territories,
"as an important step forward for the
territory," the new constitution will
devolve significant new powers to the BVI
Government.
The
new consitution was approved by the BVI
Legislative Council in May 2007. This includes
a chapter on fundamental rights, setting
out the key human rights that will be protected
for all individuals in the territory. In
the field of international affairs, groundbreaking
provisions will allow for the devolvement
of extensive new powers to the BVI Government.
The new constitution will also give the
BVI Premier greater influence in setting
the Cabinet agenda. It also creates a new
role of Cabinet Secretary to facilitate
the workings of the Cabinet.
The
Governor appoints and Executive Council,
made up of members of the House of Assembly.
The House of Assembly comprises 13 elected
members (nine representing district constituencies
and four the whole territory), one member
appointed by the Governor, a Speaker elected
from outside by members of the Council and
the Attorney-General as an ex-officio member.
Elections
in August 2007 saw a victory by the Virgin
Islands Party, with a new Premier, Ralph
T. O'Neal.
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British Virgin Islands Economy
and Currency
The currency of the British Virgin Islands
has been the United States dollar since
1962, although banks maintain accounts in
sterling as well. There are no exchange
controls. The two mainstays of the economy
are tourism and offshore financial operations.
Minor industries include fishing, rum distilling
and construction. Exports include fish,
rum, sand and gravel, fruits and vegetables.
Tourism
accounts for an estimated 75% of GDP with
820,000 visitors arriving in 2005, contributing
hundreds of millions of dollars to the islands'
economy. BVI is also an established centre
for the charter yacht industry.
Agriculture
is minimal since there is very little arable
land; the islands consist mainly of hills
and beaches with the exception of Anegada
which is very flat.
In
March 2006, the territory's then leader
Dr Orlando Smith said that the government
was continuing in its attempt at economic
diversifcation, and warned that the BVI
should not become too dependent on financial
services to prop up the economy. The BVI
government has also been increasing promotional
activities in other economic sectors, particularly
tourism. Dr Smith also suggested that agriculture
should form the "third pillar"
of the BVI economy.
The
financial services industry in the British
Virgin Islands can fairly be described as
a runaway success, particularly in recent
years. Almost 700,000 companies are incorporated
in the BVI, with an average 50,000 new formations
taking place every year. There is no doubt
that the BVI is an attractive offshore destination,
offering stability, high levels of privacy,
good reputation, flexible legislation, English
language etc. Other centres have all these
things also; but the BVI seem to be flavour
of the month. The most important offshore
activities are trust management, mutual
funds and captive insurance. Banking has
not been encouraged, as an apparently successful
defence against money-laundering.
Minister
for Finance Ronnie W. Skelton told assembly
members in 2006 that according to forecasts,
the government would receive almost USD130
million from the financial services industry
in 2006, representing growth of 15% on 2005.
The
BVI also intends to achieve additional growth
in the financial services sector through
continued marketing internationally, and
by updating legislation to keep pace with
global trends. Evidence of this strategy
began to materialise in November 2006 with
the launch of ‘Team BVI’, a
team of ambassadors drawn from the public
and private sectors to be the face and voice
of the Territory’s distinct financial
services brand.
GDP
growth has been muted in recent years, but
GDP per head at USD38,500 is one of the
highest in the world.
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British Virgin Islands Entry
and Residence
All non-residents, including British citizens,
require a passport to enter the BVI, except
that Canadian and US citizens need only
a birth certificate, certificate of citizenship
or voter registration card. However, under
the US government's Western Hemisphere Travel
Initiative (WHTI), citizens of the United
States, Canada and Mexico will also have
to present a passport or other accepted
document that establishes the bearer's identity
and nationality, in order to enter or re-enter
the United States by air from within the
Western Hemisphere. This will affect visitors
to the Caribbean from January 2008.
Visas
are given for up to six months' stay provided
that there is a return or onward ticket
and evidence of sufficient funds.
In
order to work in the BVI, a work permit
is needed, except for 'Belongers', naturalised
citizens and holders of a certificate of
residency. Work permits are issued only
when there is no suitable local applicant
for the job.
At
the time of writing, in order to lease or
purchase land, non-Belongers must obtain
an Alien Landholding Licence. Applications
for a Licence must be accompanied by two
personal financial references, one bank
reference, two character references, police
record, application fee of USD50 (individual)
or USD75 (company), and licence fee of USD150
(individual) or USD200 (company). Licences
carry a 2 or 3 year commitment to develop
unimproved land.
In
December, 2004, the government outlined
the details of a new immigration policy
framework in a bid to clarify the rules
surrounding applications for residence and
‘belonger’ status. Chief Minister
Orlando Smith explained that the Board of
Immigration would make recommendations in
2005 concerning those who applied for residence
status before January 1st 2003 and had lived
in the territory continuously for the last
twenty years. In June, 2005, 92 of these
individuals received residence and belonger
certificates.
Approvals
for those applying for residency status
after January 1st 2003 are limited to no
more than 25 persons per year. The government
also stressed that in all cases, individuals
cannot be away from the BVI for more than
90 days in any calendar year if they want
to qualify for residency status.
Smith
acknowledged that controlling immigration
in the territory represented a “very
serious challenge” for the government,
and explained that a balance must be struck
between welcoming outsiders and protecting
the privileges afforded to BVI citizens.
In
March 2008, Premier and Minister of Finance
Ralph O’Neal announced in his budget
speech that comprehensive immigration reform
would be a priority in 2008.
"We
will amend existing legislation to implement
additional control measures. Current legislation
will be reviewed to ensure compliance with
international laws, human rights and other
conventions. As we embark on the reform
process, we will ensure citizen participation
by conducting regular consultations with
representatives of the community, advocacy
groups and other private sector organisations,"
he revealed.
As
part of this process, preparations are to
be made this year to streamline immigration
procedures by creating a "one-stop
process" for obtaining entry permits
and work permits.
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British Virgin Islands Business
Environment
The BVI have an excellent business infrastructure
with good tele-communications; this coupled
with the widespread use of the English language
and a legal system largely based on English
law makes the island a very convenient and
effective business base. The very large
numbers of offshore companies, trusts, insurers
and mutual funds on the islands are supported
by a well-developed and diverse professional
services sector.
To do business in the BVI (as distinct from
establishing an offshore trust or company)
a Trade Licence is required from the Trade
and Investment Promotion Department. The
application form is accompanied by a financial
statement, police record, two business references
(for the individual or the company applying)
and financial details of the proposed business.
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British Virgin Islands Investments
by Foreigners
Under the Pioneer Services and Enterprise
Ordinance, ten-year tax holidays and import
duty exemptions on capital equipment are
available for investors into enterprises
for which there is a 'special need' in the
territory.
Under
the Hotel Aid Ordinance, ten- or twenty-year
tax holidays and import duty exemptions
on building materials and equipment are
available.
The
Administration is generally supportive of
investment into a range of activities, including
food processing, tourist-oriented manufacturing,
film production, beverage production, yachting
services, and most recently, e-commerce.
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