TNAG-1461-FCO40-1987-Future-of-the-Dependent-Territories-Hong-Kong--Gibraltar-and-1986 — Page 114

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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