H
CONFIDENTIAL
THE CARIBBEAN DEPENDENCIES, BERMUDA AND ST HELENA
BACKGROUND AND FUTURE PROSPECTS
ANNEX D
BERMUDA
General
Main Imports
Petroleum and products, manufactured goods, motor vehicles, food, chemicals.
Total Imports (1984/85) - $382m
Main Foreign Currency
Earners
-
Tourism, re-export of pharmaceuticals, offshore companies and financial
services
Total Foreign Currency
Earnings (1983/84)
Main Industries
- $765m
UK Aid (1985/6)
-
Tourism and offshore finance
Nil
Economic
1. With few natural resources and virtually no manufacturing
activities to speak of Bermuda's economy is heavily dependent on
the export of services and tourism. The latter, the island's
principal industry, represents 50% of foreign currency earnings and employs 40% [figure] of the local workforce, with 93% of
visitors arriving from North America. High local prices in the early 1980s caused a fall in tourism revenue but recently trade
has picked up again. The strength of the US dollar, to which the
Bermudan dollar is tied, is a major influence on the relative
attractiveness of Bermuda as a tourist destination.
International company business and insurance is, after tourism,
Bermuda's second industry accounting for 30% of foreign revenue
earnings and employing around 2,000 people. The current account
has fallen from a surplus of $80m in 1980 to a deficit of $21m in
1983 [more recent figures?]. Foreign exchange reserves stand at
$200m.
Bermuda suffers only minimally from corruption.
DP 2ABD
CONFIDENTIAL