INVESTMENT PROFILES
Member State
Montserrat
T
he recent history of Montserrat has been marked by severe volcanic activity that has inhibited the development and growth of its small, open economy. In 1997, a catastrophic eruption had devastating effects across the island that are still felt in some areas today. However, the volcanic site is now one of the best understood in the world, and is constantly monitored by an international team of scientists. Crucially, the areas in the north where economic growth is present are protected from volcanic flows by the island’s Centre Hills. Before the eruption, tourism was central to Montserrat’s economy, and it is hoped that the country can regain its status as a tourist destination. Diving, bird watching, hiking, fishing, sailing and turtle spotting are all popular activities for visitors, and fall in line with the ecotourism movement that is unfurling across the Caribbean Region. The Montserrat Development Corporation is in the process of constructing a new port and town at Little Bay, which will feature a resort
hotel, luxury villas, condominiums, apartments, and retail and leisure facilities. The plan includes a number of investment opportunities that have already caught the attention of local and international developers. The new port and marina will attract cruise liners and ferry services from nearby islands, and the development corporation is in talks with cruise ship operators about including Montserrat on future schedules. It is also in talks with commercial port operators about publicprivate partnerships with the government for the construction and operation of the new facilities. Private-sector investment is key to the economic future of Montserrat, and an investment fund is being established to facilitate this. There is also a one-stop shop that provides a wealth of information and advice to interested parties and helps them through the process of making investments. Local people establishing businesses are also helped in this regard, with training and advice available and a business financing facility that provides small loans designed to support local start-ups.
Capital city: Plymouth was abandoned in 1997 following a volcanic eruption, although by law it remains Montserrat’s capital city. Government buildings are now located in Brades, making it the de facto capital city Independence: Montserrat is a British Overseas Territory GDP real growth rate (2008 estimate): 3.5 per cent World ranking: 98 GDP – composition by sector (2012 estimate): Agriculture: 1.6 per cent Industry: 23.2 per cent Services: 75.1 per cent GDP per capita (2006 estimate): $8,500 World ranking: 129 Population ( July 2013 estimate): 5,189
(an estimated 8,000 refugees left the island following the resumption of volcanic activity in July 1995; some have returned)
Montserrat Tourist Board
Investment authority: Montserrat
Investment Authority Address: The New Market Building, Robert W.
Griffith Drive, Little Bay Montserrat Tel: +1 (664) 491-4700 Email: info@investmontserrat.com Web: www.investmontserrat.com
Tourism is central to the island’s recovery from the 1997 volcanic eruption that led half the population to leave Montserrat
Incentives for investment that are currently available include a 15-year corporation tax holiday from commencement of operation; exemption from customs duties and consumption tax on imported equipment and materials; and incentives for priority sectors and projects that are offered at the discretion of the government. Furthermore, Montserrat imposes no restrictions on the repatriation of profits or on foreign ownership, and offers political stability and the committed support of the UK government.
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