Although allied to the English Crown, Jersey retains a distinctly continental flavour to its look and customs. Outside the Island's commercial centre, where global business is transacted, a rural charm has been preserved which helps to give the Island its unique atmosphere.

Jersey is the largest and most southerly of the Channel Islands, a group that also includes Guernsey, Sark, Alderney and Herm. Just 14 miles from the coast of France and 100 miles south of mainland Britain, although Jersey is only 45 square miles it has a population of approximately 87,000.

The Island's special relationship with the British Crown is enshrined in 800 years of history and 2004 will see Jersey celebrating a link with the crown of England that dates back to 1204 and the reign of King John. At that time, when King John relinquished some of England's continental lands to France, the Channel Islands were given the option of staying with the English Crown if they so desired. Choosing allegiance to the Crown, that unique constitutional relationship has been preserved through charters and customs over the centuries.

Jersey is not represented at Westminster but has its own government - the States of Jersey -- elected from the residents of the Island. The States Assembly looks to the United Kingdom to represent the Island in foreign affairs, but retains total autonomy on domestic matters, including fiscal affairs and taxation. It is this combination of political stability and economic independence that has enabled the Island to develop into a hugely successful financial services centre.

Economy:
The most important sector of the Jersey economy is the financial services industry, which according to the Jersey Government contributes more than 60 per cent of the GDP, and employs more than 25 per cent of the working population.

Home today to about 60 banks from the United Kingdom, Europe, North America, Asia, the Far East, the Middle East and South Africa, all are in the list of the top 500 banks in terms of capital strength. At the end of September 2002, £136 billion was on deposit in Jersey, of which £93 billion was in currencies other than sterling. The value of funds in the Island stood at £97 billion at the same date.

Jersey's finance industry is renowned for the breadth and depth of services it provides to the international business community, the skilled network of practitioners that work from its financial district in the capital - St Helier - and for the quality of the regulation and legislation that underpins its success.

Jersey, The International Financial Centre >>

Tourism is another major contributor to the economy. According to the Government of Jersey it provides around 24% of GDP. Of the 1.21 million arrivals at Jersey Airport and the harbours in 2001 approximately half a million were leisure visitors. 82% of visitors came from the United Kingdom, although there is a steady influx of visitors from the European Union, particularly from Holland, Portugal and Ireland.

Tourists can enjoy some of the best beaches in the world, virtually all of which pass the most stringent tests for water quality and cleanliness, and most of which are safe for swimming and water sports. Surfing is prominent at the Island's largest beach - St Ouen's Bay - and it is rare for any local beaches to be crowded to the same extent as those at popular European resorts.

Away from the sea, there are paths to walk and stunning scenery to view amid the cliffs that rise 400 feet on the north coast of the Island. Jersey also offers a wonderful network of narrow, green lanes tucked away in the countryside for exploration on foot or by bicycle, and a range of first-class restaurants, bistros, cafes and bars. Festivals are arranged throughout the year including the world-renowned Battle of Flowers parade in August and there are a host of top quality attractions such as the Island's zoo - the Durrell Wildlife Conservation Trust - which was made famous by the naturalist and writer, Gerald Durrell, who established the centre in the 1960s and pioneered captive breeding programmes.

When visitors are not exploring the Island's countryside and shoreline, the town of St Helier is a magnet for shoppers. With its lack of VAT and the diverse range of high street shops in the pedestrianised centre of town, it has always been popular with tourists.

Jersey's cultural heritage is evident throughout the Island with castles, restored houses and a number of museums to visit. Two fabulous fortifications - Mont Orgeuil and Elizabeth Castle - are testimony to the Island's need to defend itself from French invaders over the centuries. More recently, the concrete bunkers surrounding parts of the Island's coastline are a stark reminder that only 60 years ago, Jersey and the other Channel Islands were the only part of the British Isles occupied by the Germans during the Second World War.

Outside St Helier, the Island still boasts an extraordinary patchwork of green fields, and on the west coast, there is an expansive dune system - one of the best preserved in Europe. The Jersey Cow is still the only form of cattle permitted, and the sight of many herds of cattle grazing in the lush countryside completes the Island's rural feel while also providing a reminder of the Island's third industry.

Today agriculture contributes five per cent of GDP, and agricultural exports - consisting mainly of potatoes, tomatoes and cauliflower - are destined, for the most part, for the UK.

Infrastructure:
Jersey has an international airport providing regular air links with London, Manchester, Paris and other major European cities. Approximately 603,000 passengers come through Jersey Airport every year, while another 315,000 arrive at the harbour from England, France and the other Channel Islands.

The States of Jersey Policy and Resources Department (SJPRD) 2001 Census showed that Jersey has 350 miles of roadways, and with 620 cars per 1,000 private residents, the roads are crowded, especially in St Helier, where 30 per cent of the Island's population live. A regular bus service runs to all parts of the Island, but most finance industry businesses are based in St Helier and are generally within walking distance of the town centre.

Telecommunications:
Jersey is well served by a modern telecommunications network, and a new competition law will allow further competition within the industry in the near future.

Domestic and business telephone services are used throughout the Island, and are reasonably priced. GSM mobile phone use is also widespread.

Broadband and high speed internet connections are easily available to domestic and business customers, and the SJPRD 2001 Census showed that 38 per cent of households have a computer, with internet access available, in the home.

A variety of products aimed at business and business solutions are available, and Jersey-based technology departments of several financial institutions have earned plaudits and recognition for producing quality resources for business clients.

E-commerce is a growing sector of the economy with a number of firms establishing a presence in the Island to develop their on-line services.

Local Workforce:
The 2001 Census recorded a local workforce of 45,575 people, with an unemployment rate of less than one per cent. Jersey has a highly educated population, with 12 per cent of the total workforce holding a first degree or equivalent. Approximately 83 per cent of Jersey students of school-leaving age stay at school to study for A-levels or equivalent compared to a rate of 58 per cent in the United Kingdom. According to the SJPRD 2001 Census, many employees, particularly in skilled and unskilled manual, or service industry positions, speak at least one other language fluently, often as a mother tongue - and 6.4 per cent of the population describe themselves as of Portuguese or Madeiran origin.

Jersey has very strict housing laws which specify who can rent or buy a property and, more specifically, who can live in it. Most people who come to Jersey can only live in 'unqualified' accommodation, which can be expensive. Some people are granted 'essential employee' status by the Housing Committee and are required to occupy accommodation either owned or leased by their employer. These people fill jobs for which there are insufficient locally qualified applicants e.g. doctors, dentists, accountants, bankers, teachers and some other professions and technical posts. Although there are exceptions, most of these permits are for a short-term contract of three or five years. After 18 years, an essential employee is permitted to purchase or lease accommodation in Jersey in her/his own right.

A small number of people each year who are considered to be of social and/or economic benefit to the Island are granted consent to purchase property. Application is normally made through the client's accountant or lawyer to the Housing Department of the States of Jersey.

Author Jack Higgins, broadcaster Alan Whicker, racing driver Nigel Mansell and golfer Ian Woosnam are among the high-profile celebrity figures residing in Jersey today. The Island has always been a home to a variety of famous figures from history and the arts.

It sheltered the future King Charles II during the time of Cromwell, was the home, albeit briefly, of Sir Walter Raleigh, who was Governor of the Island, and has been an inspiration to many artists and writers. Victor Hugo lived in Jersey in exile for three years and George Eliot also spent a sojourn living in Gorey. The pre-Raphaelite artist Sir John Everett Millais and the renowned 20th century cellist Jacqueline du Pre, were born of Jersey families and lived much of their childhood here. A number of top sportsmen also have Jersey origins - for example, the greatest golfer of his generation, British and US Open Champion Harry Vardon, was born and learned the game of golf in the Island and England and Premiership footballer Graeme Le Saux hails from the Island.

Jersey's dramatic history combined with its location so close to the European mainland gives it a unique setting and the Island's Norman French heritage is evident in the culture that has evolved. Most place and road names are written in French, especially outside St Helier, and the laws of the Island are recorded in French. The temperate preponderance of outside cafes and the numerous European visitors particularly in the summer months, add to the continental atmosphere that pervades, although never at the expense of Jersey's loyal link to the British mainland.

Business Costs:
Income tax is levied on both individuals and companies. Jersey has no capital gains tax, capital transfer tax, purchase or sales tax or VAT. Property taxes are levied by individual parishes and there are stamp duties on the transfer of immovable property (up to 1%). Towards the end of 2002, it was announced that there are plans to reduce income tax levied on corporations to zero. However, details concerning the timescale of such a move and the what would replace this tax was undecided.