The Caribbean

Think of the Caribbean and inevitably you conjure up clichéd images of white-sand beaches and tropical drinks with little umbrellas. It’s a pleasant thought, but the contradictions hit you the moment you arrive. With a history built on piracy and sugar, slavery, revolt and colonial identity, the islands support a vibrant mix of cultures. There are cricket players and Rastas, Cuban rebels and lobster fishermen, and this rich history and its lasting influence are set against a backdrop of crystal clear waters and perpetual sunshine.

Did you know?

1. More ships cruise the Caribbean islands than any other region in the world.
2. Reefs in the Caribbean are 10-15 million years old, where as the Pacific ones at 60-70 million years old.
3. Only about 2 percent of the Caribbean's numerous islands are inhabited.
4. Antigua has 365 beaches, one for each day of the year.
5. The largest barrier reef in the Western hemisphere is located within 10-40 miles of Belize mainland and is almost 185 miles long.
6. Grenada, known as the spice island, has more spices per square mile than any other place in the world.
7. St Lucia is where you'll find the world's only "drive through volcano".
8. Jamaica is the largest English-speaking island in the Caribbean and it has 120 rivers
9. The Boiling Lake in Dominica is the second largest boiling lake in the world, with temperatures that hover between 82 and 92C (180 and 197F).

Caribbean Economy

The rise of tourism has sparked an indirect growth in many other domestic industries such as construction and other service and tourism-related enterprises. Aruba, for example, currently has five times the hotel capacity it had in 1985, and its construction trade is flourishing.

The individual economies of the Caribbean islands are generally open to free trade, and whilst their export bases are fairly limited, many islands are beginning to diversify their industries. Sugar, bananas, eggplant and flowers are exported from many islands and other crops are still grown exclusively for domestic use. The distillation and large-scale export of rum, a well-known island product, takes place on most islands where sugarcane is grown.
Offshore banking is also an important part of Caribbean commerce, particularly in The Bahamas and Aruba. St. Croix has one of the world's largest petroleum refinery facilities, as does Aruba. Mostly all of these industries, however, rank below tourism in profitability. In the U.S. Virgin Islands, for example, tourism provides 70 percent of the island's jobs and accounts for more than 70 percent of the Gross Domestic Product (GDP).

Because most of the Caribbean's import-export business is with the United States and the majority of Caribbean tourists are U.S. citizens, the influence of the U.S. economy is significant. So when the U.S. economy is in recession, investment ventures on the islands tend to decline and fewer Americans travel which affects the primary industry of the region - tourism. To lessen the severity of such setbacks, many islands are beginning to expand their export base and privatise government-controlled industries. Many of the individual islands' governments face the challenge of increasing their economic independence while enjoying the benefits of economic partnerships.

In an effort to stimulate the growth of their economy, some of the islands have followed the European Union's lead and formed economic alliances under a single currency. The Eastern Caribbean Currency Union, for instance, uses the Eastern Caribbean Dollar (EC$), and counts Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, Montserrat, Anguilla, and St. Vincent & The Grenadines among its members. The EC$ uses a fixed exchange rate of US$ 1 = EC$ 2.7

Because the Caribbean economy is so closely linked to the performance of the U.S. economy, the U.S. dollar is also widely accepted in the region. A few of the islands even have their own currencies fixed to the U.S. dollar at a constant exchange rate.

St Lucia Economy 

• GDP (2008): $987 million.
• GDP growth rate (2008): 0.7%.
• GDP growth rate (1998-2008): 2.0%
• Per capita GDP (2008): $5,806.
• Inflation of consumer prices (2008): 7.2%. 
• Natural resources: Forests, minerals (pumice), mineral springs.
  Agriculture: Bananas, cocoa, coconut, citrus fruits, and livestock. 
  Manufacturing: Garments, electronic components, beverages, corrugated boxes. 
• Services: Tourism and offshore banking.
• Trade (2005): Exports--$64 million (merchandise) and $389 million (commercial services)
• Major markets--European Union (28.2%), Trinidad and Tobago (22.5%), United States (14.0%), Barbados (10.1%), and Grenada (5.2%)
• Imports--$475 million (merchandise) and $159 million (commercial services). 
• Major suppliers--United States (43.9%), Trinidad and Tobago (14.2%), European Union (14.2%), Japan (4.6%), and Barbados (3.0%)
  Official exchange rate: EC$2.70 = U.S. $1.