Turks and Caicos Islands

Figure 2.2.1 shows a decline in percentage contribution from real estate, renting and business, the actual
output over the period shows steady growth.
There are some concerns about the level of development being seen in some islands and the methods of
construction being used. The mapping report funded by the Joint Nature Conservation Committee (JNCC)
notes that the islands are experiencing rapid development and face the problem of balancing economic
growth through tourism with environmental impact to areas that until recently were unspoiled, see Section
4.5 (SWA Ltd., Blue Dolphin Research and Consulting Inc., EDSA, 2010). North Caicos provides a useful
example of this conflict since it has been identified by the Tourist Board as one of the best islands for
environmental attractions, but at the same time is touted as an up and coming resort destination with
several new projects under development (Turks and Caicos Tourist Board, n.d.). A letter to the TCI Journal
raises concerns about dredging taking place along the north shore of Providenciales to facilitate barges
working in the North Caicos. The point is made that if the reefs die for the sake of short-term profit there
will be fewer visitors in the long term. The author also refers to the problem of over-raking on beaches
which makes the sand more vulnerable to erosion on a high tide, see Section 4.6 (Name withheld, 2011).
Interestingly the Development Framework (Government of the Turks and Caicos Islands, 2008) emphasizes
sustainable development and the importance of the natural resources, so the issue of planning controls
may need further efforts in the future; a point that is acknowledged in the same document.
The Financial intermediation sector has also shown considerable growth over the period 2000-2007, Table
2.2.2, with the economy benefitting from the annual licence or registration fees paid by the offshore
companies (Kairi Consultants Limited, 2000a). According to the Tourist Board, the Turks & Caicos is quickly
becoming a leading international investment centre given the islands are a “zero tax” jurisdiction and
therefore have no taxes on income, capital gains, corporate profits, inheritance or estates (Turks and Caicos
Tourist Board, n.d.). The Governments of the OECD countries have been seeking to eliminate such tax
havens, which are seen as allowing the super-rich to avoid making their social contribution by potentially
creating loopholes in legislation (Kairi Consultants Limited, 2000a). It was acknowledged that given the
dependence on the finance sector and the potential for abolition of tax haven status sometime in the
future, the UK Government must help with the diversification of the economy including the necessary reskilling
of inhabitants(House of Lords, 2011). A number of medium-term objectives and actions are outlined
in the Development Framework for diversifying the economy (Government of the Turks and Caicos Islands,
2008).
Fishing and agriculture have maintained their output in the period shown in Table 2.2.2, but the relative
contribution to the overall economy is small. Fishing is the dominant sector in South Caicos based around
the export of lobster and conch; the latter is subject to the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES) under which TCI is allocated a quota of 600,000 lbs of
conch per annum (Kairi Consultants Limited, 2000a). The Tourist Board highlights the Caicos Conch farm,
since it is reportedly the only commercial conch farm in the world (Turks and Caicos Tourist Board, n.d.;
BBC, 2010). Fishing is one area where tourism provides a backward link to the rest of the economy, with
fish for the tourist sector provided largely by the domestic catch. There is untapped potential for
agriculture in North Caicos because of the lack of infrastructure to permit linkages with the larger markets
in other islands (Kairi Consultants Limited, 2000a).
Livelihoods, poverty and population
The variable economic fortune of the Turks and Caicos Islands has led to an interesting pattern of
emigration and movement between islands. Following the collapse of the salt industry a large number of
Islanders emigrated to The Bahamas and as the tourism industry evolved in Providenciales there has been a
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