Economy of Belize
Encyclopedia
The economy of Belize depended on forestry
until well into the 20th century. Logwood
, used to make dye
, was Belize
's initial main export. However, the supply outstripped the demand, especially as Europeans developed man-made dyes which were less expensive. Loggers turned to mahogany
, which grew in abundance in the country's forests. The wood was prized for use in cabinets, railroad carriers. While many merchants and traders became wealthy from the mahogany industry, ups and downs in the market had a large impact on the economy
. In addition, new mahogany trees weren't being planted, because mahogany trees grow slowly; the rate of natural regrowth necessitated a large, long-term investment in tree farming, which was not made. As the 19th century progressed, loggers were forced to go deeper into the forests to find the trees, increasing labour costs.
Variations of mahogany exports over long periods of time were linked to the accessible supply of the resource. Thus, improvements in hauling methods helped the cutters satisfy increasing demands for mahogany by enabling them to extract timber from areas in the interior that had been previously inaccessible to them. Immediately after the introduction of cattle in the early 19th century, tractors in the 1920s, and lorries in the 1940s, production levels rose dramatically.
When the supply of accessible timber dwindled and logging became too unprofitable in the 20th century, the country's economy shifted to new sectors. Cane sugar
became the principal export and recently has been augmented by expanded production of citrus
, banana
s, seafood
, and apparel. The country has about 8,090 km² of arable land
, only a small fraction of which is under cultivation. To curb land speculation, the government enacted legislation in 1973 that requires non-Belizeans to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres (40,000 m²) of rural land or more than one-half acre (2,000 m²) of urban land.
Domestic industry is limited, constrained by relatively high-cost labour and energy and a small domestic market. The United States Embassy in Belmopan
knows of some 185 United States companies that have operations in Belize, including MCI
, Duke Energy International, Archer Daniels Midland
, Texaco
, and Esso
. Tourism
attracts the most foreign direct investment although significant U.S. investment also is found in the energy, telecommunications, and agricultural sectors.
A combination of natural factors—climate, the Belize Barrier Reef
(longest in the Western Hemisphere
), numerous islands, excellent fishing
, safe waters for boating, jungle wildlife, and Maya
ruins—support the thriving tourist industry. Development costs are high, but the Government of Belize has designated tourism
as its second development priority after agriculture
. In 2000, tourist arrivals totaled 189,634 (more than 110,000 from the U.S.) and tourist receipts amounted to $113.3 million.
Belize's investment policy is codified in the Belize Investment Guide, which sets out the development priorities for the country.
A major constraint on a functioning market economy
in Belize continues to be the scarcity of infrastructure investments. Although electricity
, telephone
, and water utilities are all relatively good, Belize has the most expensive electricity in the region. Large tracts of land which would be suitable for development are inaccessible due to lack of roads. Some roads, including sections of major highways, are subject to damage or closure during the rainy season. Ports in Belize City
, Dangriga
, and Big Creek
handle regularly scheduled shipping from the U.S. and the United Kingdom although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports. International air service is provided by American Airlines
, Continental Airlines
, U.S. Airways, and TACA
to gateways in Dallas, Texas
, Houston, Texas
, Charlotte, North Carolina
, Miami, Florida
, and San Salvador
.
Several capital projects are either currently underway or are programmed to start in fiscal year 2001/2002. The largest of these is a $15 million rural electrification program to be jointly implemented by the government and Belize Electricity Limited (BEL). In addition, the government will continue to implement an Inter-American Development Bank
Emergency Reconstruction Fund of $20 million aimed at restoring essential services such as health and education facilities and transportation networks to communities which were severely damaged by Hurricane Keith
. The government will also invest close to $4.2 million in projects targeted at poverty alleviation across Belize.
Initiated in 1999, the Ministry of Agriculture and Fisheries, through the Belize Agricultural Health Authority, will continue to implement the IDB-funded "Modernization of Agricultural Health Project." This $2.5 million project seeks to improve the competitiveness of Belize's agricultural products and thus enhance the ability of Belizean farmers and processors to maintain and expand the sale of their high-quality products to foreign markets. A $5 million soybean
project, funded by the Brazilian Government, is scheduled to begin in 2001 and is intended to assist northern Belize farmers to diversify away from sugarcane cultivation.
The government also plans to invest $9.85 million to complete the rehabilitation of the Hummingbird Highway
, as well as investing $9.5 million in its health-sector reform program. Another $9 million will be invested under the IDB-funded "Land Management Project" over the next 2 years. The Ministry of Tourism is confident that another IDB-funded project, the "Tourism Development Project", will make Belize the Mundo Maya centerpiece for travelers to Central America. The government will spend close to $1.4 million in improving access to the Maya archaeological sites in Belize, especially Caracol. Using a soft loan from the Republic of China
, the government is funneling $50 million toward the construction of low-cost housing.
Belize continues to rely heavily on foreign trade with the United States as its number one trading partner. Total imports in 2000 totaled $446 million while total exports were only $349.9 million. In 2000, the U.S. accounted for 48.5% of Belize's total exports and provided 49.7% of all Belizean imports. Other major trading partners include the UK, European Union
, Canada, Mexico, and Caribbean Community
(CARICOM) member states.
Belize aims to stimulate the growth of commercial agriculture through CARICOM. However, Belizean trade with the rest of the Caribbean is small compared to that with the United States and Europe. The country is a beneficiary of the Caribbean Basin Initiative (CBI), a U.S. Government program to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products. Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI. U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry. EU and UK preferences also have been vital for the expansion and prosperity of the sugar and banana industries.
The tourism
industry is an important part of the economy of Belize
, in 2007 contributing to over 25% of all jobs, and making up over 18% of the GDP
. This constituted 590 million BZD
(295 million USD
), according to the Belize government, up 90 million BZD (45 million USD) from the year before. Tourism is the domain of the Ministry of Tourism, within which the Belize Tourism Board works as a link between the private and public sector.
The IBC legislation was supplemented in 1992 with the enactment of a Trusts Act which provides for both onshore and offshore trusts. Universally acknowledged as one of the best in the field, Belize's trust law contains provisions that are specialty designed to meet the needs of differing and diverse cultures and religions.
Belize IBCs have the following Features and Advantages:
Progressive legislation
The IBC Act was introduced in 1990 to implement competitive offshore legislation for Belize IBC's which was subsequently amended to reflect the changes required to provide efficient Belize offshore services.
Efficient Incorporation / Registration
Belize incorporation is very efficient under normal circumstances, a Belize IBC can be incorporated in a couple of working days.
Flexibility in company structure
• There is no requirement for a secretary resident or otherwise
• Only one director or shareholder required for the company formation
• Shareholder(s) and director(s) may be the same person
• The shareholder(s) and director(s) can be a natural person or a corporate body
• There is no requirement for appointing local shareholder(s) and director(s)
Privacy of identity of principals
The documents for Belize offshore Incorporation do not carry the name or identity of any shareholder or director. The names or identities of these persons do not appear in any public record.
Taxation in Belize
On IBC Profits According to the IBC Act of 1990, offshore companies are exempted from all taxes.
(longest in the Western Hemisphere
), 127 offshore Cayes (islands), excellent fishing
, safe waters for boating, scuba diving
, and snorkeling
, various jungle fauna
and flora
, helicopter touring and Maya
ruins—support the thriving tourism
and ecotourism
industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture
. In 2007, tourist arrivals totaled 251,655 (more than 210,000 from the U.S.) and tourist receipts amounted to $183.3 million.
, has presented new prospects and problems for this developing nation. Sugar, the chief crop, accounts for nearly half of exports, while the banana oh my god bananas are chasing me industry is the country's largest employer. The government's tough austerity program in 1997 resulted in an economic slowdown that continued in 1998. The trade deficit has been growing, mostly as a result of low export prices for sugar and bananas. The new government faces important challenges to economic stability. Rapid action to improve tax collection has been promised, but a lack of progress in reining in spending could bring the exchange rate under pressure. The tourist and construction sectors strengthened in early 1999, leading to a preliminary estimate of revived growth at 4%. The Belize Dollar is fixed to the U.S. dollar at a rate of 2:1.
A combination of natural factors—climate, the Belize Barrier Reef
(longest in the Western Hemisphere), 127 offshore islands, excellent fishing, safe waters for boating, various jungle fauna
and flora
, and Maya
ruins—support the thriving tourism and ecotourism
industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture
. In 2000, tourist arrivals totaled 189,634 (more than 110,000 from the U.S.) and tourist receipts amounted to $113.3 million.
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
until well into the 20th century. Logwood
Logwood
Haematoxylum campechianum is a species of flowering tree in the legume family, Fabaceae, that is native to southern Mexico and northern Central America. It has been and to a lesser extent remains of great economic importance. The modern nation of Belize grew from 17th century English logwood...
, used to make dye
Dye
A dye is a colored substance that has an affinity to the substrate to which it is being applied. The dye is generally applied in an aqueous solution, and requires a mordant to improve the fastness of the dye on the fiber....
, was Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
's initial main export. However, the supply outstripped the demand, especially as Europeans developed man-made dyes which were less expensive. Loggers turned to mahogany
Mahogany
The name mahogany is used when referring to numerous varieties of dark-colored hardwood. It is a native American word originally used for the wood of the species Swietenia mahagoni, known as West Indian or Cuban mahogany....
, which grew in abundance in the country's forests. The wood was prized for use in cabinets, railroad carriers. While many merchants and traders became wealthy from the mahogany industry, ups and downs in the market had a large impact on the economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
. In addition, new mahogany trees weren't being planted, because mahogany trees grow slowly; the rate of natural regrowth necessitated a large, long-term investment in tree farming, which was not made. As the 19th century progressed, loggers were forced to go deeper into the forests to find the trees, increasing labour costs.
Variations of mahogany exports over long periods of time were linked to the accessible supply of the resource. Thus, improvements in hauling methods helped the cutters satisfy increasing demands for mahogany by enabling them to extract timber from areas in the interior that had been previously inaccessible to them. Immediately after the introduction of cattle in the early 19th century, tractors in the 1920s, and lorries in the 1940s, production levels rose dramatically.
When the supply of accessible timber dwindled and logging became too unprofitable in the 20th century, the country's economy shifted to new sectors. Cane sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
became the principal export and recently has been augmented by expanded production of citrus
Citrus
Citrus is a common term and genus of flowering plants in the rue family, Rutaceae. Citrus is believed to have originated in the part of Southeast Asia bordered by Northeastern India, Myanmar and the Yunnan province of China...
, banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
s, seafood
Seafood
Seafood is any form of marine life regarded as food by humans. Seafoods include fish, molluscs , crustaceans , echinoderms . Edible sea plants, such as some seaweeds and microalgae, are also seafood, and are widely eaten around the world, especially in Asia...
, and apparel. The country has about 8,090 km² of arable land
Arable land
In geography and agriculture, arable land is land that can be used for growing crops. It includes all land under temporary crops , temporary meadows for mowing or pasture, land under market and kitchen gardens and land temporarily fallow...
, only a small fraction of which is under cultivation. To curb land speculation, the government enacted legislation in 1973 that requires non-Belizeans to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres (40,000 m²) of rural land or more than one-half acre (2,000 m²) of urban land.
Domestic industry is limited, constrained by relatively high-cost labour and energy and a small domestic market. The United States Embassy in Belmopan
Belmopan
Belmopan , estimated population 20,000 is the capital city of Belize.Belmopan is located at , at an altitude of 76 metres above sea level. Belmopan was constructed just to the east of Belize River, inland from the former capital, the port of Belize City, after that city's near destruction by...
knows of some 185 United States companies that have operations in Belize, including MCI
MCI Inc.
MCI, Inc. is an American telecommunications subsidiary of Verizon Communications that is headquartered in Ashburn, Virginia...
, Duke Energy International, Archer Daniels Midland
Archer Daniels Midland
The Archer Daniels Midland Company is a conglomerate headquartered in Decatur, Illinois. ADM operates more than 270 plants worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial and animal feed markets worldwide.ADM was named the...
, Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
, and Esso
Esso
Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
. Tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
attracts the most foreign direct investment although significant U.S. investment also is found in the energy, telecommunications, and agricultural sectors.
A combination of natural factors—climate, the Belize Barrier Reef
Belize Barrier Reef
The Belize Barrier Reef is a series of coral reefs straddling the coast of Belize, roughly offshore in the north and in the south within the country limits...
(longest in the Western Hemisphere
Western Hemisphere
The Western Hemisphere or western hemisphere is mainly used as a geographical term for the half of the Earth that lies west of the Prime Meridian and east of the Antimeridian , the other half being called the Eastern Hemisphere.In this sense, the western hemisphere consists of the western portions...
), numerous islands, excellent fishing
Fishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
, safe waters for boating, jungle wildlife, and Maya
Maya civilization
The Maya is a Mesoamerican civilization, noted for the only known fully developed written language of the pre-Columbian Americas, as well as for its art, architecture, and mathematical and astronomical systems. Initially established during the Pre-Classic period The Maya is a Mesoamerican...
ruins—support the thriving tourist industry. Development costs are high, but the Government of Belize has designated tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
as its second development priority after agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. In 2000, tourist arrivals totaled 189,634 (more than 110,000 from the U.S.) and tourist receipts amounted to $113.3 million.
Belize's investment policy is codified in the Belize Investment Guide, which sets out the development priorities for the country.
Infrastructure
Belize has a population of about 330,000 people. The capital of Belize is Belmopan.A major constraint on a functioning market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
in Belize continues to be the scarcity of infrastructure investments. Although electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
, telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
, and water utilities are all relatively good, Belize has the most expensive electricity in the region. Large tracts of land which would be suitable for development are inaccessible due to lack of roads. Some roads, including sections of major highways, are subject to damage or closure during the rainy season. Ports in Belize City
Belize City
Belize City is the largest city in the Central American nation of Belize. Unofficial estimates place the population of Belize City at 70,000 or more. It is located at the mouth of the Belize River on the coast of the Caribbean. The city is the country's principal port and its financial and...
, Dangriga
Dangriga
Dangriga, formerly known as Stann Creek Town, is a town in southern Belize, located on the Caribbean coast at the mouth of Stann Creek. It is the capital of Belize's Stann Creek District and also the largest town in southern Belize...
, and Big Creek
Big Creek, Belize
Big Creek is a sea port facility in Belize. Big Creek is a deep-water port on the Caribbean Sea in Belize's Toledo District , constructed in the 1990s. It is the nation's second most important port, after Belize City. Big Creek is the main port for Belize's banana industry; citrus fruit and shrimp...
handle regularly scheduled shipping from the U.S. and the United Kingdom although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports. International air service is provided by American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, Continental Airlines
Continental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
, U.S. Airways, and TACA
Grupo TACA
TACA is the trade name "brand" comprising a group of five independently IATA-coded and -owned Central American airlines, whose operations are combined to function as one and a number of other independently owned and IATA-coded regional airlines which code-share and feed the TACA brand system...
to gateways in Dallas, Texas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
, Houston, Texas
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, Charlotte, North Carolina
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
, Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
, and San Salvador
San Salvador
The city of San Salvador the capital and largest city of El Salvador, which has been designated a Gamma World City. Its complete name is La Ciudad de Gran San Salvador...
.
Several capital projects are either currently underway or are programmed to start in fiscal year 2001/2002. The largest of these is a $15 million rural electrification program to be jointly implemented by the government and Belize Electricity Limited (BEL). In addition, the government will continue to implement an Inter-American Development Bank
Inter-American Development Bank
The Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...
Emergency Reconstruction Fund of $20 million aimed at restoring essential services such as health and education facilities and transportation networks to communities which were severely damaged by Hurricane Keith
Hurricane Keith
Hurricane Keith caused extensive damage in Central America, especially in Mexico and Belize. The fifteenth tropical cyclone, eleventh named storm, and seventh hurricane of the 2000 Atlantic hurricane season, Keith developed as a tropical depression from a tropical wave in the western Caribbean Sea...
. The government will also invest close to $4.2 million in projects targeted at poverty alleviation across Belize.
Initiated in 1999, the Ministry of Agriculture and Fisheries, through the Belize Agricultural Health Authority, will continue to implement the IDB-funded "Modernization of Agricultural Health Project." This $2.5 million project seeks to improve the competitiveness of Belize's agricultural products and thus enhance the ability of Belizean farmers and processors to maintain and expand the sale of their high-quality products to foreign markets. A $5 million soybean
Soybean
The soybean or soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses...
project, funded by the Brazilian Government, is scheduled to begin in 2001 and is intended to assist northern Belize farmers to diversify away from sugarcane cultivation.
The government also plans to invest $9.85 million to complete the rehabilitation of the Hummingbird Highway
Hummingbird Highway
The Hummingbird Highway is one of the four major highways in Belize. It connects the Western Highway outside of Belmopan, Cayo District with the Southern Highway outside of Dangriga, Stann Creek District. It partially follows, and sometimes uses the infrastructure of, the former Stann Creek Railway...
, as well as investing $9.5 million in its health-sector reform program. Another $9 million will be invested under the IDB-funded "Land Management Project" over the next 2 years. The Ministry of Tourism is confident that another IDB-funded project, the "Tourism Development Project", will make Belize the Mundo Maya centerpiece for travelers to Central America. The government will spend close to $1.4 million in improving access to the Maya archaeological sites in Belize, especially Caracol. Using a soft loan from the Republic of China
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
, the government is funneling $50 million toward the construction of low-cost housing.
Trade
Belize's economic performance is highly susceptible to external market changes. Although moderate growth has been achieved in recent years, the achievements are vulnerable to world commodity price fluctuations and continuation of preferential trading agreements, especially with the U.S. (cane sugar) and UK (bananas).Belize continues to rely heavily on foreign trade with the United States as its number one trading partner. Total imports in 2000 totaled $446 million while total exports were only $349.9 million. In 2000, the U.S. accounted for 48.5% of Belize's total exports and provided 49.7% of all Belizean imports. Other major trading partners include the UK, European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, Canada, Mexico, and Caribbean Community
Caribbean Community
The Caribbean Community is an organisation of 15 Caribbean nations and dependencies. CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy...
(CARICOM) member states.
Belize aims to stimulate the growth of commercial agriculture through CARICOM. However, Belizean trade with the rest of the Caribbean is small compared to that with the United States and Europe. The country is a beneficiary of the Caribbean Basin Initiative (CBI), a U.S. Government program to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products. Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI. U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry. EU and UK preferences also have been vital for the expansion and prosperity of the sugar and banana industries.
The tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
industry is an important part of the economy of Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
, in 2007 contributing to over 25% of all jobs, and making up over 18% of the GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
. This constituted 590 million BZD
Belize dollar
The Belize dollar is the official currency in Belize, formerly known as British Honduras; is normally abbreviated with the dollar sign $, or alternatively BZ$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents...
(295 million USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
), according to the Belize government, up 90 million BZD (45 million USD) from the year before. Tourism is the domain of the Ministry of Tourism, within which the Belize Tourism Board works as a link between the private and public sector.
Belize International Business Companies
In 1990, Belize enacted the International Business Companies Act based on the British Virgin Islands model. In a short space of ten years, Belize has registered more than 15,000 IBC's. Belize's IBC legislation is viewed internationally as one of the most modern and user-friendly. It is particularly designed with the offshore investor in mind. A Belizean IBC is an ideal corporate vehicle for international financial transactions and allows the investor to engage in a wide variety of activities ranging from asset protection to operating bank accounts, brokerage accounts, ship ownership, commission arrangements and various other commercial transactions.The IBC legislation was supplemented in 1992 with the enactment of a Trusts Act which provides for both onshore and offshore trusts. Universally acknowledged as one of the best in the field, Belize's trust law contains provisions that are specialty designed to meet the needs of differing and diverse cultures and religions.
Belize IBCs have the following Features and Advantages:
Progressive legislation
The IBC Act was introduced in 1990 to implement competitive offshore legislation for Belize IBC's which was subsequently amended to reflect the changes required to provide efficient Belize offshore services.
Efficient Incorporation / Registration
Belize incorporation is very efficient under normal circumstances, a Belize IBC can be incorporated in a couple of working days.
Flexibility in company structure
• There is no requirement for a secretary resident or otherwise
• Only one director or shareholder required for the company formation
• Shareholder(s) and director(s) may be the same person
• The shareholder(s) and director(s) can be a natural person or a corporate body
• There is no requirement for appointing local shareholder(s) and director(s)
Privacy of identity of principals
The documents for Belize offshore Incorporation do not carry the name or identity of any shareholder or director. The names or identities of these persons do not appear in any public record.
Taxation in Belize
On IBC Profits According to the IBC Act of 1990, offshore companies are exempted from all taxes.
Tourism and Ecotourism
A combination of natural factors—climate, the Belize Barrier ReefBelize Barrier Reef
The Belize Barrier Reef is a series of coral reefs straddling the coast of Belize, roughly offshore in the north and in the south within the country limits...
(longest in the Western Hemisphere
Western Hemisphere
The Western Hemisphere or western hemisphere is mainly used as a geographical term for the half of the Earth that lies west of the Prime Meridian and east of the Antimeridian , the other half being called the Eastern Hemisphere.In this sense, the western hemisphere consists of the western portions...
), 127 offshore Cayes (islands), excellent fishing
Fishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
, safe waters for boating, scuba diving
Scuba diving
Scuba diving is a form of underwater diving in which a diver uses a scuba set to breathe underwater....
, and snorkeling
Snorkeling
Snorkeling is the practice of swimming on or through a body of water while equipped with a diving mask, a shaped tube called a snorkel, and usually swimfins. In cooler waters, a wetsuit may also be worn...
, various jungle fauna
Fauna
Fauna or faunæ is all of the animal life of any particular region or time. The corresponding term for plants is flora.Zoologists and paleontologists use fauna to refer to a typical collection of animals found in a specific time or place, e.g. the "Sonoran Desert fauna" or the "Burgess shale fauna"...
and flora
Flora
Flora is the plant life occurring in a particular region or time, generally the naturally occurring or indigenous—native plant life. The corresponding term for animals is fauna.-Etymology:...
, helicopter touring and Maya
Maya civilization
The Maya is a Mesoamerican civilization, noted for the only known fully developed written language of the pre-Columbian Americas, as well as for its art, architecture, and mathematical and astronomical systems. Initially established during the Pre-Classic period The Maya is a Mesoamerican...
ruins—support the thriving tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
and ecotourism
Ecotourism
Ecotourism is a form of tourism visiting fragile, pristine, and usually protected areas, intended as a low impact and often small scale alternative to standard commercial tourism...
industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. In 2007, tourist arrivals totaled 251,655 (more than 210,000 from the U.S.) and tourist receipts amounted to $183.3 million.
Overview
Belize has a small, essentially private enterprise economy is based primarily on agriculture, agro-based industry, and merchandising, with tourism and construction recently assuming greater importance. In 2006, the cultivation of newly discovered crude oil in the town of Spanish LookoutSpanish Lookout
Spanish Lookout is a town in the Cayo District of Belize, Central America. In 2000, Spanish Lookout had a population of 1,786 people. Spanish Lookout is a community of Mennonites in Belize....
, has presented new prospects and problems for this developing nation. Sugar, the chief crop, accounts for nearly half of exports, while the banana oh my god bananas are chasing me industry is the country's largest employer. The government's tough austerity program in 1997 resulted in an economic slowdown that continued in 1998. The trade deficit has been growing, mostly as a result of low export prices for sugar and bananas. The new government faces important challenges to economic stability. Rapid action to improve tax collection has been promised, but a lack of progress in reining in spending could bring the exchange rate under pressure. The tourist and construction sectors strengthened in early 1999, leading to a preliminary estimate of revived growth at 4%. The Belize Dollar is fixed to the U.S. dollar at a rate of 2:1.
A combination of natural factors—climate, the Belize Barrier Reef
Belize Barrier Reef
The Belize Barrier Reef is a series of coral reefs straddling the coast of Belize, roughly offshore in the north and in the south within the country limits...
(longest in the Western Hemisphere), 127 offshore islands, excellent fishing, safe waters for boating, various jungle fauna
Fauna
Fauna or faunæ is all of the animal life of any particular region or time. The corresponding term for plants is flora.Zoologists and paleontologists use fauna to refer to a typical collection of animals found in a specific time or place, e.g. the "Sonoran Desert fauna" or the "Burgess shale fauna"...
and flora
Flora
Flora is the plant life occurring in a particular region or time, generally the naturally occurring or indigenous—native plant life. The corresponding term for animals is fauna.-Etymology:...
, and Maya
Maya civilization
The Maya is a Mesoamerican civilization, noted for the only known fully developed written language of the pre-Columbian Americas, as well as for its art, architecture, and mathematical and astronomical systems. Initially established during the Pre-Classic period The Maya is a Mesoamerican...
ruins—support the thriving tourism and ecotourism
Ecotourism
Ecotourism is a form of tourism visiting fragile, pristine, and usually protected areas, intended as a low impact and often small scale alternative to standard commercial tourism...
industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. In 2000, tourist arrivals totaled 189,634 (more than 110,000 from the U.S.) and tourist receipts amounted to $113.3 million.