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The Falkland Accommodation Investment Guide

Contents

Background to Falklands, Economy and Tourism 1

Location and Scale Climate and Weather 3

Wildlife 5

Sovereignty The Falklands Economy 6

Travel 7

Infrastructure 8

Accommodation in the 9

What's on Offer 11

Tax, Immigration, Labour, Permits, and Land Ownership 12

Inward Investment, Grants and Loans 14

Key considerations in / Ecotourism in the Falkland Islands 15 Background to the Falklands Economy and Tourism

The Falkland Islands Tourism Development Strategy

The purpose of this document • Location: 400 Miles (650km) The Tourism Development Strategy is to encourage and attract both off the south-east coast of South (TDS) is a public and private sector local and international investors America joint initiative that aims to grow the and developers in investing, tourism industry by creating more constructing, developing and • Area: 4700 square miles international awareness of the operating additional tourism (12,173 km) Falklands as a holiday destination, aiming towards the ‘high value low accommodation in the Falkland • Capital: Islands. volume’ market. The TDS outlines • Political Status: Self-governing the following objectives: British Overseas Territory 1. Increase tourist overnights by 87% • Population: 3,398 by 2023 through a combination of additional visitors and • Economy: (GDP & GDP per increased length of stay. Increased capita) £206.4m and £70.8k expenditure will transpire through per capita (2015) increased volume, and not necessarily higher prices. • Language: English 2. Encourage overnight tourist visits • Currency: Falkland (FKP) across eight months (September to — linked value to GBP ), increasing the length of the • Air links: Currently two flights traditional season. a week from UK and one flight 3. Develop “honeypots” to attract a week from . overnight tourists to lesser-visited areas.

4. Increase the number of cruise visitors by 49%, and their levels of expenditure by 42%, by 2022/2023.

5. Encourage expedition cruise to visit more destinations around the Falklands, including basing their operations in Stanley.

6. Enhance the day visitor experience in Stanley. 1 Tourism in the Falkland Islands Wildlife & Nature

The tourism industry is the fastest The Falkland Islands has 19 nature Three species of seal can be found in growing industry in the Falkland reserves, 17 important plant areas and the Falklands, they are the southern Islands accounting for 3% of the 22 important areas designated, sea lion, the elephant seal and the Falklands economy in 2017. highlighting the importance of nature . A number and its conservation to the Falkland of species of whale, dolphin and During the 2017/2018 summer season Islands. porpoise can be found in the Falklands approximately 59,380 tourists enjoyed at various times of the year, these the Falkland Islands as a destination Five species of penguin can be include the Peale’s and Commerson’s and spent £6,195,911. found in the Falklands that total dolphin, killer whale, Sei whale, approximately 550,000 breeding Tourist arrivals are currently expected Minke whale, long-finned pilot pairs. The Falklands holds the largest whale, , fin to increase to 65,500 cruise visitors and most easily accessible and 2,300 overnight tourists by 2023. whale, humpback whale and Grey’s colony in the world and provides a beaked whale. It is expected that an additional weekly home to two endemic bird species, flight to the Falklands would generate the Falkland Steamer duck and the an additional 900 tourist arrivals Cobb’s . in the first year, increasing to 3,200 in year three and would require an Another 13 sub-endemic species additional 50 rooms accommodation. of bird such as the white tufted/ Rowland’s Grebe, common , black-crowned night heron and upland goose can be seen in the Falkland Islands.

2 Location and Scale Climate and Weather

The Falkland Islands are located 400 The population of the Falkland Islands The Falkland Islands weather is miles (650km) off the south-east coast is mainly of British descent and is strongly affected by the cool South of , lying between highly centralised in the capital, giving it a narrow latitude 51⁰ and 53⁰ S and longitude Stanley (), which is the annual temperature in the summer. 57⁰ and 62⁰ W, and are comprised of most remote and southerly capital Summers are from December to approximately 778 islands. city in the world. The 2016 Falkland February and experience an average national census recorded the of 7.1 hours of sunshine per day and The two main islands are East population at 3,398, 2,460 of which have a Mean Maximum temperature Falkland and . The total reside in the capital and 381 living in of 15⁰C. During winter, to land mass of the Falkland Islands is camp, an additional 557 residents are August, the sunshine hours decrease 4,700 square miles (12,173 square km), contracted workers currently residing to an average of 2.5 hours per day approximately the size of the US state in the Islands. and temperatures drop to a Mean of Connecticut, or half Maximum average of 5⁰C. the size of . The official language of the Falklands is English and the official time is Rainfall does not generally differ from The landscape comprises of mountain BST –4 hours in the Falklands Winter season to season with an average ranges, flat plains, rugged coastline, and GMT –3 hours in the Falklands 54.6mm per month in summer and sandy beaches and cliffs. The highest Summer. The official currency of 47.1mm in winter. Summers are point in the Falklands is Mount the Falkland Islands is the Falklands generally windier than winters, Usborne on East Falkland and its Pound (FKP) which is pegged with the experiencing an average wind speed highest peak is 705m (2,312ft). British (GBP), which of 18.8mph (30.2kmph) compared to can also be used as legal currency in 16.2 mph (26.1 kmph) in winter. the Falkland Islands.

3 The Falkland Islands

The Falklands Islands

4 Wildlife

The wildlife found in the Falkland There is an abundance of other bird Three species of seal can be seen in Islands is varied, numerous, unique, life in the Falklands, including the the Falklands, they are the southern and most importantly, easily estimated 475,000 breeding pairs of sea lion, the elephant seal, and the accessible. There are 19 Nature black-browed albatross, representing South American fur seal. Southern Reserves, 22 Important Bird Areas and 70% of the world’s population. Access sea lions can be found in various 17 Important Plant areas designated in to albatross colonies in the Falkland locations in the Falklands, such as the Falkland Islands, providing a strong Islands is unparalleled with four . Elephant seals can be indication of how important the natural locations scattered across the Islands. seen at and Carcass environment, the wildlife and its Island and South American fur seals preservation is to the Falkland Islands. Other found in the Falklands can be seen on . A large include 500 breeding pairs of the number of whales, dolphins and Five species of penguin can be seen inquisitive bird of prey called the porpoises can also be seen in the in the Falkland Islands, totalling over striated caracara, locally known as Falklands. a million individual penguins, they the Johnny rook. The Falklands is are the Southern Rockhopper, Gentoo, a world stronghold for the striated Commerson’s and Peale’s dolphins King, Magellanic and the Macaroni caracara population. Other birds of are widespread and can be seen penguin. There are 319,000 breeding prey, such as the southern caracara, inshore during the summer months. pairs of Rockhopper penguins found turkey vulture, and Minke and the endangered Sei whale in the Falklands, making it the second variable hawk, breed and can be seen can often be seen from February largest population in the world, and in the Falklands. to April. Killer whales can be seen by far the most accessible. The largest around the Falkland Islands near population of Gentoo penguins is There are also two bird species that sea lion colonies between found in the Falklands, containing are endemic to the Falkland Islands; and December. Other whales that 132,000 breeding pairs, which is the Cobbs’ Wren and the Falkland frequent the Falklands are the long- again easily accessible. There are steamer duck. There are 13 sub- finned pilot whale, southern right 750 breeding pairs of King penguins endemic species of bird found in the whale, , humpback whale in the Falkland Islands, and since Falkland Islands, such as the white and Grey’s beaked whale. the majority of King Penguins can tufted/Rowland’s grebe, common be found in or the diving petrel, black-crowned night sub- Islands, the King heron, upland goose, goose, penguins in the Falklands are the short-eared owl, tussacbird, dark- most accessible King penguins in faced ground tyrant, black throated the world. The Falklands is also finch and long-tailed meadowlark. estimated to provide a home for between 76,000 and 142,000 breeding pairs of Magellanic penguins.

5 The Falklands Economy

The Falkland Islands are a United The Economy of the Falkland Islands 1. The Kingdom Territory by choice. has grown exponentially over the Strategy (EDS) has a national outlook, past 25 years. aiming to develop existing industries The has no doubts such as the fishing, agriculture, over the sovereignty of the islands A strong contributor for the economic tourism and service industries, as and supports the islander’s right to growth was the declaration of a 150 well as researching the possibility self-determination. mile radius Fisheries Conservation of creating new industries to enable and Management Zone and the economic diversification. The EDS The Falkland Islands are self- development of a fishing licensing sufficient and self-governing and do is a government and private-sector scheme established by the Falkland driven project, with the aspiration to not require financial support from the Islands Government (FIG) in 1986. United Kingdom, with the exception sustainably increasing GDP growth. This allowed the Falkland Islands to The potential of a hydrocarbons of Defence. A new Falkland Islands move away from its dependence on Constitution, signed by Her Majesty’s industry has not been considered and provided a catalyst for the in the development of the EDS. Government, was brought into effect Falkland economy to grow, in terms st on the 1 January 2009 and further of (GDP), 2. The Rural Development Strategy entrenches the rights of the local from approximately £7m in 1985 to (RDS) aims to increase the economic Falkland Islands population to govern 206.4m in 2015. opportunities in the rural areas of the itself in all areas apart from defence Falkland Islands, known as “Camp”. and foreign affairs. The Falkland Islands economy The objectives are to increase the recently benefitted from a round of GDP of the agriculture industry and hydrocarbons exploration in 2009 increase the population in Camp. which are expected to be further As a result, significant incentives are developed in the near future. available to help families, individuals At this moment in time the Falkland and businesses take advantage of Islands Government (FIG) is working the opportunities in agriculture and in partnership with the Falkland tourism, as well as other sectors. Islands Development Corporation 3. The Tourism Development (FIDC) and the Falkland Islands Strategy (TDS) is aiming to grow private sector on three initiatives the tourism industry by creating to encourage long term economic more international awareness of the growth in the Falkland Islands. Falklands as a holiday destination, The three national strategies are: aiming towards the ‘high value low volume’ market. Further details regarding the TDS can be found in the following section.

6 Travel

Air Links Shipping Links Telecommunications

The Falkland Islands International The Falkland Islands benefit from two South Atlantic Limited airport is located at Mount Pleasant regular shipping links one of which is provide all Falkland Islands’ (MPN) 45 minutes from Stanley. operated by the MoD and the other by telecommunications including Currently there are two providers of a local company. The MoD shipping telephone service, broadband international flights to the Falklands link serves a number of destinations internet and a mobile phone Islands: that contain MoD interests and stops service. at , the military port There is a weekly flight provided by located near the Mount Pleasant Sure South Atlantic Limited are LATAM Airlines. The flight operates Complex. This shipping link operates contracted to provide a service from Santiago, Chile (SCL) to MPN from Marchwood , throughout the Islands. on Saturdays with a stop at Punta . Arenas, Chile (PUQ), during the summer months. Once a month The second shipping link is operated the flight stops at Rio Gallegos, by locally owned South American , in between PUQ and Atlantic Services (SAAS) Ltd. SAAS MPN. Negotiations are currently predominantly provides a shipping ongoing to secure an additional service for fishing companies to flight per week from South America. export their catch in reefer containers, however it does offer a standard There is a twice weekly “Airbridge” freight and container service. SAAS flight from RAF Brize Norton in the operates between Stanley and UK to MPN. The flight is contracted , . This service by the Ministry of Defence and operates twice monthly in the currently only 31 seats are allocated fishing season (February – March on each flight to civilian passengers. and August – September) and once The flight stops at a month in the off-season. (until 2020 this will be Cape Verde) en-route to refuel.

7 Infrastructure

Power Fuel

Wind power supplies an average of The price of fuel in the Falkland transport passengers, vehicles, cargo, 40% of Stanley’s annual electricity, Islands is lower than in the United fuel, plant and machinery. The MV with the balance provided by diesel Kingdom (UK), as fuel duty is not Concordia Bay is also regularly used generation. Camp locations, which applied in the Falklands. As well as as a supply vessel to the smaller are not served by the main power providing domestic fuels, such as Falkland Islands. station, have access to incentives diesel, petrol and kerosene, Stanley The Falkland Government Air Service to implement renewable energy Services also supplies bunker fuels (FIGAS) operates a fleet of five solutions including wind turbines through its subsidiary Stanley Britten-Norman BN2B Islanders. and solar power. Bunkering Ltd. FIGAS is based at Stanley Airport Water Roads & Internal (PSY) and provides unscheduled Transportation flights to settlements, farms and Stanley is supplied with treated water. islands around the Falklands that The fresh water originates from the The Falkland Islands has a road maintain a suitable air field. Murrell River located west of Stanley. network in excess of 580 miles Fresh water tends to be available in (930km). most areas of the Falklands from streams, river and natural springs. A regular ferry service, which sails Settlements and farms located in between New Haven, East Falkland Camp obtain their fresh water from and , West Falkland is natural sources as mentioned above. operated by Work Boat Services. The ferry service, using the vessel MV Concordia Bay, can

8 Accommodation in the Falkland Islands

The current market

The Falklands tourism season the number of cruise passenger particularly in Camp where peaks between October and exchanges and may persuade accommodation is limited. March, during this period the expedition ships to base their South Falklands receives an influx of land Atlantic operations in the Falklands. Ensuite rooms enable accommodation based tourists as well as cruise and providers to rent a room in a lodge expedition ships visiting numerous There is a diverse range of set-up rather than having to rent locations in the Falklands, including accommodation in Stanley and the whole property, thus ensuring Stanley. The tourism industry is throughout Camp. Within Stanley the maximum capacity in a property. the fastest growing industry in the options range from a Boutique Hotel This flexibility ensures that rooms Falkland Islands accounting for service at the Waterfront Boutique in properties are used to their full circa 3% of the Falklands economy Hotel to affordable single room availability. One of the big travel in 2017. Overall International visitor accommodation at Lookout Lodge. trends for 2017 as identified by numbers in 2017/18 by inbound land- The mixture of accommodation National Geographic was the rise of based tourists, passengers provided is generally reflected in co-living. Communal living spaces and domestic tourists totalled the range of prices available also. are becoming more common and 59,380 spending £6.2 million. are expected to increase in popularity The accommodation offered in on a worldwide basis. At the moment cruise and Camp is a mix of self-catering and expedition ships only spend catered, however the demand on this approximately a day in any accommodation tends to be driven by Falklands location before the wildlife in the local vicinity. moving on. Expedition ships are increasingly utilising the improved In order for providers to capitalise air links to and from the Falklands on the accommodation they can for their passenger exchanges. provide and maximise capacity there A planned additional air link to are certain elements that need to and from South America and the be considered and incorporated into Falklands is hoped to increase new and current accommodation,

Property Type Number Number Room occupancy Room occupancy Room occupancy of type of beds rate (%) – 2017 rate (%) – 2016 rate (%) – 2015

Serviced 15 289 42 45.2 43.8

Self-catering 19 118 30.9 22.5 27.3 9 Domestic Tourist

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Tourism statistics Travel trends

During the 2017 season Experience over ownership: location, wildlife and experience approximately 70,600 tourists travellers in 2018 want experiences that has brought visitors to the enjoyed the Falkland Islands they can share on social media. The location. The Falkland Islands as a destination. This included: backlash of society against owning provides a haven from the fast-paced more is being replaced by increased lives people are escaping on their – 57,500 day tourists from experiences that they can share with travels. cruise and expedition ships, the world. More than anywhere the Technology rules: over 90% of – 1,650 overnight tourists, Falkland Islands is able to capitalise holidays and trips are now booked – 11,450 domestic tourists. on the “experience of the remote”, online. In order to maximise the tours and activities that can be bookings and capacity online provided to tourists to give them Tourism forecasts booking systems or availability an additional experience beyond calendars ensure that tourists Domestic tourism has increased the location. This includes guided and tour operators can manage significantly since 2015, limiting trips to wildlife, farm tours, Smoko, itineraries to fit efficiently. factors are widely understood to be arts and craft courses, all of which availability as domestic tourism provide the visitor with an enhanced Unusual accommodation: tends to be marginally less seasonal experience. accommodation in renovated than international tourism. industrial pipes, eco-huts etc, “Simplicity” is the new buzz word: are increasingly becoming providing a simple but quality more common and sought after service. Travellers no longer want as tourists aim to increase the to be burdened by options and “Instagram-ability” of their holiday. choice. This is about ensuring that the accommodation does not detract (positively or negatively) from the

10 What’s on Offer

The purpose of this document is to to be in the highest demand compared attract investors and developers, both to accommodation in Stanley, with local and international, to take the destinations booking up over a year opportunity to invest, construct and in advance. operate tourist accommodation in the Falkland Islands. The environment and remoteness are key USPs for the Falkland Islands The potential to expand on the which also ensure that it will continue current accommodation provided in to be a unique and niche destination. the Falkland Islands is significant. Tour operators continue to turn away The continued increase in population visitors due to lack of accommodation and planned additional air link to at key times of the year. South America will put pressure on the already strained demand Therefore, opportunity exists to on accommodation throughout the increase accommodation to meet Falkland Islands. It is anticipated that more of the existing overseas tourist the additional air link will also result demand and then target domestic in expedition cruise ships using the tourism. Falkland Islands for more passenger The workforce in Stanley and MPA exchanges. relies heavily on contracted staff One of the key restrictions for who hold 2-4 year work permits. accommodation availability in camp The turnover of these contracted during the summer season is that staff result in a consistent supply visiting groups tend to be large groups of domestic tourists to all regions of individuals, who require individual of camp. rooms and facilities.

Individual visitors (outside of a tour group) tend to be more flexible and can amend their tours to fit availability. Availability of accommodation in camp continues

11 Investing in the Falkland Islands

Tax Labour Visitor’s Permit

Tax rates in the Falkland Islands At the moment, the Falkland Islands A visitor’s permit grants leave to the are reasonably straight forward enjoys virtually full employment. holder to enter and remain in the and comparably lower than other are known Falkland Islands for a specified period countries. Businesses that generate a to be hardworking, resourceful of time. A person may apply for a profit of under £500,000 are charged and knowledgeable people, with visitor’s permit on arrival, but where at a rate of 21% and those that generate many holding more than one job. this occurs it will ordinarily be issued a profit over £500,000 at 26%. Organisations often look abroad to fill for a maximum period of one month. roles, with labour originating from Personal tax rates are also relatively Chile, , the UK, However, it may subsequently be simple. Each individual receives an and . extended for up to a maximum of 12 allowance of £15,000 per annum. A months. A visitor’s permit may not tax rate of 21% is applied to earnings be granted or extended without the between £15,000 and £26,000 per Immigration Governor’s consent. annum, and for earnings over £26,000 per annum a rate of 26% is charged. Under the Falkland Islands visa regime certain nationals seeking Work permit The Falkland Islands does not impose to enter the Falklands as visitors Value Added Tax (VAT) or General or to take up temporary residency A work permit grants leave to the Sales Tax (GST). (including for employment purposes) holder to enter, depart and reside in must first obtain a visa. Unlike the the Falklands during the period of its Historically an additional tax relating UK and numerous other countries, validity and to take employment with to businesses and labour has been a Falklands’ visa is not an entry a specified employer or on one’s own charged called the Medical Services account engage in any trade, business Tax (MST). MST is currently held at 0%. clearance in itself but is a form of pre-assessment to establish whether or vocation stated in the permit. In an applicant’s intentions appear order to obtain a work permit the legitimate and they appear to be of holder must prove that they have good character. accommodation within the islands. Currently work permits can be The routes available to persons (not issued for a maximum of four years, exempt from immigration control) after which they must apply for an seeking to enter the Falkland Islands extension or a Permanent Residence are a visitor’s permit, work permit Permit. or (temporary) residence permit and these are explained below.

12 Residence permit Permanent Residence Permit Land Ownership & Immigration

A residence permit grants the holder A permanent residence permit Where a non-resident is seeking to enter, depart and reside in the grants indefinite leave to the holder permission to buy land in the Falklands during the period of its to enter, depart and reside in the Falkland Islands in connection with validity. The holder of a residence Falklands and to take any lawful a desire to immigrate into or have a permit and where applicable, any employment of pursue and lawful second home in the Falkland Islands, dependents included in the permit business, trade, profession, or the application should ordinarily be are entitled to apply for work permits vocation in the Falklands without coupled with an application for an if they wish to subsequently take needing a work permit. Where immigration permit. up an employment opportunity. If a an application for a permanent ‘primary’ work permit is then applied residence permit is approved, for and granted to a residence permit any dependents included in the Purchasing Land holder, it has the effect of revoking application of a principal applicant their residence permit as the work will also be granted a permanent An individual who is not a Falkland permit will then take precedence. residence permit in their own right. Island Resident requires a licence The annual number of permanent to be able to purchase land in the A residence permit must be applied residence permits that may be Falklands, which is approved by the for from outside the Falklands expect granted is controlled by a quota Falkland Islands’ Governor. In respect in respect of a person who has a system. The current quota is 44 of companies, a licence is required to valid work permit or is included persons per annum (as at 2018). purchase land in the Falkland Islands, as a dependent on a work permit. unless 75% of its voting shares are The validity of a residence permit is owned by Falkland Island residents limited to a maximum of three years or the company’s central control but may be renewed or extended. and management is located in the Falkland Islands for tax purposes. Special provisions have been known to be granted, for example Limited, Standard Chartered Bank and Cable & Wireless Plc. There have been several cases of private overseas individuals purchasing land in the Falkland Islands.

13 Inward Investment Grants and Loans available in the Falklands

FIG (Falkland Islands Government) Existing landowners can apply for wishes to encourage inward Tourist Accommodation Grants at investment in the Falkland Islands the Tourist Board which provide 50% by non-residents purchasing land. funding up to £20,000 per annum in FIG will favourably consider any order to improve and build Tourism applications for acquisitions of land Accommodation. in the Falkland Islands related to appropriate inward investment, In addition to this funding, FIDC where applications are supported (Falkland Islands Development by strong business plans. Also, other Corporation) offer Business Loans at factors are considered, such as the competitive rates along with business impact that the proposed investment advice and support and grants might have in relation to the natural for renewable energy and new and human environment of the businesses under certain conditions. Falkland Islands, any strain it might effect on the size of the population, including any need it might generate to import labour.

An application for a licence to acquire land which is associated with a proposal for the formation of a joint venture with a business owned by residents, subject to the considerations already mentioned, will be likely to be favoured.

14 Key considerations in camp Ecotourism in the Falkland Islands

Accessibility — not all locations Electricity can be generated through As an industry that relies on its wildlife for development have roads built a generator (which will require and surrounding environment, the to them. This can considerably fuel) or through renewable energy. Falkland Islands Tourism industry is increase the cost and time spent Through local resources ( committed to championing ecotourism. building and also visiting the burning) it should be possible to In order to ensure tourism development location. In addition, the lack of generate sufficient heating off grid. is sustainable in the Falkland Islands, necessities at the accommodation many of the local businesses have requires either visitors to bring Waste disposal can be much harder in started initiatives. These range from absolutely everything they might an area that is hard to access (septic reducing plastic usage through to need, or to ensure that there is a tanks are hard/impossible to empty) incentives to use reusable products. steady minimum supplies available. and there is no built-in sewerage readily available. Increasingly popular Alongside the Falkland Islands Facilities — water, electricity, options on the market include Tourist Board Accreditation Scheme, waste disposal. In camp the compost toilets, long drops and there is the Green Seal Scheme. This provision of these key facilities reed bed sewerage treatment. initiative promotes sustainable and become exponentially harder as responsible tourism that monitors the they require either stand-alone Also to be taken into consideration impact tourism has on its surrounding facilities or a connection to should be the time requirement of environment and how it is managed. existing facilities. preparing a property before and after use of visitors. The Falkland Islands Tourist Board For water, either a well or spring is keen to promote the sustainable could provide a natural resource, development of tourism in the Falkland where this is not available (or Islands and environmentally friendly is sufficient to not meet demand) policies and initiatives. it may be that a water bowser is required. This will require regular topping up and replacement to ensure it is not harbouring any bacteria.

15 Photography Credits: Further information

Guy Wenbourne, Jackie Adams, Derek Further information can be obtained Pettersson, Dominic Couszens, Nigel from the following offices regarding McCall, Danielle Riley, Klaas Lukas, the information provided in this The Falkland Island Tourist Board. document:

Falkland Islands Tourist Board Jetty Visitors Centre, Philomel Street Stanley, The Falkland Islands Tel: +500 22215 Email: [email protected] Web: www.falklandislands.com

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