The economy of
Jersey is largely driven by international financial
services and legal services, which accounted for 40.5% of total GVA in
2010. Other sectors include construction , retail , agriculture ,
tourism and telecommunications .
In 2008 Jersey’s gross national income per capita was among the
highest in the world.
In 2011 the island's economy, as measured by GVA , declined by 1% to
* 1 Financial & legal services
Retail & wholesale
* 5.1 Hotels
* 6 Transport, storage & communication
* 7 Stock exchange
* 8 Seasonal workers
* 9 Traditional & historical economy
* 9.2 Textiles
* 9.3 Ship building
* 10 Historical exchange rates
* 11 Taxation
* 12 External links
* 13 See also
* 14 References
FINANCIAL "> Royal Bank of Scotland building.
Jersey based financial organisations provide services to customers
worldwide. In June 2008 it was reported that 12,070 people were
employed full-time, within this sector. The Royal Bank of Canada
(RBC) is a major employer with some 900 staff employed in Jersey, as
of March 2009.
The finance sector profits rose to about £1.5 billion in 2007,
representing a real-term increase of 12% on 2006. Logo of the
Jersey Financial Services Commission
Jersey is one of the top worldwide Offshore financial centers It is
described by some as a tax haven . It attracts deposits from
customers outside of the island, seeking the advantages such places
offer, like reduced tax burdens. Its taxation laws have been widely
criticised by various people and groups, however the former Chief
Terry Le Sueur , has countered these criticisms,
saying that "
Jersey among cooperative finance centres". And in
September 2013 the UK Prime Minister, David Cameron, said it was not
fair any longer to refer to any of the overseas territories or Crown
dependencies as tax havens, as they have taken action to make sure
that they have fair and open tax systems.House of Commons Hansard 9
Sept 2013 Its information privacy law also provides exemptions that
other European countries do not, for example in the way
Trusts do not
have to disclose as much information to Benficiaries about use of
their personal data as is normally required under such laws.
Jersey's finance industry featured in a
BBC Panorama documentary ,
titled "Tax me if you can", first broadcast on 2 February 2009.
On 4 February 2009
Jersey Finance officially announced its intention
to open a new representative office in London.
At the end of 2008 deposits in
Jersey banks totalled £206 billion,
down £6.2 billion from £212.3 billion at the start of the year.
The first regulated
Bitcoin fund was established in
Jersey in July
2014, with the approval of the
Jersey Financial Services Commission,
after island leaders expressed a desire for
Jersey to become a global
center for digital currencies. At the time of the establishment of the
fund by a Jersey-based hedge fund company,
Bitcoin was already being
accepted by some local businesses.
Construction represented 5.2% of GVA during 2007. In June 2008 it was
reported that 4,980 people were employed full-time in the construction
and quarrying sector.
St. Helier , and the Waterfront area in particular, has seen much
redevelopment during the early 21st century, with several projects in
planning or under-construction during 2009. Developments include a
leisure complex, the Radisson hotel, and a new central bus station -
Liberation Station. As of 2009 there are plans to sink the A1 road, to
provide building sites above it for offices, possibly for financial
Construction grew by 8% over the period 2006 to 2007.
RETAIL & WHOLESALE
As of June 2008 there were 6,610 persons in full-time employment
within Jersey's wholesale & retail trades.
Retail and wholesale grew by around 5% during 2007.
Sandpiper C.I. Limited operate a chain of stores in Jersey, their
franchises include well-known names, such as Marks "> Hotel de
Jersey saw a boom in tourism during the post-World War II years. This
boom has been winding down since the late-1980s. Many of the larger
hotels, which were constructed during the boom, have now been
Visitors to the island arrive either by sea at
Saint Helier , or by
Jersey Airport . These routes are subsidised by the States of
Jersey . Exact figures for subsidies are not in the public domain.
Visitor length of stays have reduced from an average of 5.7 nights,
in 1997, to 4.3 nights, in 2010.
Most tourist attractions are operated by private companies, including
companies owned, or funded by the States of Jersey.
Elizabeth Castle ,
for example, is controlled by
Jersey Heritage . Some other attractions
are owned by the National Trust for
In 2011 visitor numbers rose by 0.6%, with a notable increase in
visitors from Germany, and France. It was reported that tourist and
business visitors spent a total of £242m while on the island.
Notable hotels include:
* the Pomme d'Or overlooking Liberation Square in St. Helier, which
during the occupation served as the German Navy Headquarters and from
whose balcony the Liberation force raised the Union Flag on Liberation
Day, 9 May 1945;
* the Hotel de France, formerly the Imperial and the Jesuit college,
in St. Saviour overlooking the town of St. Helier;
* Atlantic Hotel ,
* Château La Chaire , Rozel Bay
* Longueville Manor , St. Saviour
* Ommaroo Hotel ,
* Royal Yacht Hotel ,
* St. Brelade\'s Bay Hotel ,
Atlantic Hotel (Jersey)
Atlantic Hotel pool
Royal Yacht Hotel
TRANSPORT, STORAGE & COMMUNICATION
See also: Transport in
This sector accounted for 4% of GVA during 2007.
Most of the telecoms infrastructure is owned by
Jersey Telecom .
In 2008, most goods imported and exported were transported by
Huelin-Renouf, Condor Logistics, and other smaller operators, via
Saint Helier harbour, or
Jersey Airport .
During the period 1984 to 1994,
British Channel Island Ferries were
responsible for much shipping to and from the
United Kingdom .
The International Stock Exchange (TISE) with
where it is based.
The workforce in
Jersey tends to increase during the summer months,
with around 3,500 more people employed in the summer of 2008 than in
the winter of 2007. These seasonal workers are mostly employed in
agriculture, hotels, restaurants and bars.
Jersey pound is at par with the British pound.
Until the twentieth century, the States relied on indirect taxation
to finance the administration of Jersey. The levying of impôts
(duties) was in the hands of the Assembly of Governor, Bailiff and
Jurats until 1921 when that body's tax raising powers were transferred
to the Assembly of the States, leaving the Assembly of Governor,
Bailiff and Jurats to serve simply as licensing bench for the sale of
alcohol. The Income Tax Law of 1928 introducing income tax was the
first law drafted entirely in English.
Income tax has been levied at a
flat rate of 20% for decades.
VAT was levied in Jersey, with the result that
luxury goods have often been cheaper than in the UK or in France. This
provided an incentive for tourism from neighbouring countries. The
VAT also led to the growth of a fulfilment industry,
whereby low-value luxury items, such as videos, lingerie and contact
lenses are exported in a manner avoiding
VAT on arrival , thus
undercutting local prices on the same products. In 2005 the States of
Jersey announced limits on licences granted to non-resident companies
trading in this way. The States of
Jersey introduced a goods and
services tax (GST) in 2008. Although this is a form of VAT, it has
been charged at a much lower rate than UK or French VAT, and as such
Jersey's fulfilment industry continues.
The strategy for introducing the new GST tax was to fill a 'black
hole' in the budget that was created by the introduction of a new 0/10
tax that replaced the old tax system that previously exempted foreign
investors from corporation tax and levied a 20% rate on Jersey
residents. The new 0/10 tax exempts all businesses except those in
financial services from having to pay any corporation tax (0%), while
leaving the financial services to pay a low tax rate (10%). The income
generated from the new 0/10 tax proposal will not be equal to the
revenue of the original tax system and this leaves
Jersey with a
deficit in their budget of several million pounds.
To fill the deficit created by the changes made to Jersey's tax
structure, the States of
Jersey introduced GST. GST is added to most
goods and services, which has raised the cost of living. The people
hit the hardest by the new GST will be the people on the lowest
incomes, however, to try to prevent islanders living below the poverty
line, the States of
Jersey introduced an Income Support service in
It is arguable that the people who benefit from Jersey's new tax
structure are the owners of the large businesses that are separate or
support the financial service based businesses. This is because they
do not have to pay any corporation tax but will still benefit from the