It remains highly dependent on tourism, however, which accounts directly or indirectly for more than half of GDP and future prospects for growth will therefore be closely linked to income growth in the industrial world. The economy was traditionally almost entirely dominated by sugar which remained its major export earner until around 1960. With the decline in sugar prices Antigua and Barbuda s agriculture has diversified but remains very limited and supplies the domestic market. Key contributors to GDP are tourism and offshore banking. Antigua and Barbuda has no income tax.
Revenue is raised by trade and sales taxes.
Hurricanes in 1995 and 1998 damaged both tourist arrival numbers and tourist infrastructure although numbers appear to have recovered subsequently on both occasions. Antigua and Barbuda is hoping that tourist arrivals will be bolstered by a major development on Guiana Island just off the coast of Antigua which will provide 2000 hotel rooms plus villas and condominiums on a 1500 acre site. It remains controversial, however, because of environmental objections to the development of the area. It was set back in 1999 however when the US, UK and others imposed sanctions as a result of Antigua and Barbuda s failure to introduce new legislation and regulatory controls to prevent money laundering. These have now been put in place.