MercoPress. South Atlantic News Agency

Companies plan to grow in the next year

FALKLANDS businesses are “incredibly optimistic” about their future, despite the economic challenges they face.

That's the message from the Falkland Islands Development Corporation which has published the results of its Business Climate Survey.

The survey has shown that two thirds of companies in the Islands are planning to grow their business in the next twelve months. This optimism persists despite current challenges such as uncertainty in the illex fishery, reduced government spending and the charter flight ban.

The survey was sent to every business in the Falklands, along with government heads of departments and councillors. According to Sue Gyford of FIDC, there was a "huge" response, with replies received from 36% of those contacted and "significant representation" from every sector of the economy.

The fisheries sector was the most optimistic, with every respondent company saying they expected to see improvements in their business in the next two years while the tourism and oil/mineral exploration sectors were identified as having the best potential for future growth.

Freight and labour issues are seen as the key barriers to economic development and reductions in the size of government have been welcomed.

Ms Gyford said FIDC's recent policy of divesting parts of its operation (such as FIMCo, the Tourist Board and lodges at Pebble Island and Port Howard) and focusing on the core areas of business support and infrastructure development appears to have paid off. "On a rating of 1-5, where 5 is high, the overall rating given to FIDC has risen from 3 to 3.8 in the past two years."

She added, "The survey is invaluable in guiding FIDC's work, ensuring its direction and priorities are aligned with those of business." (PN)