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Investment In Barbados

Introduction
The purpose of this executive briefing is to provide a preliminary assessment of the foreign investment outlook in Barbados. The decision to build a “Universal Park”, which would be considered as an investment in the tourism sector, in Barbados depends on various factors. Factors considered for this assessment were the country location, stance of the Government of Barbados towards Foreign Direct Investment, economic and political stability, monetary policy, and future performance forecasting of the tourism industry. Each of these factors is discussed next.

Geography & Climate
Barbados is a relatively flat island, rising gently to the central highland region, the highest point being Mount Hillaby, in the Scotland District, at 1,100 feet above sea level. The climate is tropical, with a rainy season from June to October. Barbados is often spared the worst effects f the region’s tropical storms and hurricanes during the rainy season because this island is on the far eastern location in the Atlantic Ocean (just outside the principal hurricane strike zone). The last significant hurricane to cause severe damage to Barbados was Hurricane Janet in 1955.

Openness to Foreign Direct Investment
One of the key considerations for any investment decision is to scrutinize the position of the local government towards Foreign Direct Investment. In our case, it is safe to say that Barbados is open for business. The Government of Barbados, through the Barbados Investment and Development Corporation (BIDC), strongly encourages Foreign Direct Investment in Barbados, particularly in industries that create jobs and earn foreign currency. The government offers special incentive packages for foreign investments. For example, International Business Companies (IBCs) have a maximum tax rate of 2.5 percent of income and exemption from foreign exchange controls. The corporate tax rate breakdown is as follows: Up to USD10 million: 2.5 percent; USD10-20 million: 2.5 percent;...