Editorial
Residency for 1000 Permit Holderscould create a billion in spending
The arithmetic is simple. The answer isright before the eyes of our new Government. We have a captiveeconomy.
Instead of so many work permit holders sendingthe handsome salaries they earn here in the Cayman Islands backto their homeland, there could be an immediate boost in our laggingeconomy.
Of the 15,000 persons on Work permits, somewho have started families here, and legally resident because theirspouses hold work permits, could be converted to spend their moneyhere on land, homes, and apartments - if they had security oftenure.
One does not have to look too far to cometo the conclusion that if 1000 of these Work Permit holders whohave have been here for five years or more could easily qualifyto become residents with the right to work - may each spend overtime, an average minimum of $100,000 in real estate.
As mind boggling as this is, this couldtranslate to one billion dollars being pumped in to the economy.With a multiple factor of five, a truer figure of five billiondollars will be realized.
Our cover subject of this issue, a verybright Jamaican-Caymanian, who came here a mere thirteen yearsago has built up a respectable empire in financial services andother investments. Cayman's burgeoning economy is also fueledby the Jamaican and other expatriate population.
Is it then not sensible to tap this captivesource of consumer spending by giving them the incentive to keepin the Cayman Islands the money they have earned here?
To hear a quite successful Jamaican businessmantell it: He has a general maintenance man from Jamaica who hasbeen in his employment for the past eight years. This employeesends home religiously, every week a significant portion of hispaycheck, purchasing house lots and building homes for sale andrent over there.
When asked why he does not invest in theCayman Islands, the handyman told his employer in no uncertainterms that he is not sure when the renewal of Work Permit willbe refused, so it is best that "his assets gets home beforehe does."
There are four money transfer operationsin the Cayman Islands: Quick Cash, MoneyGram; RIA; and the biggest- Western Union. The sums they transfer out of Cayman from 'ordinary'consumers is phenomenal.
On the other hand, the major retail banksalso transfer even a far vast amount of funds for commercial purchasesfrom overseas.
In the absence of the past years of rigorousspending by investors in real estate, it is incumbent on the newgovernment to get a 'fast tract' programme in place to offer permanentresidence to those who qualify ... so that they can spend themoney they earn here at home instead of shipping it out, therebystemming the bleed our economy is now going through.
The success of the Cayman Islands has beenbuilt by many. It therefore makes a lot of sense to keep the moneygenerated here at home instead of seeing it shipped abroad.