The Federation of St. Kitts & Nevis is a sovereign country, member of the United Nations, the British Commonwealth and many other international organizations. First settled by the British in 1623, the islands became an associated state with full internal autonomy in 1967, and then became independent in 1983.
Geography
St. Kitts is 23 miles long and 5 miles across at its widest, encompassing an area of 68 square miles. Nevis, the smaller island, lies to the south and is approximately 7 miles in diameter, covering a total of 36 square miles. The two islands support a population of about 45,000, of whom about 9,000 live on the island of Nevis. St. Kitts & Nevis embodies a kind of lush tropical paradise usually associated with the South Pacific. The ambience here is a blend of sunlight, sea air and abundant vegetation. At the center of St. Kitts stands the spectacular, cloud-fringed peak of Mount Liamuiga (pronounced Lee-a-mweega), a dormant volcano covered by dense tropical forest.
Economy and the Sugar Industry
Although agriculture is still important, there are many hotels now and tourism has become the leading foreign exchange earner for St. Kitts & Nevis. Other industries include food and beverages, textiles, light assembly operations and construction. Customs and excise duties are the principal base for the country's budget.
The state-run sugar industry was already running at a loss for many years, and the Government was forced by a WTO ruling to shut down the sugar industry in 2005. This has unfortunately left several hundred sugar workers jobless.
The Government instituted a program of investment incentives for businesses considering the possibility of locating in St. Kitts or Nevis, encouraging both domestic and foreign private investment. Government policies provide a liberal business environment, including generous tax holidays, duty-free import of equipment and materials, and subsidies for training provided to local personnel. Tourism has shown considerable growth and is now a major foreign exchange earner for St. Kitts & Nevis.