Wednesday, January 15, 2014 - Mr. Chairman, Businessmen and women, Ladies and Gentlemen -- Good Morning! Mr. Chairman I am glad, pleased and proud to be here.
I am glad that, before I spend the next 12 hours or so in the Standing Finance meetings today, I had the opportunity to be reminded of what a beautiful country we live and why it is important that my colleagues and I must be diligent in our current budgetary appropriations.
I am pleased once again to be addressing such a large audience in what has become the crème of seminars and conferences in the BVI.
I am always proud to speak at this conference. But I am especially proud on this, the 4th occasion of this annual conference.
I am not only proud because my friends and colleagues, Russell and Portia and their Oyster Team have once again put together such a prestigious conference with a dynamic speaker line-up and Agenda. But I am also extremely proud that they have been very successful in epitomising their own theme for this year’s conference.
They have indeed taken it to the next level!
I want to welcome each and every one of you to what I know from experience will be a very engaging, thought provoking and honest discussion on several topical areas which are germane to our very existence.
I also extend a Virgin Islands welcome to all our visitors and speakers from overseas.
But I want to extend a very special welcome to two very special visitors from overseas --- My colleagues, visiting Heads of Government, Premier of Bermuda – Hon. Craig Cannonier and Chief Minister of Gibraltar Hon. Fabian Picardo.
It is telling that in some ways I am playing host to these two esteemed gentlemen under a theme of “taking our game to the next level”. This is because late last year Fabian played hosted to Craig and I and several others in Gibraltar; where a similar conclusion was drawn. That is, that as Overseas Territories (OTs) we must take our game to the next level.
Frankly, it seems that throughout the course of the latter part of 2014, all of us OT leaders were forerunning on a number of issues similar to these that will be discussed today. It not only signaled that “we must take our Game to the next level”, but we realized the wisdom to do so collectively.
Over the next few minutes I thought that I would speak to you about a key strategy that my Government and I have adopted to take the 'BVI’s Game to the Next Level' by opening the BVI to new markets.
The BVI has long been an important player in global market places. In some industries the BVI is not only an important player but also a significant player. For example, BVI’s pre-eminence globally for financial services business and company formation in particular; is undisputed.
Equally, BVI’s pre-eminence as a high end Tourism destination is hardly matched by many others. Our standing in the Tourism industry is a result of our unparalleled natural beauty and pristine sailing waters and environment; as well as our signature high end properties that are charmingly Caribbean.
But increasingly, the world is becoming more and more competitive, and perhaps this is no more evident than within those two twin pillar industries. The competitiveness is not only regional, but also global.
We are a little nation among giants, operating in places that are common for these giants and foreign to us; and as such we have to position ourselves to maintain a competitive advantage in the spaces in which we currently operate.
More importantly, we need to open ourselves to new markets and new industries in order to improve upon who we are and what we offer as country.
So how are we opening the BVI to New Markets?
Primarily, we are strategically positioning ourselves to become more of a global brand. And we are doing this across different geographic regions.
It is no secret that traditionally our biggest and most important market in the financial services industry is China. More generally, the Asia/Pacific region accounts for more than 40 percent of our Financial Services Business.
Over the past several years there has been phenomenal growth in the China and in some of the other Asia/Pacific countries. We have witnessed our competitors beating a path to the ancient land now revered as central to a new world economic order.
It is therefore critical that we solidify and re-position ourselves within the Asia Pacific region. To this end, my Government during the middle of last year set up, BVI House Asia, strategically located in the Hong Kong, the epicenter of business and commerce in Asia.
BVI House Asia is a major component of the territory’s strategy to expand and deepen the commercial footprint of our financial services sector in this important market.
However, the office will also serve effectively as our quasi diplomatic representation in the Asia/Pacific Region, improving the territory’s voice with government authorities in Asia and promoting BVI business. The office will also improve ties with Asia in tourism and other industries. All of these are important in for our economic development and diversification
Already with the visit to the BVI by the Shenzen delegation last week, we have begun to see the strategy of deepening our footprint in China being crystallised.
You may have learnt that last week the BVI signed two MoU's with the Shenzen region where we agreed to co-operate in a number of areas including on economic matters, tourism, yachting, culture, sports and financial services.
Shenzen is one of the faster growing and richest cities in China and as such presents significant opportunities for BVI. For example, much of the modern city of Shenzen was built using BVI companies to facilitate investments and other financial deals. Therefore, from a financial services perspective BVI is widely known and integrated into Shenzen though financial structuring, joint ventures and development finance.
In an ever increasing competitive financial services market this is great for the BVI, because as Shenzen grows, so too will the BVI, given its foothold in Shenzen in financial services.
Moreover, Shenzen as a great emerging city in China with strong shipping, financials, logistics, and Information and communications technology (ICT) industries is poised to rival traditional Chinese super cities such as Hong Kong, Beijing and Shanghai. This creates further opportunities for learning and partnering which could only foster greater industry and economic growth and diversification for BVI.
Secondly, BVI is also strategically positioning itself in Latin America.
Although growth in Latin America has cooled, it remains a vast untapped emerging market that presents opportunities. The BVI primary focus into Latin America too currently is in the Tourism and Financial Services.
I personally have led a delegation to promote BVI in the Brazilian market and have learnt that there is great interest in BVI as a tourism destination for Brazilians. Brazil is minting millionaires by the dozens annually and has a very fast growing middle class. That demographic is consistent with the profile of BVI visitors.
Brazil's attributes of economic stability and growing wealth lends itself as a natural target market for BVI Tourism. Equally, those same economic attributes demands a range of financial services products and structures to facilitate wealth planning, commercial structuring and investments.
Early last year we started to solidify our presence in Latin America through engaging a global PR firm to represent our interests in the region and we expect to use Brazil as a spring board into the rest of Latin America.
Thirdly, BVI is solidifying it’s presence in London and Europe.
Several years ago, the BVI had a great vision to establish a representative office in London. My Government has continued to build on that vision with a view to solidifying our presence in London and Europe and it has paid tremendous dividends.
Our London Office is our reach into London and wider Europe and is critical to nurturing old relationships and fostering new ones. It facilitates diplomatic and political representations and interactions with the United Kingdom (UK) parliamentarians. It also facilitates interactions with our financial services and tourism industry experts and market participants.
London Office was also key in fostering the twinning relationship with the county of Hertfordshire UK. From that relationship we are able to benefit in areas such as culture, sports, education, and business. We hope to develop a number of other similar relationships with other UK counties and European cities which will create business, educational cultural and social opportunities.
There is no singular focus to opening ourselves to new markets and this certainly rings through in our recent endeavours with London. Indeed, to be singularly focused, for example, on financial services or tourism would be limiting and inconsistent with a macro objective to have a more diversified economy.
To this end, I was pleased to lead a delegation to participate in a London Business event designed to put UK Overseas Territories together with over 125 UK businesses. This was done to explore opportunities for partnership and investment between the UK private sector and the territories.
In addition, given BVI's constitutional link to UK and by extension the European Union (EU), we have been working to ensure that links remains strong and beneficial to BVI. The principle benefit that we are anticipating is access to the European market.
Already, new opportunities for trade in goods and services are available to Overseas Territories under the EU Overseas Association Directive and we expect to explore them to the benefit of the BVI.
Opportunities for BVI in Europe are also being explored under my chairmanship of the Overseas Countries and Territories (OCTs) Association, where I will represent 26 different Overseas Countries and Territories. Building and maintaining EU relationships and tapping additional sources of funding and expertise which are available through the EU will be important for the development of BVI and the other OTs.
My chairmanship avails BVI a platform to take leadership on an international level in spaces such as financial services and the environment which must then be leveraged to grow 'Brand BVI'.
Turning to a more domestic strategy which is both central to raising our game and opening ourselves to new markets - - the necessity of infrastructure development.
Last year, part of my message focused on this very subject. One year on we have made strides in some areas, but we have also only made bay steps in others. But one year on, I am of even greater conviction that BVI cannot open itself, nor will it be successful in, opening to new markets without better and greater infrastructure.
This means that we have to have an airport that is sufficiently large, modern and efficient enough to directly land residents and visitors into the BVI from major cities nearby. We need to have reliable, cost efficient and timely access into our country as it is unequivocally necessary for BVIs economic growth, especially in the Tourism and financial services sectors.
We also must have port facilities, both cruise and ferry sufficient large, modern and efficient to properly facilitate the vessels and our passengers. My Government wants to ensure that BVI Cruise infrastructure and port facilities along with our other special attributes makes us a preeminent port of call, thereby creating positive growth and impact in our tourism economy. This why we will shortly be signing an agreement which will see guaranteed visitors to the BVI and ultimately facilitate the commencement of work on a new mega-million dollar Cruise Pier and Landside development.
Equally, we need improvement in other key infrastructure such as roads, water and sewerage, hotels.
And there is no dancing around round the fact that if we don’t have the infrastructure there are no key industries and consequently no economy.
In the past year we have been working on other fronts to take our game to the next level. I am pleased that though small in populace, we are big on ideas.
And as such we continue to put roll out initiatives such as becoming a 'world class' arbitration center. After all, if the world is using our companies, why can’t we help them arbitrate disputes when they arise. Already we have had similar success with our commercial court, which in itself has spawned significant growth in the legal industry. My hope and expectation is much of the same with Arbitration.
Ladies and gentlemen, you are all fully aware of the challenges we have faced in financial services over the past year. During that time, one of my advisers constantly reminded of the popular saying, “never let a good crisis go to waste.” Indeed as leader of this country, those words caused me to examine these challenges, and mandate that we set ourselves on path of determining how best to protect and redefine our industry.
That has lead me, my team, and some of you from brainstorming sessions in my office, to consultations with the industry, to select deliberations right here in this room, to political and strategic representation at No. 10. We haven’t found all the answers, but we have found some.
But because I believe as on author once wrote that “Our most significant opportunities will be found in times of greatest difficulty” --- I am optimistic that we will find others.
So today, as you set about to reflect and engage in your various discussions I want to leave each of you with a challenge. I want each of you to embrace the fact that the BVI that we use to know has fundamentally changed. But more importantly that there are opportunities in these changes.
You only need to consider how you will help in taking our game to the next level!
Thank you for listening and have a productive conference.
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