Caribbean nations are so strapped for cash after the pandemic hammered their tourism industries that they have begun dangling deep discounts on the passports they sell to wealthy foreigners.<\/p>\n
Many of the islands in the region have long offered \u201ccitizenship-by-investment\u201d programs as a way of supplementing the hard currency they pull in from tourism.<\/p>\n
With their hotels and white-sand beaches now almost entirely\u00a0empty, this unconventional business has suddenly taken on much greater importance.<\/p>\n
St. Kitts and Nevis, a mountainous twin-island nation of 53,000 people, was among the first to slash prices. It\u2019s offering a special deal through the end of the year: A $150,000 (R2.5 million) contribution to the country\u2019s \u201cSustainable Growth Fund\u201d will score passports for a family of four.<\/p>\n
That\u2019s a 23% drop from the regular price of $195,000 (R3.2 million). Other islands in the region, including Dominica and Antigua and Barbuda are offering even cheaper deals.<\/p>\n
\u201cIn these days of Covid, when tourism is not happening, we have to find ways to create revenue to sustain our economy,\u201d said Les Khan, CEO of St. Kitts and Nevis Citizenship Investment Unit, in a phone interview.<\/p>\n
St. Lucia, Grenada, Antigua and Barbuda, and Dominica have also put changes in place to lure more clients, Khan said. Some offer citizenship for as little as $100,000 (R1.67 million).<\/p>\n
Since St. Kitts helped pioneer the industry in the 1980s, citizenship-by-investment has grown into a\u00a0multi-<\/span>billion dollar business, offering wealthy clients an escape from the travel restrictions on their home countries\u2019 passports and helping them plan for emergencies.<\/p>\n \u201cClients look at these citizenship options as volatility management or risk management tools,\u201d said Paddy Blewer, director of the UK office of Henley & Partners, a London-based consultancy that provides advice on citizenship and residencies.<\/p>\n The fallout from Covid has highlighted the value of a second passport, he said, as governments in Europe and elsewhere imposed restrictions on people who can normally travel without a visa, such as US citizens.<\/p>\n Chinese Clients<\/strong><\/p>\n During the pandemic, Khan\u2019s unit has seen an increase in interest from clients in China and the Middle East, he said. The office does not release statistics.<\/p>\n Its passport offers visa-free travel to more than 100 countries, including the UK and Italy. Citizenship can also be acquired via an investment in real estate.<\/p>\n The second-passport industry has come under fire from US authorities. The State Department last year criticised Dominica for \u201clax\u201d due diligence in approving applications.<\/p>\n In 2014, the US Treasury urged St. Kitts to tighten its vetting process after Iranian nationals allegedly used a passport from the island to evade US sanctions.<\/p>\n Khan said the government takes a strict approach to the process, adding that clients from Iran and Afghanistan are currently not eligible.<\/p>\n Zero-Interest Bonds<\/strong><\/p>\n St. Lucia offers would-be citizens the option of buying five-year, non-interest bearing bonds. In May, it cut the required investment by half, to $250,000 (R4.1 million) for an individual or $300,000 (R5 million) for a family of four.<\/p>\n The deal on these \u201cCovid-19 Relief\u201d bonds expires at year\u2019s end.<\/p>\n Since it launched its program in 2015, the nation of 182,000 has given passports to about 700 people, said Nestor Alfred, the CEO of the St. Lucia Citizenship by Investment Program.<\/p>\n The program \u201cprovides a wonderful avenue for all those persons who have not had the possibility to participate in this big wide world because of their passport,\u201d he said in a phone interview.<\/p>\n Antigua & Barbuda offers citizenship for a family of four in exchange for a $100,000 (R1.67 million) donation to its development fund. The government recently cut the price for adding additional children.<\/p>\n The government of Barbados has floated the idea of a \u2018Welcome Stamp\u2019 to give people working remotely the option of doing it from the island for\u00a0up to<\/span>\u00a0a year.<\/p>\n People who acquire Caribbean citizenship are usually not looking to leave their homes, Blewer said. That\u2019s a big difference with EU nations such as Malta and Cyprus where people generally want residency and the investment required is much greater, he said.<\/p>\n The industry has become increasingly competitive in recent years as more governments started selling citizenship, said Beatrice Gatti, of CS Global Partners, which helps clients navigate the citizenship programs.<\/p>\n \u201cIn the past there has been a tendency toward lowering prices, but the current cuts seem to be temporary and Covid-19 related,\u201d she said.<\/p>\n
\n