Editorial
Penny Wiseand Pound Foolish?
Government in its quest to balance its humongousbudget over the past recent years have become more and more relianton increasing taxes, licensing fees and other forms of revenuemeasures which have negatively impacted the economic growth ofthe Cayman Islands.
The reason for this is, in the immediatereturn, because some bank licensing and work permit fees havebeen in some cases tripled, the knock-on effect is that more andmore companies run by professionals from overseas are beginningto question the need to pay such hefty fees when their bottomline is getting thinner due to the lack of business in certaincategories of the offshore financial, professional and tourismindustries.
While the local Government continues tofocus on increasing revenue through taxation, other places suchas the Turks and Caicos Islands are enacting legislation to maketheir jurisdictions far more business and visitor friendly. Thisis also backed with a focus on infrasturtural development suchas docking facilities and modernised airports.
It must be repeated here: the advent ofthe internet and the coming of age of most destinations beingidentified as part of a shrinking global village, has createdvehicles whereby businessmen and tourists do not have to travelto any place to conduct business which sometimes begin asa tourism trip with the eventuality that they will returnas investors and to do business.
As a matter of fact, it is suggested thatperhaps a significant number of travelers begin their frequenttravel to destinations away from home for business purposes. Itis only at a later date that family and friends, certainly inthe case of Cayman they return as tourists to do business and vacation.
Does it then make sense that there mustbe the continual turn off by people coming to the Cayman Islandsand that they be hassled as to the purpose for their visit? Wethink not and so do many others. Unfortunately, there aresome who prefer not to make their feelings heard on this matter.To do so, will only encourage further decline of the local economy.
As we sit and wait for large constructionprojects to kick into gear, there appears to be nothing much beingdone to send the message to those who have tested and enjoyedthe Cayman Islands style of conducting business and making profits,that a new day has dawned and that the Cayman Islands has a farhealthier atmosphere these days in which to conduct business.
Up to seven years ago, the sister territoryof the Turks and Caicos Islands (TCI) had in place a frustratinglaw whereby non-TCI businessmen could only get license for a maximumof five years. This was a far cry from Cayman's twelve years fora Local Companies Control Licenses (LCCL).
Recognising that they need to attract businessand investors to the their Islands, the TCI Government has doneaway altogether with their five year limit, and now foreign majorityownership of businesses in those islands are allowed in perpetuity.
We certainly do not advocate that this shouldbe the direction of the Cayman Islands. It does, however, bringhome the point that we have tried to make time and time again:there is a need to create a genuine atmosphere that Cayman isthe most business and visitor and investment jurisdiction in theentire region. To ignore this need is a demonstration of shortsightedness.
It is far better to encourage those whocome to the Cayman Islands for whatever purpose businessor pleasure that we are a hospitable, well disciplined country.The good order, which prevails, even in the midst of stricterregulations governing the financial industry, is acceptable tothose who prefer to remain in good standing with their own countriesand local authorities.
Instead of the long, drawn out process ofanother re-write to some sections of our antiquated ImmigrationLaws, an Order in Council with new directives by the present Administrationcould put Cayman's economy on a much needed fast tract.