Cayman Islands

The Cayman Islands () is a self-governing British Overseas Territory in the western Caribbean. With a population of over 90,000, it is the most populated of all the British Overseas Territories. The 264-square-kilometre (102-square-mile) territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located south of Cuba and north-east of Honduras, between Jamaica and Mexico's Yucatán Peninsula. The capital city is George Town on Grand Cayman, which is the most populous of the three islands.

The Cayman Islands is considered to be part of the geographic Western Caribbean zone as well as the Greater Antilles. The territory is a major offshore financial centre for international businesses and wealthy individuals mainly due to the state charging no tax on income earned or stored.

With a GDP per capita of $97,750 in 2023, the Cayman Islands has the highest standard of living in the Caribbean, and one of the highest in the world. Despite its population of almost 90,000, immigrants from over 140 countries and territories reside in the Cayman Islands.

History

Origins and colonisation

As of 2017, no evidence has been found that the islands had been occupied before the arrival of the Europeans. The Cayman Islands got their name from the word for crocodile (caiman) in the language of the Arawak-Taíno people. It is believed that the first European to sight the islands was Christopher Columbus, on 10 May 1503, during his final voyage to the Americas. He named them "Las Tortugas", after the large number of turtles found there (which were soon hunted to near-extinction). However, in succeeding decades, the islands began to be referred to as "Caimanas" or "Caymanes".

No immediate colonisation followed Columbus's sighting, but a variety of settlers from various backgrounds eventually arrived, including pirates, shipwrecked sailors, and deserters from Oliver Cromwell's army in Jamaica. Sir Francis Drake briefly visited the islands in 1586.

The first recorded permanent inhabitant, Isaac Bodden, was born on Grand Cayman around 1661. He was the grandson of an original settler named Bodden, probably one of Oliver Cromwell's soldiers involved in the capture of Jamaica from Spain in 1655.

England took formal control of the Cayman Islands, along with Jamaica, as a result of the Treaty of Madrid of 1670. That same year saw an attack on a turtle fishing settlement on Little Cayman by the Spanish under Portuguese privateer Manuel Ribeiro Pardal. Following several unsuccessful attempts at settlement in what had by then become a haven for pirates, a permanent English-speaking population in the islands dates from the 1730s. With settlement, after the first royal land grant by the governor of Jamaica in 1734, came the introduction of slaves. Many were purchased and brought to the islands from Africa. That has resulted in the majority of native Caymanians being of African or British descent.

On 8 February 1794, the Caymanians rescued the crews of a group of ten merchant ships, including HMS Convert, an incident that has since become known as the Wreck of the Ten Sail. The ships had struck a reef and run aground during rough seas. Legend has it that King George III rewarded the islanders for their generosity with a promise never to introduce taxes, because one of the ships carried a member of the King's family. Despite the legend, the story is not true.

19th century

The first census taken in the islands, in 1802, showed the population on Grand Cayman to be 933, with 545 of those inhabitants being slaves. Slavery was abolished in the Cayman Islands in 1833, following the passing of the Slavery Abolition Act by the British Parliament. At the time of abolition, there were over 950 slaves of African ancestry, owned by 116 families.

On 22 June 1863, the Cayman Islands was officially declared and administered as a dependency of the Crown Colony of Jamaica. The islands continued to be governed as part of the Colony of Jamaica until 1962, when they became a separate Crown colony, after Jamaica became an independent Commonwealth realm.

20th century

In the 1950s, tourism began to flourish, following the opening of Owen Roberts International Airport (ORIA), along with a bank and several hotels, as well as the introduction of a number of scheduled flights and cruise stop-overs. Politically, the Cayman Islands were an internally self-governing territory of Jamaica from 1958 to 1962, but they reverted to direct British rule following the independence of Jamaica in 1962. In 1972, a large degree of internal autonomy was granted by a new constitution, with further revisions being made in 1994. The Cayman Islands government focused on boosting the territory's economy via tourism and the attraction of off-shore finance, both of which mushroomed from the 1970s onwards. Historically, the Cayman Islands has been a tax-exempt destination, and the government has always relied on indirect and not direct taxes. The territory has never levied income tax, capital gains tax, or any wealth tax, making it a popular tax haven.

21st century

The constitution was further modified in 2001 and 2009, codifying various aspects of human rights legislation.

On 11 September 2004, the island of Grand Cayman, which lies largely unprotected at sea level, was battered by Hurricane Ivan, the worst hurricane to hit the islands in 86 years. It created an 8-foot (2.4 m) storm surge which flooded many areas of Grand Cayman. An estimated 83% of the dwellings on the island were damaged, with 4% requiring complete reconstruction. A reported 70% of all dwellings suffered severe damage from flooding or wind. Another 26% sustained minor damage from partial roof removal, low levels of flooding, or impact with floating or wind-driven hurricane debris. Power, water, and communications were disrupted for months in some areas. Within two years, a major rebuilding programme on Grand Cayman meant that its infrastructure was almost back to its pre-hurricane condition. Due to the tropical location of the islands, more hurricanes or tropical systems have affected the Cayman Islands than any other region in the Atlantic basin. On average, it has been brushed or directly hit every 2.23 years.

Geography

The islands are in the western Caribbean Sea and are the peaks of an undersea mountain range called the Cayman Ridge (or Cayman Rise). This ridge flanks the Cayman Trough, 6,000 m (20,000 ft) deep which lies 6 km (3.7 mi) to the south. The islands lie in the northwest of the Caribbean Sea, east of Quintana Roo, Mexico and Yucatán State, Mexico, northeast of Costa Rica, north of Panama, south of Cuba and west of Jamaica. They are situated about 700 km (430 mi) south of Miami, 750 km (470 mi) east of Mexico, 366 km (227 mi) south of Cuba, and about 500 km (310 mi) northwest of Jamaica. Grand Cayman is by far the largest, with an area of 197 km2 (76 sq mi). Grand Cayman's two "sister islands", Cayman Brac and Little Cayman, are about 120 km (75 mi) east north-east of Grand Cayman and have areas of 38 and 28.5 km2 (14.7 and 11.0 sq mi) respectively. The nearest land mass from Grand Cayman is the Canarreos Archipelago (about 240 km or 150 miles away), whereas the nearest from the easternmost island Cayman Brac is the Jardines de la Reina archipelago (about 160 km or 100 miles away) – both of which are part of Cuba.

All three islands were formed by large coral heads covering submerged ice-age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac's eastern part, which rises to 43 m (141 ft) above sea level, the highest point on the islands.

The terrain is mostly a low-lying limestone base surrounded by coral reefs. The portions of prehistoric coral reef that line the coastline and protrude from the water are referred to as ironshore.

Flora

In Cayman Islands forest cover is around 53% of the total land area, equivalent to 12,720 hectares (ha) of forest in 2020, down from 13,130 hectares (ha) in 1990. In 2020, naturally regenerating forest covered 12,720 hectares (ha) and planted forest covered 0 hectares (ha). Of the naturally regenerating forest 0% was reported to be primary forest (consisting of native tree species with no clearly visible indications of human activity). For the year 2015, 0% of the forest area was reported to be under public ownership, 12% private ownership and 88% with ownership listed as other or unknown.

Fauna

The mammalian species in the Cayman Islands include the introduced Central American agouti and eight species of bats. At least three now extinct native rodent species were present until the discovery of the islands by Europeans. Marine life around the island of the Grand Cayman includes tarpon, silversides (Atheriniformes), French angelfish (Pomacanthus paru), and giant barrel sponges. A number of cetaceans are found in offshore waters. These species include the goose-beaked whale (Ziphius cavirostris), Blainville's beaked whale (Mesoplodon densirostris) and sperm whale (Physeter macrocephalus).

Cayman avian fauna includes two endemic subspecies of Amazona parrots: Amazona leucocephala hesterna or Cuban amazon, presently restricted to the island of Cayman Brac, but formerly also on Little Cayman, and Amazona leucocephala caymanensis or Grand Cayman parrot, which is native to the Cayman Islands, forested areas of Cuba, and the Isla de la Juventud. Little Cayman and Cayman Brac are also home to red-footed and brown boobies. Although the American barn owl (Tyto furcata) occurs in all three of the islands they are not commonplace. The Cayman Islands also possess five endemic subspecies of butterflies. These butterfly breeds can be viewed at the Queen Elizabeth II Botanic Park on the Grand Cayman.

Among other notable fauna at the Queen Elizabeth II Botanic Park is the critically threatened blue iguana, which is also known as the Grand Cayman iguana (Cyclura lewisi). The blue iguana is endemic to the Grand Cayman particularly because of rocky, sunlit, open areas near the island's shores that are advantageous for the laying of eggs. Nevertheless, habitat destruction and invasive mammalian predators remain the primary reasons that blue iguana hatchlings do not survive naturally.

The Cuban crocodile (Crocodylus rhombifer) once inhabited the islands. And the American crocodile (Crocodylus acutus) is also believed to be slowly repopulating the islands from Cuba. The name "Cayman" is derived from a Carib word for the various crocodilians that inhabited the islands.

Climate

The Cayman Islands has a tropical wet and dry climate, with a wet season from May to October, and a dry season that runs from November to April. Seasonally, there is little temperature change.

A major natural hazard is the tropical cyclones that form during the Atlantic hurricane season from June to November.

On 11 and 12 September 2004, Hurricane Ivan struck the Cayman Islands. The storm resulted in two deaths and caused significant damage to the infrastructure on the islands. The total economic impact of the storms was estimated to be $3.4 billion.

Demographics

Demographics and immigration

While there are a large number of generational Caymanians, many Caymanians today have roots in almost every part of the world. Similarly to countries like the United States, the Cayman Islands is a melting pot with citizens of every background. 52.5% of the population is Non-Caymanian, while 47.5% is Caymanian. Jamaicans, who make up 24.7% of the population, form the largest immigrant community in the country, attributable to not only the close proximity of the Cayman Islands and Jamaica, but also the close cultural, economic and social ties that go back centuries between the two nations, with the Cayman Islands once being a dependency of Jamaica from 1863 until Jamaica's independence from the United Kingdom in 1962, resulting in the Cayman Islands choosing to separate from Jamaica and remain under British rule to this day.

According to the Economics and Statistics Office of the Government of the Cayman Islands, the Cayman Islands had a population of 71,432 at the Census of 10 October 2021, but was estimated by them to have risen to 81,546 as of December 2022, making it the most populous British Overseas Territory. It was revealed in the 2021 census that 56% of the workforce is Non-Caymanian; this is the first time in the territory's history that the number of working immigrants has overtaken the number of working Caymanians. Most Caymanians are of mixed African and European ancestry. Slavery occurred but was not as common compared to other Caribbean islands, and once it was abolished, black and white communities seemed to integrate more compliantly than other Caribbean nations and territories resulting in a more mixed-race population.

The country's demographics are changing rapidly. Immigration plays a large role, and the changing demographics in age have sounded alarm bells in the most recent census. In comparison to the 2010 census, the 2021 census has shown that 36% of Cayman's population growth has been in persons over age 65, while 8% growth was recorded in groups under age 15. This is due to extremely low birth rates among Caymanians, which almost forces the government to seek workers from overseas to sustain the country's economy. This has raised concerns among many young Caymanians, who worry about the workforce becoming increasingly competitive with the influx of workers, as well as rent and property prices going up.

Because the population has skyrocketed over the last decade, former government officials have stressed that the islands need more careful and managed growth. Many have worried that the country's infrastructure and services cannot cope with the surging population. It is believed that given current trends, the population will reach 100,000 before 2030.

District populations

According to the Economics and Statistics Office, the final result of the 20 October 2021 Census was 71,432; however, according to a late 2022 population report by the same body, the estimated population at the end of 2022 was 81,546, broken down as follows:

Religion

The predominant religion on the Cayman Islands is Christianity. It is practised by 67% of population in 2021, a decline from 80% in 2010. The major denominations include the United Church of Christ, the Church of God, the Anglican Church, the Baptist Church, the Catholic Church, the Seventh-day Adventist Church, and the Pentecostal Church. The Catholic churches in the islands are St. Ignatius Church in George Town, and Christ the Redeemer Church, West Bay and Stella Maris Church in Cayman Brac. The majority of citizens are religious, however, atheism has been on the rise throughout the islands since 2000, with 16.7% now identifying as non-believers, according to the 2021 census. Ports are closed on Sundays and Christian holidays. There is also an active synagogue and Jewish community on the island as well as places of worship in George Town for Jehovah's Witnesses and followers of the Baháʼí faith. Hinduism is the largest non-Christian faith in Cayman Islands forming 1.7% of population. Most of them reside in the capital George Town. The highest proportion of Hindus is in the districts of East End (6.6%) and North Side (3.8%).

Languages

The official language of the Cayman Islands is English (90%). Islanders' accents retain elements passed down from English, Scottish, and Welsh settlers (among others) in a language variety known as Cayman Creole. Caymanians of Jamaican origin speak in their own vernacular (see Jamaican Creole and Jamaican English). It is quite common to hear residents converse in Spanish as many citizens have relocated from Latin America to work and live on Grand Cayman. The Latin American nations with the greatest representation are Honduras, Cuba, Colombia, Nicaragua, and the Dominican Republic. Spanish speakers comprise approximately between 10 and 12% of the population and are predominantly of the Caribbean dialect. Tagalog is spoken by about 8% of inhabitants, most of whom are Filipino residents on work permits.

Economy

The economy of the Cayman Islands is dominated by financial services and tourism, together accounting for 50–60% of Gross Domestic Product. The nation's zero tax rate on income and storage of funds has led to it being used as a tax haven for corporations; there are 100,000 companies registered in the Cayman Islands, more than the population itself. The Cayman Islands have come under criticism for allegations of money laundering and other financial crimes, including a 2016 statement by then US president Barack Obama that described a particular building which was the registered address of over 12,000 corporations as a "tax scam".

The Cayman Islands holds a relatively low unemployment rate of about 4.24% as of 2015, lower than the value of 4.7% that was recorded in 2014.

With an average income of US$109,684 Caymanians have the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands' real GDP per capita is the tenth highest in the world, but the CIA's data for Cayman dates to 2018 and is likely to be lower than present-day values. The territory prints its own currency, the Cayman Islands dollar (KYD), which is pegged to the US dollar US$1.227 to 1 KYD. However, in many retail stores throughout the islands, the KYD is typically traded at US$1.25.

Cayman Islands have a high cost of living, even when compared to UK and US. For example, a loaf of multigrain bread is $5.49 (KYD), while a similar loaf sells for $2.47 (KYD) in the US and $1.36 (KYD) in the UK.

The minimum wage (as of February 2021) is $6 KYD for standard positions, and $4.50 for workers in the service industry, where tips supplement income. This contributes to wealth disparity. A small segment of the population lives in condemned properties lacking power and running water.

The government has established a Needs Assessment Unit to relieve poverty in the islands. Local charities, including Cayman's Acts of Random Kindness (ARK) also provide assistance.

The government's primary source of income is indirect taxation: there is no income tax, capital gains tax, or corporation tax. A tariff of 5% to 22% (automobiles 29.5% to 100%) is levied against goods imported into the islands. Few goods are exempt; notable exemptions include books, cameras, and perfume.

Tourism

One of Grand Cayman's main attractions is Seven Mile Beach, site of a number of the island's hotels and resorts. Named one of the Ultimate Beaches by Caribbean Travel and Life, Seven Mile Beach (due to erosion over the years, the number has decreased to 5.5 miles) is a public beach on the western shore of Grand Cayman Island. Historical sites in Grand Cayman, such as Pedro St. James Castle in Savannah, also attract visitors.

All three islands offer scuba diving, and the Cayman Islands are home to several snorkelling locations where tourists can swim with stingrays. The most popular area to do this is Stingray City, Grand Cayman. Stingray City is a top attraction in Grand Cayman and originally started in the 1980s when divers started feeding squid to stingrays. The stingrays started to associate the sound of the boat motors with food, and thus visit this area year-round.

There are two shipwrecks off the shores of Cayman Brac, including the MV Captain Keith Tibbetts; Grand Cayman also has several shipwrecks off its shores, including one deliberate one. On 30 September 1994, the USS Kittiwake was decommissioned and struck from the Naval Vessel Register. In November 2008 her ownership was transferred for an undisclosed amount to the government of the Cayman Islands, which had decided to sink the Kittiwake in June 2009 to form a new artificial reef off Seven Mile Beach, Grand Cayman. Following several delays, the ship was finally scuttled according to plan on 5 January 2011. The Kittiwake has become a dynamic environment for marine life. Each of the five decks of the ship offers squirrelfish, rare sponges, Goliath groupers, urchins, and more. Experienced and beginner divers are invited to swim around the Kittiwake. Pirates Week is an annual 11-day November festival started in 1977 by the then-Minister of Tourism Jim Bodden to boost tourism during the country's tourism slow season.

Other Grand Cayman tourist attractions include the ironshore landscape of Hell; the 23-acre (93,000 m2) marine theme park "Cayman Turtle Centre: Island Wildlife Encounter", previously known as "Boatswain's Beach"; the production of gourmet sea salt; and the Mastic Trail, a hiking trail through the forests in the centre of the island. The National Trust for the Cayman Islands provides guided tours weekly on the Mastic Trail and other locations.

Another attraction to visit on Grand Cayman is the Observation Tower, located in Camana Bay. The Observation Tower is 75 feet tall and provides 360-degree views across Seven Mile Beach, George Town, the North Sound, and beyond. It is free to the public and climbing the tower has become a popular thing to do in the Cayman Islands.

Points of interest include the East End Light (sometimes called Gorling Bluff Light), a lighthouse at the east end of Grand Cayman island. The lighthouse is the centrepiece of East End Lighthouse Park, managed by the National Trust for the Cayman Islands; the first navigational aid on the site was the first lighthouse in the Cayman Islands.