GEOGRAPHY

     Anguilla is a British dependent territory and is the most northerly of the Leeward Islands in the Eastern Caribbean [see map 1]. The territory of Anguilla has several islets and cays, including Scrub Island to the east, Dog Island, Prickly Pear Cays, Seal Island, and Sandy Island to the west, and Sombrero Island, which has an important lighthouse 38 miles to the northwest.
      Anguilla is a flat corralline island with the highest elevation being at Crocus Hill at 213 feet above sea level. The island, which is largely rocky and covered with low sparse shrub oak and a few trees, is 35 square miles in area, being about 16 miles long and 3 miles at widest point. There are no rivers, but there are some salt ponds. There are 30 coral sand beaches, clear seas and rich marine life especially fish and lobster.
      The climate is tropical but moderated by northeast trade winds. The hottest months are July to October with the coolest being December to February. Rainfall is erratic, raging from 22 to 50 inches a year, with an average year yielding 35 inches. Hurricanes can occur between July and October.
      The population is approximately 7,200 with a population growth rate of 0.64%. Several thousand Anguillans live on adjacent Caribbean islands including over 4,000 on the United States Virgin Islands. The birth rate and death rates were 24.25 per 1,000 and 8.08 per 1,000 [1994]. The infant mortality rate was 17.5 deaths per 1,000 while life expectancy at birth was 73.99 years. Fertility rate for women was 3.07 children born.
      The language spoken is English. The Capital of Anguilla is The Valley. Christianity is the principal religion, the main denominations being Anglican [40%] and Methodist [33%]. Seventh-day Adventist at 7%, Baptist at 5%, and Roman Catholic at 3% make up the rest.

HISTORY

     The first inhabitants of Anguilla were the Arawaks and Caribs. They were not indigenous to the West Indies but were part of a migration from central east Asia which had begun perhaps 35,000 years ago. The Arawaks and the Caribs were part of a large family of people, known as Amerindians, who inhabited both North and South America. The Arawaks came to Anguilla before the Caribs. The Arawaks were primitive people in that they could not read and write although there are petroglyphs left in the caves in Anguilla. The Arawaks did not know how to use metal or the wheel and knew nothing of the domestication of animals. The Caribs came later and as they moved up through the islands they pushed out the more peaceful Arawaks. The Caribs were cannibals not from necessity, but from choice and ate those they killed in fighting and those they kept as prisoners.
     Although Columbus never set foot in Anguilla, he probably did pass the island on his second voyage in 1493. Columbus regarded the Caribs differently to the Arawaks and suggested their enslavement to Queen Isabella in 1494. Isabella would not agree and reaffirmed that the Caribs were free people and should be converted to Christianity. The Arawaks and Caribs were eventually killed by the Spanish.
     The first British settlers arrived on Anguilla in 1650 from Saint Kitts, where they had established a colony in 1623. In 1688 the island was attacked by a group of Irishmen, some of whom settled there, leaving descendants with Irish names that have continued to the present day. During the wars with Britain in the 18th century the French attacked the island twice, in 1745 and 1796, but were repelled.
     Between 1671 and 1967 the British colonies in the Leeward Islands, including Anguilla, St. Kitts and Nevis, were grouped as separate units under a single Governor for administrative purposes.
     The island legislatures, elected on a limited property franchise, were replaced in 1866 by a single chamber government with a majority of nominated members. In 1871 Anguilla with St. Kitts and Nevis joined the Leeward Island group of six presidencies. Later, in 1882, the island joined with St. Kitts and Nevis to form a single presidency. Elections based on a limited property franchise were reintroduced in the legislature in 1936, but in 1952 universal adult suffrage became law. In 1956 Anguilla, St. Kitts and Nevis became a separate territory known as St. Kitts-Nevis-Anguilla under the Governor of the Leeward Islands. The dependency was a member of the short-lived Federation of the West Indies between 1958 and 1962.
     After a constitutional conference in London, St. Kitts-Nevis-Anguilla became in 1967 a self-governing state in all internal matters; defense and external affairs continued to be Britain's responsibility. The constitutional arrangement was known as "associated" statehood.
     Later in the same year, however, dissatisfaction in Anguilla with rule from St. Kitts led to the eviction of the St. Kitts police detachment and to the holding of an unofficial referendum which voted in favor of separation from St. Kitts and Nevis. At the end of 1967 a temporary settlement was reached, under which a British senior civil servant was brought in to help administer Anguilla. However, in 1969 he too was forced to withdraw from the island, and British security forces occupied the territory. Later a commissioner was installed under temporary provisions to administer the island.
     After further negotiations under the commissioner's guidance, it was agreed in 1971 that, under the Anguilla Act 1971, the commissioner would carry on the direct administration of the island, working in close consultation and co-operation with an elected council. The Act also stated that when legislation was introduced into the St. Kitts-Nevis-Anguilla legislature for the termination of its association with Britain, Anguilla could be formerly separated from St. Kitts-Nevis. In December 1980 under the Anguilla Act 1980, Anguilla was separated from the state of St. Kitts-Nevis-Anguilla and in 1983 St. Kitts and Nevis became an independent territory. A new constitution for Anguilla came into effect in April 1982.

GOVERNMENT

     The 1982 Constitution provides for a House of Assembly consisting of a Speaker, seven members elected from a single-member constituencies, two official members those being the Attorney General and the Permanent Secretary of Finance, and two members nominated by the Governor after consultation with the Chief Minister. Executive power is vested in the Governor who is appointed by the Queen, acting on the advice of an Executive Council comprising the Chief Minister, three other ministers and the two official members. The Governor also has special responsibilities for eternal affairs, defense, internal security including the police and the public service. He holds reserve legislative powers under the authority of the Foreign and Commonwealth Secretary in London.
     In 1988 a report by the Constitution Review Committee, appointed by the Governor in 1985, was published. It recommended changes to the current constitution - such as an increase in the number of elected House of Assembly members, the creation of the post of an official Opposition leader, and a delegation to ministers of some of the Governor's special powers - which would allow more autonomy for Anguilla and further democratization of government. The report was discussed with the British Government; in March 1990 the Anguillan Constitution (Amendment) Order implementing these changes was made, and came into effect on May 30, 1990. On the question of independence for Anguilla and other British Caribbean territories, British policy is not to seek in any way to influence opinion in the territories, nor to urge them to move to independence, but to respond positively in cases where independence is the clearly and constitutionally expressed wish of the people.
     Elections to the House of Assembly by universal adult suffrage take place every five years. At the February 1989 election, the Anguillan National Alliance party, led by Mr. Emile Gumbs, won three seats, the Anguillan United Party two seats, and the Anguillan Democratic Party and independent member one seat each. With the support of the independent member, Mr. Gumbs formed the new administration.
     Justice is based on English common law, together with all legislation inherited from the associated state up to 1971 and locally enacted legislation since then. It is administered by the Eastern Caribbean Supreme Court, which comprises a Court of Appeal, the High Court which normally sits twice a year, and the Magistrates' Court, which sits weekly.

THE ECONOMY

     Because Anguilla has few natural resources, the main areas of the economy are tourism, lobster fishing, property development, international business, especially banking and finance and telecommunications. A policy of some economic diversification is also being carried out.
     Tourism is the primary economic activity. There were nearly 68,500 visitors in 1988. Hotels with the larger ones being foreign own have over 720 rooms. Together with guest houses and apartments, they provided facilities for tourists attracted by the white sanding beaches and numerous marine activities. Efforts are being made to develop locally own tourist facilities, with the aid of a loan agreement with the European Investment Bank.
     The unit of currency is the Eastern Caribbean dollar, fixed at US$1.00 = EC$2.70. There are no income, corporate or capital-gains taxes, no death duties or restrictions on foreign exchange. The government promotes the island as a center for banking and international finance. In 1987, bank deposits held by residents were worth EC$32 million and those by non-residents EC$42 million. Net foreign assets were EC$63 million. In 1988 government revenue was estimated at EC$24.2 million with expediters of ED$23.8 million.
     The national product real growth rate was 7.5% for 1992 while the national product per capita was $6,800. Inflation rate on consumer prices was 3.0% in 1992.
     The possible use of Anguilla's banks by drug traffickers to launder money and the use of Eastern Caribbean countries as major transit points in the illicit drugs trade led Britain, as the administering country to undertake a program to improve the defenses of Anguilla and its other Caribbean territories that included Bermuda, British Virgin Islands, Cayman Islands, Montserrat, and Turks and Caicos Islands against the threat posed by drug trafficking. This forms part of a wider program of co-operation with the United States and Caribbean governments to counter the drugs threat in the whole region.
     Aid for capital projects comes from Britain and other donors. In 1988 total British aid was L1.6 million, of which L1.15 million was project aid and nearly L0.5 million in technical co-operation. A European Community grant of EC$5.9 million for road and communications work was announced in 1988. From 1986-1991 the United Nations Development Program provided Anguilla with aid worth $1.4 million.
     In 1988 Anguilla imported L1.37 million of goods from Britain, half of which was generating machinery and equipment; exports were worth L68,000. Exports for 1992 was $556,000 and was mostly lobster and salt while imports were $33.5 million.
     Fishing is the second most important economic activity, consisting mainly of exporting live crayfish (conch) to neighboring islands. A new fish-processing plant was opened in 1988, financed by Canada. In 1987 the Organization of Eastern Caribbean States launched three development projects for the area, including a surveillance project to monitor illegal fishing by foreign vessels, and training and marketing programs for the fishing industry.
     Because of low rainfall, poor soil and limited arable land the amount of agriculture is restricted. In addition, there has been a continuing drift of young people to the tourist industry for employment. To increase the degree of self-sufficiency in agricultural production, the Government has been using the services of a Caribbean development agency to train local farmers. The chief crops are pigeon peas, corn and sweet potatoes. Livestock consists of goats, sheep, pigs, cattle and poultry.
     The main sources of local employment are the Civil Service, fisheries, tourism, construction and the offshore finance industry. There is virtually no unemployment although the unemployment rate for 1988 was 5.0%.

COMMUNICATION AND SERVICES

     There are about 60 miles of tarred and 30 miles of gravel and earth public roads. serving all parts of the island. The main seaports are Round Bay and Blowing Point, the latter serving passenger and cargo traffic to and from St. Martin/St. Maarten. The number of passengers arriving and departing from Anguilla by sea increased from under 118,000 in 1984 to nearly 290,000 in 1987.
     With a surfaced runway of 3,600 feet, the Wallblake Airport provides scheduled, taxi and charter flights to Barbados, St. Martin/St.Maarten, Puerto Rico, and the British and US Virgin Islands. A new terminal building was opened in 1988.
     The island has a modern internal telephone service with over 1,800 exchange lines. A new digital international telegraphy, telex and telephone service was installed in 1986, operated by Cable and Wireless Pfc.
The Government operates a radio broadcasting service Radio Anguilla for 14 hours a day. There is also Caribbean Beacon Religious Radio, privately owned and operated, broadcasting 20 hours a day. Television is privately owned and operated. One company provides about one hour daily of local programs; another offers 24 hour cable television from the United States, using US satellites. Two other channels broadcast 24 hours a day from Anguilla, but direct their output and advertising to other islands to the south. Programs from neighboring islands are also received in Anguilla.
There is one fortnightly newspaper, Vantage. The Leeward Islands' Chronicle is available daily. The Government publishes the Official Gazette once or twice a month.
     Electricity is available throughout the island, generated by a new 5-megawatt power station situated near the airport. The electricity is based on the US standard, providing 110 watts. Piped water is available throughout the island, but it is very mineralized and hardly drinkable. Drinking water is collected from roofs and stored in cisterns. Hotels provide their own distilled water. The island's water lens, a body of fresh groundwater, is inadequate and brackish.

SOCIAL WELFARE

     Education is free and compulsory for children between the ages of 5 and 14. There are six government primary schools and a comprehensive school. In 1986 there were 1,493 children and 66 teachers in the primary schools and 634 students and 39 teachers in the comprehensive school. Post-school education is provided at Caribbean universities and similar institutions; a college of higher education is being completed in The Valley. A pre-school center is maintained under the auspices of the Methodist Church, for children from 3 to 5 years.
     Literacy rates for people 12 and over is 95% for both males and females. There is a new 36 bed hospital, financed by Britain; a 24 bed cottage hospital; and four health care centers, staffed by government medical officers. There is a government dental surgeon, operating from a modern dental clinic. Specialist medical treatment is available from neighboring islands.

STUDENT BOOKLET

     You have been asked by your boss to prepare a position paper concerning investment opportunities in the Caribbean. The island that has been targeted by your firm is Anguilla. In order for you to prepare your paper, you will need to study the current status of the Anguillan economy. Complete the following activities and then prepare your paper.


ACTIVITY ONE: Several articles concerning investment opportunities in Anguilla have recently appeared in Anguillan Life, the island's main monthly magazine. Read the following articles and answer the questions that follow.

DOCUMENT ONE: Joseph Brice, "Anguilla's Offshore Finance Potential," Anguillan Life, Summer/Fall 1995, Volume VII, 18-19.

     Since my arrival in Anguilla on June 15, I have become most impressed by the tremendous spirit evident among those persons who comprise the financial community here. This is particularly heartening since success in the offshore financial services industry is not going to be easy. The industry is a highly competitive one with new entrants announcing their candidacy with each new issue of every publication relating to offshore finance. Five years ago there was no indication that Madeira would be a player in the provision of financial services, nor indeed was there any hint that Hungary had anything to do with financial products. Now the list is endless and includes such exotic names like Labouan, Nauru and Vanautau, the Seychelles and Mauritius. One country in particular was even reported to have established the first underwater tax haven!
     Most of the centers that have mushroomed in the last decade and a half (and this includes Caribbean centers) all feature a plethora of services that reveal a rather dull sameness. Any jurisdiction that emerges in these times as an interested candidate purposing to offer something different will, not surprisely, have quite a difficult time convincing the industry of its pedigree.
     Yet for all this depressing account of the uphill task in store for a fledging Territory seeking to attract good reputable business, I remain extremely optimistic about the potential of Anguilla to develop into a mature and highly successful jurisdiction for offshore financial services.
     Quite a lot has been written about the attributes of Anguilla which contribute to making the Territory an attractive place to do business. The legislation and the necessary infrastructure is in place and the range of financial products on offer is impressive. One might ask therefore, what else is needed to attract business? That there is business out there in the market is a fact about which there is absolutely no doubt. The offshore market is said to be in order of five trillion dollars and it will take only a very small percentage of the business in this mammoth industry to make a significant impact on a country the size of Anguilla.
     My optimism in relation to Anguilla is based on the clear fact that both the Government an private sector participants in the offshore industry have launched into important initiatives regarding the industry with a commitment that is readily seen elsewhere. This means that the process of preparing the jurisdiction to cope with business when it does come, is thorough, well planned and eminently destined to stand Anguilla in good stead in the years ahead.
     I am also impressed with the practical good sense that characterizes the efforts of the Anguillan industry in its marketing and promotional drive. There is much teamwork, a lot of discussion and sensible conclusions at all levels whether on the Government committees or in the deliberations of private sector groupings or jointly organized initiatives.
The timeliness of the projects embarked upon is also worthy of note. Many long hours must have been spent on the important task of fashioning legislation that adequately responds to modern trends in the market, yet drafted in such a way as to ensure acceptable standards in consonance with good regulatory practice. A good example of a well defined and properly directed initiative undertaken by the industry relates to the Offshore Finance Promotion Agency project which seeks to so selectively publicize the financial services provided from Anguilla as to derive maximum impact on the market. However the potential drawing card consists in the proposals to upgrade the Companies Registry to include avant-garde methods of processing documents and the introduction of procedures and services for greater efficiency. It is just as well that this project should be underway, for it is our expectation that the Registry will be the engine that will drive this jurisdiction in its pursuit of attaining levels of professionalism and service not hitherto attained elsewhere in the Region.

1. According to the article, the author feels
• (A) pessimistic about Anguilla's financial future
• (B) that too many investors are currently involved in the Anguillan economy
• (C) that investment in the Caribbean is fruitless at this time
• (D) optimistic about Anguilla's financial potential
• (E) that government backing is lacking in Anguilla

2. The statement "a plethora of services that reveal a rather dull sameness" refers to
• (A) Caribbean ventures as being boring
• (B) the repetitive nature of investment opportunities
• (C) all business investments seem very similar
• (D) the tourist industry as being stagnant
• (E) too many countries are investing in the same industries.

3. One of the benefits available to investors in Anguilla includes
• (A) the speed in which legal and business documents are processed by the government
• (B) the professionalism and services available
• (C) individual ownership of property to foreign investors
• (D) protection from bankruptcy
• (E) incentives to foreign investors
  
  

DOCUMENT TWO: Tom Morgan, "How Can An Investor in Anguilla Invest for Income?" Anguilla Life, Summer/Fall 1995, Volume 7, 19.

     There are different strokes for different folks. That is, there are securities that suit whatever it is you need. Let's look at investments that pay you income and several ways to invest solely for income in Anguilla.
Certificate of Deposits. Available from, the banks of Anguilla, these will give you a fixed rate of interest for leaving your money on deposit for a fixed length of time.
     Bonds from the United States Government or from Companies. Bonds pay a fixed rate of interest for a fixed length of time. For example, you buy a United States Treasury Bond. It pays you 6.5% interest and will pay this until, say June of the year 2004. Can you see the bond before 2004 if you need the money? Yes. You may sell anytime. If you sell early you may get a little more or a little less for the bonds than you originally paid. This is because bonds go up or down in the bond market. Are bonds from companies different than bonds from the U. S. Government? Yes the U. S. Government stands behind its bonds. Companies stand behind their bonds. Because companies are not as financially strong as the U. S. Government, they have to offer to pay you higher interest rates than the government pays.
Stocks That Pay High Dividends. The local stock of National Bank of Anguilla pays a high dividend, if you can find some of the stock to buy. Many U. S. stocks pay big dividends. Utility stocks usually do. Why buy a dividend paying stock instead of a bond? Because the stock may go up in value. Also, it may increase its dividend in future. Whereas the bond will not go up much in value. And the interest it pays won't change.
     Mutual Funds. Some mutual funds own government bonds. Or corporate bonds. Some funds own stocks that pay big dividends. They get income when the bonds pay out their interest. The mutual funds then pay out the income to the shareholders of the mutual fund.
     Other Questions. (1) What if I pay U. S. taxes and want income that avoids these taxes? The income from tax free bonds is not subject to federal income taxes. (2) What if I am not subject to U. S. taxes? If I invest in U. S. securities will I have to pay U. S. taxes on the income? Not if you invest in the right type of bonds or the right type of mutual funds. With the correct securities you will not need to pay any U. S. taxes, if you are not otherwise subject to them. (3) What if I want to draw monthly income? Bonds pay income every 6 months, stocks pay dividends every 3 months, mutual funds pay income every month. (4) What if I find at a later date that I don't need the income any longer or only half of it? You can adjust the income. For instance, you can stop the flow and have the income reinvested into more shares of the mutual fund. Or you can have half reinvested, and take the other half. (5) Suppose I need money in a hurry. Can I get quickly if I am living in Anguilla? Certainly. You can have money wired from your mutual fund or your broker to your bank in Anguilla. (6) How can I make an investment? For CDs, contact local banks. For mutual funds, you can call mutual fund companies in the U. S. or U. K. You can call brokerage houses in those countries (or other countries). They will help you invest in stocks, bonds, mutual funds. You can call Smith Barney or National Bank of Anguilla. You can invest for income easily and receive it easily in Anguilla.

1. Which of the following investment opportunities are not available in Anguilla?
• (A) certificates of deposits
• (B) United States Government Bonds
• (C) stocks
• (D) property
• (E) mutual funds

2. Why does the author raise questions in this article?
• (A) to make it easier for the reader to understand investment opportunities
• (B) to explain the nature of banking in Anguilla
• (C) to show that businesses operate the same way as United States businesses
• (D) to entice investors into offshore finance markets
• (E) to list the help of brokers in the Anguillan economy

  3. Does this article report favorably about investment opportunities in Anguilla. Explain your answer.
  
  

DOCUMENT THREE: Scott Hauser, "Time Shares...Trauma or Treasure?" Anguilla Life, Summer/Fall 1995, Volume 7, 33.

     When you discuss the introduction of time share hotels on Anguilla, the customary first response is: Not here! We don't want those kind of people on Island. But what is wrong with time share development? Where do the fundamental problems lie? The design or concept? - I think not. The management and marketing? I think so.
     When one considers the fact that the customary length of stay for vacationers from North America to the Caribbean is one week, it is obviously sensible to develop and market products which accommodate that one week window. However, in the case of time shares, that "product" is not and should never be viewed as real estate, but as a prepared annual vacation reservation.
     Essentially, time shares allow the vacationer to reserve a series of one week hotel reservations at a discount over traditional rack rates for the equivalent room, by paying for those vacation reservations in advance. Subsequently, in addition to this initial payment which purchases the advance reservation itself, there are annual maintenance fees which must be paid by the purchaser.
     So, time shares can be seen to make a lot of sense --- from the standpoint of the developer, the hotel repays its development costs quickly, plus a traditionally handsome profit, with income derived from advance reservation sales. From the standpoint of the manager, the hotel repays its operating budget, plus a traditionally handsome profit, with income derived from maintenance fees, food/beverage/retail sales, and various ancillary services. From the standpoint of the purchasers, they bought what they need, one week.
     However, nothing is as simple as it seems. No one familiar with the bombardment of time share sales efforts should be too surprised by the fact that it is not unusual for sales, marketing, and promotion budgets to rival or exceed construction costs for time share hotels. The free casino chip that you are offered for going on a timeshare "tour", the payments offered to bus and taxi drivers for bringing in a client for the "tour", the commissions paid for the sales force, the number of people on the sales force, all work to poison the atmosphere surrounding the concept - especially when one takes into account the number of sales that must be made, i.e. fifty per room.
     I do not believe that anyone wants Shoal Bay, or any other beach or any other location on Anguilla, poisoned by a breakdown in the respect for privacy which so often accompanies time share development --- the sales pressures can be relentless and devastating. Considering that time share development is now an accepted component of many international hotel chains, from Disney to Hyatt to Hilton, if time share is deemed necessary, let Anguilla negotiate with those quality providers in preference to little known, independent, entrepreneurial developers, so that the assurances we need to confidently introduce time share without trauma can be realized.
     However, no development should be approved---and certainly no time share development---until a need for additional local employment is confirmed. Development may come and go, but we stay.

1. The author feels that
• (A) the management of time share hotels is important to the development of the Anguillan economy
• (B) time share hotels will work in Anguilla
• (C) vacationers to the Caribbean will not be attracted to time share hotels
• (D) international hotels dominate the time share market
• (E) there are too many time share hotels already located on Anguilla

2. The author
• (A) favors the time share concept
• (B) is against the time share concept for Anguilla
• (C) expresses no opinion about time share hotels
• (D) feels that time share will increase revenue but create problems for Anguillans
• (E) should be outlawed by the Anguillan government

ACTIVITY TWO: Tourism is an economically important aspect of Anguillan life. Read the following articles, charts, and graphs and answer the questions that follow.

DOCUMENT FOUR: Barbara Saleh, "New Western United States Tourism Marketing Consultant Outlines Exciting Plans for 1995", Anguilla Life, Summer/Fall 1995, Volume 7, 37.

     The year round goal of the Tourist Board is to increase the level of Anguilla's hotel occupancy with particular emphasis on expanding the summer and shoulder seasons and focus on the small inns and guest houses. The goal of the Offshore Finance Center is to create an inviting environment for offshore business which ultimately creates more business and jobs for Anguillans while exposing clients to the flavor of the island for a combined family holiday.
Barbara Saleh of Soleil International brings a solid Caribbean background, knowledge or marketing and public relations to her new post. The former Director of the British Virgin Islands Tourist Board for the Western United States from 1985-1990, Barbara is also a founding member past President and Director of the San Francisco Chapter of the Caribbean Tourism Organization.

1. The focus of this article is
• (A) to discuss Anguillan tourist problems
• (B) to announce the opening of new business opportunities in Anguilla
• (C) to increase the level of Anguilla's hotel occupancy
• (D) to show that the government is taking steps to increase tourism to Anguilla
• (E) to expand news coverage of Anguilla to American investors

1. According to the article, the Anguillan economy
• (A) is stable
• (B) shows a growth rate
• (C) illustrates a decline
• (D) has fluctuated over the past ten years
• (E) was unaffected by the change in the American dollar

DOCUMENT SIX: Table showing the number of visitors to Anguilla in 1985.

Which Country Total Number

USA 23,700 Canada 1,500 United Kingdom 1,200 St. Martin 10,000 Other Caribbean islands 6,274

1. Why are their more visitors from the USA than any other region?
2. Why do so many visitors come from St. Martin?
3. Using Document Five, compare statistics for tourism to 1985. Explain the differences.
4. Hypothesize why there are so few visitors from Europe or Asia.

DOCUMENT SEVEN: Visitor Arrivals by month

Look at the graph showing the number of visitors to Anguilla by month.

1. Which months have the greatest number of visitors to the island?
2. Based on what you know about the Caribbean, why are their so many visitors in August?
3. Why do so few visitors come in September through November?
4. Would it be best to invest in Anguilla seasonally or year around? Explain your answer.

DOCUMENT EIGHT: The Money Tree.

Use the information from the "Money Tree" and answer the following questions.

1. Name three main areas that benefit from the tourists' dollars.
2. How does the government spend the money collected from taxes?
3. The top of the tree is open. Identify a business that could invest in Anguilla. Explain why you think the business might succeed.

Role play: Pretend you are a tourist: write out some things that you would like to know about Anguilla [see teacher resource packet for background information].

ACTIVITY THREE: Anguilla has entered into an agreement with the United States to enforce laws concerning drug trafficking in the Caribbean [see teacher resource packet]. Read the articles below and answer the questions that follow.

DOCUMENT NINE: "420 Kilos of Cocaine Seized!" The Light, Sunday August 6-12, 1995, No 111, 1.

     The Royal Anguilla Police Force Marine Division, in a joint operation with the U. S. Coastguard, have succeeded in foiling what is considered to be one of the largest ever dry drops in Anguillan waters.
     According to a press release August 1 from Police Headquarters, just before midnight on Sunday, July 30, police authorities in Anguilla were informed about a suspect aircraft without lights to the north of the island. The Police launch Dolphin, under the command of Inspector Carl Ruan, was launched within a short time, and after contacting the United States Coastguard service, proceeded out to sea.
     Whilst on its way to a possible area where the aircraft was flying, the police launch narrowly missed a "go fast" twin engine boat which was traveling without lights. About six miles out at sea, the Dolphin found fluorescent lights in the water which had come from bales of drugs dropped by the aircraft. A search of the area was carried out by Dolphin and the US Coastguard vessel Manitou at first light.
     Fourteen bales of cocaine, a total of 420 kilos were recovered by the US Coastguard vessel in Anguillan waters.
An airsearch was carried out next day, July 31, by an aircraft of the US Customs from Puerto Rico, with Police and Customs spotters from Anguilla on board.
     Sweep searches were carried out by Dolphin and Manitou, but no further drugs were found, and according to the release, police here are satisfied that all drugs from the airdrop have been recovered.
     It is also believed that the drugs were destined for St. Maarten for further distribution to the United States and Europe. The drugs are being destroyed in Puerto Rico by the US Coastguard.
     Deputy Commissioner Operations, Roger Foxton, speaking to Radio Anguilla News on August 1, underscored the successful operation over the last weekend as indicative of the spirit of cooperation over the last weekend as indicative of the spirit of cooperation between the law enforcement agencies in Anguilla and the United States. "We will continue to work and train together in the future to prevent drugs landing on our shores," he added.
     The drug seizure represents the second for the year by local law enforcement officials.

DOCUMENT TEN: "Anti-Drugs Operation by RAPF Launch Dolphin," The Light, Sunday, August 6-12, 1995, 7.

Dear Commissioner Richardson:
1. I would be grateful if you would please relay my congratulations to all the Officers of the Royal Anguilla Police Force who were engaged in the action of recent days to cooperate with the United States Coastguard Service in the seizure of a major air-drop consignment of cocaine in Anguilla's territorial seas.
2. Though no arrests resulted, the operation was clearly an outstanding success in every regard and again demonstrated the close cooperation which exists between the Royal Anguillan Police Force and H M Customs, Anguilla.
3. Please convey my congratulations in particular to Inspector Carl Ruan and the Police Officers of the Dolphin and to Deputy Commissioner Roger Foxton, Inspector Mitchell Harrigan and other members of the Operation Team of the Royal Anguillan Police Force and the Officers of H M Customs who work with the Force on the Police launches and ashore.
4. The action was another job well done in the cause of protecting the people of Anguilla and the international community from the menace of drugs trafficking.

   Yours Sincerely,
   

   Alan W Shave, Governor
   

Documents six and seven illustrate that Anguilla
• (A) has an increasing drug trafficking problem
• (B) is vigilant in its pursuit of drug dealers
• (C) is the dropoff point for drug trade in the Caribbean
• (D) and its government is supported by its people against drug trafficking
• (E) was once the focal point of Latin American drug czars.

Brainstorm: What other types of crime might exist on a tourist island? How can investors find out more information concerning crime rates in a foreign country? How would crime statistics influence your decision to invest in Anguilla?

Using Internet, find out what information there exists about the Anguillan economy.

ACTIVITY FOUR: Now that you have evaluated potential opportunities in Anguilla for your company, you are ready to prepare a position paper for your boss on the possible investment opportunities on that island.
As you plan your presentation to your boss, think about the reasons why the company should or should invest in Anguilla. Be sure to consider carefully what kinds of costs might be involved and weigh those costs against the possible benefits of the investment. Remember to refer to prior reading selections and charts. Be sure to state reasons to support your decision. Prepare an illustration to support your decision.
Your presentation will be scored for language usage as persuasive writing.