Facts and Figures
The Falkland Islands are located in the South Atlantic on the same latitude as London lies north. They are 400 miles from the South American mainland, and 8000 miles from the UK. They comprise two main Islands (East and West Falkland) and some 700 smaller islands, a total land area of 4,700 square miles, about two thirds the size of Wales.
The Islands have an ordinarily resident population of around 2500 people of which over 2000 live in Stanley on East Falkland and the remainder live in the countryside, or "Camp". The population is predominantly of British birth or descent and many can trace their family on the Islands back to the mid-nineteenth century. In addition there is a permanent military garrison at Mount Pleasant airfield (MPA), some 35 miles west of Stanley, comprising around 1400 military personnel and 600 civilian workforce and dependants. The growth of population is shown in the chart below.
The temperature varies between a maximum of 24˚C in January down to a minimum of -5˚C in July. Rainfall is generally low, winters are not as severe as the UK, and the Islands enjoy more sunshine than the south of England. The countryside is hilly, comparatively bare of vegetation and trees but with scree and impressive ‘stone run’ rivers of angular quartzite. Bird and marine mammal life abounds.
The Falkland Islands Population
The Islands are home to vast colonies of penguins and albatross and have over 200 species of birds; they are breeding grounds for sea lions, elephant and fur seals, and over 15 species of whales and dolphins. The protection of this unspoiled environment is a high priority in the Islands Plan, and the Government spends around £1.3m per annum in environmental research with university partners from Imperial College London, Queens University Belfast, British Geological Survey and an independent local trust, Falklands Conservation.
The economy of the Islands was for many years driven by wool. Agriculture, with 586,500 sheep spread across around 90 farms, still supports a farming population of 305. The depression of world wool prices over the past decade has made business very hard. Government has heavily invested in infrastructure, support services and communications and actively encourages diversification into other products including meat export (with the construction of an EU approved abattoir), tourism and aquaculture. However, agriculture earns only around £4.3 million per annum.
The main economic driver has been the commercial fishery, with the establishment of a controlled conservation zone in 1987, now at 200 nautical miles from the coastal baseline. Fishing vessels in the zone catch around 220,000 tonnes each year, principally Illex and Loligo squid. Revenues to Government, between £16 and £26 million per year, substantially fund 2/3 of all capital and operational expenditure, and have ensured the growth of reserves of £160 million. In the 2003/04 and 2004/05 seasons there was a downturn in catches caused by ocean currents, and the existence of these substantial cash reserves has proved valuable in smoothing economic fluctuation.
The growth of the economy is demonstrated in the graph for GDP
Falkland Islands GDP
Primary Source of Funds £41.5m in 2007/08
Primary Application of Funds £36.9m in 2007/08
The Islands have long produced wool (around 2000 tonnes p.a.) and more recently organic mutton and lamb for export. There is a structural change underway in agriculture, as production shifts, which will need to be closely monitored by Government.
Since 2004, the Islands have relied on its commercial fishery, principally squid (Illex and Loligo). Licences for Illex are sold annually and the Islands have now introduced an alternative Transferable Quota System (ITQ) for its own fishery companies. Income from the fishery (licences and taxation) is the mainstay of Government expenditure (see below). In the last five years, the returns have been mercurial but trending downwards, (see below) and the economy is faced with challenges.
Government Revenue Sources
New business opportunities include increasing tourism (currently earning around £2.5 million per annum), aquaculture, and offshore oil. Wells drilled in 1997 found evidence of a potentially significant oil field and seismic survey since also suggests significant quantities of gas. It is anticipated that new drilling may commence in 2009/10 and run through to 2013.
Small businesses have been helped to establish and grow, by the Falkland Islands Development Corporation. Established in 1985, it has facilitated 145 business start ups, and over 1400 projects.
Connections to the Islands include three flights every two weeks by Ministry of Defence Chartered Airline from Brize Norton, Oxfordshire, and a weekly Lan Chile flight service connection to South America. The Islands are keen to develop these connections.
Tourist Season 1995 to 2007
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