Short communication, Note
From instability to volatility: Bermuda's shift from tourism to international business dependency
Shawn De Shields
; Business Studies Bermuda College, Paget, Bermuda
Cordell W. Riley
; Profiles of Bermuda, Hamilton, Bermuda
Abstract
Bermuda has relied on tourism as a primarily source of economic activity ever since the 1920s. At the close of 2003, the World Bank positioned this small country behind only Luxemburg and the United States as the third richest country in the world. However, by 1995 Britain's oldest colony experienced an economic dependency shift from tourism to international business. This article examines how this shift has impacted on the residents of Bermuda, economically and socially and points out the dangers of relying too heavily on international business. The survey results implied that there was a significant difference in the perceptions of respondents employed in various industries concerning tourism being more important to Bermuda's economy than international business. Also, the majority of respondents agreed that international business revenues were primarily responsible for Bermuda's current economic prosperity, and that the domestic tourism industry will not be able to sustain Bermuda's economy if international business revenues suddenly declined. Additionally, exponential forecasting techniques were applied to determine the short-term prospects for Bermuda's principle industries. The results showed accelerated growth trends in the international business sector causing a 'pull' effect for supporting industries and heightened demand for specialized labour. Conversely, the domestic tourism industry outlook leading up to 2010 displayed a continued negative growth trend. Consequently, tourism related jobs were predicted to decline, creating a 'drag' effect for supporting industries. The article concludes by suggesting that a community-based approach to tourism, along with sustaining international business growth could be the key to Bermuda's long-term economic future.
Keywords
tourism; international business; economy; Bermuda
Hrčak ID:
161577
URI
Publication date:
11.12.2006.
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