Address to Panama Breakfast

By the Hon. Charles Clifford, JP, Minister for Tourism, Environment, Investment and Commerce

7th March, 2007

I am delighted and honoured that we are joined today by individuals from Panama's private and public sectors. I would like to thank you for your support in facilitating this second trade mission for the Cayman Islands.

Our presence here again this year is confirmation that this trade mission has been as fruitful and productive as we anticipated. Since our inaugural visit last year, several Cayman businesses have significantly benefited from doing business in Panama in a variety of industries.

As I noted last year, although there is already an existing history and friendship between our two countries, we hope to reconnect with the mutual business and leisure interests we share. We have certainly seen a strengthening of this relationship since 2006, as new and exciting business opportunities have been initiated.

We are thankful to report that our country is expected to experience strong growth in all sectors. Current macroeconomic forecasts indicate that the Cayman Islands economy will grow by 3.6% this year. We expect that part of that success will be as a result of the innovativeness of our private sector as they look for new opportunities to support our continuing success. Increasing trade with Panama is hoped to add to this success.

Indeed, as significant players in the global economy, our two countries have much in common. We both have thriving tourism and financial services industries which are central to each country's current prosperity, and to our future success.

Tourism in the Cayman Islands provides a distinct, high quality experience that attracts over 2 million visitors per year. Blessed with beautiful beaches, friendly people and the calm, turquoise waters of the western Caribbean, the Cayman Islands offers world class diving; safe and relaxing vacations; relaxing and romantic locations for weddings, honeymoons and romantic escapes; or, more simply, a moment in time when you can gather your family around and enjoy all that Cayman has to offer.

It has been said that success breeds success, and investors too have been drawn to Cayman's tourism offerings. The Ritz-Carlton, Grand Cayman has been open for over a year now, and guest comments have confirmed everything that we knew - the Seven Wonders of the Ritz-Carlton, Grand Cayman have awed all of its guests and this stunning resort is now one of the top Ritz-Carlton resorts in the Caribbean.

Another premier brand, Mandarin Oriental, plans to construct a high-end resort in the Eastern Districts of Grand Cayman, and plans indicate that the architects have designed the property with a keen awareness of the surrounding environment so that it is not intrusive.

The Royal Watler Cruise Terminal was formally opened late last year and it is easy to see how this significant investment has vastly improved the arrival and departure experiences of our cruise guests.

Our national airline, Cayman Airways, operates a fleet of five Boeing 737 jets including one quick change aircraft. The airline provides scheduled service on ten routes with significant capacity to grow charter and cargo operations. Investors' confidence in our tourism offerings remain high and by air, land and sea, the Cayman Islands are poised to offer competitive, new and innovative products.

With more than 90 nationalities represented in the total population of approximately 51,000, a diversity of cultural influences produces a fusion of music, fashion, and cuisine that is unique in the Caribbean. As our tag line states, the Cayman Islands is 'close to home but far from expected'.

Allow me to take this opportunity to personally invite you to visit our island home. Three islands in the Northwest Caribbean - Grand Cayman, Cayman Brac and Little Cayman - are each uniquely beautiful and possess unmistakeable character. I invite you to stop in, for work or play, so that we may have an opportunity to extend a warm Caymanian welcome in appreciation for the overwhelming reception we have received here, in Panama.

We are delighted to have seized the opportunity presented by this mission to Panama to invite several of your local media and travel agents on a familiarisation trip of Grand Cayman, and even as we speak I can assure you that they are having a great educational and, what we hope will be, business enriching experience.

Turning to the other pillar of the Cayman Islands' economy, the financial services sector, our lawmakers and regulators have been diligent in ensuring Cayman continues to meet international standards on governance, regulation and supervision, while still maintaining regulatory proportionality and flexibility.

We continue to develop our legislative and regulatory platform in all sectors, with "pgrades" passed in 2006 to our Banks and Trust Companies Law, Mutual Funds Law and Insurance Law and more amendments expected in the coming year.

Our nimbleness in ensuring that we can respond to market conditions through legislative updates is a key feature of our industry and one that can only be made possible by the strong partnership that exists between government and the private sector. The financial services industry works together and plays together and this cooperation is Cayman's strength.

Cayman's close proximity to the U.S.; supportive, business-friendly legal framework; and stable political and economic environment have all been necessary ingredients for our growth into a major international financial services centre.

Business in Cayman also benefits from a wealth of knowledge and experience from regulators, auditors, legal advisors and other professionals, combined with progressive legislation, a balanced regulatory regime and a highly entrepreneurial business climate, that all contribute to one common goal: to continue to secure our position within the global financial services landscape.

These characteristics and robust market activity paid off with another banner year for the financial services industry.

Global trends including the increased use of hedge funds, structured finance and private equity as means to raise and distribute capital put Cayman and our service providers at the centre of this fast-paced industry.

Cayman remains the domicile of choice in the fund area as evidenced by surpassing 8,000 funds under license by the Cayman Islands Monetary Authority in September of 2006.

Our captive insurance business continues to grow steadily. The impressive attendance of more than 750 delegates at this year's Cayman Captive Forum in November last year suggests no signs of slowing down. In corporate services and company formation, the Registrar of Companies of the General Registry reported 20 per cent growth in new companies registered with a total of more than 80,000 companies on the register.

The latest statistics for 2006 from the Cayman Islands Monetary Authority show solid growth in the areas of banking, insurance and fiduciary services. As I said earlier there was positive news in the funds area with a nearly double digit rise over the last year. These stats are what we like to see - strong, steady, and sustainable growth.

Cayman and Panama are also both recognized as leading jurisdictions for flagship registry. The Cayman Islands Shipping Registry maintains the top position on the world's registry for mega yachts over 24m in length, having 85% of the world market. The administration has well earned its reputation by maintaining the highest standards and is distinguished by the quality owners who have made the Cayman Islands their flag of choice.

While our strengths are in the areas of financial services and tourism, we are also very open to developments in complementary sectors that can take advantage of the strengths in both our physical and professional infrastructure. Our drive to be both more innovative and competitive on the global stage requires that we be open to any new opportunity that presents itself and which meets the high standards that we maintain.

The Cayman Islands business environment can be compared to any major city in the world. Local and expatriate professionals specialising in all areas of finance, banking, tourism, and construction, and real estate, make up the important highly-skilled human capital.

The local Government works to ensure that the immigration policy is flexible enough to facilitate expatriate labour while at the same time ensuring that qualified Caymanians are given equal opportunity.

The Government has several agencies that cater to the needs of investors that can provide assistance to those of you who are looking to pursue investment opportunities in the Cayman Islands.

Foreign and local investors both have the significant advantage of the Cayman Islands Investment Bureau, which provides free business advice tailored to Cayman's laws and regulations regarding setting up a Cayman business. The Bureau pulls together all the necessary contacts, resources and bureaucratic channels to simplify and facilitate the investment approval process.

Further, the Government of the Cayman Islands recognizes the importance of working in partnership with private sector organizations such as the Chamber of Commerce to address the concerns of industry and business. Government engages in regular, ongoing dialogue with a number of private sector organizations to tackle common challenges in a timely and effective manner.

Similarly, the private sector is ably represented on Government Boards and Committees to ensure that there is an ideal melding of perspectives. Our aim is to build on the already high level of investor confidence in the Cayman Islands by developing effective long-term strategies to stimulate growth and development in our economy.

The aim of the Cayman Islands Government is to explore new ways to help us meet our strategic goals of sustainable economic development, greater entrepreneurship and the further strengthening of the Cayman economy. Since our last visit here last year, we have been busy working towards achieving these objectives.

I invite you to talk to any of my colleagues that are here today, both from the Government and the private sector. We are very interested to discuss potential opportunities for trade between our two countries. Representatives are here from the Cayman Islands Chamber of Commerce, the Cayman Islands Investment Bureau, as well as a number of private sector professionals who would be happy to assist you.

The Cayman Islands Government is committed to delivering growth and ensuring the Cayman Islands remains highly efficient and sensitive to the requirements of business. Our reputation and commitment to excellence is paramount, and we are committed to serving the needs of our global clientele.

Today I wish to recognize the great strides and achievements that our two countries have made towards economic success. I thank the Cayman Islands Chamber of Commerce for taking this Panama Trade initiative into its second year, and look forward to the continued strengthening of this growing relationship between our two countries. I thank you for joining us today and making us feel so welcome.

Last Updated: 2008-12-05