Economy:
According to the Economic Affairs Division of the Isle of Man Treasury, the island's GDP has nearly tripled, at constant prices, in the last 20 years to just over £1 billion in 2001. Figures published by the Treasury show that the inflation rate increased consistantly throughout 2002 to reach 4 per cent by the end of the year.

The Isle of Man has become a thriving international finance centre. Between 2000 and 2001, approximately 41 per cent of income generated on the island came from financial services, with principle activities including asset protection and management, corporate management, deposit taking, life assurance and packaged investments. In 1983 the island's government created the Financial Supervision Commission (FSC) and, in 1986 the Insurance and Pensions Authority (IPA). These bodies are charged with regulation of the finance sector and the development of systems to protect the interests of depositors, investors and policyholders. According to figures published by the FSC and IPA in January 2001, there are 64 licensed banks and 16 life assurance companies on the island with bank deposits worth in excess of £24 billion and life assurance funds under management worth more than £12 billion. In 2001, the island won two awards in recognition of the quality of its financial services, 'Best International Offshore Services Centre 2001' from International Investment and ' Best Offshore Centre 2001' from International Money Marketing.

Whilst finance is by far the most dominant sector, in terms of its contribution to GDP, the Isle of Man has maintained a diverse and well-balanced economy combining a growing manufacturing sector, shipping industry and film industry with the more traditional industries of tourism, agriculture and fishing.

Local Infrastructure:
The Island's Airport is situated 9 miles to the south of Douglas and handles in the region of 700,000 passengers a year. There are frequent flights between the airport and numerous destinations throughout the UK and the Channel Islands, including Belfast, Birmingham, Dublin, Glasgow, Jersey, London and Manchester.

The island has several main ports located at Douglas, Peel, Ramsey and Ronaldsway. Douglas is the principle port on the island and has facilities for handling general cargo, bulk oil and gas cargo as well as roll on/roll off ferries and cruise liners. Peel has facilities for dealing with bulk oil cargo, general cargo and some passenger taffic, while Ramsey handles general and bulk cargo. The Ronaldsway Freeport, located near to the airport, is the first and only offshore Freeport in Europe and allows goods imported and exported into the port to avoid attracting certain duties. Goods can be stored inside the port area for an indefinite period and a variety of manufacturing, processing and assembly operations can be conducted within the port's designated area.

The best way to travel around the island itslef is by road. There is a comprehensive bus service run by the Government and all major towns have fleets of taxis.

Local Workforce:
According to the 2001 census the economically active population on the island was 39,685, which is an increase of nearly 5,000 on the figure for 1996. Unemployment as a percentage of the economically active population stood at just 1.6 per cent. Among the sectors providing major employment on the island are Retail Distribution, Manufacturing, Public Administration, Banking, Medical and Health Services and Transport and Communications. Traditionally the island has benefited from good industrial relations and, compared with the UK, strikes are a rare occurance.

Moving staff to the island is relatively easy. British citizens, or those who have a right of abode in the UK, can move to the Isle of Man without the need for immigration or property controls, necessary for other offshore territories. Otherwise immigration requirements are the same as for the UK and there are not normally any difficulties obtaining residence. People who have been resident on the island for less than 5 years require a work permit, but again these are not difficult to obtain. Furthermore, unlike the Channel islands, in the Isle of Man there are no restrictions or conditions imposed on property ownership.

Business Costs:
Figures from the Isle of ManTreasury show that average wage rates on the island are approximately 95 per cent of earnings in Great Britain. The average gross weekly earnings on the Isle of Man during June 2002 were £340.92 for manual workers and £477.88 for non-manual workers.

Businesses on the island benefit from the Isle of Man's low tax regime and, providing certain criteria are met, there are numerous financial aids available from the government to both established island concerns and incoming enterprises. Grants are available for a variety of needs including buildings and machinary, start up costs, training and marketing and there are also government loans available with modest interest rates and the option to defer repayment.