Cayman Islands
The Cayman Islands are an overseas territory of the United Kingdom in the western Caribbean Sea comprising the islands of Grand Cayman, Cayman Brac, and Little Cayman.

History
The Cayman Islands - often referred to as The Caymans, or (more correctly) just Cayman - were first visited by Christopher Columbus on May 10, 1503 during his fourth and final voyage to the New World. The first recorded English visitor to the islands was Sir Francis Drake, who landed there in 1586 and named them the Cayman Islands. The islands, along with nearby Jamaica, were ceded to England in 1670 under the Treaty of Madrid. They were governed as a single colony with Jamaica until 1962 when they became a separate British overseas territory and Jamaica became an independent commonwealth realm.
The island of Grand Cayman was severely damaged by the Category Five Hurricane Ivan in September 2004, which destroyed many buildings and damaged most of them. Power, water and communications were all disrupted. Ivan was the worst hurricane to hit the islands in 86 years. The island has made rapid recovery since Ivan, with most of the infrastructure now restored.

Geography
The Cayman Islands are located in the western Caribbean sea. The three islands are situated about 480 miles south of Miami, 150 miles south of Cuba, and 180 miles northwest of Jamaica. Grand Cayman is by far the largest, with an area of 76 square miles. The two "Sister Islands" of Cayman Brac and Little Cayman are located about 90 miles east of Grand Cayman and have areas of 14 square miles and 10 square miles respectively.
All three islands were formed by large coral heads and are mostly flat. One notable exception to this is The Bluff on Cayman Brac, which rises to 140 feet above sea level, the highest point on the island.

Economy
The economy of the Cayman Islands used to be built around turtling. However, this industry began to disappear in the 20th century and tourism and financial services began to become predominant due to the advent of modern transportation. The United States of America is the Cayman Islands' largest trading partner.
With an average income of around $35,000, Caymanians enjoy the highest standard of living in the Caribbean. The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the US dollar at a fixed rate of 1 KYD = 1.227 USD. Thus, the C.I. Dollar's rate of exchange with all other world countries is directly tied to the U.S. Dollar's rate of exchange with those same countries.
The government's primary source of income is indirect taxation. An import duty of 20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras & baby formula. Duty on automobiles is charged on a sliding scale with the duty reaching 40% for expensive models. The government charges a flat licensing fee to financial institutions that operate in the islands. A small fee is also charged to each tourist that arrives on the islands.

Tourism
Tourism accounts for 70-75% of the annual GDP of the Cayman Islands and is hence a major part of the economy. Of the millions of tourists that visit the islands annually, 99% of the them stay on Grand Cayman. George Town also serves as a major cruise ship port, which brings in 2000-3000 tourists a day, 5 days a week.
Grand Cayman's major tourist attraction is the world-famous Seven Mile Beach on which most of the island's hotels and resorts are located. SMB was recently named the "Caribbean's Best Beach" by Caribbean Travel and Life Magazine and is regarded by many as one of the best beaches in the world.
The Cayman Islands are also world famous as a Scuba Diving destination because of their proximity to the Cayman Wall and the Cayman Trench, which extend deep into the coral reefs of the Caribbean. Cayman Brac and Little Cayman are also considered to be elite dive destinations. There are several snorkeling locations where tourists can swim with stingrays.

Financial services industry
Because the Cayman Islands are not subject to direct taxation by the British government, nor is there a local income tax, they serve as an international offshore banking hub and tax haven for millions of people and corporations. As of July 2000, almost 40,000 companies were incorporated on the Cayman Islands including 600 banking and trust companies with assets in excess of $500 billion. Approximately 5,000 out of the world's 8,000 hedge funds are also domiciled in the Cayman Islands. This contributes to the Cayman Islands being a major financial service exporter.

Government
Although it is a British dependency, the Cayman Islands are largely self-governing concerning local affairs. A 15-seat Legislative Assembly is elected by the people every 4 years to handle domestic affairs. Of the elected Members of the Legislative Assembly, or MLA's, 5 are chosen to serve as government ministers. The head of government is the Leader of Government Business, which is currently The Honourable Kurt Tibbetts.
A Governor is appointed by the British government to represent the monarch. In modern times, the governor's powers are limited to handling defence, foreign affairs and the police force. Most of these affairs are actually handled by the Chief Secretary, who is the Acting Governor when the Governor is not able to discharge his usual duties for one reason or another, but on a day to day basis oversees the Civil Service including the portfolio of Internal & External Affairs. The current governor of the Cayman Islands is Stuart Jack and the current Chief Secretary is Hon. George McCarthy, OBE, JP
The islands have been governed by a written constitution since becoming a British Crown Colony in 1962. Currently, the Governor has called for the Constitution to be modernised, an issue being debated by the Legislative Assembly, with Britain having made it known that such an action should originate within the people of the Cayman Islands and follow the referendum route.
 

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