The Falkland Islands Accommodation Investment Guide

Page created by Irene Alexander
 
CONTINUE READING
The Falkland Islands Accommodation Investment Guide
The Falkland Islands
 Accommodation
 Investment Guide
The Falkland Islands Accommodation Investment Guide
The Falkland Islands Accommodation Investment Guide
Contents
Background to the Falklands,
Economy and Tourism                     1

Location and Scale
Climate and Weather                     3

Wildlife                                5

Sovereignty
The Falklands Economy                   6

Travel                                  7

Infrastructure                          8

Accommodation in the Falkland Islands   9

What's on Offer                         11

Tax, Immigration, Labour, Permits,
and Land Ownership                      12

Inward Investment, Grants and Loans     14

Key considerations in camp /
Ecotourism in the Falkland Islands      15
The Falkland Islands Accommodation Investment Guide
Background to the Falklands
Economy and Tourism

                                    The Falkland Islands                  Tourism Development Strategy

The purpose of this document        • Location: 400 Miles (650km)         The Tourism Development Strategy
is to encourage and attract both      off the south-east coast of South   (TDS) is a public and private sector
local and international investors     America                             joint initiative that aims to grow the
and developers in investing,                                              tourism industry by creating more
constructing, developing and        • Area: 4700 square miles             international awareness of the
operating additional tourism          (12,173 km)                         Falklands as a holiday destination,
accommodation in the Falkland                                             aiming towards the ‘high value low
                                    • Capital: Stanley
Islands.                                                                  volume’ market. The TDS outlines
                                    • Political Status: Self-governing    the following objectives:
                                      British Overseas Territory
                                                                          1.   Increase tourist overnights by 87%
                                    • Population: 3,398                        by 2023 through a combination
                                                                               of additional visitors and
                                    • Economy: (GDP & GDP per 		               increased length of stay. Increased
                                      capita) £206.4m and £70.8k               expenditure will transpire through
                                      per capita (2015)                        increased volume, and not
                                                                               necessarily higher prices.
                                    • Language: English
                                                                          2. Encourage overnight tourist visits
                                    • Currency: Falkland Pound (FKP)
                                                                             across eight months (September to
                                      — linked value to GBP
                                                                             April), increasing the length of the
                                    • Air links: Currently two flights       traditional season.
                                      a week from UK and one flight
                                                                          3. Develop “honeypots” to attract
                                      a week from Santiago Chile.
                                                                             overnight tourists to lesser-visited
                                                                             areas.

                                                                          4. Increase the number of cruise
                                                                             visitors by 49%, and their levels of
                                                                             expenditure by 42%, by 2022/2023.

                                                                          5. Encourage expedition cruise ships
                                                                             to visit more destinations around
                                                                             the Falklands, including basing
                                                                             their operations in Stanley.

                                                                          6. Enhance the day visitor experience
                                                                             in Stanley.
1
The Falkland Islands Accommodation Investment Guide
Tourism in the Falkland Islands            Wildlife & Nature

The tourism industry is the fastest        The Falkland Islands has 19 nature       Three species of seal can be found in
growing industry in the Falkland           reserves, 17 important plant areas and   the Falklands, they are the southern
Islands accounting for 3% of the           22 important bird areas designated,      sea lion, the elephant seal and the
Falklands economy in 2017.                 highlighting the importance of nature    South American fur seal. A number
                                           and its conservation to the Falkland     of species of whale, dolphin and
During the 2017/2018 summer season         Islands.                                 porpoise can be found in the Falklands
approximately 59,380 tourists enjoyed                                               at various times of the year, these
the Falkland Islands as a destination      Five species of penguin can be           include the Peale’s and Commerson’s
and spent £6,195,911.                      found in the Falklands that total        dolphin, killer whale, Sei whale,
                                           approximately 550,000 breeding           Minke whale, long-finned pilot
Tourist arrivals are currently expected    pairs. The Falklands holds the largest
to increase to 65,500 cruise visitors                                               whale, southern right whale, fin
                                           and most easily accessible albatross     whale, humpback whale and Grey’s
and 2,300 overnight tourists by 2023.      colony in the world and provides a
It is expected that an additional weekly                                            beaked whale.
                                           home to two endemic bird species,
flight to the Falklands would generate     the Falkland Steamer duck and the
an additional 900 tourist arrivals         Cobb’s wren.
in the first year, increasing to 3,200
in year three and would require an         Another 13 sub-endemic species
additional 50 rooms accommodation.         of bird such as the white tufted/
                                           Rowland’s Grebe, common diving
                                           petrel, black-crowned night heron
                                           and upland goose can be seen in
                                           the Falkland Islands.

                                                                                                                       2
The Falkland Islands Accommodation Investment Guide
Location and Scale                                                                 Climate and Weather
The Falkland Islands are located 400     The population of the Falkland Islands    The Falkland Islands weather is
miles (650km) off the south-east coast   is mainly of British descent and is       strongly affected by the cool South
of South America, lying between          highly centralised in the capital,        Atlantic Ocean giving it a narrow
latitude 51⁰ and 53⁰ S and longitude     Stanley (East Falkland), which is the     annual temperature in the summer.
57⁰ and 62⁰ W, and are comprised of      most remote and southerly capital         Summers are from December to
approximately 778 islands.               city in the world. The 2016 Falkland      February and experience an average
                                         Island national census recorded the       of 7.1 hours of sunshine per day and
The two main islands are East            population at 3,398, 2,460 of which       have a Mean Maximum temperature
Falkland and West Falkland. The total    reside in the capital and 381 living in   of 15⁰C. During winter, June to
land mass of the Falkland Islands is     camp, an additional 557 residents are     August, the sunshine hours decrease
4,700 square miles (12,173 square km),   contracted workers currently residing     to an average of 2.5 hours per day
approximately the size of the US state   in the Islands.                           and temperatures drop to a Mean
of Connecticut, the Bahamas or half                                                Maximum average of 5⁰C.
the size of Wales.                       The official language of the Falklands
                                         is English and the official time is       Rainfall does not generally differ from
The landscape comprises of mountain      BST –4 hours in the Falklands Winter      season to season with an average
ranges, flat plains, rugged coastline,   and GMT –3 hours in the Falklands         54.6mm per month in summer and
sandy beaches and cliffs. The highest    Summer. The official currency of          47.1mm in winter. Summers are
point in the Falklands is Mount          the Falkland Islands is the Falklands     generally windier than winters,
Usborne on East Falkland and its         Pound (FKP) which is pegged with the      experiencing an average wind speed
highest peak is 705m (2,312ft).          British pound Sterling (GBP), which       of 18.8mph (30.2kmph) compared to
                                         can also be used as legal currency in     16.2 mph (26.1 kmph) in winter.
                                         the Falkland Islands.

3
The Falkland Islands Accommodation Investment Guide
The Falkland Islands
                       The Falklands Islands

                                               4
The Falkland Islands Accommodation Investment Guide
Wildlife
The wildlife found in the Falkland         There is an abundance of other bird       Three species of seal can be seen in
Islands is varied, numerous, unique,       life in the Falklands, including the      the Falklands, they are the southern
and most importantly, easily               estimated 475,000 breeding pairs of       sea lion, the elephant seal, and the
accessible. There are 19 Nature            black-browed albatross, representing      South American fur seal. Southern
Reserves, 22 Important Bird Areas and      70% of the world’s population. Access     sea lions can be found in various
17 Important Plant areas designated in     to albatross colonies in the Falkland     locations in the Falklands, such as
the Falkland Islands, providing a strong   Islands is unparalleled with four         Cape Dolphin. Elephant seals can be
indication of how important the natural    locations scattered across the Islands.   seen at Sea Lion Island and Carcass
environment, the wildlife and its                                                    Island and South American fur seals
preservation is to the Falkland Islands.   Other birds found in the Falklands        can be seen on New Island. A large
                                           include 500 breeding pairs of the         number of whales, dolphins and
Five species of penguin can be seen        inquisitive bird of prey called the       porpoises can also be seen in the
in the Falkland Islands, totalling over    striated caracara, locally known as       Falklands.
a million individual penguins, they        the Johnny rook. The Falklands is
are the Southern Rockhopper, Gentoo,       a world stronghold for the striated       Commerson’s and Peale’s dolphins
King, Magellanic and the Macaroni          caracara population. Other birds of       are widespread and can be seen
penguin. There are 319,000 breeding        prey, such as the southern caracara,      inshore during the summer months.
pairs of Rockhopper penguins found         turkey vulture, peregrine falcon and      Minke and the endangered Sei whale
in the Falklands, making it the second     variable hawk, breed and can be seen      can often be seen from February
largest population in the world, and       in the Falklands.                         to April. Killer whales can be seen
by far the most accessible. The largest                                              around the Falkland Islands near
population of Gentoo penguins is           There are also two bird species that      sea lion colonies between October
found in the Falklands, containing         are endemic to the Falkland Islands;      and December. Other whales that
132,000 breeding pairs, which is           the Cobbs’ Wren and the Falkland          frequent the Falklands are the long-
again easily accessible. There are         steamer duck. There are 13 sub-           finned pilot whale, southern right
750 breeding pairs of King penguins        endemic species of bird found in the      whale, fin whale, humpback whale
in the Falkland Islands, and since         Falkland Islands, such as the white       and Grey’s beaked whale.
the majority of King Penguins can          tufted/Rowland’s grebe, common
be found in South Georgia or the           diving petrel, black-crowned night
sub-Antarctic Islands, the King            heron, upland goose, kelp goose,
penguins in the Falklands are the          short-eared owl, tussacbird, dark-
most accessible King penguins in           faced ground tyrant, black throated
the world. The Falklands is also           finch and long-tailed meadowlark.
estimated to provide a home for
between 76,000 and 142,000
breeding pairs of Magellanic
penguins.

5
The Falkland Islands Accommodation Investment Guide
Sovereignty                              The Falklands Economy
The Falkland Islands are a United        The Economy of the Falkland Islands     1. The Economic Development
Kingdom Territory by choice.             has grown exponentially over the        Strategy (EDS) has a national outlook,
                                         past 25 years.                          aiming to develop existing industries
The United Kingdom has no doubts                                                 such as the fishing, agriculture,
over the sovereignty of the islands      A strong contributor for the economic   tourism and service industries, as
and supports the islander’s right to     growth was the declaration of a 150     well as researching the possibility
self-determination.                      mile radius Fisheries Conservation      of creating new industries to enable
                                         and Management Zone and the             economic diversification. The EDS
The Falkland Islands are self-           development of a fishing licensing
sufficient and self-governing and do                                             is a government and private-sector
                                         scheme established by the Falkland      driven project, with the aspiration to
not require financial support from the   Islands Government (FIG) in 1986.
United Kingdom, with the exception                                               sustainably increasing GDP growth.
                                         This allowed the Falkland Islands to    The potential of a hydrocarbons
of Defence. A new Falkland Islands       move away from its dependence on
Constitution, signed by Her Majesty’s                                            industry has not been considered
                                         wool and provided a catalyst for the    in the development of the EDS.
Government, was brought into effect      Falkland economy to grow, in terms
on the 1st January 2009 and further      of Gross Domestic Product (GDP),        2. The Rural Development Strategy
entrenches the rights of the local       from approximately £7m in 1985 to       (RDS) aims to increase the economic
Falkland Islands population to govern    206.4m in 2015.                         opportunities in the rural areas of the
itself in all areas apart from defence                                           Falkland Islands, known as “Camp”.
and foreign affairs.                     The Falkland Islands economy            The objectives are to increase the
                                         recently benefitted from a round of     GDP of the agriculture industry and
                                         hydrocarbons exploration in 2009        increase the population in Camp.
                                         which are expected to be further        As a result, significant incentives are
                                         developed in the near future.           available to help families, individuals
                                         At this moment in time the Falkland     and businesses take advantage of
                                         Islands Government (FIG) is working     the opportunities in agriculture and
                                         in partnership with the Falkland        tourism, as well as other sectors.
                                         Islands Development Corporation         3. The Tourism Development
                                         (FIDC) and the Falkland Islands         Strategy (TDS) is aiming to grow
                                         private sector on three initiatives     the tourism industry by creating
                                         to encourage long term economic         more international awareness of the
                                         growth in the Falkland Islands.         Falklands as a holiday destination,
                                         The three national strategies are:      aiming towards the ‘high value low
                                                                                 volume’ market. Further details
                                                                                 regarding the TDS can be found in
                                                                                 the following section.

                                                                                                                      6
The Falkland Islands Accommodation Investment Guide
Travel

Air Links                                Shipping Links                             Telecommunications
The Falkland Islands International       The Falkland Islands benefit from two      Sure South Atlantic Limited
airport is located at Mount Pleasant     regular shipping links one of which is     provide all Falkland Islands’
(MPN) 45 minutes from Stanley.           operated by the MoD and the other by       telecommunications including
Currently there are two providers of     a local company. The MoD shipping          telephone service, broadband
international flights to the Falklands   link serves a number of destinations       internet and a mobile phone
Islands:                                 that contain MoD interests and stops       service.
                                         at Mare Harbour, the military port
There is a weekly flight provided by     located near the Mount Pleasant            Sure South Atlantic Limited are
LATAM Airlines. The flight operates      Complex. This shipping link operates       contracted to provide a service
from Santiago, Chile (SCL) to MPN        from Marchwood Southampton,                throughout the Islands.
on Saturdays with a stop at Punta        England.
Arenas, Chile (PUQ), during the
summer months. Once a month              The second shipping link is operated
the flight stops at Rio Gallegos,        by locally owned South American
Argentina, in between PUQ and            Atlantic Services (SAAS) Ltd. SAAS
MPN. Negotiations are currently          predominantly provides a shipping
ongoing to secure an additional          service for fishing companies to
flight per week from South America.      export their catch in reefer containers,
                                         however it does offer a standard
There is a twice weekly “Airbridge”      freight and container service. SAAS
flight from RAF Brize Norton in the      operates between Stanley and
UK to MPN. The flight is contracted      Montevideo, Uruguay. This service
by the Ministry of Defence and           operates twice monthly in the
currently only 31 seats are allocated    fishing season (February – March
on each flight to civilian passengers.   and August – September) and once
The flight stops at Ascension Island     a month in the off-season.
(until 2020 this will be Cape Verde)
en-route to refuel.

7
Infrastructure

Power                                     Fuel
Wind power supplies an average of         The price of fuel in the Falkland      transport passengers, vehicles, cargo,
40% of Stanley’s annual electricity,      Islands is lower than in the United    fuel, plant and machinery. The MV
with the balance provided by diesel       Kingdom (UK), as fuel duty is not      Concordia Bay is also regularly used
generation. Camp locations, which         applied in the Falklands. As well as   as a supply vessel to the smaller
are not served by the main power          providing domestic fuels, such as      Falkland Islands.
station, have access to incentives        diesel, petrol and kerosene, Stanley
                                                                                 The Falkland Government Air Service
to implement renewable energy             Services also supplies bunker fuels
                                                                                 (FIGAS) operates a fleet of five
solutions including wind turbines         through its subsidiary Stanley
                                                                                 Britten-Norman BN2B Islanders.
and solar power.                          Bunkering Ltd.
                                                                                 FIGAS is based at Stanley Airport
Water                                     Roads & Internal                       (PSY) and provides unscheduled
                                          Transportation                         flights to settlements, farms and
Stanley is supplied with treated water.                                          islands around the Falklands that
The fresh water originates from the       The Falkland Islands has a road        maintain a suitable air field.
Murrell River located west of Stanley.    network in excess of 580 miles
Fresh water tends to be available in      (930km).
most areas of the Falklands from
streams, river and natural springs.       A regular ferry service, which sails
Settlements and farms located in          between New Haven, East Falkland
Camp obtain their fresh water from        and Port Howard, West Falkland is
natural sources as mentioned above.       operated by Work Boat Services. The
                                          ferry service, using the vessel MV
                                          Concordia Bay, can

                                                                                                                     8
Accommodation in the Falkland Islands

The current market
The Falklands tourism season              the number of cruise ship passenger       particularly in Camp where
peaks between October and                 exchanges and may persuade                accommodation is limited.
March, during this period the             expedition ships to base their South
Falklands receives an influx of land      Atlantic operations in the Falklands.     Ensuite rooms enable accommodation
based tourists as well as cruise and                                                providers to rent a room in a lodge
expedition ships visiting numerous        There is a diverse range of               set-up rather than having to rent
locations in the Falklands, including     accommodation in Stanley and              the whole property, thus ensuring
Stanley. The tourism industry is          throughout Camp. Within Stanley the       maximum capacity in a property.
the fastest growing industry in the       options range from a Boutique Hotel       This flexibility ensures that rooms
Falkland Islands accounting for           service at the Waterfront Boutique        in properties are used to their full
circa 3% of the Falklands economy         Hotel to affordable single room           availability. One of the big travel
in 2017. Overall International visitor    accommodation at Lookout Lodge.           trends for 2017 as identified by
numbers in 2017/18 by inbound land-       The mixture of accommodation              National Geographic was the rise of
based tourists, cruise ship passengers    provided is generally reflected in        co-living. Communal living spaces
and domestic tourists totalled            the range of prices available also.       are becoming more common and
59,380 spending £6.2 million.                                                       are expected to increase in popularity
                                          The accommodation offered in              on a worldwide basis.
At the moment cruise and                  Camp is a mix of self-catering and
expedition ships only spend               catered, however the demand on this
approximately a day in any                accommodation tends to be driven by
Falklands location before                 the wildlife in the local vicinity.
moving on. Expedition ships are
increasingly utilising the improved       In order for providers to capitalise
air links to and from the Falklands       on the accommodation they can
for their passenger exchanges.            provide and maximise capacity there
A planned additional air link to          are certain elements that need to
and from South America and the            be considered and incorporated into
Falklands is hoped to increase            new and current accommodation,

          Property Type    Number        Number    Room occupancy     Room occupancy       Room occupancy
                           of type       of beds   rate (%) – 2017    rate (%) – 2016      rate (%) – 2015

          Serviced             15          289            42                 45.2                 43.8

          Self-catering        19          118           30.9                22.5                 27.3
9
Domestic Tourist

                 Total Average Spend                                 Total Average Trips                                   Total Average Nights
900,000                                              14,000                                               50,000

800,000                                                                                                   45,000
                                                     12,000
700,000                                                                                                   40,000
                                                     10,000                                               35,000
600,000
                                                      8,000                                               30,000
500,000
                                                                                                          25,000
400,000                                               6,000
                                                                                                          20,000
300,000
                                                      4,000                                                15,000
200,000                                                                                                   10,000
                                                      2,000
100,000                                                                                                    5,000

          2012    2013   2014   2015   2016   2017            2012    2013   2014   2015   2016   2017              2012    2013   2014   2015    2016   2017

   Tourism statistics                                Travel trends
   During the 2017 season                            Experience over ownership:                          location, wildlife and experience
   approximately 70,600 tourists                     travellers in 2018 want experiences                 that has brought visitors to the
   enjoyed the Falkland Islands                      they can share on social media. The                 location. The Falkland Islands
   as a destination. This included:                  backlash of society against owning                  provides a haven from the fast-paced
                                                     more is being replaced by increased                 lives people are escaping on their
   – 57,500 day tourists from                        experiences that they can share with                travels.
     cruise and expedition ships,                    the world. More than anywhere the
   – 1,650 overnight tourists,                                                                           Technology rules: over 90% of
                                                     Falkland Islands is able to capitalise
   – 11,450 domestic tourists.                                                                           holidays and trips are now booked
                                                     on the “experience of the remote”,
                                                                                                         online. In order to maximise
                                                     the tours and activities that can be
                                                                                                         bookings and capacity online
                                                     provided to tourists to give them
   Tourism forecasts                                                                                     booking systems or availability
                                                     an additional experience beyond
                                                                                                         calendars ensure that tourists
   Domestic tourism has increased                    the location. This includes guided
                                                                                                         and tour operators can manage
   significantly since 2015, limiting                trips to wildlife, farm tours, Smoko,
                                                                                                         itineraries to fit efficiently.
   factors are widely understood to be               arts and craft courses, all of which
   availability as domestic tourism                  provide the visitor with an enhanced                 Unusual accommodation:
   tends to be marginally less seasonal              experience.                                          accommodation in renovated
   than international tourism.                                                                            industrial pipes, eco-huts etc,
                                                     “Simplicity” is the new buzz word:
                                                                                                          are increasingly becoming
                                                      providing a simple but quality
                                                                                                          more common and sought after
                                                      service. Travellers no longer want
                                                                                                          as tourists aim to increase the
                                                      to be burdened by options and
                                                                                                         “Instagram-ability” of their holiday.
                                                      choice. This is about ensuring that
                                                      the accommodation does not detract
                                                      (positively or negatively) from the

                                                                                                                                                         10
What’s on Offer
The purpose of this document is to         to be in the highest demand compared
attract investors and developers, both     to accommodation in Stanley, with
local and international, to take the       destinations booking up over a year
opportunity to invest, construct and       in advance.
operate tourist accommodation in
the Falkland Islands.                      The environment and remoteness
                                           are key USPs for the Falkland Islands
The potential to expand on the             which also ensure that it will continue
current accommodation provided in          to be a unique and niche destination.
the Falkland Islands is significant.       Tour operators continue to turn away
The continued increase in population       visitors due to lack of accommodation
and planned additional air link to         at key times of the year.
South America will put pressure
on the already strained demand             Therefore, opportunity exists to
on accommodation throughout the            increase accommodation to meet
Falkland Islands. It is anticipated that   more of the existing overseas tourist
the additional air link will also result   demand and then target domestic
in expedition cruise ships using the       tourism.
Falkland Islands for more passenger
                                           The workforce in Stanley and MPA
exchanges.
                                           relies heavily on contracted staff
One of the key restrictions for            who hold 2-4 year work permits.
accommodation availability in camp         The turnover of these contracted
during the summer season is that           staff result in a consistent supply
visiting groups tend to be large groups    of domestic tourists to all regions
of individuals, who require individual     of camp.
rooms and facilities.

Individual visitors (outside of
a tour group) tend to be more
flexible and can amend their tours
to fit availability. Availability of
accommodation in camp continues

11
Investing in the Falkland Islands

Tax                                        Labour                                    Visitor’s Permit
Tax rates in the Falkland Islands          At the moment, the Falkland Islands       A visitor’s permit grants leave to the
are reasonably straight forward            enjoys virtually full employment.         holder to enter and remain in the
and comparably lower than other            Falkland Islanders are known              Falkland Islands for a specified period
countries. Businesses that generate a      to be hardworking, resourceful            of time. A person may apply for a
profit of under £500,000 are charged       and knowledgeable people, with            visitor’s permit on arrival, but where
at a rate of 21% and those that generate   many holding more than one job.           this occurs it will ordinarily be issued
a profit over £500,000 at 26%.             Organisations often look abroad to fill   for a maximum period of one month.
                                           roles, with labour originating from
Personal tax rates are also relatively     Chile, Saint Helena, the UK, Australia    However, it may subsequently be
simple. Each individual receives an        and North America.                        extended for up to a maximum of 12
allowance of £15,000 per annum. A                                                    months. A visitor’s permit may not
tax rate of 21% is applied to earnings                                               be granted or extended without the
between £15,000 and £26,000 per            Immigration                               Governor’s consent.
annum, and for earnings over £26,000
per annum a rate of 26% is charged.        Under the Falkland Islands visa
                                           regime certain nationals seeking          Work permit
The Falkland Islands does not impose       to enter the Falklands as visitors
Value Added Tax (VAT) or General           or to take up temporary residency         A work permit grants leave to the
Sales Tax (GST).                           (including for employment purposes)       holder to enter, depart and reside in
                                           must first obtain a visa. Unlike the      the Falklands during the period of its
Historically an additional tax relating                                              validity and to take employment with
                                           UK and numerous other countries,
to businesses and labour has been                                                    a specified employer or on one’s own
charged called the Medical Services        a Falklands’ visa is not an entry
                                           clearance in itself but is a form of      account engage in any trade, business
Tax (MST). MST is currently held at 0%.                                              or vocation stated in the permit. In
                                           pre-assessment to establish whether
                                           an applicant’s intentions appear          order to obtain a work permit the
                                           legitimate and they appear to be of       holder must prove that they have
                                           good character.                           accommodation within the islands.
                                                                                     Currently work permits can be
                                           The routes available to persons (not      issued for a maximum of four years,
                                           exempt from immigration control)          after which they must apply for an
                                           seeking to enter the Falkland Islands     extension or a Permanent Residence
                                           are a visitor’s permit, work permit       Permit.
                                           or (temporary) residence permit and
                                           these are explained below.

                                                                                                                          12
Residence permit                         Permanent Residence Permit              Land Ownership & Immigration

A residence permit grants the holder     A permanent residence permit            Where a non-resident is seeking
to enter, depart and reside in the       grants indefinite leave to the holder   permission to buy land in the
Falklands during the period of its       to enter, depart and reside in the      Falkland Islands in connection with
validity. The holder of a residence      Falklands and to take any lawful        a desire to immigrate into or have a
permit and where applicable, any         employment of pursue and lawful         second home in the Falkland Islands,
dependents included in the permit        business, trade, profession, or         the application should ordinarily be
are entitled to apply for work permits   vocation in the Falklands without       coupled with an application for an
if they wish to subsequently take        needing a work permit. Where            immigration permit.
up an employment opportunity. If a       an application for a permanent
‘primary’ work permit is then applied    residence permit is approved,
for and granted to a residence permit    any dependents included in the          Purchasing Land
holder, it has the effect of revoking    application of a principal applicant
their residence permit as the work       will also be granted a permanent        An individual who is not a Falkland
permit will then take precedence.        residence permit in their own right.    Island Resident requires a licence
                                         The annual number of permanent          to be able to purchase land in the
A residence permit must be applied       residence permits that may be           Falklands, which is approved by the
for from outside the Falklands expect    granted is controlled by a quota        Falkland Islands’ Governor. In respect
in respect of a person who has a         system. The current quota is 44         of companies, a licence is required to
valid work permit or is included         persons per annum (as at 2018).         purchase land in the Falkland Islands,
as a dependent on a work permit.                                                 unless 75% of its voting shares are
The validity of a residence permit is                                            owned by Falkland Island residents
limited to a maximum of three years                                              or the company’s central control
but may be renewed or extended.                                                  and management is located in the
                                                                                 Falkland Islands for tax purposes.
                                                                                 Special provisions have been known
                                                                                 to be granted, for example Falkland
                                                                                 Islands Company Limited, Standard
                                                                                 Chartered Bank and Cable & Wireless
                                                                                 Plc. There have been several cases
                                                                                 of private overseas individuals
                                                                                 purchasing land in the Falkland
                                                                                 Islands.

13
Inward Investment                       Grants and Loans available in
                                        the Falklands
FIG (Falkland Islands Government)       Existing landowners can apply for
wishes to encourage inward              Tourist Accommodation Grants at
investment in the Falkland Islands      the Tourist Board which provide 50%
by non-residents purchasing land.       funding up to £20,000 per annum in
FIG will favourably consider any        order to improve and build Tourism
applications for acquisitions of land   Accommodation.
in the Falkland Islands related to
appropriate inward investment,          In addition to this funding, FIDC
where applications are supported        (Falkland Islands Development
by strong business plans. Also, other   Corporation) offer Business Loans at
factors are considered, such as the     competitive rates along with business
impact that the proposed investment     advice and support and grants
might have in relation to the natural   for renewable energy and new
and human environment of the            businesses under certain conditions.
Falkland Islands, any strain it might
effect on the size of the population,
including any need it might generate
to import labour.

An application for a licence to
acquire land which is associated
with a proposal for the formation
of a joint venture with a business
owned by residents, subject to the
considerations already mentioned,
will be likely to be favoured.

                                                                                14
Key considerations in camp                                                      Ecotourism in the Falkland Islands

Accessibility — not all locations     Electricity can be generated through      As an industry that relies on its wildlife
for development have roads built      a generator (which will require           and surrounding environment, the
to them. This can considerably        fuel) or through renewable energy.        Falkland Islands Tourism industry is
increase the cost and time spent      Through local resources (Peat             committed to championing ecotourism.
building and also visiting the        burning) it should be possible to         In order to ensure tourism development
location. In addition, the lack of    generate sufficient heating off grid.     is sustainable in the Falkland Islands,
necessities at the accommodation                                                many of the local businesses have
requires either visitors to bring     Waste disposal can be much harder in      started initiatives. These range from
absolutely everything they might      an area that is hard to access (septic    reducing plastic usage through to
need, or to ensure that there is a    tanks are hard/impossible to empty)       incentives to use reusable products.
steady minimum supplies available.    and there is no built-in sewerage
                                      readily available. Increasingly popular   Alongside the Falkland Islands
Facilities — water, electricity,      options on the market include             Tourist Board Accreditation Scheme,
waste disposal. In camp the           compost toilets, long drops and           there is the Green Seal Scheme. This
provision of these key facilities     reed bed sewerage treatment.              initiative promotes sustainable and
become exponentially harder as                                                  responsible tourism that monitors the
they require either stand-alone       Also to be taken into consideration       impact tourism has on its surrounding
facilities or a connection to         should be the time requirement of         environment and how it is managed.
existing facilities.                  preparing a property before and after
                                      use of visitors.                          The Falkland Islands Tourist Board
For water, either a well or spring                                              is keen to promote the sustainable
could provide a natural resource,                                               development of tourism in the Falkland
where this is not available (or                                                 Islands and environmentally friendly
is sufficient to not meet demand)                                               policies and initiatives.
it may be that a water bowser is
required. This will require regular
topping up and replacement to
ensure it is not harbouring any
bacteria.

15
Photography Credits:                   Further information

Guy Wenbourne, Jackie Adams, Derek     Further information can be obtained
Pettersson, Dominic Couszens, Nigel    from the following offices regarding
McCall, Danielle Riley, Klaas Lukas,   the information provided in this
The Falkland Island Tourist Board.     document:

                                       Falkland Islands Tourist Board
                                       Jetty Visitors Centre,
                                       Philomel Street
                                       Stanley, The Falkland Islands
                                       Tel: +500 22215
                                       Email: info@falklandislands.com
                                       Web: www.falklandislands.com

                                                                         16
You can also read