Bermuda economy is based mainly on tourism and international business. Approximately 85% of visitor arrivals into Bermuda come from the United States. Tourism plays an important role in the Bermuda economy through job creation .Auxiliary sectors such as accommodation, travel and services help increase the benefits gained in Bermuda economically.Over the years, Bermuda economy has catered mostly for high-end tourist visits.In 2010, licensed properties totaled 57 while rooms totaled 3,000.
International business services in Bermuda have been a major income earner for Bermuda economy. Offshore insurance and reinsurance along with offshore companies are two main areas in the Bermudan economy. offshore company formation as well as director, secretarial and management services are auxiliary sectors which have helped Bermuda economy to expand as well.
Bermuda economy has thus grown to be largely reliant on a successful international business sector. Highly specialized services in mutual funds, investment holding, commercial trading, insurance brokerage and consultancies also attract lots of investors to the economy of Bermuda.
As a territory of the British, Bermuda economic policies have had to comply with certain decisions taken at the EU level, of which the UK forms part. or example, Bermuda signed numerous tax information exchange treaties (TIEA’s), which to a large extent would have directly impacted the offshore sector of Bermuda economy.Offshore services largely based on secrecy, and with new laws and treaties established for information sharing on tax and other income, Bermuda economy has had to adjust to the possible effects.Bermuda has however been listed on the ‘white list’ consisting of compliant and transparent international business centers.
Other sectors that help make Bermuda economically prosperous as it is, include the aircraft registration, which account for approximately 490 aircraft registered in Bermuda.The aircraft program in Bermuda economy has been in operation for more than 15 years. Ship registration is another successful aspect within the international financial services that Bermuda economy offers.