Expats in Caymans Islands financial and tourism sectors leaving in droves

Business layoffs and the tourist industry shutdown are causing an unprecedented expat exodus from the Caymans.

Almost half of the total population of the Cayman Islands is made up of expatriates, most of whom work in the tourism and financial services sectors. The double whammy of the pandemic and its effect on the world economy has resulted in a high number of expat contracts being terminated in both sectors, spurring plans to leave the British Overseas Territory amongst at least 11,000 former employees. The expat exodus began after the PM warned the crisis is likely to last at least another four months.

It’s expected the government will commission Cayman Airways to repatriate those wanting to leave, either permanently or until the pandemic is seen to be easing off, with an emergency travel hotline at 244-333 now set up for those who’ve already decided to depart. One of the islands’ largest banks is now deferring payments on mortgage and personal loans for at least the next three months in a bid to help those in financial difficulties due to the shutdown of the tourist trade.

Even before the pandemic took hold, the popular destination was listed on the European Union’s tax haven blacklist, sparking fears the same would be the UK’s fate should it attempt to position itself in a similar manner after the final Brexit agreement. According to EU officials, the decision to list the archipelago was based on the fact that its investment funds don’t match up with the islands’ actual economic activity.