III.

Population and Economy

The British Virgin Islands had a total estimated population in mid-1996 of 13,195. This represents a decrease of nearly 20 per cent over the 1991 census figure of 16,644, and reflects a general trend of population decline linked to outmigration. More than 95 per cent of the population lives on Tortola (80 per cent) and Virgin Gorda (15 per cent). The population of Road Town (1991 estimate) is about 6,630. More than 90 per cent of the population is black, the descendants of African slaves, with white and Asian minorities. English is the official language. The majority of the population profess Christianity, with most belonging to Protestant denominations.

Tourism is by far the most important industry, accounting for around 75 per cent of economic activity. Combined with other service sectors, notably financial services, tourism accounts for almost 86 per cent of gross domestic product. The sector also employs more than one third of the labour force. Financial services began to develop in the 1980s and the sector has expanded rapidly since; at the end of 1995 there were more than 168,000 international businesses registered in the islands. There is a small manufacturing sector based on rum and cottage industries. Shortage of fertile land means that much food has to be imported. Livestock-raising is the most important agricultural activity and fishing is significant. The British Virgin Islands runs a large trade deficit, with export earnings normally covering less than 3 per cent of import costs. However, earnings from tourism and financial services, and remittances from islanders living abroad normally more than cover this deficit. The United States, the US Virgin Islands, and Puerto Rico are the territory’s main trading partners, and the currency is the US dollar.