Economy Tourism accounts for around 50% of the total GDP and employs an estimated 50,000 people, about half of the Bahamian workforce. The banking and finance sector accounts for between 15% to 20% of the GDP. This sector employs approximately 4,405 people, approximately 95% of them Bahamians. Total salaries and wages paid to this sector are estimated to be $209 million per year. The Bahamas has the world's third largest ship register, more than 1,700 vessels, over 43 million gross tons. The Bahamas has an inflation rate of 1.84% with 10.9% unemployment. Based on a prudent fiscal policy, the Bahamian dollar is on par value with the US dollar. The population of The Bahamas is estimated at 333,800 with an annual growth rate of 1.8%. One of the greatest assets of the Bahamian economy is its large skilled workforce. There are more than 500 qualified lawyers, 300 CPAs, and 500 licensed real estate brokers and agents, not to mention the large pool of professionals well trained in international banking. The adult literacy rate is above 95% (2005 est.), one of the highest literacy rates in the Western Hemisphere. Since 1992, the Government has adopted a new business outlook to create a business-friendly economic policy to facilitate the expansion and diversification of the Bahamian economy. This has lead to major international corporations investing in the Bahamas. These have included: Kerzner International Ltd., Baha Mar Development Co., Sandals Resorts, SuperClubs SuperInclusive Resorts, Adurion Investment Management, Disney Cruise Lines, EBR Ltd. Hutchinson Port Holdings (HPH) The Bahamas does not levy taxes on capital gains, withholding, profit remittance, corporate earnings, personal income, sales, inheritance, dividends, royalties, payroll or interest. The combination of a tax-free and stable environment, together with a stable currency, are further enhanced by a series of investment incentives implemented to provide relief from customs importation duties on approved raw materials for manufacturing, construction, equipment and building supplies for hotel development, and further exemptions from annual business licenses and real property taxes. The Bahamas has favorable trade relations and privileges to the markets of the United States, Canada and the European Union. As a party to the Caribbean Basin Initiative, Caribcan and the Lome IV Agreement, manufactured products exported from The Bahamas receive duty-free access to markets of over 600 million people. The manufacturing sector of the economy is rapidly growing into a large contributor of growth and progress in The Bahamas as the offshore and domestic manufacturing combined contribute around $220 million annually to the economy. The Bahamas Government has also established a flexible immigration policy whereby necessary work permits are available for key non-Bahamian personnel. In accordance with terms of the International Monetary Fund Agreement, The Bahamas has no restrictions on current account transactions, but more importantly, no restrictions on the free repatriation of profits. All exchange control is administered by the Central Bank of The Bahamas, which delegates to authorized dealers the authority to approve allocations of foreign exchange for certain payments. The Central Bank supervises all bank and trust companies and maintains a regulatory environment that is conducive to investment opportunities while at the same time ensuring the highest standard of operations and sound banking practices. Operating from within the Office of the Prime Minister, The Bahamas Investment Authority (BIA) guides the Government’s proactive economic growth and development policies. The most important aspect of the BIA is to "cut the red tape and roll out the red carpet" to create a one-stop shop for simplifying investing in The Bahamas. All proposals are submitted to and approved by the BIA, which in turn, then coordinates all related investment matters with the other arms of Government.

Investment It's estimated that there are 247 institutions licensed under The Banks and Trust Companies Regulation Act operating within or from the Bahamas. 142 of these were permitted to deal with the public and 105 had restricted or non active licenses. Banks and trust companies are licensed by the Central Bank of The Bahamas and regulated by the Central Bank as well. Nearly one-half of these banks are registered banks and trust companies with an actual physical presence. The legislative framework governing the activities of the financial services industry is modern and accommodating. The Bahamas has no personal or corporate income tax, capital gains, estate, gift or inheritance taxes. Bahamian law strongly protects the right to confidentiality of bank clients and further protects the security and good name of legitimate investments in The Bahamas. Enacted legislation prohibits the laundering of proceeds derived from criminal activities and this has strengthened The Bahamas’ reputation for being clean, reputable and worthy of the full confidence of discerning investors. There are some 200 licensed captive insurance companies. In The Bahamas, trusts are completely subject to the equitable jurisdiction of the Courts of The Bahamas and are governed exclusively by Bahamian law. Furthermore, the trust laws are constantly being revised in order to maintain The Bahamas’ position as a leading financial services center. Launched in 2000, the Bahamas International Securities Exchange (BISX) trades local securities. The Securities Commission has been established and charged to regulate the securities industry. Prior to investing in The Bahamas, each investor is encouraged to seek professional tax advice with respect to his/her home country tax status so as to determine whether such taxes are assessed on global income only or home-country income only. The Bahamas Government has reaffirmed its commitment to maintaining and improving The Bahamas’ role as a sophisticated offshore financial center, through the introduction of new and innovative legislation and the strengthening of existing legislation.