CAYMAN ISLANDS

Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Cayman Islands

PROFILE

Geography

Area: 259 sq. km. (100 sq. mi.) on three islands: Grand Cayman (76 sq. mi.), Cayman Brac (14 sq. mi.), and Little Cayman (10 sq. mi.).

Capital: George Town (pop. 15,000).

Terrain: Flat.

Climate: Tropical.

People

Nationality: Noun and adjective—Caymanian(s).

Population: (2004 est.) 43,103

Annual growth rate: 2.71%.

Ethnic groups: Afro-European 40%, African 20%, European 20%, other 20%.

Religions: United Church, Anglican, other Protestant, Roman Catholic.

Language: English.

Education: Years compulsory—to age 16. Literacy (age 15 and over)—98%.

Health: Infant mortality rate—8.41/1,000. Life expectancy—79.8 yrs.

Work force: 20,000.

Government

Type: British Overseas Territory.

Constitution: 1972; called the Cayman Islands Order.

Branches: Executive—Governor and President of the Executive Council (representing British monarch), Executive Council. Legislative—unicameral Legislative Assembly (15 elected, three appointed members). Judicial—Summary Court, Grand Court, Cayman Islands Court of Appeal, Her Majesty's Privy Council. Administrative subdivisions: Eight districts.

Political parties: No formal political parties.

Suffrage: Universal at 18.

Economy

GDP: (2002 est., purchasing power parity) $1.27 billion.

Growth rate: 1.74%.

Per capita income: (2002 est., purchasing power parity) $35,000.

Natural resources: Scenic beaches and underwater attractions, favorable climate.

Agriculture: Products—Minor production of vegetables and livestock, turtle farming.

Industry: Types—tourism, banking, insurance and finance, construction.

Trade: Exports (1999)—$1.2 million: turtle products, manufactured consumer goods. Major market—United States. Imports (1999)—$457.4 million: machinery, manufactures, food, fuels, chemicals. Major suppliers—U.S., Trinidad and Tobago, U.K., Netherlands Antilles, Japan.

Official exchange rate: (Nov. 2003) CI $0.82=U.S.$1.

HISTORICAL HIGHLIGHTS

The Cayman Islands remained largely uninhabited until the 17th century. 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. The Cayman Islands historically have been popular as a tax haven. Legend has it that Caymanians in 1788 rescued the crews of a Jamaican merchant ship convoy which had struck a reef at Gun Bay and that the Caymanians were rewarded with King George III's promise to never again impose any tax.

The Cayman Islands, initially administered as a dependency of Jamaica, became an independent colony in 1959; they now are a self-governing British Overseas Territory.

ECONOMY

Although Caymanians enjoy one of the highest standards of living in the world, about 90% of the islands' food and consumer goods must be imported.

From the earliest settlement of the Cayman Islands, economic activity was hindered by isolation and a limited natural resource base. The harvesting of sea turtles to resupply passing sailing ships was the first major economic activity on the islands, but local stocks were depleted by the 1790s. Agriculture, while sufficient to support the small early settler population, has always been limited by the scarcity of available land.

The advent of modern transportation and telecommunications in the 1950s led to the emergence of what are now considered the Cayman Islands' "twin pillars" of economic development: international finance and tourism. In 2002, there were more than 40,000 companies registered in the Cayman Islands, including 600 banks and trust companies. Forty-three of the world's largest banks are present in the Cayman Islands.

Tourism represents about 70% of gross domestic product and 75% of total export earnings. Unspoiled beaches, duty-free shopping, scuba diving, and deep-sea fishing draw almost a million visitors to the islands each year.

Education is compulsory to the age of 16 and is free to all Caymanian children. Schools follow the British educational system. Ten primary, one special education, and three high schools are operated by the government. In addition, there is a technical school, a law school, and a community college.

GOVERNMENT AND POLITICAL CONDITIONS

The Cayman Islands' physical isolation under early British colonial rule allowed the development of an indigenous set of administrative and legal traditions which were codified into a Constitution in 1959. Although still a British Crown Colony, the islands today are self-governed in nearly all respects. The Constitution, or Cayman Islands Order, that now governs the islands came into effect in 1972 and was amended in 1984.

The Cayman Islands' political system is very stable, bolstered by a tradition of restrained civil governance, sustained economic prosperity, and its relative isolation from foreign policy concerns by virtue of its colonial relationship with the United Kingdom. Public discussion revolves around public sector expenditure and social services, the pace of additional economic development, and the status of the large foreign national community on the islands.

Government Structure

Cayman Islands form a British Overseas Territory with a large measure of self-government. The present constitution, which came into effect in 1972, provides for a system of government headed by a Governor, a Legislative Assembly, and an Executive Council, which administers the islands. The Governor is recruited from the U.K. Government Service, serves as the British government administrator, and retains responsibility for the civil service, defense, external affairs, and internal security. The Governor also chairs the Executive Council and appoints to the Council the Chief Secretary, the Attorney General, and the Financial Secretary, while the Legislative Assembly elects the Council's other five members. Unlike other Caribbean Overseas Territories there is no Chief Minister but a Leader of Government Business. The Leader of Government Business is an elected politician, while the Chief Secretary is the most senior civil servant. Currently, the Leader of Government Business is also the Minister for Tourism, Environment, Development, and Commerce.

Responsibility for defense and external affairs resides with the United Kingdom; however, the Chief Secretary has the portfolio for external affairs, and the Cayman Government may negotiate certain bilateral matters directly with foreign governments. The elected members of the Executive Council divide the remaining administrative portfolios.

The 18-seat unicameral Legislative Assembly is presided over by an independent speaker. Elections are held at the discretion of the governor at least every 4 years. Members of the assembly may introduce bills, which, if passed, are then approved, returned, or disallowed by the Governor. The U.K. Government also reserves the right to disallow bills approved by the Governor.

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, but Her Majesty's Privy Council sitting in London may hear a final appeal.

Political Coalitions

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 run on platforms of shared concerns. In November 2000 elections, voters ousted the leader of the government and two other ministers because of legislation enacted to weaken bank secrecy. Seven new members were elected to the Legislative Assembly.

Principal Government Officials

Head of State: Queen Elizabeth II
Governor: Bruce Dinwiddy
Leader of Government Business: The Honorable McKeeva Bush

The Cayman Islands are represented in the United States by the United Kingdom Embassy at 3100 Massachusetts Avenue, Washington DC 20008; tel: 202-462-1340; fax: 202-898-4255.

The Cayman Islands Department of Tourism, with offices in Miami, New York, Houston, and Chicago, also may provide travel information.

U.S.-CAYMANIAN RELATIONS

Although the United Kingdom is responsible for the Cayman Islands' defense and external affairs, important bilateral issues are often resolved by negotiations between the Cayman Government and foreign governments, including the United States. Despite close historic and political links to the U.K. and Jamaica, geography and the rise of tourism and international finance in the Cayman Islands' economy has made the United States its most important foreign economic partner. Following a dip in tourists from the United States after 9/11, about 500,000 U.S. citizens traveled to the Cayman Islands in 2002; some 10,000 Americans are resident there.

For U.S. and other foreign investors and businesses, the Cayman Islands' main appeal as a financial center is the absence of all major direct taxes, free capital movement, a minimum of government regulations, and a well-developed financial infrastructure. The Cayman Islands is the world's fifth-largest financial center.

With the rise in international narcotics trafficking, the Cayman Government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States in order to reduce the use of its facilities for money laundering operations. In June 2000, The Cayman Islands was listed by multilateral organizations as a tax haven and a non-cooperative territory in fighting money laundering. The country's swift response in

enacting laws limiting banking secrecy, introducing requirements for customer identification and record keeping, and for banks to cooperate with foreign investigators led to its removal from the list of non-cooperative territories in June 2001.

U.S. Representation

The United States does not maintain diplomatic offices in the Cayman Islands. Diplomatic relations are conducted through the U.S. Embassy in London and the British Embassy in Washington, DC.

The Cayman Islands are, however, part of the consular district administered by the U.S. Embassy in Kingston, Jamaica.

KINGSTON (E) Address: NCB Towers, South Tower, Third Floor, 2 Oxford Road, Kingston 5, Jamaica W.I.; Phone: 876-935-6000; Fax: 876-935-6001; Workweek: M–F; 07:15 to 16:00; Website: usembassy.state.gov/kingston

TRAVEL

Consular Information Sheet

January 13, 2005

Country Description: The Cayman Islands are a British dependent territory consisting of three main islands with a total area of approximately 100 square miles and located about 500 miles west of Jamaica. There is an international airport located in Grand Cayman, and facilities for tourists are widely available. The U.S. Embassy in Kingston, Jamaica has consular responsibility for the Cayman Islands.

Entry/Exit Requirements: U.S. citizens traveling as tourists or attending meetings can enter the Cayman Islands with a U.S. passport, a naturalization certificate or an original, certified birth certificate and photo identification. Persons traveling with U.S. passports tend to encounter fewer difficulties when departing than those who choose to use other documents. U.S. citizens traveling to the Cayman Islands for work must obtain a temporary work permit from the Department of Immigration of the Cayman Islands, telephone (345) 949-8344. There is a departure tax for travelers age 12 and older, which is regularly included in airfare. For further information travelers may contact Cayman Islands Department of Tourism offices in Miami at (305) 599-9033, New York (212) 889-9009, Houston (713) 461-1317 and Chicago (630) 705-0650; or via the Internet at http://www.caymanislands.ky.

Safety and Security: The Cayman Islands are considered politically stable and enjoy a high standard of living. There have been no reported incidences of terrorism or threats made against Americans or American interests in the Cayman Islands.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found.

Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

The Department of State urges American citizens to take responsibility for their own personal security while traveling overseas. For general information about appropriate measures travelers can take to protect themselves in an overseas environment, see the Department of State's pamphlet A Safe Trip Abroad.

Crime: The crime threat in Cayman Islands is generally considered low although travelers should always take normal precautions when in unfamiliar surroundings. Petty theft, pickpocketing and purse snatchings occur. A few cases involving sexual assault have been reported to the Embassy. However, it is difficult to gauge the number of sexual assaults, especially situations involving acquaintance rape or use of "date rape" drugs as incidents may go unreported. Police in the Cayman Islands have alluded to increased availability of drugs and several persons have been arrested for possession with intent to distribute Ecstasy, among other drugs. American citizens should avoid buying, selling, holding or taking illegal drugs under any circumstances.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Posts in countries that have victims of crime assistance programs should include that information. See our information on Victims of Crime at http://travel.state.gov/travel/tips/emergencies/emergencies_1748.html.

Medical Facilities and Health Information: The quality of medical care is generally comparable to that available in the United States. However, some procedures and cases requiring critical care require medical evacuation to the United States. On average one American citizen per month drowns or suffers cardiac arrest while snorkeling or SCUBA diving in the Cayman Islands. These deaths may be attributed in part to tourists attempting to do more than they are trained to do or may be due to poor physical conditioning or preexisting medical conditions that are exacerbated when snorkeling or diving. A hyperbaric chamber is available for treatment of decompression illness. Doctors and hospitals often expect immediate payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web-site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning the Cayman Islands is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Due to their size, the Caymans have little highway infrastructure to maintain. Local driving standards, the risk of accidents, the availability of emergency roadside service, quality and frequency of signage, enforcement of traffic laws, generally meet the standards of the United States. Visitors must obtain a temporary driver's license, easily granted upon presentation of a valid state driver's license and payment of a small fee at the car rental agency or a police station. Laws against driving while intoxicated are strictly enforced, with a legal maximum blood alcohol level set at 100 milligrams per 100 milliliters of blood. Seatbelt laws are also enforced and require the driver and all passengers to be fastened in while in motion

Visit the website of the Cayman Islands' national tourist office and national authority responsible for road safety at http://www.caymanislands.ky.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of the Cayman Islands as being in compliance with ICAO international aviation safety standards for oversight of the Cayman Islands' air carrier operations. For more information, travelers may visit the FAA's internet web site at http://www.faa.gov/avr/iasa/index.cfm.

Special Circumstances: Cayman Islands customs authorities may enforce strict regulations concerning temporary importation into or export from Cayman islands of items such as firearms of any kind, spear guns (or pole spears or Hawaiian slings), live plants and plant cuttings. Raw fruits and vegetables are also restricted. Visitors from the United States should be aware that products made from farmed green sea turtles at the Cayman Turtle Farm Ltd. are offered for local consumption. The importation of genuine sea turtle products is strictly prohibited by the United States and other countries which have signed the Convention on International Trade in Endangered Species. In addition, U.S. Customs prohibits the transshipment of turtle products through the United States and any products discovered will be confiscated. It is advisable to contact the Collector of Customs (345) 949-2473 for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offences. Persons violating laws of the Cayman Islands, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in the Cayman Islands are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in the Cayman Islands are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within the Cayman Islands. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. There is a U.S. Consular Agency in George Town, Grand Cayman, largest of the three Cayman Islands. The Consular Agency is located in the Grand Harbour Shops, Unit 7, Georgetown, Grand Cayman, telephone number (345) 945-8173 or (345) 945-1511 and e-mail mailto: [email protected] or [email protected]. Americans living in or visiting the Cayman Islands are encouraged to register with the Consular Agency or with the Consular Section of the U.S. Embassy in Kingston, Jamaica, which has jurisdiction over this territory.

The Consular Section of the U.S. Embassy is located in the Life of Jamaica Building at 16 Oxford Road, Kingston 5. The phone number is (876) 935-6044. Office hours are Monday through Friday (except Jamaican and U.S. holidays), 7:15 a.m. to 4:00 p.m., with window services 8:30 to 11:30 a.m. Both the Consular Agency and Embassy may provide updated information on travel and security within the Cayman Islands. The Embassy website is http://usembassy.state.gov/kingston/.