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Economy of Barbados

Since independence, Barbados has transformed itself from a low-income economy dependent upon sugar production into an upper-middle-income economy based on tourism. Barbados is now one of the most prosperous countries in the western hemisphere outside of the United States and Canada. The economy went into a deep recession in 1990 after 3 years of steady decline brought on by fundamental macroeconomic imbalances. After a painful readjustment process, the economy began to grow again in 1993. Growth rates averaged between 3%-5% since then until 2001, when the economy contracted 2.8% in the wake of the September 11 terrorist attacks and the global drop-off in tourism. Growth picked up again in 2004 and 2005, and the economy grew by 3.8% in 2006.

Tourism drives the economy in Barbados, but offshore banking and financial services have become an increasingly important source of foreign exchange and economic growth. The sugar industry, once dominant, now makes up less than 1% of GDP and employs only around 500 people. The labor force totaled 142,000 persons at the end of 2006. The average rate of unemployment during the last quarter of 2006 was estimated at 7.6%. The current account deficit expanded to 12.5% of GDP, and government debt rose above 80% of GDP in 2006.

Barbados hosted the final matches of the Cricket World Cup in 2007, and much of the country's investment during 2006 and the beginning of 2007 was directed toward accommodating the expected influx of visitors. As a result of these preparations, growth was registered in all sectors, especially transportation, communications, construction, and utilities. The government and private sector are both working to prepare the country for the Caribbean Community (CARICOM) Single Market and Economy (CSME)--a European Union-style single market.

GDP (2008): $3.682 billion.
GDP growth rate (2008): 0.7%.
Per capita GDP (2008 est.): $19,100.
Inflation (2007): 5.5%.
Natural resources: Petroleum, fish, quarrying, natural gas.
Agriculture: Sugar accounts for less than 1% of GDP and 80% of arable land.
Manufacturing and construction: Food, beverages, infrastructure, electronic components, textiles, paper, chemicals.
Services: Tourism, banking and other financial services, and data processing.
Trade (2005): Exports--$359 million (merchandise) and $1.41 billion (commercial services). Major markets--United States (13.4%), European Union (12.4%), Trinidad and Tobago (10.8%), St. Lucia (6.1%), and Jamaica (5%). Imports--$1.6 billion (merchandise) and $636 million (commercial services). Major suppliers--United States (35.9%), Trinidad and Tobago (21.2%), European Union (13.3%), Japan (7.6%), and Canada (3.4%).
Official exchange rate: BDS$2 = U.S. $1.

Geography of Barbados

Location: Caribbean, island between the Caribbean Sea and the North Atlantic Ocean, northeast of Venezuela Geographic coordinates: 13 10 N, 59 32 W Map references: Central America and the Caribbean Area: total: 430 sq km land: 430 sq km water: 0 sq km Area-comparative: 2.5 times the size of Washington, DC Land boundaries: 0 km Coastline: 97 km Maritime claims: exclusive economic zone: 200 nm territorial sea: 12 nm Climate: tropical; rainy season (June to October) Terrain: relatively flat; rises gently to central highland region
Elevation extremes:
lowest point: Atlantic Ocean 0 m highest point: Mount Hillaby 336 m
Natural resources:
petroleum, fish, natural gas Land use: arable land: 37% permanent crops: 0% permanent pastures: 5% forests and woodland: 12% other: 46% (1993 est.) Irrigated land: NA sq km Natural hazards: infrequent hurricanes; periodic landslides Environment-current issues: pollution of coastal waters from waste disposal by ships; soil erosion; illegal solid waste disposal threatens contamination of aquifers Environment-international agreements: party to: Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution signed, but not ratified: Biodiversity Geography-note: easternmost Caribbean island

Government of Barbados

Under its constitution, Barbados is a parliamentary democracy modeled on the British system. The governor general represents the monarch. Control of the government rests with the cabinet, headed by the prime minister and responsible to the Parliament.

The bicameral Parliament consists of the House of Assembly and Senate. The 30 members of the House are elected by universal suffrage to 5-year terms. Elections may be called at any time the government wishes to seek a new mandate or if the government suffers a vote of no-confidence in Parliament. The Senate's 21 members are appointed by the governor general--12 with the advice of the prime minister, two with the advice of the leader of the opposition, and seven at the governor general's discretion to represent segments of the community.

Barbados has an independent judiciary composed of magistrate courts, which are statutorily authorized, and a Supreme Court, which is constitutionally mandated. The Supreme Court consists of the high court and the court of appeals, each with four judges. The Chief Justice serves on both the high court and the court of appeals. The court of last resort is the Caribbean Court of Justice.

The island is divided into 11 parishes and the city of Bridgetown for administrative purposes. There is no local government.

The two main political parties--the Barbados Labour Party (BLP), the Democratic Labour Party (DLP)--are both moderate and have no major ideological differences; electoral contests and political disputes often have personal overtones. The major political problems facing Barbados today are in promoting economic growth: creating jobs, encouraging agricultural diversification, attracting foreign investment, and promoting tourism.

In January 15, 2008 parliamentary elections voters gave a majority to the DLP, led by David Thompson. This election ended 14 years of rule by the BLP. Prime Minister Thompson pledged to focus on domestic issues, particularly the cost of living, healthcare, and crime. Prime Minister Thompson passed away in October 2010 and was succeeded by Deputy Prime Minister Freundel Stuart. Mara Thompson, wife of the former prime minister, won the election held January 22, 2011 to fill the parliamentary seat left vacant by her husband’s death.

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Clifford Straughn Husbands
Prime Minister--Freundel Stuart
Ambassador to the United States and the OAS--John Beale
Ambassador to the UN--Christopher Hackett

Barbados maintains an embassy in the United States located at 2144 Wyoming Avenue, NW, Washington, DC 20008 (tel. 202-939-9200), a consulate general in New York City at 800 2nd Avenue, 18th Floor, New York, NY 10017 (tel. 212-867-8435), and a consulate general in Miami at 150 Alhambra Circle, Suite 1270, Coral Gables, FL33134 (tel. 305-442-1994).

Type: Parliamentary democracy; independent sovereign state within the Commonwealth.
Independence: November 30, 1966.
Constitution: 1966.
Branches: Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet. Legislative--bicameral Parliament. Judicial--magistrate's courts, Supreme Court (High Court and Court of Appeals), Caribbean Court of Justice in Trinidad and Tobago.
Subdivisions: Eleven parishes and the city of Bridgetown.
Political parties: Barbados Labour Party (BLP), Democratic Labour Party (DLP), People's Empowerment Party (PEP).
Suffrage: Universal at 18.

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History of Barbados

British sailors who landed on Barbados in the 1620s at the site of present-day Holetown on the Caribbean coast found the island uninhabited. As elsewhere in the eastern Caribbean, Arawak Indians may have been annihilated by invading Caribs, who are believed to have subsequently abandoned the island.

From the arrival of the first British settlers in 1627-28 until independence in 1966, Barbados was under uninterrupted British control. Nevertheless, Barbados always enjoyed a large measure of local autonomy. Its House of Assembly, which began meeting in 1639, is the third-oldest legislative body in the Western Hemisphere, preceded only by Bermuda's legislature and the Virginia House of Burgesses.

As the sugar industry developed into the main commercial enterprise, Barbados was divided into large plantation estates, which replace the small holdings of the early British settlers. Some of the displaced farmers relocated to British colonies in North America. To work the plantations, slaves were brought from Africa; the slave trade ceased a few years before the abolition of slavery throughout the British empire in 1834.

Plantation owners and merchants of British descent dominated local politics. It was not until the 1930s that the descendants of emancipated slaves began a movement for political rights. One of the leaders of this movement, Sir Grantley Adams, founded the Barbados Labor Party in 1938. Progress toward more democratic government for Barbados was made in 1951, when universal adult suffrage was introduced. This was followed by steps toward increased self-government, and in 1961, Barbados achieved internal autonomy.

From 1958 to 1962, Barbados was one of 10 members of the West Indies Federation, and Sir Grantley Adams served as its first and only prime minister. When the federation was terminated, Barbados reverted to its former status as a self-governing colony. Following several attempts to form another federation composed of Barbados and the Leeward and Windward Islands, Barbados negotiated its own independence at a constitutional conference with the United Kingdom in June 1966. After years of peaceful and democratic progress, Barbados became an independent state within the British Commonwealth on November 30, 1966.

People of Barbados

About 90% of Barbados' population is of African descent, 4% European descent, and 6% Asian or mixed. About 40% of Barbadians are Anglican, and the rest mostly Roman Catholic, Methodist, Baptist, and Moravian. There also are small Jewish and Muslim communities. Barbados' population growth rate has been very low, less than 1% since the 1960s, largely due to family planning efforts and a high emigration rate.

Nationality: Noun and adjective--Barbadian(s); informally "Bajan(s)."
Population (2008 estimate): 281,698.
Annual population growth rate (2005): 0.3%.
Ethnic groups: Predominantly of African descent 90%, white 4%, Asian or mixed 6%.
Religions: Protestant 67% (Anglican 40%, Pentecostal 8%, Methodist 7%, other 12%), Roman Catholic 4%, none 17%, other 12%.
Language: English.
Education (2005): Adult literacy--99.7%.
Health (2005): Infant mortality rate--11.0/1,000. Life expectancy--men 70.8 years; women 74.8 years.
Work force (2006): 142,000 (tourism, government, manufacturing, construction, mining, agriculture, fishing).
Unemployment (2009): 10%.

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