The Revenue Streams Of Belize: Tourism, Trade, And Beyond

Belize is a small, developing free-market economy that is primarily based on agriculture, tourism, and services. The country's economy is susceptible to external market changes and has a growing trade deficit. Belize's primary exports are citrus fruits, sugar, bananas, and seafood, with the US being its largest trading partner. The country also has a history of stable democratic governance and a strong tradition of civilian control over its military. Tourism is the leading industry in Belize, contributing significantly to foreign exchange earnings and employment. The country's diverse natural attractions, including the Belize Barrier Reef and Mayan ruins, make it a popular destination for international tourists, particularly those from the US.

Tourism

Belize's economy is primarily based on tourism, agriculture, and services. In 2022, the country's GDP grew to US$2.95 billion, a 12.1% increase from the year before. Tourism is the leading industry in Belize, accounting for approximately 40% of the country's economy.

Belize has a lot to offer tourists, from its beaches and lush jungles to its multiple islands, making it an ideal destination for those seeking adventure or relaxation. The country's diverse landscape provides opportunities for activities such as ziplining, boating, scuba diving, snorkelling, fishing, swimming, cave rafting, and more.

Belize is also home to the Belize Barrier Reef, the second-largest reef in the world, and over 450 offshore Cayes (islands). The reef is a popular spot for divers, snorkelers, and biologists, as it is home to hundreds of species of coral and fish. In addition, Belize has numerous rivers for rafting and kayaking, as well as various jungle and wildlife reserves for hiking, bird watching, and helicopter tours.

The country's rich history and culture are also a significant draw for tourists. Before the arrival of Europeans in America, Belize lay in the heart of the Maya civilisation, and as a result, it contains some of the earliest and most important Maya ruins. Popular tourist destinations include San Pedro Town and Caye Caulker, located just a few miles off the coast of Belize and close to the Barrier Reef.

The growth in tourism has positively impacted other industries in Belize, including agriculture, commercial, finance, and construction. In 2012, Belize welcomed almost one million tourists, with tourist receipts amounting to over $1.3 billion. In 2022, international tourism revenues surpassed 2019 levels, with annual cruise and overnight arrivals nearing one million visitors. U.S. tourists accounted for a significant majority of travellers, with over three-quarters of all international visitors coming from the U.S.

Agriculture

Sugar is the largest agricultural export for Belize, accounting for 50% of domestic export revenues and half of all arable land use. Sugarcane is grown in the north of the country, particularly around the towns of Corozal and Orange Walk. In 1999, the United States and the European Union were the largest buyers of Belizean sugar, with the preferential quotas and tax rates granted by these regions keeping sugar revenues high.

Fruits, such as bananas, oranges, and grapefruits, are the second-largest agricultural export. Banana production alone accounted for 16% of total exports in 1999. Fruit production occurs mainly in the Stann Creek Valley and is susceptible to weather conditions and international market fluctuations. Citrus fruits are the second most important agricultural crop in Belize.

Belize's agricultural sector also includes livestock farming, with increased rearing of cattle, pigs, and poultry contributing to self-sufficiency in meat and poultry products. In 1999, Belizean slaughterhouses produced 3.3 million pounds of beef and 1.9 million pounds of pork, with some of this output exported to neighbouring countries.

The country's agricultural success is supported by significant rainfall and a stable year-round subtropical climate. However, Belize faces challenges such as the need for value-added agriculture investments to expand irrigation, product storage, and modern agricultural equipment.

Exports

Belize's economy is a small, private enterprise economy based primarily on agriculture, tourism, and services. The country's exports include:

• Citrus fruits: Oranges and grapefruit are grown in the Stann Creek and Cayo areas, south and west of Belize City. Citrus fruits are Belize's second most important agricultural crop and a major export.
• Sugar: Sugarcane is grown in the towns of Corozal and Orange Walk, and sugar is exported to the United States and the European Union. Sugar is Belize's primary export and makes up about two-thirds of total exports.
• Bananas: Grown in the Stann Creek and Cayo areas, bananas are another key export for Belize, although they have been affected by world price fluctuations. In 1999, banana production accounted for 16% of total exports.
• Seafood: Exports of seafood, including lobster, shrimp, scale fish, conch, and sea turtles, to the United States are substantial. Belize's marine exports also include marine products such as cane sugar.
• Apparel: U.S. trade preferences have allowed for the duty-free re-import of finished apparel cut from U.S. textiles, significantly expanding the apparel industry in Belize.
• Mahogany: While mahogany exports declined in the late 19th century due to market fluctuations and the slow regrowth rate of the trees, mahogany is still a valuable natural resource in Belize.
• Other agricultural products: Belize also exports corn, kidney beans, rice, papaya, maize, and soy.

Foreign trade

Belize's economy is small and private enterprise-led, with its primary sectors being agriculture, tourism, and services. The country's exports include agricultural produce, seafood, and manufactured products. In 2022, the gross domestic product (GDP) of Belize was US$2.95 billion, a 12.1% increase from the previous year.

Belize's economy is heavily dependent on foreign trade, with the United States as its primary trading partner. In 2022, the US accounted for 42% of Belize's overall imports, totalling $575 million, and was the second-largest export destination after the UK, receiving 20% of exports, or $48 million. The US is also the leading source of investment funds for Belize, with trade in goods between the two countries totalling $644.09 million in 2022.

Belize's other major trading partners for imports include the People's Republic of China, Mexico, the European Union, and other Central American countries. All other major export partners are members of the European Union or the Caribbean Community (CARICOM). Belize has a preferential trade agreement with Guatemala and is a beneficiary of the Caribbean Basin Initiative (CBI), a US program that provides duty-free access to the US market for most Caribbean products.

The country's proximity to the US makes it an attractive market for American exports, with easy accessibility by air, land, and sea. Belize is the only predominantly English-speaking country in Central America, and its workforce is relatively highly skilled, with higher wages driving demand for American consumer goods.

Belize has a history of stable democratic government, with a strong tradition of civilian control over its military. The country's political parties, which are centre-left and centre-right, often share similar views on trade, economics, and development.

The country's foreign trade policies are formulated by the Directorate General for Foreign Trade Belize, which is also responsible for implementing trade agreements, conducting research, and negotiating trade agreements with partner countries.

Tax haven

Belize is considered a tax haven, offering many tax advantages to businesses and individuals looking to form an offshore company. The country's legal system is based on English Common Law, and English is the official language, making it simple for Anglo-based countries to understand. Belize also has a stable political system with a long history of peaceful and democratic development, and it is not blacklisted by the FATF and OECD.

One of the main attractions of Belize as a tax haven is the privacy it offers. Information about beneficial owners, shareholders, directors, and officers is not filed with the Belize government and is not available to the public. Additionally, there is no requirement to reveal beneficial ownership to government authorities. Belize also has a modern banking system with several major commercial banks that offer a full range of domestic and offshore services. Companies in Belize can maintain bank accounts in other popular tax havens and may open a bank account in any country.

Another advantage of Belize as a tax haven is the speed and simplicity of incorporation. It normally takes one business day to incorporate an International Business Corporation (IBC) in Belize, and there is no requirement for a secretary or local shareholders and directors. Only one shareholder and one director are needed, and they can be the same person. Meetings of shareholders and directors can be held anywhere in the world and at any time, and they may attend by proxy.

Companies incorporated in Belize also enjoy total exemption from all forms of local taxation, including stamp duty. IBCs headquartered in Belize pay no taxes on profits earned outside the country. There is also no double taxation, as Belize does not have any double taxation treaties with other countries. Companies are not required to file annual tax returns, and there are no minimum paid-up capital requirements. Additionally, offshore business activities are exempted from exchange control in Belize.

The ease of doing business in Belize is further enhanced by the availability of free zones, such as the Commercial Free Zone (CFZ) at Corozal, which provide facilities for manufacturing and other business activities. Companies located in these free zones enjoy a 10-year tax holiday and other tax incentives, such as a reduced income tax rate for employing local residents.

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