Haiti is a country located on the island of Hispaniola in the archipelagoof the Caribbean Sea. It occupies the western three-eighths of the island, which it shares with the Dominican Republic. Haiti is 27,750 square kilometers in size and has an estimated 10.8 million people, making it the most populous country in the Caribbean Community (CARICOM) and the second-most populous country in the Caribbean as a whole. The region was originally inhabited by the indigenous Taíno people.
Tourism in Haiti
Tourism in Haiti is an industry that has generated just millions of arrivals, and is one of the main sources of revenue for the island. With its favorable climate, second longest coastline of beaches and most mountainous ranges in the Caribbean, waterfalls, underground caves, colonial architecture and distinct cultural history, Haiti has had its history as an attractive destination for tourists.
Population
- The current population of Haiti is 11,141,220
- Haiti population is equivalent to 15% of the total world population.
- Haiti ranks number 85in the list of the countries.
- The population density in Haiti is 403 per Km2
- The total landarea is 27,560 Km2
- 4 %of the population is urban
- The median agein Haiti is 2 years.
Economy of Haiti
Haiti is a free market economy with low labor costs and tariff-free access to the US for many of its exports. Its major trading partner is the United States. Haiti has preferential trade access to the US market through the Haiti Hemispheric Opportunity through Partnership Encouragement (HOPE) and Haiti Economic Lift Program Encouragement Acts (HELP) legislation, which allows duty-free access, for a variety of textiles, to the US market.
Haiti has an agricultural economy. Over half of the world’s vetiver oil (an essential oil used in high-end perfumes) comes from Haiti, and bananas, cocoa, and mangoes are important export crops. Haiti has also moved to expand to higher-end manufacturing, producing Android-based tablets and current sensors and transformers.
Economic sectors in Haiti
Agriculture, forestry, and fishing
Although many Haitians make their living through subsistence farming, Haiti also has an agricultural export sector. Agriculture, together with forestry and fishing, accounts for about one-quarter of Haiti’s annual gross domestic product and employs about two-thirds of the labor force. However, expansion has been difficult because mountains cover much of the countryside and limit the land available for cultivation.
Mining and minerals
Haiti has a mining industry which extracted minerals such as Bauxite, copper, calcium carbonate, gold, and marble which are the most extensively extracted minerals in Haiti. Lime and aggregates and to a lesser extent marble are extracted. Gold was mined by the Spanish in early colonial times. Bauxite was mined for a number of years in recent times at a site near Miragoâne on the Southern peninsula.
Manufacturing
The leading industries in Haiti produce beverages, butter, cement, detergent, edible oils, flour, refined sugar, soap, and textiles. Growth in both manufacturing and industry as a whole has been slowed by a lack of capital investment. Grants from the United States and other countries have targeted this problem, but without much success. Private home building and construction appear to be one subsector with positive prospects for growth.
Energy
- Haiti uses very little energy, the equivalent of approximately 250 kilograms of oil per head per year.
- Haiti produces about 550 million kilowatt-hours of electricity while consumes an average of 500 million kilowatt-hours.
- Most of the country’s energy comes from the burning of wood. Thermal plants provide electricity to the rest of the country.
Services
Haiti’s services sector is made up of 52 percent of the country’s gross domestic product and employs 25 percent of the labor force.
Investing in Haiti
Haiti’s strategic position places it near many of the world’s main ports, including the US (3 days), Panama (5 days), and Europe (10 days). With 2 international airports, and nearly 20 daily non-stop flights from the US, Europe, and Latin America, Haiti is uniquely situated as a strategic hub for managers and materials alike.
Despite the challenges, there are significant business opportunities within the Haitian market for small-to-medium sized U.S. businesses.
In terms of manufacturing opportunities in Haiot, the apparel sector remains the most obvious. Through its modern industrial park and free zone facilities, it has grown dramatically with total exports valued at $848.87 million, making Haiti one of the best prospect markets in the Caribbean region.
Emerging sectors in Haiti are currently construction, agribusiness and energy. For example, the construction of public buildings in the administrative city of Port-au-Prince can offer contract opportunities to U.S. manufacturers and construction firms. These sectors necessitate the following: power generation equipment, packaging and food processing equipment, energy efficient and smart grid systems, and construction materials.
Finally, with the Haitian government’s recent efforts to improve telecommunication infrastructure and internet connectivity, there is a growing interest for call center (Business Process Outsourcing – BPO) development in Haiti. Haiti’s relatively low labor cost and large pool of young multilingual workers offer a comparative advantage for investment in BPO services.
What types of industries are possible for investing in Haiti?
- Manufacturing
- Agriculture
- Technology
- Apparel
- Beverages
- Tourism
- Infrastructure
Taxation in Haiti
Corporate income tax in Haiti is composed at a standard rate of 30%. All companies must register for tax with the Haitian tax administration and the file annual returns within 3 months following the end of the fiscal year.
The Capital Gain Tax in Haiti is applicable as a standard rate of 15% on taxable income.
The Value Added Tax (VAT) is applicable at a standard rate of 10%. All legal entities are required to register for VAT and file monthly returns.
Withhold tax in Haiti is applicable at a standard rate of 15% on:
- Dividends
- Interests
- Royalties
paid to both residents and non -resident companies.
Employers are request to submit monthly:
- Social security contribution of 6% of their employees gross salary to the Haiti Retirement Insurance Office (ONA).
- Health Insurance contribution of 3%.
Other tax in Haiti include:
- 15% property transfer tax levied on the total value of the property
- A payroll tax of 3% of the employees gross salary.