Saint Kitts - Economy

Economy

St. Kitts & Nevis uses the Eastern Caribbean dollar, which maintains a fixed exchange rate of 2.7-to-one with the United States dollar. The US dollar is almost as widely accepted as the Eastern Caribbean dollar.

For hundreds of years, St. Kitts operated as a sugar monoculture, but due to decreasing profitability, the government closed the industry in 2005. Tourism is a major and growing source of income to the island, although the number and density of resorts is less than on many other Caribbean islands. Transportation, non-sugar agriculture, manufacturing and construction are the other growing sectors of the economy .

St. Kitts is dependent on tourism to drive its economy. Tourism has been increasing since 1978. In 2009, there were 587,479 arrivals to Saint Kitts compared to 379,473 in 2007, which represents an increase of just under 40% growth in a two-year period. As tourism grows, the demand for vacation property increases in conjunction.

St. Kitts & Nevis also acquires foreign direct investment from their unique citizenship by investment program, outlined in their Citizenship Act of 1984. Interested parties can acquire citizenship if they pass the government's strict background checks and make an investment into an approved real estate development, Silver Reef development. Purchasers who make a minimum investment of US$350,000 are entitled to apply for citizenship of the Federation of St. Kitts and Nevis.

In addition to this, in hopes of expanding tourism, the country hosts its annual St. Kitts Music Festival.