U.S. Department of State

As of May 2012, Background Notes are no longer being updated or produced. They are in the process of being replaced by Fact Sheets that focus on U.S. relations with each country.

PROFILE

Geography
Area: 264 sq. km. (102 sq. mi.) on three islands: Grand Cayman (76 sq. mi.), Cayman Brac (15 sq. mi.), and Little Cayman (11 sq. mi.).
Capital: George Town (pop. 27,704; 2010 census).
Terrain: Low-lying limestone base surrounded by coral reefs.
Climate: Tropical.

People
Nationality: Noun and adjective--Caymanian(s).
Population (July 2012 est.): 52,560
Annual population growth rate (2012 est.): +2.39%
Ethnic groups: Afro-European 40%, African 20%, European 20%, other 20%.
Religious affiliations: United Church, Anglican, other Protestant, Roman Catholic.
Language: English (official) 95%, Spanish 2.3%, other 1.8% (1999 census).
Education: Years compulsory--to age 16. Literacy (age 15 and over)--98%.
Health: Infant mortality rate (2008)--6.49/1,000 live births. Life expectancy--males 78.12 years; females 83.51 years. (2012 est.)
Work force (2010 est.): 35,859.

Government
Type: British Overseas Territory, parliamentary democracy.
Constitution: 2009; called the Cayman Islands Constitution Order 2009. The previous constitution was adopted in 1972 and modified in 1994.
Branches: Executive—Her Majesty Queen Elizabeth II, represented by Governor and Governor-in-Cabinet), Cabinet. Legislative--unicameral Legislative Assembly (20 seats, 18 members elected by popular vote and 2 ex officio members from the Cabinet. Members serve four-year terms). Judicial--Summary Court, Grand Court, Cayman Islands Court of Appeal, Her Majesty's Privy Council.
Subdivisions: Eight districts: Creek, Eastern, Midland, South Town, Spot Bay, Stake Bay, West End, Western.
Political parties: People's Progressive Movement, United Democratic Party.
Suffrage: Universal at 18.

Economy
GDP per capita (2011 estimate): U.S. $47,299.
GDP (2011 est.): US $2.592 billion.
Growth rate (2011 est.): +1.2%.
Natural resources: Scenic beaches and underwater attractions, favorable climate.
Agriculture: Products--Minor production of vegetables and livestock, turtle farming, aquaculture.
Industry: Types--tourism, banking, insurance, mutual funds, finance, construction, and furniture.
Trade: Exports (2010 est.)--$17 million: turtle products, manufactured consumer goods. Major market--United States. Imports (2010 est.)--$795 million: machinery, manufactures, food, fuels, chemicals. Major suppliers--U.S., Jamaica, U.K., Netherlands Antilles, Japan.
Official exchange rate (fixed): CI $0.83=U.S. $1.

HISTORICAL HIGHLIGHTS
The Cayman Islands remained largely uninhabited until the 17th century. A variety of people settled on the islands, including pirates, refugees from the Spanish Inquisition, shipwrecked sailors, deserters from Oliver Cromwell's army in Jamaica, and slaves. The majority of Caymanians are of African and British descent, with considerable interracial mixing.

Great Britain took formal control of the Cayman Islands, along with Jamaica, under the Treaty of Madrid in 1670. Following several unsuccessful attempts, permanent settlement of the islands began in the 1730s. The Cayman Islands historically have been popular as a tax-exempt destination. One legend has it that Caymanians in 1788 rescued the crews of a Jamaican merchant ship convoy which had struck a reef at Gun Bay and that the Caymanians were rewarded with King George III's promise to never again impose any tax.

The Cayman Islands, initially administered as a dependency of Jamaica, became an independent colony in 1959; they now are a largely self-governing British Overseas Territory.

GOVERNMENT AND POLITICAL CONDITIONS
The Cayman Islands' physical isolation under early British colonial rule allowed the development of an indigenous set of administrative and legal traditions, which were codified into a Constitution in 1959. Although still a British Overseas Territory, the islands today are self-governed in nearly all respects. The Constitution, or the Cayman Islands Constitution Order 2009, that governs the islands came into effect on November 6, 2009.

The Cayman Islands' political system is stable, bolstered by a tradition of restrained civil governance, sustained economic prosperity, and its relative isolation from foreign policy concerns. Public discussion revolves around public sector expenditure and social services, the pace of additional economic development, and the status of the large foreign national community on the islands.

Government Structure
The Cayman Islands form a British Overseas Territory with a large measure of self-government. Under the 2009 Constitution, the islands are administered by a government that is headed by a Governor, a Legislative Assembly, and a Cabinet. The Governor is recruited from the U.K. Government Service, serves as the British government administrator, and retains responsibility for the civil service, defense, external affairs, and internal security.

The Governor also chairs the Cabinet and appoints to the Cabinet the Chief Secretary, the Attorney General, and the Financial Secretary, while the Legislative Assembly elects the Cabinet's other five members. Unlike other Caribbean Overseas Territories there is no Chief Minister but a Premier (formerly called the Leader of Government Business). The Premier is an elected politician, while the Chief Secretary is the most senior civil servant. Currently, the Premier is also the Minister of Financial Services, Tourism, and Development.

Responsibility for defense and external affairs resides with the United Kingdom; however, the Chief Secretary has responsibility for the Portfolio of Internal and External affairs, and the Cayman Government may negotiate certain bilateral matters directly with foreign governments. The elected members of the Cabinet divide the remaining administrative portfolios.

The 18-seat unicameral Legislative Assembly is presided over by an independent speaker. Elections are held at the discretion of the Governor at least every 4 years. Members of the Assembly may introduce bills, which, if passed, are then approved, returned, or disallowed by the Governor. The U.K. Government also reserves the right to disallow bills approved by the Governor.

The four-tiered judicial system is based on English common law and colonial and local statutes. The Cayman Islands Court of Appeal is the highest court on the islands, but Her Majesty's Privy Council sitting in London may hear a final appeal.

Political Coalitions
Since 2000, there have been two official political parties: The United Democratic Party (UDP) and the People's Progressive Movement (PPM). While there has been a shift to political parties, many contending for an office still run as independents. In May 2009 elections, the United Democratic Party (UDP) defeated the incumbent People's Progressive Movement, receiving nine of the 15 seats. The next election is scheduled for 2013.

Principal Government Officials
Head of State--Queen Elizabeth II
Governor--Duncan Taylor
Premier--McKeeva Bush
Deputy Governor--Franz Manderson
Speaker of the House--Mary Lawrence

The Cayman Islands are represented in the United States by the United Kingdom Embassy at 3100 Massachusetts Avenue, Washington DC 20008; tel: 202-462-1340; fax: 202-898-4255.

The Cayman Islands Department of Tourism, with offices in Miami, New York, Houston, and Chicago, also may provide travel information.

ECONOMY
International finance and tourism are considered the Cayman Islands' "twin pillars" of economic development. It is estimated that financial services represent 40% and tourism between 30%-40% of gross domestic product.

The Cayman Islands economy suffered the effects of the 2009 global recession, which severely damaged the territory’s financial sector. The economy continues to recover, and in the first 9 months of 2011, real GDP grew at an estimated annualized rate of 1.2 percent, following sharp declines in 2009 and 2010. The government has also sought new ways of retaining international businesses and their employees; in February 2010, Premier McKeeva Bush announced that the government would offer foreigners the opportunity to purchase permanent residency in the Cayman Islands for $1 million. Tourism to the Cayman Islands also took a hit due to the global recession, falling in 2009. Tourism numbers increased in 2010, but they remained slightly below those of 2008. Although Caymanians enjoy one of the highest standards of living in the world, about 90% of the islands' food and consumer goods must be imported.

From the earliest settlement of the Cayman Islands, economic activity was hindered by isolation and a limited natural resource base. The harvesting of sea turtles to resupply passing sailing ships was the first major economic activity on the islands, but local stocks were depleted by the 1790s. Agriculture, while sufficient to support the small early settler population, has always been limited by the scarcity of available land.

The advent of modern transportation and telecommunications in the 1950s led to the emergence of international finance and tourism in the Cayman Islands. As of December 2010, the banking sector had $1.73 trillion in assets. There were approximately 250 banks, 150 active trust licenses, 730 captive insurance companies, nine money service businesses, and more than 85,000 companies licensed or registered in the Cayman Islands. According to the Cayman Islands Monetary Authority (CIMA), at the end of 2010 there were approximately 9,000 registered mutual funds, of which 435 were administered and 133 were licensed. Forty of the world's largest banks are present in the Cayman Islands. Unspoiled beaches, duty-free shopping, scuba diving, and deep-sea fishing draw almost a million visitors to the islands each year.

Education is compulsory to the age of 16 and is free to all Caymanian children. Schools follow the British educational system. The government operates 10 primary, one special education, and two high schools. In addition, there is a university and a law school.

FOREIGN RELATIONS AND U.S.-CAYMANIAN RELATIONS
The Cayman Islands participates in international organizations such as the Caribbean Community (CARICOM), the Caribbean Development Bank (CDB), Interpol, and the International Olympic Committee (IOC). The United Kingdom is responsible for the Cayman Islands' defense and external affairs.

Despite close historic and political links to the U.K. and Jamaica, geography and the rise of tourism and international finance in the Cayman Islands' economy has made the United States its most important foreign economic partner. Following a decline in tourists from the United States after September 11, 2001, and following the 2008 financial crisis, nearly 230,000 U.S. citizens (about 79% of all air travelers) traveled by air to the Cayman Islands in 2010, with an even larger number traveling by cruise ship. Some 4,761 Americans were residents of the Cayman Islands as of 2005.

For U.S. and other foreign investors and businesses, the Cayman Islands ' main appeal as a financial center is the absence of all major direct taxes, free capital movement, a minimum of government regulations, and a well-developed financial infrastructure.

With the rise in international narcotics trafficking, the Cayman Government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States in order to reduce the use of its facilities for money laundering operations. The Cayman Islands continues to develop its network of information exchange mechanisms. Since 2010, the Cayman Islands has signed five tax information exchange agreements which meet the international standard: with Canada, Mexico, Japan, India and South Africa. It now has a network of 24 information exchange agreements, with 12 of those already in force. The Cayman Islands continues to engage with the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes.

U.S. Representation
The United States does not maintain diplomatic offices in the Cayman Islands. Diplomatic relations are conducted through the U.S. Embassy in London and the British Embassy in Washington, DC.

The Cayman Islands are, however, part of the consular district administered by the U.S. Embassy in Kingston, Jamaica. Inquiries regarding visas to the U.S. or other consular matters should be directed to the consular section of the U.S. Embassy, 142 Old Hope Road, Kingston 6, Jamaica; tel: (876) 702-6000; fax: (876) 702-6001. There also is a U.S. consular agent in the Cayman Islands to assist in providing services for American citizens. Address: Unit 222, Mirco Center, North Sound Road, Georgetown, Grand Cayman; tel: (345) 945-8173; fax: (345) 945-8192. For after-hours emergencies call the U.S. Embassy in Kingston, Jamaica, tel: (876) 702-6000. The Consular Agency in Georgetown is open to the public: M-W-F 0730 to 1100 and T-Th 1200 to 1530. The office is closed on U.S. and Caymanian public holidays.

Travel Alerts, Travel Warnings, Trip Registration
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://travel.state.gov, where current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. The travel.state.gov website also includes information about passports, tips for planning a safe trip abroad and more.  More travel-related information also is available at  http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department's Smart Traveler app for U.S. travelers going abroad provides easy access to country information, travel alerts, travel warnings, maps, U.S. embassy locations, and more that appear on the travel.state.gov site. Travelers can also set up e-tineraries to keep track of arrival and departure dates and make notes about upcoming trips. The app is available for iPhone, iPad, and Android.

The Department of State encourages all U.S. citizens traveling or residing abroad to enroll in the State Department's Smart Traveler Enrollment Program (STEP).  A link to the registration page is also available through the Department's Smart Traveler app. U.S. citizens without internet access can enroll directly at the nearest U.S. embassy or consulate.  By enrolling, you make your presence and whereabouts known in case it is necessary to contact you in an emergency and so you can receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

Passports
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY: 1-888-874-7793. Passport information is available 24 hours, 7 days a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., Eastern Time, excluding federal holidays.

Health Information
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. The CDC publication "Health Information for International Travel" can be found at http://wwwn.cdc.gov/travel/contentYellowBook.aspx.

More Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including more Background Notes, the Department's daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

Mobile Sources. Background Notes are available on mobile devices at http://m.state.gov/mc36882.htm, or use the QR code below.

 

 
 

In addition, a mobile version of the Department's http://www.state.gov website is available at http://m.state.gov, or use the QR code below. Included on this site are Top Stories, remarks and speeches by Secretary Clinton, Daily Press Briefings, Country Information, and more.