Bermuda: Enterprise Island

Aired December 2005

Jutting up from the deep Atlantic Ocean floor, Bermuda is a beautiful, isolated archipelago with a land area of only 21 square miles. Think Bermuda and images of tidy pastel cottages, professional gents in ties and shorts, pink-sand beaches, and quintessential British traditions come to mind. These quaint stereotypes do have more than a grain of truth.

Bermuda is a stable, efficient island with a highly sophisticated infrastructure. It continues to have the confidence of the monetary world. The economy is based on tourism and international business and it has been highly successful in both ventures. Bermuda provides compelling competitive advantages and effective solutions for smart business people and companies.

Only 600 miles from the American coast, the country has maintained close ties with the United States. The Bermuda dollar is at par with the American dollar, making life as simple as possible for visitors and investors. This is married with a basket of attributes that make it a compelling business setting.

Today Bermuda enjoys one of the highest per capita incomes in the world. Its economy is primarily based on providing financial services for international business and luxury facilities for tourists. Most capital equipment and food must be imported, all affecting its economic evolution.

Bermuda has successfully defined and refined the valuable balance between regulation and flexibility within the island’s statutory and business environment. There are almost 13,000 international companies registered in Bermuda.

Bermuda’s success as a jurisdiction is a direct reflection of the increasing number of businesses incorporated on-island. Virtually every Fortune 500 company today has a presence in Bermuda, and more than half of the companies listed on the Hong Kong Stock Exchange are incorporated here. The international business sector is the second largest provider of jobs in Bermuda’s economy. Growing as well is the wealth of professional expertise developing on the island, where ingenuity reigns on the edge of progressive business practice.

Those who do business in Bermuda are part of an elite group. The Government does not allow just any company to set up shop on the island. Only high-quality companies are accepted. At the same time, Bermuda does not allow money-laundering or financing of illegal operations. This level of excellence gives Bermudian companies a competitive advantage.

FINANCE

In 1969, the Bermuda Monetary Authority was set up to establish a national currency, adopt a supervisory framework for the banking sector, and create an advisory body to assist the government on financial matters. One of Bermuda’s greatest financial strengths is its insurance industry. Today, Bermuda is the chosen home for more than half the world’s captive insurers and has rapidly become a favorite location for catastrophe insurers.

There are strict regulations against the formation of new banks, therefore only a few banks carry on regular business in Bermuda, with the largest having been acquired by HSBC. These banks have branches, subsidiaries and a large network of correspondent relationships and sophisticated money transfer systems. These attributes enable the banks to compete successfully with the larger money center banks worldwide for their services.

The Bermuda Stock Exchange, or BSX, is a leading fully electronic offshore securities market. A sophisticated clearing and settlement platform allows domestic and foreign investors to trade and safekeep securities, and international companies may become trading members.

Bermuda is a business centre that continues to have the confidence of the global economy. It is likely to remain one of the world’s most exclusive and sought-after destinations for international business well into the foreseeable future.

TELECOMMUNICATIONS

Because of its remoteness, Bermuda has always been on the cutting edge of telecommunications.

Brimming underneath the country’s surface is a technological sophistication worthy of any North American city, and customers enjoy being at the forefront of these advancements.

CONSTRUCTION

Bermuda is just one-third the size of Washington DC, but its major business prestige has made an impact on the island’s construction sector. The ‘construction boom’ in Bermuda is still in full swing, with major residential and commercial development taking place island-wide. Most notable is the number of condominium units being constructed to help meet the demand for residential products in the market. Buyers are attracted to new developments due to their quality and amenities, not to mention potential resale values.

Bermuda is a major attraction for American property buyers. Due to the limited land and number of houses, residential dwellings in the country have been classified into two main categories - those available for local purchase only and those available for purchase by 'Non-Bermudians'. Non-Bermudian property owners are prohibited from buying land, commercial, and 'investment' property or property intended primarily to earn rental income. Owning property in Bermuda is expensive.

Americans have the ability to buy “a piece of the rock”, which is Bermuda slang for purchasing property. However, they are limited to the higher end of the residential market by current government policies.

Americans have become, in greater numbers, property owners in Bermuda. Of course, Bermudians are happy to welcome those who wish to make their country their residence or holiday home abroad.

TOURISM

Blessed with a temperate climate and magnificent beaches Bermuda is a justifiably classic favorite among a wide range of savvy travelers. Tourism is the obvious engine of growth for the island’s economy. Bermuda may be small, but it’s packed with attractions for discerning visitors.

One of the island’s prime attractions is the magnificent town of St. George. This Unesco World Heritage Site is like stepping into a time machine, transporting you to the days of Bermuda’s early settlers.

Thanks to the surrounding coral reefs that grind out famously gorgeous sand beaches, scuba diving and watersports are also a must.

Bermuda’s pink-sand beaches, with their beautiful turquoise waters, are world-renowned. Warwick Long Bay on the southern shore offers a splendid unbroken stretch that lures sunseekers with its secluded coves and bays divided by outcrops of craggy rocks. Horseshoe Bay is as gorgeous as it gets. Once you set your eyes on it, you’ll understand why it is the most popular beach in Bermuda. Wherever you are on the island, you’re never more than a mile away from the ocean.

Buildings in Bermuda are characterized by white slate roofs, stepped chimneys and pastel-colored walls. History unfolds on every corner of the island, particularly in the architecture of homes, churches, and other centuries-old buildings. Hamilton’s pulse is Front St., a harbourfront road lined with Victorian buildings in various colours. Repeat visitors are raving about the friendliness of the Bermudian people.