Up Front
Chamber task forceto
debate local business
license legislation
The Cayman Island Chamber of Commerce Immigration/LabourTask Force has submitted to its members a comprehensive list ofrecommendations on whether further inward foreign investment invarious industries in the Cayman Islands were desirable.
The Chambers newsletter pointed out that"some of the recommendations were wide ranging, and indeed,controversial." Additionally, the letter stated that: "Stay-overtourism is declining whilst the financial services industry isshowing signs of a slowdown. Going a step further the Chamberstated that they thought the composition of Government Boardssuch as Trade & Business Licensing Board and Immigration Boardneed to be amended to include private sector appointments withthe private sector holding the balance of power on such Boards."
Some of those recommendations state thatGovernment needs to develop an economic policy that will definethe future strategy for the development of Cayman Islands. Foreigninstitutions and businesses coming to the island should be encouraged.However, the Chamber Task Force felt that the primary issue forfinancial services was not related to investment but to the supplyof labour:
"The limited size of the Caymanianlabour pool results in the importance of foreign labour to supportthese businesses. We have a political and social climate whichis concerned by the number of foreigners in employment in Cayman."
The Task Force says that the Islands' existinglegislation and regulation pertaining to foreign investment areadequate, but should be better explained: "The Local CompanyControl Licenses (LCCL) should not be issued to entities in certain'restricted' business sectors such as water sports, real estateagencies and management companies, restaurants and public transport.The 60/40 local business ownership rule works.", The Chamber'sletter states:
The Chamber also felt that an Investmentand Business Development Council be established with appropriatefunding from Government and the private sector. "To encourageforeign investors there must be a body which can provide all therelevant information and a consistent approach to potential investors."
In regard to real estate ownership, thetask force recommended that the two units of property immigrationdirective stating that no one foreigner can own and lease morethan two units of property without first obtaining a work permitneeds to be clarified.
The task force also recommends that foreigninvestment in real estate is still to be encouraged and specialpermission or licenses could still be issued in justifiable casessuch as hotels, or large condominium developments.