Remittances from the Cayman Islands to Jamaica have been growing exponentially, and money transfer agents here are predicting that the commercial linkages between the two markets will keep the flows robust.According to Bank of Jamaica data, Jamaica received just under US$1.77 billion in remittances in 2006, with the leading sources being the United States, followed by the United Kingdom and then Cayman Islands.But that year the flows from Cayman were at their most robust, rising 99 per cent to US$161.9 million from US$81 million in 2005.Before then, the yearly growth in remittances from Cayman within this decade was 15 per cent on average.The 2006 flows pushed the annual rate to about 52 per cent, compared to the overall market which grew at a rate of 21 per cent.The final numbers for calendar 2007 are not yet in, but up to September, overall remittances or private transfers recorded at US$1.3 billion were tracking 13 per cent above the previous year.
Post-'Ivan' remittances
The flows from Cayman began to take off following Hurricane Ivan, which hit September 2004 - linked directly to the workers who migrated there to help the tiny but high income population of approximately 47,000 rebuild.Money agents say while the activity has seen some decline, construction is still vibrant on the island."It's a growing market," Kenarthur Mitchell, president of Kingston-based Quik Cash-Sun Money Transfer, told the Financial Gleaner."You still have a lot of construction going on in Cayman, and there is a demand for Jamaican talent."Work permits issued reportedly top 10,000.JN Money Services Limited which claims itself as "a leader among remittance companies in the Cayman market", says business potential also rests in the island's vibrancy as an offshore banking and tourism centre.
Colonial history
The two islands have a shared colonial history, with Cayman - which remains a British dependency - at one time being administered from Jamaica.
Remittance flows to Jamaica (US$m)Source 2005 2006 2006 Share
| US | 972.7 991.5 | 56.0% | |
| UK | 405.3 420.3 | 23.8% | |
|
| Cayman 81.1 | 161.9 9.2% | |
| Other 81.1 87.9 | 5.0% | |
|
Source: BOJ
