BERMUDA

Major City:
Hamilton

Other City:
St. George

INTRODUCTION

Bermuda is the most northerly group of coral islands in the world, lying just beyond the Gulf Stream some 650 miles off the coast of the Carolinas. Although very small and isolated in its part of the ocean, it offers a wide variety of places to see, people to meet, and things to do. With an economy based on tourism and international business, Bermudians enjoy a high standard of living with almost no unemployment, no national debt, and no income tax. They do face, however, a high cost of living and an increasing share of the stress associated with maintaining the lifestyle of an economically developed western society.

Places to see vary from Hamilton, the capital, with its smart shops and busy harbor, to St. George, the only other municipality, with its Old World lanes and fortresses. You can sightsee from the North Shore, with its bizarre rock formations, to the South Shore with its pink and white beaches. From end to end Bermuda is picturesque. Nature has endowed it with an abundance of verdant trees and colorful flowers. The landscape is dotted with pastel-hued, white-roofed houses and stately, tasteful hotels. No factories, billboards, or neon signs blot the quaint scenery.

In addition to the pleasant and hospitable Bermudians, the people include large numbers of more recent arrivals from around the world, some official representatives of the UK and their families, hundreds of Americans and Canadians who live on the island all or part of the year, a constant stream of tourists from the U.S. and Canada, a small but long-settled Portuguese community, and many residents and workers from the West Indies.

Bermuda offers many things to do. For recreation, Bermuda offers a host of outdoor sports including golf, tennis, fishing, sailing, diving, and swimming, and an adequate number of pursuits such as movies, occasional theatrical productions, and musical concerts.

Life in Bermuda is confined, yet varied. The island can be restful, yet interesting, busy, but not hectic

MAJOR CITY

Hamilton

Only 2,000 people reside within Corporation limits, but as the island's business center Hamilton's daytime population swells to about 14,000. The city's main attractions are its restaurants and its smart shops and department stores along Front Street, which faces the busy quay side of Hamilton's harbor. The city's low traditional buildings are rapidly giving way on many streets to international-style low-rise business buildings with a few Bermudian architectural grace notes, but the town still retains a basically

British-colonial appearance. From across the harbor, its central skyline is dominated by the towers of City Hall, the Bermuda Cathedral, and the Sessions House or parliament building. The last contains the chambers of the House of Assembly and Supreme Court. Nearby on Front Street is the Cabinet Building, which houses the Senate chamber and the offices of the Premier and his staff. On a hill just north of the city stands Government House, the official residence and office of the Governor, overlooking the city and the harbor to the south, the Dockyard across the water to the west, and the ocean to the north. Hamilton's other attractions include Albouy's Point, site of the Royal Bermuda Yacht Club and a park overlooking the harbor, the Bermuda Library, which houses the Museum of Bermuda History, and the adjacent Par-La-Ville Gardens. The remains of Fort Hamilton are on the east side of the city, also providing harbor and city views from its ramparts

Utilities

Electricity in Bermuda is U.S. standard, 110/60 cycle. All American electric or electronic equipment can be used here. The electrical supply is fairly reliable, with the occasional weather-associated or equipment-failure outages to be expected by residents of islands.

Food

Almost all of the island's food supply is imported. With transportation costs and import duties, all consumer good prices are much higher than in the US. A few foods-some vegetables, bakery goods, fresh milk and eggs, meats and several species of fish-are produced locally but are expensive. U.S.-style supermarkets abound.

Clothing

Clothing which would be suitable for wear during summer in Washington, D.C., may be worn in Bermuda from April through November. Moderately heavy clothing is useful during Bermuda's frost-free but chilly winters. Sweaters are essential but are something of a bargain at times in local stores.

Fashionable clothing of all sorts is available in local stores, usually but not always at prices somewhat above those of Washington. Wash-and-wear clothing is a great boon in Bermuda's climate, especially since dry cleaning is very expensive.

Office wear is more casual than in Washington, and Bermudians often wear Bermuda shorts with long socks, blazers, and ties. In general, dress in Bermuda is informal and colorful, but not to the extent associated with the tropical tourist islands to the south. Most social occasions and visits to all the better restaurants and hotels require at least jackets and ties, if not suits, for men and comparable outfits for women. Formal wear can be rented locally.

Supplies and Services

Virtually everything is available in Bermuda at a price or can be obtained quickly by mail order from the United States.

Numerous satisfactory beauty salons and barber shops are available in Hamilton and elsewhere. Nearly all appliance repairs are available somewhere in Bermuda but can be difficult if the right parts are not in stock. As with everything else, this can be expensive.

Musical instruments suffer in the climate and need tuning every few months. A piano becomes "tinny" after a year or two of exposure to the subtropical climate. The wooden structure of a violin or guitar may warp. A brass instrument may corrode, unless frequently polished.

Domestic Help

Good, reliable domestic help is hard to find and is expensive because the demand greatly exceeds the supply. For general housekeeping, count on paying about $15 per hour. Very few live-in domestics or nannies are available. Importing one from elsewhere may be useful. Baby-sitters are available but are also expensive. The going rate for an average teenage babysitter is approximately $7 per hour. Gardeners are provided where needed at leased housing.

Education

Bermuda is in the process of reorganizing its public education system to provide middle schools and reduce the number of existing secondary schools. Professionally, the Ministry of Education seems to rely heavily on advice from educationists in the Province of Ontario and has followed many of their approaches to educational policy.

The Bermuda College, established in 1974, provides post-secondary education on a level with American junior or community colleges. Courses offered include "academic studies" (designed for preuniversity work), "commerce and technology" (designed to prepare students for various trades and business skills), and "hotel technology." In 1980, the government opened Stonington Beach Hotel, which is operated by the College and staffed by students training for careers in the hotel industry. The College offers some courses from Queens University in Canada.

Bermuda has a number of private schools. In addition to denominational (Roman Catholic and Seventh-Day Adventist) schools, there is one girls' school and two co-educational English style grammar schools, one of which offers a postgraduate year designed to prepare qualified graduates of any Bermudasecondary school for attendance at American and Canadian universities. Another private school on the university level is Webster University which operates associate, bachelor's, and master's degree programs.

The reorganization of the public school system has created distrust among the public in the system as a whole. This in turn has nurtured a growing rush by parents to place their children in private schools, so waiting lists may apply.

The island's proximity to the U.S. east coast opens a wide choice of specialized schools for those who wish it.

Sports

Much of the island's life centers around outdoor activity. The island boasts of having more golf courses per square mile than any other country in the world. Of nine courses on the island, three are public, four are associated with hotels, and two are private with long waiting lists for membership. Greens fees are more expensive than at comparable courses in the U.S.

Tennis is also popular and almost all hotels have courts. The National Tennis Stadium has five courts available at moderate charges, and five tennis clubs throughout the island may be joined easily.

Sailing is the outdoor sport supreme; racing in the various classes takes place throughout the year, but the sport is expensive. Sailing classes for children are held three mornings a week at the Royal Bermuda Yacht Club and the Royal Hamilton Amateur Dinghy Club during the summer. The Bermuda Yachting Association also offers a subsidized sailing program in the summer.

Excellent light tackle fishing is available and more than 200 species of fish are found in the waters off Bermuda. Charter boats equipped with outriggers and all modern equipment are available at reasonable prices.

Bermuda's beaches are the main recreational areas. Along the South Shore stretch superb white and pink sand beaches which are ideal for swimming and sunbathing. Throughout the year hardy individuals can bathe in the sea, although the popular swimming season is from late May to early October. A Bermudian would not think of taking a dip in the sea between October and May, but visitors and foreign residents do. Water skiing can be enjoyed in the protected waters of the harbors and sounds. Skin-diving with mask and snorkel or with aqualungs is popular, and even inexperienced swimmers can soon learn how to explore reefs close off Bermuda's shore.

Most sporting equipment can be bought from local shops. Every make of camera and film can be found in Hamilton's shops.

Entertainment

Hamilton has two modern movie theaters. Other movie theaters are located at Dockyard and St. George's. Visiting concert musicians and ballet troupes sometimes perform in the small theater at Hamilton's City Hall. In recent years several excellent plays have also been presented by overseas theatrical groups.

As a tourist mecca, Bermuda has a varied program of spectator events. The Queen's Birthday in June and other national holidays are celebrated with military parades on Front Street. The opening of Parliament each autumn is also marked by impressive ceremonies. The International Yacht Race between Newport, Rhode Island, and Bermuda, held every other year in June, brings well over 100 entries from North America, South America, and Europe to Hamilton Harbor where they form as large a fleet of ocean-going sailing vessels as may be seen anywhere in the world. Another popular sports event is the two-day cricket Cup Match each August. Both days of the match are national holidays. 1997 also saw the third annual "ShootOut" professional golf tournament, and the inaugural offerings of a celebrity golf tournament and a Bermuda Film Festival.

There is an active International American Women's Club and Junior Service League for women.

Good restaurants are available throughout the island, and most hotels have first-class dining rooms. However virtually all dining establishments are priced for the tourist trade and are expensive. "Continental" and Italian cuisine predominate. Ethnic restaurants-Chinese, Indian, and Mexican-exist, but are far from authentic. Many hotels and clubs offer dancing nightly. Prices are scaled to the tourist traffic.

OTHER CITY

The only other municipality in Bermuda is ST. GEORGE , on the extreme east, about 12 miles from Hamilton. It is much larger than Hamilton, with an area of 400 acres, but has a population of less than 1,700. St. George is probably the oldest English-speaking community in the Western Hemisphere, and it preserves the atmosphere and appearance of a 17th-century settlement. A series of high-walled, cannon-bedecked fortresses dating from the early 1600s line its eastern seacoast. The most imposing is Fort St. Catherine, and in one of its chambers an illuminated diorama illustrates scenes from the colony's history. Nearby is Gunpowder Cavern, a brick-lined cluster of chambers and walkways deep within a man-made hill—formerly an ammunition magazine, but today a charming restaurant.

In King's Square, the former marketplace, stands a replica of an ancient stock and pillory. Around the square are most of the city's main attractions: St. Peter's Church, probably the oldest Anglican church site in the New World, in use, although often restored, since 1612; the Old State House, the colony's first stone building, constructed in 1619; Tucker House, a high-ceilinged mansion built in 1711, and the St. George Town Hall, in use since 1782. The square is lined on the south by the busy docks on the harbor.

Across St. George's harbor, to the south, lies St. David's Island, most of which is occupied by the U.S. Naval Air Station. The base's run-ways are shared with the Bermuda Civil Air Terminal, the colony's only civilian airport. The southernmost tip is the site of the Bermuda National Aeronautics and Space Administration (NASA) installation, which has played an important role in manned space programs.

Separating St. David's and St. George's Islands from the 15-mile-long central island—sometimes called Main Island—is Castle Harbor, a six-square-mile body of seawater. Much of the eastern portion of Main Island is occupied by Harrington Sound, a three square-mile incursion of the sea that almost forms a lake.

Along the narrow strip of land between Castle Harbor and Harrington Sound are several caves where visitors may view impressive formations of stalactites and stalagmites. On the neck of land between Harrington Sound and the sea lies the village of Flatts, the most populous settlement between St. George and Hamilton. Nearby is the aquarium, where a fascinating collection of more than 200 varieties of fish and other marine life found in Bermuda's waters may be seen. Adjoining is the Natural History Museum, which displays shells, fossils, and marine antiques, and the Zoological Garden, featuring an array of tropical birds and animals.

At the southernmost point of Harrington Sound is Devil's Hole, a natural saltwater pool stocked with large fish and tortoises. Here visitors can drop baited, but hookless, lines to lure the creatures part way out of the water.

The western portion of Bermuda has its attractions, too. The large village of Somerset occupies much of Somerset Island, which lies just off the western terminus of Main Island, about 12 miles from Hamilton. Like St. George, Somerset retains much of the atmosphere and appearance of a 17th-century settlement. This island is connected with Main Island by Somerset Bridge, reputed to be the smallest functioning drawbridge in the world. It has a 22-inch-wide plank across its center which is raised by hand to allow clearance of sailboat masts.

Near Somerset, on a peninsula off Main Island, lies the U.S. Naval Air Station Annex, occupying about 268 acres. North of the base are the waters of Great Sound and, to the south, lies Little Sound. On Main Island, directly south of the base across Little Sound, stands Gibbs Hill Lighthouse, one of the most powerful lighthouses in the world. Completed in 1846, it stands on a 245-foot hill and is, itself, 117 feet high. Its rotating beam of a half-million candle power is visible as far away as 40 miles. Visitors may mount the spiral stairway to the top during the daytime.

COUNTRY PROFILE

Area and Geography

Bermuda is an archipelago of seven main islands and some 150 other islands and islets. The main islands, joined by bridges or causeways, stretch from northeast to southwest in a long, narrow formation that hooks northward at the western end. On the map the shape is much like that of a fishhook. The main islands are in close proximity, and since being joined the Bermuda Islands (or Somers Isles, their other name) are generally called the island of Bermuda.

Total land area is about 20 square miles-some 22 miles in length and an average of less than a mile in width. This is slightly smaller than the area of Manhattan. During World War 11, the U.S. military created 1.25 square miles of the present area by uniting and enlarging some of the islands with material dredged from the sea bottom.

The archipelago is the summit of a submerged volcanic mountain range, 14,000-15,000 feet high, which has been extinct since before the first ice age. Over the volcanic foundation and just under the inches-thin layer of soil capping it lies a 200-foot thick layer of limestone formed by deposits of mollusks, coral polyps, and other sea creatures. The coral content in the limestone substructure justify Bermuda's classification as a "coral island," though it is more accurately a mixed superstructure of aeolian petrified sand hills and limestone upon an eroded volcanic base. Only the surrounding reefs are true coral growths, and Bermuda is the most northerly point on the globe where reef-building coral exists.

Bermuda lies at latitude 32′ 18" N and longitude 65′46" W Geographically, it is remote and does not lie within or near the West Indies or Caribbean, with which it is often erroneously identified. The nearest land is Cape Hatteras, North Carolina, 570 nautical miles away. New-York City is 733 nautical miles to the northwest.

The terrain is hilly. Some hills exceed 200 feet in height; the highest, Gibbs Hill, is 260 feet above sea level. A fertile valley extends along the length of the main island. On the rocky northern shore wind-carved cliffs cascade into the sea. Similar rock formations form a dramatic backdrop for the long beaches and small coves of the sandy south shore. The enclosing reef, a few yards offshore on the south coast and up to several miles offshore on the north, emerges from the sea each day at low tide, framing the islands and completing the topographical picture.

Except for a few small ponds, no rivers, streams, lakes, or other fresh-water surface formations exist on the islands. For most of its history, Bermuda was thought to have no ground water, but in the 1920s and 30s, freshwater lens formations lying above underground salt water were discovered and exploited to supplement the island's main source of drinking water; rainwater collected on roofs and paved catchments.

Though far north from tropical latitudes, Bermuda has a mild, humid, frostfree climate. The annual mean temperature is 70.2 F. Highs in summer rarely top 90 E, lows in winter rarely are below the upper 50s. The lowest temperature ever officially recorded was 44 E The Gulf Stream, running west and north of the island, is the main reason for the good climate. Average annual rainfall is 57.6 inches, spread evenly across the 12 months. The year-round high humidity, averaging more than 75%, makes some days uncomfortably sticky in summer and damp in winter.

January through March tends to be overcast and squally, though when the sun shines it can be just breezy and spring-like. April and May are very pleasant. June through August are like summer in Washington, D.C., except that Bermuda nights are comfortable in houses positioned to catch southerly breezes. September is the stormy season; the hurricane season extends from June through November. Barring hurricanes, October through December are calm, usually sunny, mild months, considered by many the most pleasant part of the year. The climate plus the well-distributed rainfall and heavy dew make for a luxuriant growth of vegetation of every description, despite the dearth of soil.

Palms, Australian and Norfolk Island pines, mangrove, poinciana, casuarina, and ficus trees, along with citrus and some tropical fruits, grow well in Bermuda. Oleander and hibiscus are common. The famous Bermuda cedar trees which for centuries dominated the landscape and were the islands' pride were afflicted by a blight in the early 1940s and by 1944 more than 90% of them were dead. They are now protected but few are as robust as formerly. Some cedar reforestation, with blight-resistant stock, is being undertaken.

History

Bermuda is named for the Spanish seafarer Juan de Bermudez, who discovered the island in 1503. There is evidence of occasional visits by Spanish or Portuguese seamen, and at least one fruitless Spanish plan to settle the island, but generally the local reefs and raucous native birds gave Bermuda a bad name among Spanish sailors, who avoided a place they thought inhabited by devils. In 1609, Admiral Sir George Somers' ship Sea Venture, carrying a new lieutenant governor to Virginia, ran aground on Bermuda's eastern reef. The crew was stranded until they built a new ship from local timber to continue their voyage. Descriptions of Bermuda attracted great interest, and in 1612 about 60 colonists (including some of Somers' crew) sailed for what were then called the Somers Isles. Shortly after landing, they founded the town of St. George at the eastern end of the island. In 1790, the more centrally located town of Hamilton was incorporated. In 1815 the seat of government was transferred from St. George to Hamilton, which had a larger harbor and was more central to a greatly-expanded British program of fortification building that saw the creation of the massive Royal Dockyard at the West End, and Fort Prospect (the principal land garrison) and other forts in the parishes near Hamilton.

During the first three centuries of the Colony's existence, except for its function as a military bastion of the Empire and periods of prosperity generated by the American Revolutionary War and Civil War, Bermuda itself remained quite isolated from developments abroad. The industrial revolution virtually passed it by. By the turn of the 20th century, wealthy Americans, Canadians, and Britons, seeking refuge from the pressures of modern life, were renting or buying homes and estates for seasonal occupancy in Bermuda. Soon shops and restaurants sprang up to cater to this carriage trade. As the economic benefits of tourism became apparent, the colony sought to cultivate and broaden it. During the 1920s several impressive luxury hotels were built. In the early 1930s large passenger steamships were put into liner service between New York and Bermuda. In 1937, passenger sea-plane service between New York and Bermuda was inaugurated. The tourist industry continued to develop until the outbreak of World War II.

The war gave new significance to the Colony as a strategic outpost for the AngloAmerican forces. In 1941, the UK granted the U.S. a 99-year rent-free lease for construction and maintenance of two bases in Bermuda. The bases, the U.S. Naval Air Station, Bermuda, on St. David's Island, and the U.S. Naval Air Station Annex in Southampton, were for fifty years an integral and important part of the Bermudian scene and economy. The U.S. bases closed, however, in September of 1995. The airfield built by U. S. forces as part of the base during World War II now also serves as Bermuda's international airport.

Population

Bermuda's population is 58,460 (1991 census). This includes about 15,800 foreign-born residents without Bermuda status (the nearest thing to citizenship this British Dependent Territory has). The racial composition of the native Bermudian population is about 76% black and 24% white; of the total population the proportion is nearer 60%-40%.

Several thousand Americans and Canadians live on the island either all or part of the year. About half the 6,000 or so Portuguese (Azoreans) on the island are now Bermudians, with the other half contract workers expected to return to their home-land. Several hundred Europeans-British, Italians, Yugoslavs, Irish, Austrians, Swiss, and French-are employed in Bermuda's hotels, restaurants, guest houses, and other service areas, as are an equal number of Filipinos, other Asians, and West Indians. Some 600,000 tourists visit the island every year, most of them Americans.

Slavery was abolished in the British Empire in 1834, but racial segregation was practiced in Bermuda's schools, restaurants, hotels, and other public places until the 1960s. Racial discrimination in any form is not tolerated in today's multiracial Bermudian society.

English is the official and vernacular language of Bermuda. The traditional Bermudian dialect is characterized by broad vowels and a frequent transposition of "v" and "w" sounds. Educated Bermudians have accents ranging from standard British to standard American, with the "typical" accent sounding to the American ear like a cross between New England and Maritime Canadian. British visitors often find the local accent American, while many American visitors think it is vaguely British-sounding. Some Azorean Portuguese is also heard in Bermuda.

Bermuda has a strong religious tradition, rooted in its rural past. Many Christian denominations are represented on the island, distributed among the Church of England (28%), Roman Catholic Church (15%), African Methodist Episcopal (12%), Methodist (5%), and Seventh Day Adventist (6%), along with many other smaller Protestant followings. Baha'i, Moslem, and other groups are also present. Jewish services are held informally; there is no synagogue on the island.

Public Institutions

Bermuda is the oldest self-governing colony in the British Commonwealth. Representative government was first introduced to the Colony in 1620. Since 1684, the Governor of the Island has been appointed by the Crown and the colony's laws enacted by a local legislature. Though Bermuda is a British Dependent Territory, it has a separate written Constitution, giving its elected Cabinet government almost complete self-determination in conducting local affairs. The Bermuda Parliament is the third-oldest in the world, following Iceland's and Britain's.

The Queen appoints the Governor, who is responsible for external affairs, defense, and internal security. In other matters the Governor acts on the advice of the Cabinet. The Deputy Governor is appointed by the Foreign & Commonwealth Office, and is normally a British Foreign Service Officer. These two officials are the only representatives of the United Kingdom on the island.

The Legislature consists of the Senate and the House of Assembly. Members of the Senate are appointed by the Governor, five on the advice of the Premier, three on the advice of the Leader of the Opposition, and three by the Governor at his own discretion. The Senate elects its own president and vice president. The House of Assembly, consisting of 40 popularly elected members from 20 constituencies, elects a Speaker and a Deputy Speaker. Universal suffrage on the one-person, one vote principle has existed since 1968. In 1989, the voting age was lowered from 21 to 18.

The Cabinet consists of the Premier and at least six other members of the Assembly or the Senate. The Governor appoints the majority leader in the House of Assembly as Premier, who in turn nominates the other Cabinet Ministers. They are responsible for government departments and related business. The Opposition Leader, which in British parliamentary practice is a formally designated position, is the leader of the largest minority party in the House of Assembly.

The judiciary consists of the Court of Appeal, the Supreme Court, and the Magistracy. The Chief Justice presides over the Supreme Court and is consulted by the Governor in the appointment of judges, magistrates, and court officers.

Hamilton, the capital, was made a city by an act of legislature in 1897 and is governed by a Corporation. The town of St. George, one of the oldest English settlements in the New World, was founded in 1612 and remained the capital until 1815. Charges for water and dock facilities and municipal taxes are the main sources of revenue for both.

Aside from the two municipalities, Bermuda is divided into nine districts, called parishes. From east to west, these are St. George's, Hamilton (not to be confused with the city of Hamilton), Smith's, Devonshire, Pembroke, Paget, Warwick, Southampton, and Sandys.

Politics

The United Bermuda Party (UBP) is the ruling party and has not lost an election since its founding in 1968. It is a multiracial party, and has combined moderately progressive social policy with conservative fiscal policy. The UBP saw significant erosion in its parliamentary majority in the 1989 elections, falling from 31 to 22 of the 40 seats in the House, largely because of internal party dissension arising from disputes over independence for Bermuda. In the 1993 elections, the UBP's majority slipped even further, and the party now maintains only 21 seats in the House, as well as five Senate positions. New elections must be held every five years, and thus the next scheduled vote must take place by the Fall of 1998.

The opposition Progressive Labor Party (PLP) holds 18 seats in the House and three in the Senate. The PLP is largely identified with the black population, closely allied to organized labor, and favors independence for Bermuda.

In August of 1995, former Premier Sir John Swan, the head of government for 13 years, bucked UBP supporters and staked his political career on an independence referendum, which was defeated at the polls by a three to one margin. The new Premier and UBP leader, Pamela Gordon, has held her position since March 1997. She previously served as Minister for the Environment & Minister for Youth, Sports & Recreation.

Arts, Science, and Education

Bermuda hosts a variety of cultural events featuring both local talent and groups touring from abroad. The Bermuda Festival is held in January-February, attracting additional tourists during the winter and providing cultural entertainment for local residents. The Festival features performances by international-class artists, which have included The Dance Theater of Harlem, the Flying Karamazov Brothers, the Vienna Choir Boys, Wynton Marsalis, and The Empire Brass Quintet.

Local amateur arts groups include the Bermuda Musical and Dramatic Society (performing arts), Bermuda Society for the Arts (exhibitions, art gallery), and the Gilbert and Sullivan Society (light opera). Memberships and participation are open to all.

The Bermuda Biological Station, on Ferry Reach at the island's eastern end, was founded by a group of North American universities to further the study of marine sciences, and receives both Government of Bermuda and U.S. National Science Foundation support. It hosts researchers from the U.S. and elsewhere, conducting research at sea with its own ocean-going research vessels.

Conservation/preservation groups include the Bermuda National Trust, Audubon Society, the Bermuda Maritime Museum, and the Bermuda Zoological Society (responsible for the popular Aquarium, Zoo, and Natural History Museum). The Bermuda Botanical Garden (also site of the Premier's official residence, Camden) and an Arboretum are publicly maintained.

Commerce and Industry

Bermuda's GDP is over $9 billion, or about $27,500 per capita-one of the highest per capita income rates in the world. Most Bermudians owe their livelihood, directly or indirectly, to tourism, which provides 55% of GDP.

Bermuda's other source of national income is foreign companies operating out of offices in Bermuda. These offshore "exempt" and "nonresident" companies, almost all of them reinsurance or captive insurance companies, for the most part conduct international operations unrelated to Bermuda. The fees, charges, and taxes they pay, and their local expenditures, contribute about 40% of GDP, a share that is growing relative to tourism. Some 8,700 foreign firms are registered in Bermuda, though only a few actually maintain a physical presence here.

Total exports for 1996 were estimated at $67.7 million. Roughly 98% of total exports fell under the tariff #99.7000-"Other Miscellaneous Manufactured Items". The re-export of pharmaceutical goods accounts for roughly 99% of this tariff number. Trading countries for pharmaceutical items include: Holland (50%), Brazil (13%), Canada (6%), Caribbean (5%), and all other countries (26%). The remaining export items are traded to the following partner countries: USA (91%), Canada (1%), Caribbean (1%), and UK (7%).

Fishing and agriculture (vegetables, fruits, eggs, and some milk) produce only a fraction of Bermuda's needs. Almost all manufactures and foodstuffs are imported, nearly two-thirds of them from the United States.

The largest single source of government revenue is customs duties, supplemented by a land tax, employment taxes, hotel occupancy taxes, departure taxes, and a hospital levy. There is no local income tax. Government spending in the FY 95 budget totaled $406 million on current account, including $34.5 million on capital projects. Bermuda traditionally does not borrow for current expenditure, and public borrowing for the capital account is limited to 10% of GDP.

Bermuda has tight immigration and property ownership and management regulations. The Immigration Board will grant permission for a non-Bermudian to work only if no qualified Bermudian, or person with Bermudian status, is available for the position. Applications for work permits are scrutinized carefully, and the procedure is complicated and time-consuming. Foreigners may purchase only those houses or condominiums listed as available for sale to nonBermudians. The list is short and the properties are expensive. Such properties may not pass by inheritance beyond the children of the original purchasers.

Transportation

Automobiles

Cars have been a part of the Bermuda scene only since 1946. The law limits a car's size and horsepower, forbids the use of private cars by all but residents, and provides for only one car per household (and only members of that household may drive it). Because of the latter restriction, most families own one (or more) motorbike, motor scooter, or motorcycle in addition to a car. Rental cars are not available.

Bermuda's laws restrict passenger vehicles to a maximum of 169 inches in overall length and 67 inches in overall width, with a maximum engine capacity of 2,000 cc (2.0 liters). There are technical restrictions that might bar other vehicles, such as sports cars or unusual models. Most cars in Bermuda are of Japanese manufacture (Mitsubishi, Nissan, Honda, Toyota, and Mazda, etc.). Volkswagen, British Ford, Hyundai, Peugeot, BMW, and various other makes are also sold here. Bermudians drive on the left, so almost all cars are right-hand drive. Right-hand drive cars are not compulsory, however. Because most roads are narrow and winding, Bermuda's speed limit is 35 km/h (21.7 mph).

Bermuda's laws virtually forbid the import of used cars. A vehicle may be imported only if it was purchased new within 6 months of importation. The local used car market is small and prices tend to be high, as they reflect the 75% duty that new car buyers pay. New cars may be purchased through local dealers.

Cars brought to Bermuda should be undercoated to protect the chassis against the corrosive effects of the climate and seasprayed roads. Bermuda has adequate repair shops for most popular makes of small cars; spare parts are usually in stock. Labor and materials are expensive.

All drivers must, without exception, pass a driving test. The Transport Control Department (TCD) does not recognize any foreign licenses for use by Bermuda residents. A driver's license issued in Bermuda is normally valid only for the licensee's car.

All motorized vehicles must be registered with and inspected by TCD. Motorized vehicles with engines of 50cc or less may be driven with a local learner's permit or a foreign license (this permits tourists to rent 50cc mopeds or scooters on temporary visits to Bermuda). TCD vehicle inspection requirements are similar to examinations in the U.S. Third-party liability insurance is also compulsory on all vehicles. Most Bermuda insurance firms grant no-claim discounts; travelers with a record of accident-free driving should bring letters from their previous insurance firms attesting to this.

Used motorbikes or scooters are readily available. As with cars, duty must be paid on a new vehicle bought from a local dealer's existing stocks.

Gasoline sold at local service stations costs about $4.60 a gallon. Safety helmets must be worn when driving any two-wheeled vehicle.

Local

More than 600 taxis are available. Some 300 Bermudian taxi drivers have attained "Qualified Tour Guide" status by successfully completing special government exams. Taxi fares are high; the fare from the airport to Hamilton is about $25.

Local bus service is extensive and reasonable in price and is heavily used by both Bermudians and tourists. The government ferry service connects Hamilton with points in Paget and Warwick (across the harbor from Hamilton) running at frequent intervals. Less frequent service on larger ferries goes to three points in Somerset, including the Dockyard. The ferries are heavily used by tourists and are a convenient form of commuting for those living near the landing points. The ferries are canceled, however, whenever sea conditions are unfavorable.

Regional

Flights are available daily between Bermuda and New York. Good non-stop services also connect Bermuda with Baltimore, Boston, Atlanta, London, and Toronto. Baltimore-Washington International Airport is about 2 hours away by plane. British Air and Air Canada are the only non-American carriers serving Bermuda. Passengers on the many U.S. carrier flights to the U.S. are precleared by U.S. Immigration and U.S. Customs at Bermuda's airport, arriving at domestic terminals on the mainland. Bermuda is on Atlantic Time, one hour ahead of the East Coast throughout the year.

Cruise ships service Bermuda from New York and Boston from May to October, with occasional voyages from other ports during this period.

Communications

Telephone and Telegraph

Telephone and fax service extends throughout the island. Long distance service is rapid and efficient, with direct dialing to the U.S. and most of the world.

Rental rates and local service costs are comparable to those in the U.S. A 3-minute direct-dialed station-to-station call to the East Coast averages $3.75. Calls to Bermuda from the U.S. are cheaper than the other way around. The Bermuda Telephone Company, Ltd. uses Canadian-built equipment and many international brands of telephone and fax sets are available for home and business use.

International telegraph service is operated by Cable & Wireless Ltd. Round the clock service is available by calling 297-7000. Communications in Bermuda are state-of-theart, with multiple satellite, ocean cable, and fiber-optic cable facilities in place.

TV and Radio

The three local TV stations can be received on any standard American TV set without alteration. One is a CBS affiliate, another carries NBC programs, and the other carries some ABC programs. A fourth station offers some CNN and BBC programming. Cable service is also available, similar to that in most American cities.

Newspapers, Magazines, and Technical Journals

Bermuda has one daily newspaper, the morning Royal Gazette. The Mid-Ocean News and Bermuda Sun appear weekly on Fridays. While all newspapers concern themselves mainly with local events, they have wire-service coverage of leading US. and other foreign news stories. The New York Times and Washington Post are received by local vendors daily and usually arrive by air the same day of publication, or the following morning. Several other leading American and British newspapers are available on local stands.

American newspaper and magazine subscriptions should be sent via pouch. Magazines are normally sent by surface mail, arriving at least two weeks after publication. Current books, including paperbacks, are available in Hamilton bookstores, but are quite expensive. Subscription to book-buying services or clubs in the U.S. is advisable.

Health and Medicine

Medical Facilities

All physicians in the yellow pages of the Bermuda telephone directory are licensed by the Bermuda Government and are considered acceptable.

The only hospital in Bermuda is the King Edward VII Memorial Hospital just east of Hamilton. It is a well-equipped and modern general medical and surgical hospital with about 300 beds. All customary services are available at King Edward, including an emergency and out-patient department. The hospital is accredited under a Canadian system. Local dentists are competent, most trained in the U.S. or Canada.

Community Health

Immunization and preventive care in Bermuda are undertaken vigorously and the general health of the community is good. Immunization programs exist for diphtheria, whooping cough, tetanus, poliomyelitis, and measles. Vaccination against smallpox is compulsory. No unusual communicable disease or severe epidemics have been recorded in the past few years. A successful diabetic program and the family limitation and birth control programs are being continued. The decrease in the number of births has continued annually since 1963.

As in any subtropical region, Bermuda is afflicted with a variety of insect pests. Most households, no matter how clean or how fumigated, may have ants and/or cockroaches and termites. These are kept under control by regular spraying under commercial contracts. Few mosquitoes are found on the island, due to the scarcity of standing fresh water, and mosquito-borne diseases have been eliminated. Small and harmless lizards, mostly chameleons, may enter houses but are often welcomed as scavengers of insects. Bermuda has no snakes and few household rodents.

The Department of Health monitors food operations of all hotels, restaurants, shops, food manufacturers, pasteurizing plants, dairy farms, and slaughterhouses. A close watch is kept on the quality of imported foods. The health standards of housing and sanitary engineering are supervised by the Bermuda Government. Garbage is collected once a week as are recyclables. Recycling at present is limited to aluminum cans and glass. Virtually all homes have septic tanks for sewage disposal, utilizing either brackish or fresh water. In the latter case, the supply is dependent on rainfall and may run short during droughts.

Preventive Measures

Few health hazards exist in Bermuda. Because the source of home water supply is rainwater stored in cisterns, the possibility of contamination always exists. Simple precautions and periodic testing of each water supply has made this problem minimal.

Foodstuffs available on the island present no health hazard. Milk from local dairies is safe. No unusual dangerous insects or animals are present, and the island is rabies free.

You can be severely sunburned during the summer, and standard precautions should be taken. The Portuguese man of-war abounds in the waters off Bermuda; its presence near shore depends on prevailing currents. Its sting produces serious but not fatal illness among swimmers. If you are stung, get immediate medical care.

No special treatment of raw fruits and vegetables is required. All milk is pasteurized. Some people add chlorine to the water in underground storage tanks.

The Bermuda Department of Health recommends that those coming to Bermuda be vaccinated against smallpox, diphtheria, tetanus, and whooping cough, but merely as a precautionary measure. Tuberculosis exists in Bermuda, but its incidence is decreasing and cases are rigidly controlled.

Those with respiratory ailments may suffer from the humid climate, which also seems to activate potential arthritis in those susceptible. Asthma and hay fever sufferers, however, will find some relief here. You need not bring any special medicines or drugs; any medication can be bought locally. It would be economical to stock up on any regular medications needed, however, as local pharmacy prices are high. Fluoride supplements are provided for all children over 6 months old at government expense, as part of a 25-year study.

NOTES FOR TRAVELERS

Passage, Customs & Duties

U.S. citizens entering Bermuda must present a U.S. passport or a certified U.S. birth certificate, and photo identification. The Consulate strongly recommends that visitors travel with a valid passport at all times. A U.S. driver's license or a voter registration card is not sufficient for entry into Bermuda. For additional information on entry requirements, travelers may contact the British Embassy at 3100 Massachusetts Avenue, N.W, Washington, D.C. 20008, telephone (202) 462-1340, or the British consulate in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York or San Francisco; Internet:http://www.britaininfo.org or the Bermuda Department of Immigration;http://www.immigration.bdagov.bm.

U.S. citizens who are taking prescription medication must inform Bermuda customs officials at the point of entry. Medicines must be in labeled containers. Travelers should carry a copy of the written prescription and a letter from the physician or pharmacist confirming the reason the medicine is prescribed.

Bermuda customs authorities may enforce strict regulations concerning temporary importation into or export from Bermuda of items such as animals, arms, ammunition and explosives, building sand, crushed rock, gravel, peat and synthetic potting media, foodstuffs (animal origin), fumigating substances, gaming machines, historic articles (relating to Bermuda), lottery advertisements and material, motorcycles, motor vehicles, obscene publications, organotin anti-fouling paint, plants, plant material, fruits and vegetables (living or dead, including seeds), pesticides, prescription drugs, prohibited publications, seditious publications, soil, VHF radios, radar and citizens band (CB) radios. For additional information on temporary admission, export and customs regulations and tariffs, please contact Bermuda Customs at telephone 1-441-295-4816, or email [email protected], or visit the Bermuda Customs web site at http://www.customs.gov.bm.U.S. citizens may register with the Consular Section of the U.S. Consulate General located at Crown Hill, 16 Middle Road, Devonshire DV03, telephone 1-441-295-1342, where they may also obtain updated information on travel and security in Bermuda. Office hours for American Citizens Services are 8:30 a.m.-11:30 a.m., Monday through Thursday, except Bermudian and U.S. holidays. American citizens in need of after-hours emergency assistance may call the duty officer at telephone 1-441-235-3828.

Pets

Bermuda has no quarantine restriction, for pets arriving on the island, but an animal entry permit from the Bermuda Department of Agriculture is required. Failure to satisfy all requirements for this permit can result in the animal being refused entry, and there are no facilities at the airport or elsewhere for storing animals while the permit is straightened out. Veterinarians are available in Bermuda, as is pet grooming. Fleas abound.

Firearms and Ammunition

Bermuda laws are extremely strict with regard to firearms and ammunition. No private firearms may be brought into Bermuda. There are no exceptions to this regulation.

Currency, Banking, and Weights and Measures

Bermuda's currency is on the decimal system; notes come in $100, $50, $20, $10, $5, $2 denominations, and metal coinage in $1, .25, .10, .05, and .01 issues. U.S. money, while not legal tender in Bermuda, is freely accepted by all trading establishments on a one-for-one basis, although the official exchange rate makes the Bermuda dollar worth slightly more than the U.S. dollar.

Most local concerns accept U.S. credit cards and many vendors take checks drawn on U.S. banks. No restrictions are placed on the importation of U.S. dollars, other currency, or travelers checks-the export of Bermudian currency requires a foreign exchange permit (usually granted) from the Bermuda Monetary Authority.

British Imperial standard weights and measures are in general used in Bermuda and many Bermudians habitually use American terms of measurement-but the Bermuda Government has adopted a policy of gradual shift to the metric system. Road signs and local gas pumps are metric.

LOCAL HOLIDAYS

Jan. 1 … New Year's Day

Mar/Apr. … Good Friday^*

Mar/Apr. … Easter^*

May 24 … Bermuda Day

June … Queen's Birthday^*

Aug.2 … Emancipation Day

Aug. … Somers Day^*

Sept.3 … Labor Day

Nov. 12 … Remembrance Day

Dec. 25 … Christmas Day

Dec. 26 … Boxing Day

^*Variable

RECOMMENDED READING

The following titles are provided as a general indication of the material published on this country:

Bermuda Travel Guide. New York:Macmillan, 1989.

Cancelino, Jesse, and Michael Strohofer. Diving Bermuda. Locust Valley, CA: Aqua Quest Publications, 1990.

Christmas, Rachel J., and WalterChristmas. Fielding's Bermuda & the Bahamas Nineteen Ninety-Two. New York: Fielding Travel Books, 1991.

Fodor, Eugene. Fodor's Bermuda, 1991. New York: McKay, 1991.

Fox, Larry, and Barbara Radin-Fox. Romantic Island Getaways: The Caribbean, Bermuda & the Bahamas. New York: Wiley, 1991.

LaBrucherie, Roger A. Images of Bermuda. Rev. ed. Pine Valley, CA: Imagenes Press, 1989.

Raine. The Islands of Bermuda. Edison, NJ: Hunter Publishing, 1990.

Bermuda

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Bermuda

PROFILE

Geography

Area: 58.8 sq. km. (22.7 sq. mi.).

Cities: (2000 census) Capital—Hamilton (pop. 3,461). Other city—St. George (pop. 3,306).

Terrain: Hilly islands.

Climate: Semi-tropical.

People

Nationality: Noun and adjective—Bermudian(s).

Population: (2007 est.) 64,009.

Annual growth rate: (2006 est.) 0.61%.

Ethnic groups: Black 54.8%, white 34%, mixed and other 11.1%.

Religions: (2000) Anglican 23%, Roman Catholic 15%, African Methodist Episcopal 11%, 7th Day Adventist 7%, Methodist 4%, other 40% (none or not stated).

Languages: English.

Education: Years compulsory—to age 16. Bermuda placed third overall of six developed nations (including the U.S.) in the 2005 Adult Literacy and Life Skills Survey.

Health: (2006 est.) Infant mortality rate—8.3 per thousand. Life expectancy—men 76 yrs., women 80 yrs.

Work force: (2004 est.) Sales—19%; services—19%; clerical—19%; professional and technical—17%; administrative and managerial—15%; agriculture and fishing—3%; laborers—3%.

Government

Type: British Overseas Territory with significant autonomy.

Constitution: June 8, 1968; amended 1989 and 2003.

Government branches: Chief of State—Queen Elizabeth II, British monarch (head of state, represented by a governor). Head of Government—Premier, Ewart Brown. Legislative—Senate (upper house, 11 members appointed by the governor, the premier, and the opposition); House of Assembly (lower house; 36 seats elected by popular vote). Judicial—Supreme Court.

Political subdivisions: Nine parishes.

Political parties: Progressive Labor Party (PLP), United Bermuda Party (UBP), National Liberal Party (NLP). Suffrage: Universal at 18.

Economy

GDP: (nominal, 2005) $4.9 billion. Sectors—21% ($926.5 million) from international companies; 16% ($712 million) from real estate and rental; 12% ($536 million) from financial intermediation; 9% ($379 million) from wholesale, retail trade, and repair services; 6% ($245.8 million) from the hotel and restaurant sector; 6% ($272.4 million) from construction; and 30% ($1.5 billion) from other sectors.

GDP growth rate: (2005 provisional) 4.6%.

Per capita nominal GDP: (2005 prov.) $76,403.

Inflation rate: Annual inflation rate for 2005 was 4.0%.

Natural resource: Limestone, used primarily for building.

Agriculture: Products—semitropical produce, dairy products, flowers, honey.

Industry: Types—re/insurance finance, tourism, structural concrete products, paints, perfumes, furniture.

Trade: Exports (2006, includes re-exports)—$25 million: semitropical produce, light manufactures. Imports (2006)—$1.06 billion: food, clothing, household goods, chemicals, live animals, machinery, transport, and miscellaneous manufactures. Major suppliers—U.S. ($752.6 million), United Kingdom, Canada, Caribbean countries (mostly oil from Netherlands Antilles).

HISTORICAL HIGHLIGHTS

Bermuda is an archipelago consisting of seven main islands and many smaller islands and islets lying about 1,050 kilometers (650 mi.) east of North Carolina. The main islands—with hilly terrain and subtropical climate—are clustered together, connected by bridges, and are considered to be a geographic unit, referred to as the Island of Bermuda. Bermuda was discovered in 1503 by a Spanish explorer, Juan de Bermudez, who made no attempt to land because of the treacherous reef surrounding the uninhabited islands.

In 1609, a group of British colonists led by Sir George Somers was shipwrecked and stranded on the islands for 10 months. Their reports aroused great interest about the islands in England, and in 1612 King James extended the Charter of the Virginia Company to include them. Later that year, about 60 British colonists arrived and founded the town of St. George, the oldest continuously inhabited English-speaking settlement in the Western Hemisphere. When representative government was introduced to Bermuda in 1620, it became a self-governing colony.

Due to the islands’ isolation, for many years Bermuda remained an outpost of 17th-century British civilization, with an economy based on the use of the islands’ endemic cedar trees for shipbuilding and the salt trade. Hamilton, a centrally located port founded in 1790, became the seat of government in 1815.

Slaves from Africa were brought to Bermuda soon after the colony was established. The slave trade was outlawed in Bermuda in 1807, and all slaves were freed in 1834. Today, about 61% of Bermudians are of African descent.

The establishment of a formal constitution in 1968 bolstered internal self-government; debate about independence ensued, although a 1995 independence referendum was defeated. The current government re-opened the independence debate in 2004.

GOVERNMENT AND POLITICAL CONDITIONS

Bermuda is the oldest self-governing overseas territory in the British Commonwealth. Its 1968 constitution provides the island with formal responsibility for internal self-government, while the British Government retains responsibility for external affairs, defense, and security. The Bermudian Government is consulted on any international negotiations affecting the territory. Bermuda participates, through British delegations, in the UN and some of its specialized and related agencies.

Government Structure

Queen Elizabeth II is head of state and is represented in Bermuda by a governor, whom she appoints. Internally, Bermuda has a parliamentary system of government.

The premier is head of government and leader of the majority party in the House of Assembly. The cabinet is composed of ministers selected by the premier from among members of the House of Assembly and the Senate.

The 36-member House is elected from 36 electoral districts (one representative from each district) for a term not to exceed 5 years. The Senate, or reviewing house, serves concurrently with the House and has 11 members—five appointed by the governor in consultation with the premier, three by the opposition leader, and three at the governor's discretion.

The judiciary is composed of a chief justice and associate judges appointed by the governor. For administrative purposes, Bermuda is divided into nine parishes, with Hamilton and St. George considered autonomous corporations.

Political Conditions

Bermuda's first political party, the Progressive Labor Party (PLP), was formed in May 1963 with predominantly black adherents. In 1965, the two-party system was launched with the formation of the United Bermuda Party (UBP), which had the support of the majority of white voters and of some black voters. A third party, the Bermuda Democratic Party (BDP), was formed in the summer of 1967 with a splinter group from the PLP as a nucleus; it disbanded in 1970. It was later replaced by the National Liberal Party (NLP), which currently holds no parliamentary seats. Bermuda's first election held on the basis of universal adult suffrage and equal voting took place on May 22, 1968; previously, the franchise had been limited to property owners. In the 1968 election, the UBP won 30 House of Assembly seats, while the PLP won 10 seats and the BDP lost the 3 seats it had previously held. The UBP continued to maintain control of the government, although by decreasing margins in the Assembly, until 1998 when the PLP won the general election for the first time.

Unsatisfied aspirations, particularly among young blacks, led to a brief civil disturbance in December 1977, following the execution of two men found guilty of the 1972-73 assassinations of Governor Sir Richard Sharples and four others. In the 1980s, the increasing prosperity of Bermudians, combined with limited land area, caused a housing shortage. Despite a general strike in 1981 and economic downturn in the early 1980s, Bermuda's social, political, and economic institutions remained stable.

Both political parties have discussed the possibility of complete independence. An independence referendum called by a sharply divided UBP in the summer of 1995 was resoundingly defeated and resulted in the resignation of the premier and UBP leader, Sir John Swan. Just over 58% of the electorate voted in the independence referendum, which had to be postponed one day due to disruptions caused by Hurricane Felix.

Of those voting, over 73% voted against independence, while only 25% voted in favor. Vote results may have been distorted by the Progressive Labor Party (PLP) call to boycott the referendum.

Eventual independence from the United Kingdom (U.K.) has been a goal of the PLP since the party's inception in 1963. In February 2004 then-Premier (and PLP party leader) Alex Scott announced his decision to commence an open and objective debate on the subject of independence. The government-appointed Bermuda Independence Commission held hearings island-wide where there was considerable focus on the mechanics of deciding independence, whether through an independence referendum, a general election, or some combination of the two. However, several recent polls indicated little support for independence. The international and local business communities continue to take a wait-and-see attitude.

Currently citizens of Britain's overseas territories, including Bermuda, are entitled to British citizenship. The British Overseas Territories Bill, passed in February 2002, provides automatic acquisition of British citizenship, including automatic transmission of citizenship to their children; the right of abode, including the right to live and work in the U.K. and the European Union (EU); the right not to exercise or to formally renounce British citizenship; and the right to use the fast track European Union/European Economic Area (EU/ EEA) channel at the airport, free of U.K. immigration controls.

The U.K. Governor of Bermuda has said that citizens of an independent Bermuda would no longer be automatically entitled to British citizenship and the EU benefits that accrue to it.

There are no conditions attached to the grant of British citizenship to the overseas territories, a fact of particular importance to Bermuda where the issue of independence is being debated. A 1999 U.K. government White Paper states: “The new grant of British citizenship will not be a barrier, therefore, to those Overseas Territories choosing to become independent of Britain. Our Overseas Territories are British for as long as they wish to remain British. Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option.” Bermuda's most recent general election was held in July 2003, when the PLP was re-elected to its second term.

Principal Government Officials

Last Updated: 2/1/2008

Governor: John VEREKER, Sir

Premier: Alex SCOTT

Dep. Premier: Ewart BROWN

Min. of Education: Terry LISTER

Min. of Environment: Neletha BUTTERFIELD

Min. of Finance: Paula COX

Min. of Health & Family Services: Patrice PARRIS

Min. of Housing, Works, & Engineering: Ashfield DEVENT

Min. of Justice: Larry MUSSENDEN

Min. of Labor & Home Affairs: Randy NORTON

Min. of Legislative Affairs: Michael SCOTT

Min. of Sports & Community Affairs: Dale BULTER

Min. of Tourism, Telecommunications, and E-Commerce: Renee WEBB

Min. of Transport: Ewart BROWN

Min. of Works, Engineering, Parks, & Housing: Alex SCOTT

Attorney General: Larry MUSSENDEN

Cabinet Sec. Chmn., Bermuda Monetary Authority:

Bermudas interests in the U.S. are represented by the United Kingdom, whose embassy is at 3100 Massachusetts Avenue, NW, Washington, DC 20008; tel: 202-588-6500; fax: 202-588-7870. The Bermudian Government's Department of Tourism has offices in New York and Toronto.

ECONOMY

Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island experienced a mild recession in 2001-02, paralleling the recession in the U.S. Bermuda enjoys one of the highest per capita incomes in the world. Its economy is based primarily upon international business and tourism. In 2006, international business, business services, and tourism accounted for 91.7% of the total balance of payments current account receipts of foreign exchange. However, the role of international business in the economy is expanding, whereas that of tourism is generally contracting.

Bermuda is an offshore financial center with a robust financial regulatory system. The government cooperates with the United States and the international community to prevent money laundering and terrorist financing and continues to update its legislation and procedures in conformance with international standards. Bermuda first enacted specific money laundering legislation in 1997, passing the Proceeds of Crime Act (PCA) to apply money laundering controls to financial institutions such as banks, deposit companies, trust companies, and investment businesses, including broker-dealers and investment managers. Insurance companies are covered to the extent that they are judged susceptible to the risk of money laundering abuse. Amendments in 2000, effective June 1, 2001, expanded the scope of the legislation to cover the proceeds of all indictable offenses, including tax evasion, corruption, fraud, counterfeiting, theft, and forgery. The Bermuda Monetary Authority Amendment (No. 3) Act 2004 clarified the authority of the BMA to respond to requests from overseas regulators for information about clients.

In December 2002, Parliament passed the Bermuda Monetary Authority Amendment Act 2002, expanding the list of BMA objectives to include action to combat financial crime. It underpins the BMA's existing role in checking systems and controls in financial institutions and paves the way for the BMA to expand its role in administering UN sanctions and other measures on a delegated basis. In order to implement provisions of relevant UN Security Council antiterrorism resolutions, the act—among other provisions—prescribes the manner by which the finance minister may delegate to the BMA the power to block accounts.

Bermuda enacted the Investment Business Act (IBA) in 1998 to regulate the island's financial services industry. In response to international directives, the government passed the Investment Business Act 2003 to further refine its terms. The act creates a balance between government regulation on the one hand and the competitive needs of Bermuda's most important industry—international business—on the other hand. By updating its regulatory framework, Bermuda has enhanced its reputation globally as an international standard-bearer. In return, international businesses registered in Bermuda are recognized as having met or surpassed the most stringent international criteria.

In 2006, Bermuda considered additional legislation to further enhance its compliance with international financial standards. The Collective Investment Scheme Act, a plan to institute a formal licensing regime for investment schemes, was passed by parliament at the end of 2006 under the name of the Investment Funds Act 2006. The act was implemented in early March 2007.

In 2006, 14,267 international companies were registered in Bermuda, many U.S.-owned. They are an important source of foreign exchange for the island, and spent an estimated $1.004 billion in Bermuda in 2006. The growing importance of international business is reflected in its increased share of GDP, up from 13.9% in 2004 to 21.9% in 2005 at $1.062 billion. Additionally, it is now the island's largest employer, with 4,489 jobs in 2006.

Historically important for employment and tax revenue, Bermuda's tourism industry had been experiencing difficulties for many years, but showed a slight improvement in 2006. In 1996, Bermuda welcomed 571,700 visitors to the island. By 2004, that figure had dropped to 477,757 but increased to 641,747 in 2006. Occupancy rates for 2006 averaged 63.8%, and were higher in the smaller hotels than at larger properties. Visitors contributed an estimated $475 million to the economy in 1996, but that figure declined to $392.3 million in 2005. Visitor spending increased in recent years to $464 million in 2006. Bermuda has little in the way of exports or manufacturing; almost all manufactured goods and foodstuffs must be imported. The value of imports rose from $551 million in 1994 to $964 million in 2005. The U.S. is Bermuda's primary trading partner, with $776.7 million in U.S. imports in 2006. The U.K., Canada, and the Caribbean countries (mainly the Netherlands Antilles) also are important trading partners. Exports from Bermuda, including imports into the small free port that are subsequently re-exported, decreased from $35 million in 1993 to $26 million in 2006. Duty on imports is a major source of revenue for the Government of Bermuda. In 2005-2006, the government obtained $224.2 million, or 27.9%, of its revenue base from imports. Heavy importation duties are reflected in retail prices. Even though import duties are high, wages have kept up for the most part with the cost of living, and poverty—by U.S. standards—appears to be practically nonexistent. Although Bermuda imposes no income, sales, or profit taxes, it does levy a real estate tax.

Bermuda is home to immigrants from other countries. According to the 2000 census, 79% of the population is Bermuda-born and 21% is foreign-born. U.K. immigrants comprise 28% of the immigrant population; U.S., 20% (although the U.S. Consulate estimates that the figure is closer to 40%); Canada, 15%; Caribbean, 12%; and Portugal/Azores, 10%. In February 1970, Bermuda converted from its former currency, the pound, to a decimal currency of dollars pegged to the U.S. dollar.

FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS

The United Kingdom is formally responsible for Bermuda's foreign and defense policy. U.S. policy toward the U.K. is the basis of U.S.- Bermudian relations. In the early 20th century, as modern transportation and communication systems developed, Bermuda became a popular destination for wealthy U.S., British, and Canadian tourists. While the tariff enacted in 1930 by the U.S. against its trading partners ended Bermuda's once-thriving agricultural export trade—primarily fresh vegetables to the U.S.—it helped spur the overseas territory to develop its tourist industry, which is second only to international business in terms of economic importance to the island.

During World War II, Bermuda became a significant U.S. military site because of its location in the Atlantic Ocean. In 1941, the U.S. signed a lend-lease agreement with the U.K. giving the British surplus U.S. Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8 square kilometers (2.25 sq. mi.) of land largely reclaimed from the sea. The U.S. Naval Air Station was on St. David's Island, while the U.S. Naval Air Station Annex was at the western end of the island in the Great Sound.

Both bases were closed in September 1995 (as were British and Canadian bases), and the lands were formally returned to the Government of Bermuda in 2002.

The Government of Bermuda has begun to pursue some international initiatives independent of the U.K. in recent years. Bermuda signed a cultural memorandum of understanding with Cuba in 2003. The island also joined the Caribbean Community (CARICOM) as an associate member in 2003. The U.S. Coast Guard (USCG) provided search and rescue assistance immediately following Hurricane Fabian in September 2003 but Bermuda declined subsequent offers of reconstruction assistance from the U.S. and U.K., preferring to accept assistance from its Caribbean neighbors. The USCG continues to provide search and rescue assistance as needed. An estimated 8,500 U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda, although no actual figures are available. Despite the trend of American businesses moving to Bermuda or other offshore jurisdictions to escape U.S. taxes, Bermuda maintains that the island is not a “tax haven” and that it taxes both local and foreign businesses equally. While U.S. visitors to Bermuda are critical to the island's tourism industry, the number of U.S. visitors to Bermuda is declining. In 2006 only 76% of air arrivals originated from the U.S. compared to 83.9% in 1990. The number of air and cruise passengers from the U.S. totaled 464,000 in 2000. That number fell to 451,924 American passengers in 2006. Another 3,861 Americans sailed to the island via private yacht in 2006. In 2005, 74% of Bermuda's imports came from the U.S. Areas of opportunity for U.S. investment are principally in the re-insurance and financial services industries, although the former U.S. base lands also may present long-term investment opportunities.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

HAMILTON (CG) 16 Middle Road, Devonshire DV 03 Bermuda, 1-441-295-1342 x0, Fax 1-441-296-9233, Workweek: 8:00 AM-4:30 PM, M-F.

The U.S. Consulate General is located at “Crown Hill,” 16 Middle Road, Devonshire, just outside the City of Hamilton; tel: 441-295-1342; fax: 441-295-1592; web site: http://hamilton.usconsulate.gov.

TRAVEL

Consular Information Sheet

June 4, 2007

Country Description: Bermuda is a highly developed British overseas territory with a stable democracy and modern economy. Tourist facilities are widely available.

Entry Requirements: Travelers may contact the British Consulate in New York, telephone (212) 745-0273/ 3206/0281, or the British consulate in Atlanta, Boston, Chicago, Dallas, Los Angeles, or San Francisco; Internet: http://www.britain-info.org or the Bermuda Department of Immigration at http://www.immigration.gov.bm.

Sea travelers are also strongly advised to have a valid U.S. passport (or other original proof of U.S. citizenship, such as a certified U.S. birth certificate with a government-issued photo ID). Persons traveling with U.S. passports tend to encounter fewer difficulties upon departure than those who choose to use other documents.

Important Information: On June 8, 2007, the Departments of State and Homeland Security announced U.S. citizens traveling to Canada, Mexico, Bermuda or countries in the Caribbean region who have applied for, but not yet received passports, can re-enter the United States by air by presentation of a government issued photo identification and Department of State official proof of application for a passport through September 30, 2007. The federal government is making this accommodation for air travel due to longer than expected processing times for passport applications in the face of record-breaking demand. This accommodation does not affect entry requirements to other countries. Foreign immigration officials may still require a passport, or require a birth certificate or other evidence of U.S. citizenship in addition to proof of application for a U.S. passport and a government-issued photo identification. Travelers are strongly advised to check with the appropriate foreign embassy for information on their country's entry/exit requirements in relation to this announcement.

Safety and Security: For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site, where the current Worldwide Caution Travel Alert, Travel Warnings and Travel Alerts can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Bermuda has a moderate but growing crime rate. Examples of common crimes include theft of unattended baggage and items from rental motorbikes, purse snatching (often perpetrated against pedestrians by thieves riding motorbikes), mugging, and theft from hotel rooms. Valuables left in hotel rooms (occupied and unoccupied) or left unattended in public areas are vulnerable to theft. The Consulate regularly receives reports of thefts of money, valuables, and passports and advises that travelers keep their hotel windows and doors locked at all times. Criminals often target transportation systems and popular tourist attractions.

Travelers should exercise caution when walking after dark or visiting out-of-the-way places on the island, as they can be vulnerable to theft and sexual assault, and because narrow and dark roadways can contribute to accidents. There have been incidents of sexual assault and acquaintance rape, and the use of “date rape” drugs such as Rohypnol has been reported in the media and confirmed by local authorities; one local advocacy group reports an increase in reporting the use of these drugs and accompanying sexual assault. Travelers should also note an increase in gang presence in Bermuda and should take regular precautions to avoid confrontation. The back streets of Hamilton are often the setting for nighttime assaults, particularly after the bars close.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Good medical care is available, though extremely expensive. The hospital performs general surgery and has an intensive care unit. Serious or complex medical problems will likely require medical evacuation to the United States.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bermuda is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Traffic in Bermuda moves on the left side of the road and the roads are very narrow, often with no defined shoulder. The maximum speed limit in Hamilton is 25 kph (15 mph) and 35 kph (21 mph) on the rest of the island. Under Bermudian law, non-residents are not allowed to own, rent, or drive four-wheeled vehicles. Non-residents must rely on taxis, the excellent local bus system, or motor scooters. Traffic is moderate, but road accidents—particularly involving motorbikes—are common and often result in serious injuries or even death.

Rental motor scooters are readily available, and the required helmet is provided. However, visitors should carefully consider whether or not it is worth the risk to ride a scooter. Motor scooters provide the greatest road peril in Bermuda; local operators tend to abuse the speed limit more than other drivers, and they will often pass on the left or right with no warning.

Those unfamiliar with driving on the left are likely to find the roundabouts and regulations for yielding at junctions confusing and dangerous. In addition, vehicles often stop on the side of the road, blocking one lane of traffic. Main roads, while generally in good condition, are extremely narrow and tend to be bordered by heavy vegetation or low stone walls. Travelers who rent scooters should be aware that scooter accidents involving visitors are relatively common, and they can sometimes be fatal or involve serious injuries.

Taxis are readily available. The local bus system, which is excellent and relatively inexpensive, services the length of the island and stops close to most beaches, hotels, the downtown shopping area, and other points of interest. In addition, water ferry service to a variety of stops around the island is available seven days a week, and is a very safe and enjoyable mode of transportation.

For specific information concerning Bermuda driver’ permits, vehicle inspection, road tax and mandatory insurance, please contact the Bermuda Department of Tourism offices at 310 Madison Avenue, Suite 201, New York, N.Y., telephone (212) 818-9800, or via the Internet at http://www.bermudatourism.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Bermuda's Civil Aviation Authority as being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for the oversight of Bermuda's air carrier operations. For more information, travelers may visit the FAA's internet website at http://www.faa.gov.

Special Circumstances: ATMs are widely available in Bermuda. Local banks may not accept checks drawn on U.S. accounts, but some Front Street stores catering to the tourist trade will accept U.S. checks as payment. The local American Express office will cash U.S. checks up to $500.00 for a three-percent fee. Credit cards are widely accepted at all establishments.

U.S. citizens who are taking prescription medication must inform Bermuda customs officials at the point of entry. Medicines must be in labeled containers. Travelers should carry a copy of the written prescription and a letter from the physician or pharmacist confirming the reason the medicine is prescribed.

Bermuda customs authorities may enforce strict regulations concerning temporary importation into or export from Bermuda of items such as animals, arms, ammunition and explosives, building sand, crushed rock, gravel, peat and synthetic potting media, foodstuffs (animal origin), fumigating substances, gaming machines, historic articles (relating to Bermuda), lottery advertisements and material, motorcycles, motor vehicles, obscene publications, organ-otin anti-fouling paint, plants, plant material, fruits and vegetables (living or dead, including seeds), pesticides, prescription drugs, prohibited publications, seditious publications, soil, VHF radios, radar and citizens band (CB) radios. For additional information on temporary admission, export and customs regulations and tariffs, please contact Bermuda Customs at telephone 1-441-295-4816, or email [email protected], or visit the Bermuda Customs web site at http://www.customs.gov.bm.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Bermuda's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bermuda are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Bermuda are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, and to obtain updated information on travel and security within Bermuda. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Consulate General is located at Crown Hill, 16 Middle Road, Devonshire DV03, and telephone 1-441-295-1342. Office hours for American Citizens Services are 1:30-3:30 Monday-Wednesday and 8:30-10:30 on Thursdays, except Bermudian and U.S. holidays. American citizens in need of after-hours emergency assistance may call the duty officer at telephone 1-441-335-3828.

Bermuda

Compiled from the August 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Bermuda

PROFILE

HISTORICAL HIGHLIGHTS

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS

TRAVEL

PROFILE

Geography

Area: 58.8 sq. km. (22.7 sq. mi.).

Cities: (2000 census) Capital—Hamilton (pop. 3,461). Other city—St. George (pop. 3,306).

Terrain: Hilly islands.

Climate: Semi-tropical.

People

Nationality: Noun and adjective—Bermudian(s).

Population: (2006 est.) 65,773.

Annual growth rate: (2006 est.) 0.61%.

Ethnic groups: Black 54.8%, white 34%, mixed and other 11.1%.

Religions: (2000) Anglican 23%, Roman Catholic 15%, African Methodist Episcopal 11%, 7th Day Adventist 7%, Methodist 4%, other 40% (none or not stated).

Language: English.

Education: Years compulsory—to age 16. Bermuda placed third overall of six developed nations (including the U.S.) in the 2005 Adult Literacy and Life Skills Survey.

Health: (2003) Infant mortality rate—2.3 per thousand. Life expectancy—men 75 yrs., women 80 yrs.

Work force: (2002) Professional and technical—20%. Production, transport, and related—19%. Clerical—19%. Services—19%. Administrative and managerial—14%. Sales—6%. Agriculture and fishing—2%.

Government

Type: British Overseas Territory with significant autonomy.

Constitution: June 8, 1968; amended 1989 and 2003.

Government branches: Executive—British monarch (head of state, represented by a governor). Legislative—Senate (upper house), House of Assembly (lower house). Judicial—Supreme Court.

Political subdivisions: Nine parishes.

Political parties: Progressive Labor Party (PLP), United Bermuda Party (UBP), National Liberal Party (NLP).

Suffrage: Universal at 18.

Economy

GDP: (nominal, 2004) $4.5 billion, an increase of 5.1% over 2003. Sectors—21% ($926.5 million) from international companies; 16% ($712 million) from real estate and rental; 12% ($536 million) from financial intermediation; 9% ($379 million) from wholesale, retail trade, and repair services; 6% ($245.8 million) from the hotel and restaurant sector; 6% ($272.4 million) from construction; and 30% ($1.5 billion) from other sectors.

GDP growth rate: (2004 provisional) 5.1%.

Per capita nominal GDP: (2004 prov.) $69,900.

Inflation rate: Annual inflation rate for 2004 was 3.6%. The inflation rate for the month of September 2005 was 2.9%.

Natural resource: Limestone, used primarily for building.

Agriculture: Products—semitropical produce, dairy products, flowers, honey.

Industry: Types—re/insurance finance, tourism, structural concrete products, paints, perfumes, furniture.

Trade: Exports (2004, includes re-exports)—$31 million: semitropical produce, light manufactures. Imports (2005)—$964 million: food, clothing, household goods, chemicals, live animals, machinery, transport, and miscellaneous manufactures. Major suppliers—U.S. ($718 million), United Kingdom, Canada, Caribbean countries (mostly oil from Netherlands Antilles).

HISTORICAL HIGHLIGHTS

Bermuda is an archipelago consisting of seven main islands and many smaller islands and islets lying about 1,050 kilometers (650 mi.) east of North Carolina. The main islands—with hilly terrain and subtropical climate—are clustered together, connected by bridges, and are considered to be a geographic unit, referred to as the Island of Bermuda. Bermuda was discovered in 1503 by a Spanish explorer, Juan de Bermudez, who made no attempt to land because of the treacherous reef surrounding the uninhabited islands.

In 1609, a group of British colonists led by Sir George Somers was shipwrecked and stranded on the islands for 10 months. Their reports aroused great interest about the islands in England, and in 1612 King James extended the Charter of the Virginia Company to include them. Later that year, about 60 British colonists arrived and founded the town of St. George, the oldest continuously inhabited English-speaking settlement in the Western Hemisphere. When representative government was introduced to Bermuda in 1620, it became a self-governing colony.

Due to the islands’ isolation, for many years Bermuda remained an outpost of 17th-century British civilization, with an economy based on the use of the islands’ endemic cedar trees for shipbuilding and the salt trade. Hamilton, a centrally located port founded in 1790, became the seat of government in 1815.

Slaves from Africa were brought to Bermuda soon after the colony was established. The slave trade was outlawed in Bermuda in 1807, and all slaves were freed in 1834. Today, about 55% of Bermudians are of African descent.

The establishment of a formal constitution in 1968 bolstered internal self-government; debate about independence ensued, although a 1995 independence referendum was defeated. The current government re-opened the independence debate in 2004.

GOVERNMENT AND POLITICAL CONDITIONS

Bermuda is the oldest self-governing overseas territory in the British Commonwealth. Its 1968 constitution provides the island with formal responsibility for internal self-government, while the British Government retains responsibility for external affairs, defense, and security. The Bermudian Government is consulted on any international negotiations affecting the territory. Bermuda participates, through British delegations, in the UN and some of its specialized and related agencies.

Government Structure

Queen Elizabeth II is head of state and is represented in Bermuda by a governor, whom she appoints. Internally, Bermuda has a parliamentary system of government.

The premier is head of government and leader of the majority party in the House of Assembly. The cabinet is composed of ministers selected by the premier from among members of the House of Assembly and the Senate.

The 36-member House is elected from 36 electoral districts (one representative from each district) for a term not to exceed 5 years. The Senate, or reviewing house, serves concurrently with the House and has 11 members—five appointed by the governor in consultation with the premier, three by the opposition leader, and three at the governor’s discretion.

The judiciary is composed of a chief justice and associate judges appointed by the governor. For administrative purposes, Bermuda is divided into nine parishes, with Hamilton and St. George considered autonomous corporations.

Political Conditions

Bermuda’s first political party, the Progressive Labor Party (PLP), was formed in May 1963 with predominantly black adherents. In 1965, the two-party system was launched with the formation of the United Bermuda Party (UBP), which had the support of the majority of white voters and of some black voters. A third party, the Bermuda Democratic Party (BDP), was formed in the summer of 1967 with a splinter group from the PLP as a nucleus; it disbanded in 1970. It was later replaced by the National Liberal Party (NLP), which currently holds no parliamentary seats.

Bermuda’s first election held on the basis of universal adult suffrage and equal voting took place on May 22, 1968; previously, the franchise had been limited to property owners. In the 1968 election, the UBP won 30 House of Assembly seats, while the PLP won 10 seats and the BDP lost the 3 seats it had previously held. The UBP continued to maintain control of the government, although by decreasing margins in the Assembly, until 1998 when the PLP won the general election for the first time.

Unsatisfied aspirations, particularly among young blacks, led to a brief civil disturbance in December 1977, following the execution of two men found guilty of the 1972-73 assassinations of Governor Sir Richard Sharp-les and four others. In the 1980s, the increasing prosperity of Bermudians, combined with limited land area, caused a housing shortage. Despite a general strike in 1981 and economic downturn in the early 1980s, Bermuda’s social, political, and economic institutions remained stable.

Both political parties have discussed the possibility of complete independence. An independence referendum called by a sharply divided UBP in the summer of 1995 was resoundingly defeated and resulted in the resignation of the premier and UBP leader, Sir John Swan. Just over 58% of the electorate voted in the independence referendum, which had to be postponed one day due to disruptions caused by Hurricane Felix. Of those voting, over 73% voted against independence, while only 25% voted in favor. Vote results may have been distorted by the Progressive Labor Party (PLP) call to boycott the referendum.

Independence has been a plank in the platform of the PLP since the party’s inception in 1963. In February 2004 Premier (and PLP party leader) Alex Scott announced his decision to commence an open and objective debate on the subject of independence from the United Kingdom (U.K.). Since that time, the government-appointed Bermuda Independence Commission has held hearings and published its findings, the government is holding public meetings on the issue island-wide, and it will present green and then white papers detailing its policy proposals for independence.

There is considerable focus in public forums on the mechanics of deciding independence, whether through an independence referendum, a general election, or some combination of the two. The international and local business communities appear to be taking a wait-and-see attitude.

Currently citizens of Britain’s overseas territories, including Bermuda, are entitled to British citizenship. The British Overseas Territories Bill, passed in February 2002, provides automatic acquisition of British citizenship, including automatic transmission of citizenship to their children; the right of abode, including the right to live and work in the U.K. and the European Union (EU); the right not to exercise or to formally renounce British citizenship; and the right to use the fast track European Union/European Economic Area (EU/EEA) channel at the airport, free of U.K. immigration controls.

The U.K. Governor of Bermuda has said that citizens of an independent Bermuda would no longer be automatically entitled to British citizenship and the EU benefits that accrue to it. There are no conditions attached to the grant of British citizenship to the overseas territories, a fact of particular importance to Bermuda where the issue of independence is being debated. A 1999 U.K. government White Paper states: “The new grant of British citizenship will not be a barrier, therefore, to those Overseas Territories choosing to become independent of Britain. Our Overseas Territories are British for as long as they wish to remain British.

Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option.” Bermuda’s most recent general election was held in July 2003, when the PLP was re-elected to its second term. Following the election,

the more moderate Alex Scott replaced Jennifer Smith as premier and party leader in a leadership challenge.

Principal Government Officials

Last Updated: 3/2/2005

Governor: John VEREKER, Sir

Premier: Alex SCOTT

Dep. Premier: Ewart BROWN

Min. of Education: Terry LISTER

Min. of Environment: Neletha BUTTERFIELD

Min. of Finance: Paula COX

Min. of Health & Family Services: Patrice PARRIS

Min. of Housing, Works, & Engineering: Ashfield DEVENT

Min. of Justice: Larry MUSSENDEN

Min. of Labor & Home Affairs: Randy NORTON

Min. of Legislative Affairs: Michael SCOTT

Min. of Sports & Community Affairs: Dale BULTER

Min. of Tourism, Telecommunications, and E-Commerce: Renee WEBB

Min. of Transport: Ewart BROWN

Min. of Works, Engineering, Parks, & Housing: Alex SCOTT

Attorney General: Larry MUSSENDEN

Cabinet Sec.:

Chmn., Bermuda Monetary Authority:

The Bermudian Government’s Department of Tourism has offices in New York and Toronto.

ECONOMY

Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island experienced a mild recession in 2001-02, paralleling the recession in the U.S. Bermuda enjoys one of the highest per capita incomes in the world. Its economy is based primarily upon international business and tourism. In 2004, international business and tourism accounted for 74% of the total balance of payments current account receipts of foreign exchange. However, the role of international business in the economy is expanding, whereas that of tourism is generally contracting. Bermuda is an offshore financial center with a robust financial regulatory system. The government cooperates with the United States and the international community to prevent money laundering and terrorist financing and continues to update its legislation and procedures in conformance with international standards. Bermuda first enacted specific money laundering legislation in 1997, passing the Proceeds of Crime Act (PCA) to apply money laundering controls to financial institutions such as banks, deposit companies, trust companies, and investment businesses, including broker-dealers and investment managers. Insurance companies are covered to the extent that they are judged susceptible to the risk of money laundering abuse. Amendments in 2000, effective June 1, 2001, expanded the scope of the legislation to cover the proceeds of all indictable offenses, including tax evasion, corruption, fraud, counterfeiting, theft, and forgery. The Bermuda Monetary Authority Amendment (No. 3) Act 2004 clarified the authority of the BMA to respond to requests from overseas regulators for information about clients.

In December 2002, Parliament passed the Bermuda Monetary Authority Amendment Act 2002, expanding the list of BMA objectives to include action to combat financial crime. It underpins the BMA’s existing role in checking systems and controls in financial institutions and paves the way for the BMA to expand its role in administering UN sanctions and other measures on a delegated basis. In order to implement provisions of relevant UN Security Council antiterrorism resolutions, the act—among other provisions—prescribes the manner by which the finance minister may delegate to the BMA the power to block accounts.

Bermuda enacted the Investment Business Act (IBA) in 1998 to regulate the island’s financial services industry. In response to international directives, the government passed the Investment Business Act 2003 to further refine its terms. The act creates a balance between government regulation on the one hand and the competitive needs of Bermuda’s most important industry—international business—on the other hand. By updating its regulatory framework, Bermuda has enhanced its reputation globally as an international standard-bearer. In return, international businesses registered in Bermuda are recognized as having met or surpassed the most stringent international criteria.

Bermuda is currently considering additional legislation to further enhance its compliance with international financial standards. The Collective Investment Scheme Act will institute a formal licensing regime for investment schemes. It is expected to be debated in parliament in 2006. In March 2005, 13,729 international companies were registered in Bermuda, many U.S.-owned. They are an important source of foreign exchange for the island, and spent an estimated $1.762 billion in Bermuda in 2004. The growing importance of international business is reflected in its increased share of GDP, up from 12.6% in 1996 to 21% in 2004 at $926.5 million. Additionally, it is now the island’s largest employer, with 4,213 jobs in 2005.

Historically important for employment and tax revenue, Bermuda’s tourism industry has been experiencing difficulties for many years, but shows a slight improvement in 2006. In 1996, Bermuda welcomed 571,700 visitors to the island. By 2004, that figure had dropped to 477,757 but increased to 516,846 in 2005. Occupancy rates for 2004 averaged 62.4%, and were higher in the smaller hotels than at larger properties. Visitors contributed an estimated $475 million to the economy in 1996, but that figure declined to $392.3 million in 2005. Visitor spending has increased in recent years to $392.3 million in 2005.

Bermuda has little in the way of exports or manufacturing; almost all manufactured goods and foodstuffs must be imported. The value of imports rose from $551 million in 1994 to $964 million in 2005. The U.S. is Bermuda’s primary trading partner, with $718 million in U.S. imports in 2005. The U.K., Canada, and the Caribbean countries (mainly the Netherlands Antilles) also are important trading partners. Exports from Bermuda, including imports into the small free port that are subsequently re-exported, decreased from $35 million in 1993 to $31 million in 2004.

Duty on imports is a major source of revenue for the Government of Bermuda. In 2004-05, the government obtained $196.9 million, or 26.7%, of its revenue base from imports. Heavy importation duties are reflected in retail prices. Even though import duties are high, wages have kept up for the most part with the cost of living, and poverty—by U.S. standards—appears to be practically nonexistent. Although Bermuda imposes no income, sales, or profit taxes, it does levy a real estate tax.

Bermuda is home to immigrants from other countries. According to the 2000 census, 79% of the population is Bermuda-born and 21% is foreign-born. U.K. immigrants comprise 28% of the immigrant population; U.S., 20% (although the U.S. Consulate estimates that the figure is closer to 40%); Canada, 15%; Caribbean, 12%; and Portugal/Azores, 10%. In February 1970, Bermuda converted from its former currency, the pound, to a decimal currency of dollars pegged to the U.S. dollar.

FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS

The United Kingdom is formally responsible for Bermuda’s foreign and defense policy. U.S. policy toward the U.K. is the basis of U.S.-Bermudian relations. In the early 20th century, as modern transportation and communication systems developed, Bermuda became a popular destination for wealthy U.S., British, and Canadian tourists. While the tariff enacted in 1930 by the U.S. against its trading partners ended Bermuda’s once-thriving agricultural export trade—primarily fresh vegetables to the U.S.—it helped spur the overseas territory to develop its tourist industry, which is second only to international business in terms of economic importance to the island.

During World War II, Bermuda became a significant U.S. military site because of its location in the Atlantic Ocean. In 1941, the U.S. signed a lend-lease agreement with the U.K. giving the British surplus U.S. Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8 square kilometers (2.25 sq. mi.) of land largely reclaimed from the sea. The U.S. Naval Air Station was on St. David’s Island, while the U.S. Naval Air Station Annex was at the western end of the island in the Great Sound.

Both bases were closed in September 1995 (as were British and Canadian bases), and the lands were formally returned to the Government of Bermuda in 2002.

The Government of Bermuda has begun to pursue some international initiatives independent of the U.K. in recent years. Bermuda signed a cultural memorandum of understanding with Cuba in 2003. The island also joined the Caribbean Community (CARICOM) as an associate member in 2003. The U.S. Coast Guard provided search and rescue assistance immediately following Hurricane Fabian in September 2003 but Bermuda declined subsequent offers of reconstruction assistance from the U.S. and U.K., preferring to accept assistance from its Caribbean neighbors.

An estimated 8,500 U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda, although no actual figures are available. Despite the trend of American businesses moving to Bermuda or other offshore jurisdictions to escape U.S. taxes, Bermuda maintains that the island is not a “tax haven” and that it taxes both local and foreign businesses equally.

While U.S. visitors to Bermuda are critical to the island’s tourism industry, the number of U.S. visitors to Bermuda is declining. In 2005 only 76% of air arrivals originated from the U.S. compared to 83.9% in 1990. The number of air and cruise passengers from the U.S. totaled 464,000 in 2000. That number fell to 434,239 American passengers in 2005. Another 2,060 Americans sailed to the island via private yacht in 2005.

In 2005, 74% of Bermuda’s imports came from the U.S. Areas of opportunity for U.S. investment are principally in the re-insurance and financial services industries, although the former U.S. base lands also may present long-term investment opportunities.

Principal U.S. Embassy Officials

HAMILTON (CG) Address: 16 Middle Road, Devonshire DV 03 Bermuda; Phone: 1-441-295-1342 x0; Fax: 1-441-296-9233; Workweek: 8:00 AM- 4:30 PM, M-F; Website: hamilton.usconsulate.gov.

Last Updated: 12/18/2006

TRAVEL

Consular Information Sheet : November 15, 2006

Country Description: Bermuda is a highly developed British overseas territory with a stable democracy and modern economy. Tourist facilities are widely available.

Entry/Exit Requirements: Important New Information: Effective January 23, 2007, all U.S. citizens traveling by air to and from the Caribbean, Bermuda, Panama, Mexico and Canada are required to have a valid passport to enter or re-enter the United States. As early as January 1, 2008, U.S. citizens traveling between the United States and the Caribbean, Bermuda, Panama, Mexico and Canada by land or sea (including ferries), may be required to present a valid U.S. passport or other documents as determined by the Department of Homeland Security. American citizens can visit travel.state.gov or call 1-877-4USA-PPT (1-877-487-2778) for information on applying for a passport.

For additional information on entry requirements, travelers may contact the British Consulate in New York, telephone (212) 745-0273/3206/0281, or the British consulate in Atlanta, Boston, Chicago, Dallas, Los Angeles, or San Francisco; Internet: http://www.britain-info.org or the Bermuda Department of Immigration; http://www.immigration.gov.bm.

Safety and Security: For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site at http://travel.state.gov/, where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Bermuda has a moderate but growing crime rate. Examples of common crimes include theft of unattended baggage and items from rental motorbikes, purse snatchings (often perpetrated against pedestrians by thieves riding motorbikes), muggings, and thefts from hotel rooms. Valuables left in hotel rooms (occupied and unoccupied) or left unattended in public areas are vulnerable to theft. The Consulate regularly receives reports of thefts of money, valuables, and passports and advises that travelers keep their hotel windows and doors locked at all times. Criminals often target transportation systems and popular tourist attractions.

Travelers should exercise caution when walking after dark or visiting out-of-the-way places on the island, as they can be vulnerable to theft and sexual assault, and because narrow and dark roadways can contribute to accidents. There have been incidents of sexual assault and acquaintance rape, and the use of “date rape” drugs such as Rohypnol has been reported in the media and confirmed by local authorities; one local advocacy group reports an increase in reporting the use of these drugs and accompanying sexual assaults. Travelers should also note an increase in gang presence in Bermuda and should take regular precautions to avoid confrontation. The back streets of Hamilton are often the setting for nighttime assaults, particularly after the bars close.

Information for Victims of Crime: The loss or theft abroad of a U.S. should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Good medical care is available, though extremely expensive. The hospital performs general surgery and has an intensive care unit. Serious or complex medical problems will likely require medical evacuation to the United States.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bermuda is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving in Bermuda is on the left side of the road and the roads are very narrow, often with no defined shoulder. The maximum speed limit in Hamilton is 25 kph (15 mph) and 35 kph (21 mph) on the rest of the island. Under Bermudian law, non-residents are not allowed to own, rent, or drive four-wheeled vehicles. Non-residents must rely on taxis, the excellent local bus system, or motor scooters. Traffic is moderate, but road accidents—particularly involving motorbikes—are common and often result in serious injuries or even death.

Rental motor scooters are readily available, and the required helmet is provided. However, visitors should carefully consider whether or not it is worth the risk to ride a scooter. Motor scooters provide the greatest road peril in Bermuda; local operators tend to abuse the speed limit more than other drivers, and they will often pass on the left or right with no warning. Those unfamiliar with driving on the left are likely to find the roundabouts and regulations for yielding at junctions confusing and dangerous. In addition, vehicles often stop on the side of the road, blocking one lane of traffic. Main roads, while generally in good condition, are extremely narrow and tend to be bordered by heavy vegetation or low stone walls. Travelers who rent scooters should be aware that scooter accidents involving visitors are relatively common, and they can sometimes be fatal or involve serious injuries.

Taxis are readily available. The local bus system, which is excellent and relatively inexpensive, services the length of the island and stops close to most beaches, hotels, the downtown shopping area, and other points of interest. In addition, water ferry service to a variety of stops around the island is available seven days a week, and is a very safe and enjoyable mode of transportation.

For specific information concerning Bermuda driver’s permits, vehicle inspection, road tax and mandatory insurance, please contact the Bermuda Department of Tourism offices at 310 Madison Avenue, Suite 201, New York, N.Y., telephone (212) 818-9800, or via the Internet at http://www.bermudatourism.com.

Special Circumstances: ATM machines are widely available in Bermuda. Local banks may not accept checks drawn on U.S. accounts, but some Front Street stores catering to the tourist trade will accept U.S. checks as payment. The local American Express office will cash U.S. checks up to $500.00 for a three-percent fee. Credit cards are widely accepted at all establishments.

U.S. citizens who are taking prescription medication must inform Bermuda customs officials at the point of entry. Medicines must be in labeled containers. Travelers should carry a copy of the written prescription and a letter from the physician or pharmacist confirming the reason the medicine is prescribed.

Bermuda customs authorities may enforce strict regulations concerning temporary importation into or export from Bermuda of items such as animals, arms, ammunition and explosives, building sand, crushed rock, gravel, peat and synthetic potting media, foodstuffs (animal origin), fumigating substances, gaming machines, historic articles (relating to Bermuda), lottery advertisements and material, motorcycles, motor vehicles, obscene publications, organ-otin anti-fouling paint, plants, plant material, fruits and vegetables (living or dead, including seeds), pesticides, prescription drugs, prohibited publications, seditious publications, soil, VHF radios, radar and citizens band (CB) radios. For additional information on temporary admission, export and customs regulations and tariffs, please contact Bermuda Customs at telephone 1-441-295-4816, or email [email protected], or visit the Bermuda Customs web site at http://www.customs.gov.bm.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Bermuda’s laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bermuda are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in Bermuda are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website, and to obtain updated information on travel and security within Bermuda. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Consulate General is located at Crown Hill, 16 Middle Road, Devonshire DV03, and telephone 1-441-295-1342. Office hours for American Citizens Services are 1:30-3:30 Monday-Wednesday and 8:30-10:30 on Thursdays, except Bermudian and U.S. holidays. American citizens in need of after-hours emergency assistance may call the duty officer at telephone 1-441-335-3828.

BERMUDA

Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Bermuda

PROFILE

Geography

Area: 58.8 sq. km. (22.7 sq. mi.).

Cities: (2000 census) Capital—Hamilton (pop. 3,461). Other city—St. George (pop. 3,306).

Terrain: Hilly islands.

Climate: Semi-tropical.

People

Nationality: Noun and adjective—Bermudian(s).

Population: (2004 est.) 64,935.

Annual growth rate: (2003 est.) 0.72%.

Ethnic groups: Black 55%, white 34%, mixed 7%, other and not stated 4%.

Religions: (2000) Anglican 23%, Roman Catholic 15%, African Methodist Episcopal 11%, 7th Day Adventist 7%, Methodist 4%, other 40% (none or not stated).

Language: English.

Education: Years compulsory—to age 16. Literacy survey results are anticipated in 2005.

Health: (2001 est.) Infant mortality rate—3.6 per thousand. Life expectancy—men 75.38 yrs., women 79.49 yrs.

Work force: (2002) Professional and technical—20%. Production, transport, and related—18%. Clerical—20%. Services—19%. Administrative and managerial—14%. Sales—7%. Agriculture and fishing—2%.

Government

Type: British Overseas Territory with significant autonomy.

Constitution: June 8, 1968; amended 1989 and 2003.

Branches: Executive—British monarch (head of state, represented by a governor). Legislative—Senate (upper house), House of Assembly (lower house). Judicial—Supreme Court.

Administrative subdivisions: Nine parishes.

Political parties: Progressive Labor Party (PLP), United Bermuda Party (UBP), National Liberal Party (NLP).

Suffrage: Universal at 18.

Economy

GDP: (nominal) Provisional estimates for 2002, $3.75 billion; 15.8% ($593.2 million) from international companies, 12.9% ($484 million) from real estate and rental, 12.6% ($470.8 million) from financial intermediation, 9.4% ($351.5 million) from wholesale, retail trade and repair services, 6.3% ($237.7 million) from the hotel and restaurant sector, 6.1% ($230.5 million) from construction, and 36.9% ($1.38 billion) from other sectors.

GDP growth rate: (2003) 2.5%. Per capita nominal GDP: (2002 prov.) $59,864.

Inflation rate: (May 2004) 3.4%.

Natural resource: Limestone, used primarily for building.

Agriculture: Products—semitropical produce, dairy products, flowers, honey.

Industry: Types—re/insurance finance, tourism, structural concrete products, paints, perfumes, furniture.

Trade: (2002 prov.) Exports (includes re-exports)—$57 million: semitropical produce, light manufactures. Imports—$746 million: food, clothing, household goods, chemicals, live animals, machinery, transport, and miscellaneous manufactures. Major suppliers—U.S. 76%, United Kingdom (U.K.) 5%, Canada 5%, Caribbean countries 3% (mostly oil from Netherlands Antilles), and other 11%.

HISTORICAL HIGHLIGHTS

Bermuda is an archipelago consisting of seven main islands and many smaller islands and islets lying about 1,050 kilometers (650 mi.) east of North Carolina. The main islands—with hilly terrain and subtropical climate—are clustered together, connected by bridges, and are considered to be a geographic unit, referred to as the Island of Bermuda.

Bermuda was discovered in 1503 by a Spanish explorer, Juan de Bermudez, who made no attempt to land because of the treacherous reef surrounding the uninhabited islands.

In 1609, a group of British colonists led by Sir George Somers was shipwrecked and stranded on the islands for 10 months. Their reports aroused great interest about the islands in England, and in 1612 King James extended the Charter of the Virginia Company to include them. Later that year, about 60 British colonists arrived and founded the town of St. George, the oldest continuously inhabited English-speaking settlement in the Western Hemisphere. When representative government was introduced to Bermuda in 1620, it became a self-governing colony.

Due to the islands' isolation, for many years Bermuda remained an outpost of 17th-century British civilization, with an economy based on the use of the islands' endemic cedar trees for shipbuilding and the salt trade. Hamilton, a centrally located port founded in 1790, became the seat of government in 1815.

Slaves from Africa were brought to Bermuda soon after the colony was established. The slave trade was outlawed in Bermuda in 1807, and all slaves were freed in 1834. Today, about 55% of Bermudians are of African descent.

The establishment of a formal constitution in 1968 bolstered internal self-government; debate about independence ensued, although a 1995 independence referendum was defeated. The current government re-opened the independence debate in 2004.

GOVERNMENT AND POLITICAL CONDITIONS

Bermuda is the oldest self-governing overseas territory in the British Commonwealth. Its 1968 constitution provides the island with formal responsibility for internal self-government, while the British Government retains responsibility for external affairs, defense, and security. The Bermudian Government is consulted on any international negotiations affecting the territory. Bermuda participates, through British delegations, in the UN and some of its specialized and related agencies.

Government Structure

Queen Elizabeth II is head of state and is represented in Bermuda by a governor, whom she appoints. Internally, Bermuda has a parliamentary system of government.

The premier is head of government and leader of the majority party in the House of Assembly. The cabinet is composed of ministers selected by the premier from among members of the House of Assembly and the Senate.

The 36-member House is elected from 36 electoral districts (one representative from each district) for a term not to exceed 5 years. The Senate, or reviewing house, serves concurrently with the House and has 11 members—five appointed by the governor in consultation with the premier, three by the opposition leader, and three at the governor's discretion.

The judiciary is composed of a chief justice and associate judges appointed by the governor. For administrative purposes, Bermuda is divided into nine parishes, with Hamilton and St. George considered autonomous corporations.

Political Conditions

Bermuda's first political party, the Progressive Labor Party (PLP), was formed in May 1963 with predominantly black adherents. In 1965, the two-party system was launched with the formation of the United Bermuda Party (UBP), which had the support of the majority of white voters and of some black voters. A third party, the Bermuda Democratic Party (BDP), was formed in the summer of 1967 with a splinter group from the PLP as a nucleus; it disbanded in 1970. It was later replaced by the National Liberal Party (NLP), which currently holds no parliamentary seats.

Bermuda's first election held on the basis of universal adult suffrage and equal voting took place on May 22, 1968; previously, the franchise had been limited to property owners. In the 1968 election, the UBP won 30 House of Assembly seats, while the PLP won 10 seats and the BDP lost the 3 seats it had previously held. The UBP continued to maintain control of the government, although by decreasing margins in the Assembly, until 1998 when the PLP won the general election for the first time.

Unsatisfied aspirations, particularly among young blacks, led to a brief civil disturbance in December 1977, following the execution of two men found guilty of the 1972-73 assassinations of Governor Sir Richard Sharples and four others. In the 1980s, the increasing prosperity of Bermudians, combined with limited land area, caused a housing shortage. Despite a general strike in 1981 and economic downturn in the early 1980s, Bermuda's social, political, and economic institutions remained stable.

Both political parties have discussed the possibility of complete independence. An independence referendum called by a sharply divided UBP in the summer of 1995 was resoundingly defeated and resulted in the resignation of the premier and UBP leader, Sir John Swan. Just over 58% of the electorate voted in the independence referendum, which had to be postponed one day due to disruptions caused by Hurricane Felix. Of those voting, over 73% voted against independence, while only 25% voted in favor. Vote results may have been distorted by the Progressive Labor Party (PLP) call to boycott the referendum.

Independence has been a plank in the platform of the PLP since the party's inception in 1963. In February 2004 Premier (and PLP party leader) Alex Scott announced his decision to commence an open and objective debate on the subject of independence from the U.K. Since that time, there has been only minimal discussion, with the focus more on the pros and cons of autonomy than on the mechanics of delivering independence. The international and local business communities appear to be taking a wait-and-see attitude.

Currently citizens of Britain's overseas territories, including Bermuda, are entitled to British citizenship. The British Overseas Territories Bill, passed in February 2002, provides automatic acquisition of British citizenship, including automatic transmission of citizenship to their children; the right of abode, including the right to live and work in the U.K. and the European Union (EU); the right not to exercise or to formally renounce British citizenship; and the right to use the fast track European Union/European Economic Area (EU/EEA) channel at the airport, free of U.K. immigration controls.

A March 2002 poll conducted by the Bermuda Sun, a local semiweekly newspaper, showed support for British citizenship. Of the 356 persons surveyed, 66.9% were interested in accepting British citizenship and only 18% said that they would refuse it. There are no conditions attached to the grant of British citizenship to the overseas territories, a fact of particular importance to Bermuda where the issue of independence lies dormant. A 1999 U.K. government White Paper states: "The new grant of British citizenship will not be a barrier, therefore, to those Overseas Territories choosing to become independent of Britain. Our Overseas Territories are British for as long as they wish to remain British. Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option."

Bermuda's most recent general election was held in July 2003, when the PLP was re-elected to its second term. Following the election, the more moderate Alex Scott replaced Jennifer Smith as premier and party leader in a leadership challenge.

Principal Government Officials

Last Updated: 1/30/04

Governor: Vereker , John, Sir
Premier: Scott , Alex
Dep. Premier: Brown , Ewart
Min. of Education: Lister , Terry
Min. of Environment: Butterfield , Neletha
Min. of Finance: Cox , Paula
Min. of Health & Family Services: Parris , Patrice
Min. of Housing, Works, & Engineering: Devent , Ashfield
Min. of Justice: Mussenden , Larry
Min. of Labor & Home Affairs: Norton , Randy
Min. of Legislative Affairs: Scott , Michael
Min. of Sports & Community Affairs: Bulter , Dale
Min. of Tourism, Telecommunications, and E-Commerce: Webb , Renee
Min. of Transport: Brown , Ewart
Min. of Works, Engineering, Parks, & Housing: Scott , Alex
Attorney General: Mussenden , Larry
Cabinet Sec.:
Chmn., Bermuda Monetary Authority:

Bermuda's interests in the U.S. are represented by the United Kingdom, whose embassy is at 3100 Massachusetts Avenue, NW, Washington, DC 20008; tel: 202-588-6500; fax: 202-588-7870.

The Bermudian Government's Department of Tourism has offices in New York, Atlanta, Boston and Toronto.

ECONOMY

Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island experienced a mild recession in 2001-02, paralleling the recession in the U.S. Bermuda enjoys one of the highest per capita incomes in the world. Its economy is based primarily upon international business and tourism. The Bermuda Monetary Authority (BMA) estimated that those two sectors represented 75% of the total balance of payments current account receipts of foreign exchange in the first three quarters of 2003. However, the role of international business in the economy is expanding, whereas that of tourism is contracting.

Bermuda is an offshore financial center with a robust financial regulatory system. The government cooperates with the United States and the international community to prevent money laundering and terrorist financing and continues to update its legislation and procedures in conformance with international standards. Bermuda first enacted specific money laundering legislation in 1997, passing the Proceeds of Crime Act (PCA) to apply money laundering controls to financial institutions such as banks, deposit companies, trust companies, and investment businesses, including broker-dealers and investment managers.

Insurance companies are covered to the extent that they are judged susceptible to the risk of money laundering abuse. Amendments in 2000, effective June 1, 2001, expanded the scope of the legislation to cover the proceeds of all indictable offenses, including tax evasion, corruption, fraud, counterfeiting, theft, and forgery.

In December 2002, Parliament passed the Bermuda Monetary Authority Amendment Act 2002, expanding the list of BMA objectives to include action to combat financial crime. It underpins the BMA's existing role in checking systems and controls in financial institutions and paves the way for the BMA to expand its role in administering UN sanctions and other measures on a delegated basis. In order to implement provisions of relevant UN Security Council antiterrorism resolutions, the act—among other provisions—prescribes the manner by which the finance minister may delegate to the BMA the power to block accounts.

Bermuda enacted the Investment Business Act (IBA) in 1998 to regulate the island's financial services industry. In response to international directives, the government passed the Investment Business Act 2003 to further refine its terms. The act creates a balance between government regulation on the one hand and the competitive needs of Bermuda's most important industry—international business—on the other hand. By updating its regulatory framework, Bermuda has enhanced its reputation globally as an international standard-bearer. In return, international businesses registered in Bermuda are recognized as having met or surpassed the most stringent international criteria.

Bermuda is currently considering additional legislation to further enhance its compliance with international financial standards. The Bermuda Monetary Authority Amendment (No. 3) Act 2004 will clarify the authority of the BMA to respond to requests from overseas regulators for information about clients. The Collective Investment Scheme Act will institute a formal licensing regime for investment schemes.

By the end of 2003, 13,509 international companies were registered in Bermuda, many U.S.-owned. They are an important source of foreign exchange for the island, and spent an estimated $1.05 billion in Bermuda in 2002. The growing importance of international business is reflected in its increased share of GDP, up from 12.6% in 1996 to 16% in 2002 (provisional).

Historically important for employment and tax revenue, Bermuda's tourism industry is continuing to experience difficulties, although both the government and private sectors are working to improve it. In 1996, Bermuda welcomed 571,700 visitors to the island. By 2003, that figure had dropped to 482,673. Occupancy rates for 2002 averaged 55.1%, and were higher in the smaller hotels than at larger properties.

Visitors contributed an estimated $475 million to the economy in 1996, but that figure declined to $342.5 million in 2003. Although per capita spending by air visitors rose to $333.5 million in 2001, the trend reversed in 2003, dropping to $291.8 million. Hurricane Fabian in September 2003 dealt another blow to the tourism industry.

Bermuda has little in the way of exports or manufacturing; almost all manufactured goods and foodstuffs must be imported. The value of imports rose from $551 million in 1994 to $746 million in 2002. The U.S. is Bermuda's primary trading partner, with $567.5 million in U.S. imports in 2002. The U.K., Canada, and the Caribbean countries (mainly the Netherlands Antilles) also are important trading partners. Exports from Bermuda, including imports into the small free port that are subsequently re-exported, increased from $35 million in 1993 to $57 million in 2002 (provisional).

Duty on imports is a major source of revenue for the Government of Bermuda. In 2003-04, the government obtained $187.1 million, or 27%, of its revenue base from imports. Heavy importation duties are reflected in retail prices. Even though import duties are high, wages have kept up for the most part with the cost of living, and poverty—by U.S. standards—appears to be practically nonexistent. Although Bermuda imposes no income, sales, or profit taxes, it does levy a real estate tax.

Bermuda is home to immigrants from other countries. According to the 2000 census, 79% of the population is Bermuda-born and 21% is foreign-born. U.K. immigrants comprise 28% of the immigrant population; U.S., 20% (although the U.S. Consulate estimates that the figure is closer to 40%); Canada, 15%; Caribbean, 12%; and Portugal/Azores, 10%. In February 1970, Bermuda converted from its former currency, the pound, to a decimal currency of dollars pegged to the U.S. dollar.

FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS

The United Kingdom is formally responsible for Bermuda's foreign and defense policy. U.S. policy toward the U.K. is the basis of U.S.-Bermudian relations. In the early 20th century, as modern transportation and communication systems developed, Bermuda became a popular destination for wealthy U.S., British, and Canadian tourists. While the tariff enacted in 1930 by the U.S. against its trading partners ended Bermuda's once-thriving agricultural export trade—primarily fresh vegetables to the U.S.—it helped spur the overseas territory to develop its tourist industry, which is second only to international business in terms of economic importance to the island.

During World War II, Bermuda became a significant U.S. military site because of its location in the Atlantic Ocean. In 1941, the U.S. signed a lend-lease agreement with the U.K. giving the British surplus U.S. Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8 square kilometers (2.25 sq. mi.) of land largely reclaimed from the sea. The U.S. Naval Air Station was on St. David's Island, while the U.S. Naval Air Station Annex was at the western end of the island in the Great Sound.

Both bases were closed in September 1995 (as were British and Canadian bases), and the lands were formally returned to the Government of Bermuda in 2002.

The Government of Bermuda has begun to pursue some international initiatives independent of the U.K. in recent years. Bermuda signed a cultural memorandum of understanding with Cuba in 2003. The island also joined the Caribbean Community (CARICOM) as an associate member in 2003. The U.S. Coast Guard provided search and rescue assistance immediately following Hurricane Fabian in September 2003 but Bermuda declined subsequent offers of reconstruction assistance from the U.S. and U.K., preferring to accept assistance from its Caribbean neighbors.

An estimated 7,500-8,000 U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda, although no actual figures are available. Despite the trend of American businesses moving to Bermuda or other offshore jurisdictions to escape U.S. taxes, Bermuda maintains that the island is not a "tax haven" and that it taxes both local and foreign businesses equally.

While U.S. visitors to Bermuda are critical to the island's tourism industry, the number of U.S. visitors to Bermuda is declining. Air arrivals from the U.S. declined by more than 30% between 1990 and 2000 and, in 2003, only 78% of air arrivals originated from the U.S. compared to 83.9% in 1990. The number of air and cruise passengers from the U.S. totaled 464,000 in 2000. That number fell to 409,293 American passengers in 2003. Another 2,300 Americans sailed to the island via private yacht in 2003.

In 2002, 76% of Bermuda's imports came from the U.S., up from 74% in 2000. Areas of opportunity for U.S. investment are principally in the reinsurance and financial services industries, although the former U.S. base lands also may present long-term investment opportunities.

Principal U.S. Embassy Officials

HAMILTON (CG) Address: 16 Middle Road, Devonshire DV 03 Bermuda; Phone: 1-441-295-1342 x0; Fax: 1-441-296-9233; Workweek: 8:00 AM-4:30 PM, M–F

TRAVEL

Consular Information Sheet

November 29, 2004

Country Description: Bermuda is a highly developed British overseas territory with a stable democracy and modern economy. Tourist facilities are widely available. Read the Department of State Background Notes on Bermuda for additional information.

Entry/Exit Requirements: U.S. citizens entering Bermuda must present a U.S. passport or a certified U.S. birth certificate, and photo identification. The Consulate strongly recommends that visitors travel with a valid passport at all times. A U.S. driver's license or a voter registration card is not sufficient for entry into Bermuda. For additional information on entry requirements, travelers may contact the British Consulate in New York, telephone (212) 745-0273/3206/0281, or the British consulate in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York or San Francisco; Internet: http://www.britain-info.org or the Bermuda Department of Immigration; http://www.immigration.gov.bm.

Safety and Security: For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found.

Up-to-date information of safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

The Department of State urges American citizens to take responsibility for their own personal security while traveling overseas. For general information about appropriate measures travelers can take to protect themselves in an overseas environment, see the Department of State's pamphlet A Safe Trip Abroad.

Crime: Bermuda has a moderate but growing crime rate. Examples of common crimes include theft of unattended baggage and items from rental motorbikes, purse snatchings (often perpetrated against pedestrians by thieves riding motorbikes), muggings, and thefts from hotel rooms. Valuables left in hotel rooms (occupied and unoccupied) or left unattended in public areas are vulnerable to theft. The Consulate regularly receives reports of thefts of money, valuables, and passports and advises that travelers keep their hotel windows and doors locked at all times. Criminals often target transportation systems and popular tourist attractions.

Travelers should exercise caution when walking after dark or visiting out-of-the-way places on the island, as they can be vulnerable to theft and sexual assault, and because narrow and dark roadways can contribute to accidents. Travelers should also note an increase in gang presence in Bermuda and should take regular precautions to avoid confrontation. The back streets of Hamilton are often the setting for nighttime assaults, particularly after the bars close.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred.

Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Posts in countries that have victims of crime assistance programs should include that information. See our information on Victims of Crime at http://travel.state.gov/travel/brochure_victim_assistance.html.

Medical Facilities and Health Information: Good medical care is available, though extremely expensive. The hospital performs general surgery and has intensive care units. Serious or complex medical problems will likely require medical evacuation to the United States.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel.

For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bermuda is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving in Bermuda is on the left side of the road and the roads are very narrow, often with no defined shoulder. The maximum speed limit in Hamilton is 25 kph (15 mph) and 35 kph (21 mph) on the rest of the island. Under Bermudian law, nonresidents are not allowed to own, rent, or drive four-wheeled vehicles. Non-residents must rely on taxis, the excellent local bus system, or motor scooters. Traffic is moderate, but road accidents—particularly involving motorbikes—are common and often result in serious injuries or even death.

Rental motor scooters are readily available, and the required helmet is provided. However, visitors should carefully consider whether or not it is worth the risk to ride a scooter. Motor scooters provide the greatest road peril in Bermuda; local operators tend to abuse the speed limit more than other drivers, and they will often pass on the left or right with no warning. Those unfamiliar with driving on the left are likely to find the roundabouts and regulations for yielding at junctions confusing and dangerous. In addition, vehicles often stop on the side of the road, blocking one lane of traffic. Main roads, while generally in good condition, are extremely narrow and tend to be bordered by heavy vegetation or low stone walls. Travelers who rent scooters should be aware that scooter accidents involving visitors are relatively common, and they can sometimes be fatal or involve serious injuries.

Taxis are readily available. The local bus system, which is excellent and relatively inexpensive, services the length of the island and stops close to most beaches, hotels, the downtown shopping area, and other points of interest. In addition, water ferry service to a variety of stops around the island is available seven days a week, and is a very safe and enjoyable mode of transportation.

For specific information concerning Bermuda driver's permits, vehicle inspection, road tax and mandatory insurance, please contact the Bermuda Department of Tourism offices at 310 Madison Avenue, Suite 201, New York, N.Y., telephone (212) 818-9800, or via the Internet at http://www.bermudatourism.com.

Special Circumstances: ATM machines are widely available in Bermuda. Local banks may not accept checks drawn on U.S. accounts, but some Front Street stores catering to the tourist trade will accept U.S. checks as payment. The local American Express office will cash U.S. checks up to $500.00 for a three-per-cent fee. Credit cards are widely accepted at all establishments.

U.S. citizens who are taking prescription medication must inform Bermuda customs officials at the point of entry. Medicines must be in labeled containers. Travelers should carry a copy of the written prescription and a letter from the physician or pharmacist confirming the reason the medicine is prescribed.

Bermuda customs authorities may enforce strict regulations concerning temporary importation into or export from Bermuda of items such as animals, arms, ammunition and explosives, building sand, crushed rock, gravel, peat and synthetic potting media, foodstuffs (animal origin), fumigating substances, gaming machines, historic articles (relating to Bermuda), lottery advertisements and material, motorcycles, motor vehicles, obscene publications, organ-otin anti-fouling paint, plants, plant material, fruits and vegetables (living or dead, including seeds), pesticides, prescription drugs, prohibited publications, seditious publications, soil, VHF radios, radar and citizens band (CB) radios. For additional information on temporary admission, export and customs regulations and tariffs, please contact Bermuda Customs at telephone 1-441-295-4816, or email [email protected], or visit the Bermuda Customs web site at http://www.customs.gov.bm.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offences. Persons violating Bermuda's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bermuda are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/index.html.

Registration/Embassy Location: Americans living or traveling in Bermuda are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Bermuda. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Consulate General is located at Crown Hill, 16 Middle Road, Devonshire DV03, telephone 1-441-295-1342. Office hours for American Citizens Services are 1:30-3:30 Monday-Wednesday and 8:30-10:30 on Thursdays, except Bermudian and U.S. holidays. American citizens in need of after-hours emergency assistance may call the duty officer at telephone 1-441-335-3828.

BERMUDA

Compiled from the November 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Bermuda

PROFILE

Geography

Area:

58.8 sq. km. (22.7 sq. mi.). Cities (2000 census): Capital—Hamilton (pop. 3,461). Other city—St. George (pop. 3,306).

Terrain:

Hilly islands.

Climate:

Semi-tropical.

People

Nationality:

Noun and adjective—Bermudian(s).

Population (2004 est.):

64,935.

Annual growth rate (2003 est.):

0.72%.

Ethnic groups:

Black 61%, white and other 39%.

Religions (2000):

Anglican 23%, Roman Catholic 15%, African Methodist Episcopal 11%, 7th Day Adventist 7%, Methodist 4%, other 40% (none or not stated).

Language:

English.

Education:

Years compulsory—to age 16. Literacy survey results are anticipated in 2006.

Health (2001 est.):

Infant mortality rate—3.6 per thousand. Life expectancy—men 75 yrs., women 80 yrs.

Work force (2002):

Professional and technical—20%. Production, transport, and related—19%. Clerical—19%. Services—19%. Administrative and managerial—14%. Sales—6%. Agriculture and fishing—3%.

Government

Type:

British Overseas Territory with significant autonomy.

Constitution:

June 8, 1968; amended 1989 and 2003.

Branches:

Executive—British monarch (head of state, represented by a governor). Legislative—Senate (upper house), House of Assembly (lower house). Judicial—Supreme Court.

Subdivisions:

Nine parishes.

Political parties:

Progressive Labor Party (PLP), United Bermuda Party (UBP), National Liberal Party (NLP).

Suffrage:

Universal at 18.

Economy

GDP (nominal):

Provisional estimates for 2003, $3.966 billion; 20.7% ($819.3 million) from international companies, 11.8% ($467.6 million) from real estate and rental, 12.1% ($478.9 million) from financial intermediation, 8.7% ($345.5 million) from wholesale, retail trade, and repair services, 5.9% ($232.1 million) from the hotel and restaurant sector, 5.4% ($213 million) from construction, and 35.9% ($1.4 billion) from other sectors.

GDP growth rate provisional (2003):

3.9%.

Per capita nominal GDP (2003 prov.):

$63,222.

Inflation rate:

Annual inflation rate for 2004 was 3.6%. The inflation rate for the month of September 2005 was 2.9%.

Natural resource:

Limestone, used primarily for building.

Agriculture:

Products—semitropical produce, dairy products, flowers, honey.

Industry:

Types—re/insurance finance, tourism, structural concrete products, paints, perfumes, furniture.

Trade (2003 prov.):

Exports (includes re-exports)—$52 million: semitropical produce, light manufactures. Imports—$833 million: food, clothing, household goods, chemicals, live animals, machinery, transport, and miscellaneous manufactures. Major suppliers—U.S. 79%, United Kingdom (U.K.) 2.6%, Canada 4%, Caribbean countries 5.4% (mostly oil from Netherlands Antilles), and other 9%.

HISTORICAL HIGHLIGHTS

Bermuda is an archipelago consisting of seven main islands and many smaller islands and islets lying about 1,050 kilometers (650 mi.) east of North Carolina. The main islands—with hilly terrain and subtropical climate—are clustered together, connected by bridges, and are considered to be a geographic unit, referred to as the Island of Bermuda.

Bermuda was discovered in 1503 by a Spanish explorer, Juan de Bermudez, who made no attempt to land because of the treacherous reef surrounding the uninhabited islands.

In 1609, a group of British colonists led by Sir George Somers was shipwrecked and stranded on the islands for 10 months. Their reports aroused great interest about the islands in England, and in 1612 King James extended the Charter of the Virginia Company to include them. Later that year, about 60 British colonists arrived and founded the town of St. George, the oldest continuously inhabited English-speaking settlement in the Western Hemisphere. When representative government was introduced to Bermuda in 1620, it became a self-governing colony.

Due to the islands' isolation, for many years Bermuda remained an outpost of 17th-century British civilization, with an economy based on the use of the islands' endemic cedar trees for shipbuilding and the salt trade. Hamilton, a centrally located port founded in 1790, became the seat of government in 1815.

Slaves from Africa were brought to Bermuda soon after the colony was established. The slave trade was outlawed in Bermuda in 1807, and all slaves were freed in 1834. Today, about 55% of Bermudians are of African descent.

The establishment of a formal constitution in 1968 bolstered internal self-government; debate about independence ensued, although a 1995 independence referendum was defeated. The current government re-opened the independence debate in 2004.

GOVERNMENT AND POLITICAL CONDITIONS

Bermuda is the oldest self-governing overseas territory in the British Commonwealth. Its 1968 constitution provides the island with formal responsibility for internal self-government, while the British Government retains responsibility for external affairs, defense, and security. The Bermudian Government is consulted on any international negotiations affecting the territory. Bermuda participates, through British delegations, in the UN and some of its specialized and related agencies.

Government Structure

Queen Elizabeth II is head of state and is represented in Bermuda by a governor, whom she appoints. Internally, Bermuda has a parliamentary system of government.

The premier is head of government and leader of the majority party in the House of Assembly. The cabinet is composed of ministers selected by the premier from among members of the House of Assembly and the Senate.

The 36-member House is elected from 36 electoral districts (one representative from each district) for a term not to exceed 5 years. The Senate, or reviewing house, serves concurrently with the House and has 11 members—five appointed by the governor in consultation with the premier, three by the opposition leader, and three at the governor's discretion.

The judiciary is composed of a chief justice and associate judges appointed by the governor. For administrative purposes, Bermuda is divided into nine parishes, with Hamilton and St. George considered autonomous corporations.

Political Conditions

Bermuda's first political party, the Progressive Labor Party (PLP), was formed in May 1963 with predominantly black adherents. In 1965, the two-party system was launched with the formation of the United Bermuda Party (UBP), which had the support of the majority of white voters and of some black voters. A third party, the Bermuda Democratic Party (BDP), was formed in the summer of 1967 with a splinter group from the PLP as a nucleus; it disbanded in 1970. It was later replaced by the National Liberal Party (NLP), which currently holds no parliamentary seats.

Bermuda's first election held on the basis of universal adult suffrage and equal voting took place on May 22, 1968; previously, the franchise had been limited to property owners. In the 1968 election, the UBP won 30 House of Assembly seats, while the PLP won 10 seats and the BDP lost the 3 seats it had previously held. The UBP continued to maintain control of the government, although by decreasing margins in the Assembly, until 1998 when the PLP won the general election for the first time.

Unsatisfied aspirations, particularly among young blacks, led to a brief civil disturbance in December 1977, following the execution of two men found guilty of the 1972-73 assassinations of Governor Sir Richard Sharples and four others. In the 1980s, the increasing prosperity of Bermudians, combined with limited land area, caused a housing shortage. Despite a general strike in 1981 and economic downturn in the early 1980s, Bermuda's social, political, and economic institutions remained stable.

Both political parties have discussed the possibility of complete independence. An independence referendum called by a sharply divided UBP in the summer of 1995 was resoundingly defeated and resulted in the resignation of the premier and UBP leader, Sir John Swan. Just over 58% of the electorate voted in the independence referendum, which had to be postponed one day due to disruptions caused by Hurricane Felix. Of those voting, over 73% voted against independence, while only 25% voted in favor. Vote results may have been distorted by the Progressive Labor Party (PLP) call to boycott the referendum.

Independence has been a plank in the platform of the PLP since the party's inception in 1963. In February 2004 Premier (and PLP party leader) Alex Scott announced his decision to commence an open and objective debate on the subject of independence from the U.K. Since that time, the government-appointed Bermuda

Independence Commission has held hearings and published its findings, the government is holding public meetings on the issue island-wide, and it will present green and then white papers detailing its policy proposals for independence. There is considerable focus in public forums on the mechanics of deciding independence, whether through an independence referendum, a general election, or some combination of the two. The international and local business communities appear to be taking a wait-and-see attitude.

Currently citizens of Britain's over-seas territories, including Bermuda, are entitled to British citizenship. The British Overseas Territories Bill, passed in February 2002, provides automatic acquisition of British citizenship, including automatic transmission of citizenship to their children; the right of abode, including the right to live and work in the U.K. and the European Union (EU); the right not to exercise or to formally renounce British citizenship; and the right to use the fast track European Union/European Economic Area (EU/EEA) channel at the airport, free of U.K. immigration controls. The U.K. Governor of Bermuda has said that citizens of an independent Bermuda would no longer be automatically entitled to British citizenship and the EU benefits that accrue to it.

There are no conditions attached to the grant of British citizenship to the overseas territories, a fact of particular importance to Bermuda where the issue of independence is being debated. A 1999 U.K. government White Paper states: "The new grant of British citizenship will not be a barrier, therefore, to those Overseas Territories choosing to become independent of Britain. Our Overseas Territories are British for as long as they wish to remain British. Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option."

Bermuda's most recent general election was held in July 2003, when the PLP was re-elected to its second term. Following the election, the more moderate Alex Scott replaced Jennifer Smith as premier and party leader in a leadership challenge.

Principal Government Officials

Last Updated: 3/2/2005

Governor: John VEREKER, Sir
Premier: Alex SCOTT
Dep. Premier: Ewart BROWN
Min. of Education: Terry LISTER
Min. of Environment: Neletha BUTTERFIELD
Min. of Finance: Paula COX
Min. of Health & Family Services: Patrice PARRIS
Min. of Housing, Works, & Engineering: Ashfield DEVENT
Min. of Justice: Larry MUSSENDEN
Min. of Labor & Home Affairs: Randy NORTON
Min. of Legislative Affairs: Michael SCOTT
Min. of Sports & Community Affairs: Dale BULTER
Min. of Tourism, Telecommunications, and E-Commerce: Renee WEBB
Min. of Transport: Ewart BROWN
Min. of Works, Engineering, Parks, & Housing: Alex SCOTT
Attorney General: Larry MUSSENDEN
Cabinet Sec.:
Chmn., Bermuda Monetary Authority:

Bermuda's interests in the U.S. are represented by the United Kingdom, whose embassy is at 3100 Massachusetts Avenue, NW, Washington, DC 20008; tel: 202-588-6500; fax: 202-588-7870.

The Bermudian Government's Department of Tourism has offices in New York and Toronto.

ECONOMY

Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island experienced a mild recession in 2001-02, paralleling the recession in the U.S. Bermuda enjoys one of the highest per capita incomes in the world. Its economy is based primarily upon international business and tourism. The Bermuda Monetary Authority (BMA) estimated that those two sectors represented 75% of the total balance of payments current account receipts of foreign exchange in the first three quarters of 2003. However, the role of international business in the economy is expanding, whereas that of tourism is contracting.

Bermuda is an offshore financial center with a robust financial regulatory system. The government cooperates with the United States and the international community to prevent money laundering and terrorist financing and continues to update its legislation and procedures in conformance with international standards. Bermuda first enacted specific money laundering legislation in 1997, passing the Proceeds of Crime Act (PCA) to apply money laundering controls to financial institutions such as banks, deposit companies, trust companies, and investment businesses, including broker-dealers and investment managers. Insurance companies are covered to the extent that they are judged susceptible to the risk of money laundering abuse. Amendments in 2000, effective June 1, 2001, expanded the scope of the legislation to cover the proceeds of all indictable offenses, including tax evasion, corruption, fraud, counterfeiting, theft, and forgery. The Bermuda Monetary Authority Amendment (No. 3) Act 2004 clarified the authority of the BMA to respond to requests from overseas regulators for information about clients.

In December 2002, Parliament passed the Bermuda Monetary Authority Amendment Act 2002, expanding the list of BMA objectives to include action to combat financial crime. It underpins the BMA's existing role in checking systems and controls in financial institutions and paves the way for the BMA to expand its role in administering UN sanctions and other measures on a delegated basis. In order to implement provisions of relevant UN Security Council antiterrorism resolutions, the act—among other provisions—prescribes the manner by which the finance minister may delegate to the BMA the power to block accounts.

Bermuda enacted the Investment Business Act (IBA) in 1998 to regulate the island's financial services industry. In response to international directives, the government passed the Investment Business Act 2003 to further refine its terms. The act creates a balance between government regulation on the one hand and the competitive needs of Bermuda's most important industry—international business—on the other hand. By updating its regulatory framework, Bermuda has enhanced its reputation globally as an international standard-bearer. In return, international businesses registered in Bermuda are recognized as having met or surpassed the most stringent international criteria.

Bermuda is currently considering additional legislation to further enhance its compliance with international financial standards. The Collective Investment Scheme Act will institute a formal licensing regime for investment schemes. It is expected to be debated in parliament in 2006.

In March 2005, 13,729 international companies were registered in Bermuda, many U.S.-owned. They are an important source of foreign exchange for the island, and spent an estimated $1.762 billion in Bermuda in 2004. The growing importance of international business is reflected in its increased share of GDP, up from 12.6% in 1996 to 20.7% in 2003 (provisional).

Historically important for employment and tax revenue, Bermuda's tourism industry is continuing to experience difficulties, although both the government and private sectors are working to improve it. In 1996, Bermuda welcomed 571,700 visitors to the island. By 2004, that figure had dropped to 477,757. Occupancy rates for 2003 averaged 54.5%, and were higher in the smaller hotels than at larger properties. Visitors contributed an estimated $475 million to the economy in 1996, but that figure declined to $353.7 million in 2004. Although spending by air visitors rose to $333.5 million in 2001, the trend reversed in 2004, dropping to $300.7 million. Hurricane Fabian in September 2003 dealt another blow to the tourism industry.

Bermuda has little in the way of exports or manufacturing; almost all manufactured goods and foodstuffs must be imported. The value of imports rose from $551 million in 1994 to $982 million in 2004. The U.S. is Bermuda's primary trading partner, with $775.8 million in U.S. imports in 2004. The U.K., Canada, and the Caribbean countries (mainly the Netherlands Antilles) also are important trading partners. Exports from Bermuda, including imports into the small free port that are subsequently re-exported, decreased from $35 million in 1993 to $31million in 2004 (provisional).

Duty on imports is a major source of revenue for the Government of Bermuda. In 2003-04, the government obtained $196.9 million, or 26.7%, of its revenue base from imports. Heavy importation duties are reflected in retail prices. Even though import duties are high, wages have kept up for the most part with the cost of living, and poverty—by U.S. standards—appears to be practically nonexistent. Although Bermuda imposes no income, sales, or profit taxes, it does levy a real estate tax.

Bermuda is home to immigrants from other countries. According to the 2000 census, 79% of the population is Bermuda-born and 21% is foreign-born. U.K. immigrants comprise 28% of the immigrant population; U.S., 20% (although the U.S. Consulate estimates that the figure is closer to 40%); Canada, 15%; Caribbean, 12%; and Portugal/Azores, 10%. In February 1970, Bermuda converted from its former currency, the pound, to a decimal currency of dollars pegged to the U.S. dollar.

FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS

The United Kingdom is formally responsible for Bermuda's foreign and defense policy. U.S. policy toward the U.K. is the basis of U.S.-Bermudian relations. In the early 20th century, as modern transportation and communication systems developed, Bermuda became a popular destination for wealthy U.S., British, and Canadian tourists. While the tariff enacted in 1930 by the U.S. against its trading partners ended Bermuda's once-thriving agricultural export trade—primarily fresh vegetables to the U.S.—it helped spur the overseas territory to develop its tourist industry, which is second only to international business in terms of economic importance to the island.

During World War II, Bermuda became a significant U.S. military site because of its location in the Atlantic Ocean. In 1941, the U.S. signed a lend-lease agreement with the U.K. giving the British surplus U.S. Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8 square kilometers (2.25 sq. mi.) of land largely reclaimed from the sea. The U.S. Naval Air Station was on St. David's Island, while the U.S. Naval Air Station Annex was at the western end of the island in the Great Sound.

Both bases were closed in September 1995 (as were British and Canadian bases), and the lands were formally returned to the Government of Bermuda in 2002.

The Government of Bermuda has begun to pursue some international initiatives independent of the U.K. in recent years. Bermuda signed a cultural memorandum of understanding with Cuba in 2003. The island also joined the Caribbean Community (CARICOM) as an associate member in 2003. The U.S. Coast Guard provided search and rescue assistance immediately following Hurricane Fabian in September 2003 but Bermuda declined subsequent offers of reconstruction assistance from the U.S. and U.K., preferring to accept assistance from its Caribbean neighbors.

An estimated 8,500 U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda, although no actual figures are available. Despite the trend of American businesses moving to Bermuda or other offshore jurisdictions to escape U.S. taxes, Bermuda maintains that the island is not a "tax haven" and that it taxes both local and foreign businesses equally.

While U.S. visitors to Bermuda are critical to the island's tourism industry, the number of U.S. visitors to Bermuda is declining. Air arrivals from the U.S. declined by more than 30% between 1990 and 2000 and, in 2004, only 77% of air arrivals originated from the U.S. compared to 83.9% in 1990. The number of air and cruise passengers from the U.S. totaled 464,000 in 2000. That number fell to 409,293 American passengers in 2003. Another 2,300 Americans sailed to the island via private yacht in 2003.

In 2004, 79% of Bermuda's imports came from the U.S., up from 74% in 2000. Areas of opportunity for U.S. investment are principally in the re-insurance and financial services industries, although the former U.S. base lands also may present long-term investment opportunities.

Principal U.S. Consulate Officials

HAMILTON (CG) Address: 16 Middle Road, Devonshire DV 03 Bermuda; Phone: 1-441-295-1342 x0; Fax: 1-441-296-9233; Workweek: 8:00 AM-4:30 PM, M-F

TRAVEL

Consular Information Sheet

November 29, 2004

Country Description:

Bermuda is a highly developed British overseas territory with a stable democracy and modern economy. Tourist facilities are widely available.

Entry/Exit Requirements:

U.S. citizens entering Bermuda must present a U.S. passport or a certified U.S. birth certificate, and photo identification. The Consulate strongly recommends that visitors travel with a valid passport at all times. A U.S. driver's license or a voter registration card is not sufficient for entry into Bermuda. For additional information on entry requirements, travelers may contact the British Consulate in New York, telephone (212) 745-0273/3206/0281, or the British consulate in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York or San Francisco; Internet: http://www.britain-info.org or the Bermuda Department of Immigration; www.immigration.gov.bm. Visit the Embassy of Bermuda's web site for the most current visa information.

Safety and Security:

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up-to-date information of safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers out-side the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime:

Bermuda has a moderate but growing crime rate. Examples of common crimes include theft of unattended baggage and items from rental motorbikes, purse snatchings (often perpetrated against pedestrians by thieves riding motorbikes), muggings, and thefts from hotel rooms. Valuables left in hotel rooms (occupied and unoccupied) or left unattended in public areas are vulnerable to theft. The Consulate regularly receives reports of thefts of money, valuables, and passports and advises that travelers keep their hotel windows and doors locked at all times. Criminals often target transportation systems and popular tourist attractions.

Travelers should exercise caution when walking after dark or visiting out-of-the-way places on the island, as they can be vulnerable to theft and sexual assault, and because narrow and dark roadways can contribute to accidents. Travelers should also note an increase in gang presence in Bermuda and should take regular precautions to avoid confrontation. The back streets of Hamilton are often the setting for nighttime assaults, particularly after the bars close.

Information for Victims of Crime:

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Posts in countries that have victims of crime assistance programs should include that information.

Medical Facilities and Health Information:

Good medical care is available, though extremely expensive. The hospital performs general surgery and has intensive care units. Serious or complex medical problems will likely require medical evacuation to the United States.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions:

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bermuda is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving in Bermuda is on the left side of the road and the roads are very narrow, often with no defined shoulder. The maximum speed limit in Hamilton is 25 kph (15 mph) and 35 kph (21 mph) on the rest of the island. Under Bermudian law, nonresidents are not allowed to own, rent, or drive four-wheeled vehicles. Non-residents must rely on taxis, the excellent local bus system, or motor scooters. Traffic is moderate, but road accidents - particularly involving motorbikes - are common and often result in serious injuries or even death.

Rental motor scooters are readily available, and the required helmet is provided. However, visitors should carefully consider whether or not it is worth the risk to ride a scooter. Motor scooters provide the greatest road peril in Bermuda; local operators tend to abuse the speed limit more than other drivers, and they will often pass on the left or right with no warning. Those unfamiliar with driving on the left are likely to find the roundabouts and regulations for yielding at junctions confusing and dangerous. In addition, vehicles often stop on the side of the road, blocking one lane of traffic. Main roads, while generally in good condition, are extremely narrow and tend to be bordered by heavy vegetation or low stone walls. Travelers who rent scooters should be aware that scooter accidents involving visitors are relatively common, and they can sometimes be fatal or involve serious injuries.

Taxis are readily available. The local bus system, which is excellent and relatively inexpensive, services the length of the island and stops close to most beaches, hotels, the downtown shopping area, and other points of interest. In addition, water ferry service to a variety of stops around the island is available seven days a week, and is a very safe and enjoyable mode of transportation.

For specific information concerning Bermuda driver's permits, vehicle inspection, road tax and mandatory insurance, please contact the Bermuda Department of Tourism offices at 310 Madison Avenue, Suite 201, New York, N.Y., telephone (212) 818-9800, or via the Internet at http://www.bermudatourism.com.

Special Circumstances:

ATM machines are widely available in Bermuda. Local banks may not accept checks drawn on U.S. accounts, but some Front Street stores catering to the tourist trade will accept U.S. checks as payment. The local American Express office will cash U.S. checks up to $500.00 for a three-percent fee. Credit cards are widely accepted at all establishments.

U.S. citizens who are taking prescription medication must inform Bermuda customs officials at the point of entry. Medicines must be in labeled containers. Travelers should carry a copy of the written prescription and a letter from the physician or pharmacist confirming the reason the medicine is prescribed.

Bermuda customs authorities may enforce strict regulations concerning temporary importation into or export from Bermuda of items such as animals, arms, ammunition and explosives, building sand, crushed rock, gravel, peat and synthetic potting media, foodstuffs (animal origin), fumigating substances, gaming machines, historic articles (relating to Bermuda), lottery advertisements and material, motorcycles, motor vehicles, obscene publications, organ-otin anti-fouling paint, plants, plant material, fruits and vegetables (living or dead, including seeds), pesticides, prescription drugs, prohibited publications, seditious publications, soil, VHF radios, radar and citizens band (CB) radios. For additional information on temporary admission, export and customs regulations and tariffs, please contact Bermuda Customs at telephone 1-441-295-4816, or email [email protected], or visit the Bermuda Customs web site at http://www.customs.gov.bm.

Criminal Penalties:

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offences. Persons violating Bermuda's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bermuda are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues:

For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/index.html.

Registration/Embassy Location:

Americans living or traveling in Bermuda are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Bermuda. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Consulate General is located at Crown Hill, 16 Middle Road, Devonshire DV03, telephone 1-441-295-1342. Office hours for American Citizens Services are 1:30-3:30 Monday-Wednesday and 8:30-10:30 on Thursdays, except Bermudian and U.S. holidays. American citizens in need of after-hours emergency assistance may call the duty officer at telephone 1-441-335-3828.