This winter season has brought vital new energy to the market place.

Hotels, restaurants and airlines are busy, busy and realtors are busier than at any time in the past two years, with lots of sales activity, contracts and scheduled closings.

This renewed activity, in my view, is a result of better buyer confidence, increased tourism business in TCI, and attractive price points.

We are seeing most of our traffic in the $500,000 to $1M range but are now setting markers at 1.5M and beyond as luxury buyers creep back into the market.

A few years ago, I remember driving down the street, and exclaiming to my partner that “TCI is an unstoppable force”. 2009 was a real confidence – shaker, but now that we are well into 2010, I clearly see a better dynamic and psychology, and feel once again that, Turks & Caicos is indeed an unstoppable force that will now re-commence growth at a healthier sustainable pace.

Joe Zahm
President / Broker
Turks & Caicos Sotheby’s International Realty

January 18, 2010

The cash flow problems now being experienced by government of the Turks and Caicos Islands will be eased somewhat by the end of the month as the United Kingdom Government has given the green light to secure an $85 million loan from an international lending agency.
The announcement was made by Governor Gordon Wetherell, while speaking at the Advisory Council’s first news conference in Providenciales on Friday, January 9, 2010.

The funds are to go towards evaporating part of government debt.
While the terms and conditions are being finalized between Government and the lending agency, debate of the intended loan is expected to take place in the Consultative Forum on Tuesday, January 12, and will be debated in the form of a Supplementary Appropriation Bill. The Governor said the debate would help in finalizing the loan as well as to iron out any shortfalls in expenditure that may arise before the end of the financial year.

TCI owes millions of dollars to both local and overseas companies and individuals.

Permanent Secretary in the Ministry of Finance and Government’s Chief Economist and member of the Advisory Council, Delton Jones, said so far the terms and the conditions of loan suggested that it would not be expensive to service. He hinted that the local businesses will be priority for the disbursement, saying that such a move could enhance business in the Turks and Caicos Islands.

“We in the Ministry of Finance have been taking stock of the debt that we have, and in some instances we have discussions and agreements with persons to defer those debt on a phased payment basis. A high priority is to settle most a lot of the small debt that we have on island because that will assist businesses that have challenges,” Jones said.

Jones acknowledged that a number of local establishments which had done business with Government went to the bank for loans to do so, and such bank loans were still outstanding, saying that Government would consider paying those companies with the interests charged by the banks.

In the meantime, Governor Wetherell has indicated that the decline in economic standard now being experienced in the Turks and Caicos would continue for sometime until the Government figures out a way to iron out the anomalies it encountered after taking over the reins of power from the local Government.

“The Turks and Caicos, like many other countries around the world are experiencing difficult economic time, and that is just the fact of the current situation, and there is no great point in hiding that. Belt-tightening has been part of the experience for this and other countries, including the UK for sometime. What we have been seeking to do – and it has been a long and an arduous process since August – to try and get the public finances of the TCI back into shape.

“And one of the principle ways to do this has been to negotiate a consolidated loan, which would enable us to – if you like – translate the larger portfolio of unpaid bills which inherited, and which continues to accumulate to some extent, into a loan which in example, would allow us to pay off the smaller creditors that the Government has. And that in itself would be a way of pumping some money back into the economy,” the Governor noted.

Governor Wetherell noted that the first draft of a revenue study that was commissioned in November of last year has been completed and would now be the subject of further consultation with a view to find a more effective mechanism to get more revenues into the kitty, assuring the public that it was not design to burden the populace with taxes.

The Governor said the hardship of the people has not eluded his observation, but since resources have dwindled over the past year, it was difficult to readily address the matter, and since the TCI was out of the UK financial assistance realm, funds from that source would be difficult to acquire.

The Governor pointed out however, that the £5 million donated by the United Kingdom for Hurricane Ike relief effort, is to be spent shortly, as priority areas have been identified towards which to channel the funds.

Vivian Tyson

As most of you know, Turks & Caicos Islands is a British Crown Colony, with a similar government structure to the Cayman Islands, and Anguilla, among others. Recently, the British Government asserted control of the Turks & Caicos Islands Government after an Oversight Committee found significant evidence of corruption in the elected PNP government during the run up prior to the world – wide economic down turn in September, 2008.

The Governor has now assumed all government responsibilities, subject to the Turks & Caicos Islands constitution and other legislation, instructions of the British Foreign Secretary and the scrutiny of Parliament in London. The Chief Executive is Mark Capes, and there is an Advisory Council and a Consultative Forum (consisting of native and expatriate Belongers) to advise the Governor and Chief Executive, along with a cadre of international experts to assist with the process. There are also a number of Private Sector initiatives including the Tourism Working Group and the Council of Business and Professional Associations, which demonstrate the commitment of the Turks & Caicos Islands community as we, like many other much larger countries around the world, work through a difficult economy and prepare for our next growth cycle. The Turks & Caicos Real Estate Association (TCREA) is represented on the Consultative Forum and Turks & Caicos Sotheby’s International Realty President Joe Zahm has a key role on the forum.

The Government’s mission is to “put the Turks & Caicos Islands on a durable track towards re -establishing good governance, sound financial management and sustainable development”. The Government aims to promote three core values:

• Transparency
• Accountability
• Responsibility

Its top priorities will be:

• Security
• Prosperity
• Integrity

We remain confident that the system of the government in the Turks & Caicos Islands remains a real strength when compared to many other island destinations, and that the appropriate steps are being taken to ensure that the country, and Turks & Caicos Islands brand, is revitalized and will be better than ever in the months and years to come.

Office of Public Service Management
Grand Turk
Turks & Caicos Islands
Ph: (649) 946-2702 or ext: 10318/10322
Fax: (649) 946-1582
Web: http://www.tcgov.tc

TCIAA

17th December 2009
PRESS RELEASE

TCIAA ACQUISITION OF PAC ASSETS

Recent Press releases informed the Public of the approval granted to Turks and Caicos Airports Authority (TCIAA) by the Governor and Advisory Council to pursue financing to facilitate the much needed Providenciales International Redevelopment project on the basis of full ownership by the Authority. This redevelopment will ensure that the airport satisfies International Civil Aviation Organisation (ICAO) regulatory requirements as well as existing and future capacity demands, all of which are essential to supporting our main industry – tourism.

The signing today of an asset purchase agreement between TCIAA, TCIG and Provo Airport Company (PAC) marks the return of a valuable national asset to the people of the Turks and Caicos Islands. Self financing of this project will be generated through the Airport users, 95% of whom are the tourists visiting the country. This process aims to provide a steady, continuous revenue stream to the Turks and Caicos Islands Government (TCIG), as well as allowing TCIAA to cover operational costs. The funds secured for the expansion project will be used solely for this purpose and are not otherwise available to TCIG.

The commitment of the Government and TCIAA towards this substantial redevelopment project highlights confidence in the Turks and Caicos Islands tourism industry and will help to secure tourism growth in the years to come. A detailed presentation on the scope of the airport expansion will be made to the general public in early 2010.

Note to editors:

This acquisition is by mutual agreement between CACL and TCIAA, the respective 65% and 35% shareholders. The value of the assets is as stipulated by the terms and formulae within the joint venture agreement- as verified by an independent accounting firm.

FOR IMMEDIATE RELEASE FROM:

THE TURKS AND CAICOS ISLANDS
GOVERNMENT INFORMATION SERVICE (TCI-GIS)

Office of Public Service Management

Grand Turk,

Turks and Caicos Islands

Tel: (649) 946-2801

Web: http://www.tcgov.tc

GRAND TURK, Turks and Caicos Islands; Thursday, October 29th, 2009 – Earlier today in the UK, the British Government published the ‘Final report of the independent Review of British offshore financial centres’ by Michael Foot. The report covers the three Crown Dependencies (Guernsey, Isle of Man, and Jersey) and the six Overseas Territories (Anguilla, British Virgin Islands, Cayman Islands, Gibraltar, and Turks and Caicos Islands). The Foot Review forms part of the British Government’s work to help Territories consider the long-term opportunities and challenges that they face in the light of the current global economic crisis.

The report makes a number of recommendations. These include improvements in the quality and extent of financial planning and the need to have frameworks in place to ensure the ability to respond to external economic shocks; recommendations for meeting current and emerging international standards for financial services industry; and, the need for robust and independent regulatory authorities.

The Turks and Caicos Islands’ Ministry of Finance welcomes the report and supports its recommendations. Progress is being made to meet these across a number of fronts, including the Financial Stablisation Plan and measures to deliver it, the negotiation of international tax information exchange agreements, commitment to meet international standards for preventing money laundering, and work by the Financial Services Commission to strengthen its role. Furthermore, the report underlines the importance of recent tough budget decisions and ongoing action by the Ministry to rebuild the TCI’s economic base and action to ensure longer-term sustainable economic development.

TCI faces significant challenges in matching up to and keeping pace with international standards; it is essential that it continues working towards this goal if it is to secure future growth in the financial sector. These are difficult challenges ahead and Michael Foot’s report helpfully illustrates what is expected by the international community.

END

FOR IMMEDIATE RELEASE FROM:

THE TURKS AND CAICOS ISLANDS GOVERNMENT INFORMATION SERVICE (TCI-GIS)

Office of Public Service Management
Grand Turk,
Turks and Caicos Islands
Tel: (649) 946-2801
Web: www.tcgov.tc

GRAND TURK, Turks and Caicos Islands; Monday, October 19th, 2009 – On 20th July 2009, as part of the revised revenue generating measures, the Cabinet agreed to the introduction of an additional 1% hotel and restaurant tax. This was due to come to into force on 1st August 2009.

Due to unforeseen circumstances, the introduction of this measure was delayed and subsequently gazetted to come into force 1st October 2009. However, following representation made by industry stakeholders, the tax rise will be effective from 1st November 2009.